{"id":629,"date":"2019-08-05T17:03:48","date_gmt":"2019-08-05T17:03:48","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/?post_type=chapter&#038;p=629"},"modified":"2024-04-24T23:23:01","modified_gmt":"2024-04-24T23:23:01","slug":"impact-of-people-analytics-on-strategy","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/chapter\/impact-of-people-analytics-on-strategy\/","title":{"raw":"Impact of People Analytics on Strategy","rendered":"Impact of People Analytics on Strategy"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Identify key people analytics strategy impacts<\/li>\r\n<\/ul>\r\n<\/div>\r\n<img class=\"alignright wp-image-730\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/08\/06222649\/mimi-thian-lp1AKIUV3yo-unsplash-1024x768.jpg\" alt=\"Photograph of two business professionals talking to one another.\" width=\"400\" height=\"300\" \/>\r\n\r\nFor perspective on people analytics strategy impacts, consider the questions Chief Human Resource Officers business leaders are using analytics to answer:\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">\u201cHow do we identify and predict who is going to be the next batch of successful leaders in our organization?\u201d<\/li>\r\n \t<li style=\"font-weight: 400;\">\u201cHow do we make informed decisions around labor mix, talent attraction, and development?\u201d<\/li>\r\n \t<li style=\"font-weight: 400;\">\u201cWhat is the supply of talent in the external marketplace?\u201d<\/li>\r\n \t<li style=\"font-weight: 400;\">\u201cHow impactful is our leadership, the way we work, and our processes?\u201d<\/li>\r\n \t<li style=\"font-weight: 400;\">\u201cHow strong is our culture, and do we have the right people?\u201d<\/li>\r\n<\/ul>\r\nAs LinkedIn notes, \u201cHR data analytics can help answer many of the critical concerns CHROs must grapple with, including workforce diversity, geolocation decisions, hiring strategy, competitive benchmarking, workforce planning, and employer branding.\u201d[footnote]Chensoff, Grace, Catherine Coppinger, Pooja Chhabria, Candice Cheng, Alvin Kan, and Huiling Cheong. \"<a href=\"https:\/\/business.linkedin.com\/content\/dam\/me\/business\/en-us\/talent-solutions\/talent-intelligence\/workforce\/pdfs\/Final_v2_NAMER_Rise-of-Analytics-Report.pdf\" target=\"_blank\" rel=\"noopener\">The Rise of Analytics in HR<\/a>.\" LinkedIn. 2018. Accessed August 6, 2019.[\/footnote]\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/dce9d47e-708f-4719-9f09-12bc1e68de34\r\n\r\n<\/div>\r\n<div class=\"textbox examples\">\r\n<h3>Nielsen and Employee Retention[footnote]Steiner, Keenan. \u201c<a href=\"https:\/\/business.linkedin.com\/talent-solutions\/blog\/employee-retention\/2017\/how-nielsen-used-people-analytics-to-increase-retention-and-saved-millions-of-dollars\" target=\"_blank\" rel=\"noopener\">People Analytics Isn\u2019t as Hard as You Think\u2014Nielsen Proves Why<\/a>.\u201d LinkedIn. LinkedIn, March 9, 2017.[\/footnote]<\/h3>\r\nTo illustrate, consider how measurement and data analytics company Nielsen used people analytics to solve an issue with employee retention. In 2015, the leader of one of Nielsen\u2019s largest businesses asked the head of the company\u2019s new People Analytics group for assistance in identifying why people were leaving her team, saying \u201cAttrition is high\u2014something\u2019s going on. I feel it, I see it, I\u2019m losing my associates.\u201d\r\n\r\nIn fact, turnover had been identified as a company-wide issue and the people analytics team built a model to answer the question. The initial model factored in 20 employee data points, including age, gender, tenure and manager rating and generated a key finding: internal mobility was a critical retention factor. Specifically. employees that had been promoted or accepted a lateral job change within the past two years were much less likely to leave.\r\n\r\nBased on this insight, Neilsen created a \u201cReady to Rotate\u201d group to help employees interested in an internal transfer. The company also used the data to identify high performers who were \u201cat risk\u201d\u2014specifically, those with the greatest likelihood of leaving the company within six months\u2014and scheduled conversations that resulted in 40% being transferred to new roles.\r\n\r\nAnother key finding: the first year matters most. To act on this, Nielsen set up a program called \u201cGolden Year\u201d that tracks associate\u2019s first year.\r\n\r\nSo what was the business impact or these changes?\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">Voluntary turnover decreased by almost 50% (with millions of dollars in related HR expense savings)<\/li>\r\n \t<li style=\"font-weight: 400;\">Internal job changes increased by a multiple of 8 in the initiative\u2019s first year.<\/li>\r\n \t<li style=\"font-weight: 400;\">Annual retention of at-risk employees increased 5\u201310% in most groups.<\/li>\r\n<\/ul>\r\nNot surprisingly, this impact also established the credibility of the people analytics team.\r\n\r\n<\/div>\r\n<div class=\"textbox key-takeaways\">\r\n<h3>Learn More<\/h3>\r\nFor additional people analytics case studies, see David Geen\u2019s <a href=\"https:\/\/www.linkedin.com\/pulse\/20-people-analytics-case-studies-part-2-david-green?published=t\" target=\"_blank\" rel=\"noopener\">20 People Analytics Case Studies<\/a> article on LinkedIn.\r\n\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Identify key people analytics strategy impacts<\/li>\n<\/ul>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-730\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/08\/06222649\/mimi-thian-lp1AKIUV3yo-unsplash-1024x768.jpg\" alt=\"Photograph of two business professionals talking to one another.\" width=\"400\" height=\"300\" \/><\/p>\n<p>For perspective on people analytics strategy impacts, consider the questions Chief Human Resource Officers business leaders are using analytics to answer:<\/p>\n<ul>\n<li style=\"font-weight: 400;\">\u201cHow do we identify and predict who is going to be the next batch of successful leaders in our organization?\u201d<\/li>\n<li style=\"font-weight: 400;\">\u201cHow do we make informed decisions around labor mix, talent attraction, and development?\u201d<\/li>\n<li style=\"font-weight: 400;\">\u201cWhat is the supply of talent in the external marketplace?\u201d<\/li>\n<li style=\"font-weight: 400;\">\u201cHow impactful is our leadership, the way we work, and our processes?\u201d<\/li>\n<li style=\"font-weight: 400;\">\u201cHow strong is our culture, and do we have the right people?\u201d<\/li>\n<\/ul>\n<p>As LinkedIn notes, \u201cHR data analytics can help answer many of the critical concerns CHROs must grapple with, including workforce diversity, geolocation decisions, hiring strategy, competitive benchmarking, workforce planning, and employer branding.\u201d<a class=\"footnote\" title=\"Chensoff, Grace, Catherine Coppinger, Pooja Chhabria, Candice Cheng, Alvin Kan, and Huiling Cheong. &quot;The Rise of Analytics in HR.&quot; LinkedIn. 2018. Accessed August 6, 2019.\" id=\"return-footnote-629-1\" href=\"#footnote-629-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a><\/p>\n<div class=\"textbox tryit\">\n<h3>Practice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_dce9d47e-708f-4719-9f09-12bc1e68de34\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/dce9d47e-708f-4719-9f09-12bc1e68de34?iframe_resize_id=assessment_practice_id_dce9d47e-708f-4719-9f09-12bc1e68de34\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe><\/p>\n<\/div>\n<div class=\"textbox examples\">\n<h3>Nielsen and Employee Retention<a class=\"footnote\" title=\"Steiner, Keenan. \u201cPeople Analytics Isn\u2019t as Hard as You Think\u2014Nielsen Proves Why.\u201d LinkedIn. LinkedIn, March 9, 2017.\" id=\"return-footnote-629-2\" href=\"#footnote-629-2\" aria-label=\"Footnote 2\"><sup class=\"footnote\">[2]<\/sup><\/a><\/h3>\n<p>To illustrate, consider how measurement and data analytics company Nielsen used people analytics to solve an issue with employee retention. In 2015, the leader of one of Nielsen\u2019s largest businesses asked the head of the company\u2019s new People Analytics group for assistance in identifying why people were leaving her team, saying \u201cAttrition is high\u2014something\u2019s going on. I feel it, I see it, I\u2019m losing my associates.\u201d<\/p>\n<p>In fact, turnover had been identified as a company-wide issue and the people analytics team built a model to answer the question. The initial model factored in 20 employee data points, including age, gender, tenure and manager rating and generated a key finding: internal mobility was a critical retention factor. Specifically. employees that had been promoted or accepted a lateral job change within the past two years were much less likely to leave.<\/p>\n<p>Based on this insight, Neilsen created a \u201cReady to Rotate\u201d group to help employees interested in an internal transfer. The company also used the data to identify high performers who were \u201cat risk\u201d\u2014specifically, those with the greatest likelihood of leaving the company within six months\u2014and scheduled conversations that resulted in 40% being transferred to new roles.<\/p>\n<p>Another key finding: the first year matters most. To act on this, Nielsen set up a program called \u201cGolden Year\u201d that tracks associate\u2019s first year.<\/p>\n<p>So what was the business impact or these changes?<\/p>\n<ul>\n<li style=\"font-weight: 400;\">Voluntary turnover decreased by almost 50% (with millions of dollars in related HR expense savings)<\/li>\n<li style=\"font-weight: 400;\">Internal job changes increased by a multiple of 8 in the initiative\u2019s first year.<\/li>\n<li style=\"font-weight: 400;\">Annual retention of at-risk employees increased 5\u201310% in most groups.<\/li>\n<\/ul>\n<p>Not surprisingly, this impact also established the credibility of the people analytics team.<\/p>\n<\/div>\n<div class=\"textbox key-takeaways\">\n<h3>Learn More<\/h3>\n<p>For additional people analytics case studies, see David Geen\u2019s <a href=\"https:\/\/www.linkedin.com\/pulse\/20-people-analytics-case-studies-part-2-david-green?published=t\" target=\"_blank\" rel=\"noopener\">20 People Analytics Case Studies<\/a> article on LinkedIn.<\/p>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-629\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Impact of People Analytics on Strategy. <strong>Authored by<\/strong>: Nina Burokas. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Specific attribution<\/div><ul class=\"citation-list\"><li>Untitled. <strong>Authored by<\/strong>: Mimi Thian. <strong>Provided by<\/strong>: Unsplash. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/unsplash.com\/photos\/lp1AKIUV3yo\">https:\/\/unsplash.com\/photos\/lp1AKIUV3yo<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/cc0\">CC0: No Rights Reserved<\/a><\/em>. <strong>License Terms<\/strong>: Unsplash License<\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section><hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-629-1\">Chensoff, Grace, Catherine Coppinger, Pooja Chhabria, Candice Cheng, Alvin Kan, and Huiling Cheong. \"<a href=\"https:\/\/business.linkedin.com\/content\/dam\/me\/business\/en-us\/talent-solutions\/talent-intelligence\/workforce\/pdfs\/Final_v2_NAMER_Rise-of-Analytics-Report.pdf\" target=\"_blank\" rel=\"noopener\">The Rise of Analytics in HR<\/a>.\" LinkedIn. 2018. Accessed August 6, 2019. <a href=\"#return-footnote-629-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><li id=\"footnote-629-2\">Steiner, Keenan. \u201c<a href=\"https:\/\/business.linkedin.com\/talent-solutions\/blog\/employee-retention\/2017\/how-nielsen-used-people-analytics-to-increase-retention-and-saved-millions-of-dollars\" target=\"_blank\" rel=\"noopener\">People Analytics Isn\u2019t as Hard as You Think\u2014Nielsen Proves Why<\/a>.\u201d LinkedIn. LinkedIn, March 9, 2017. <a href=\"#return-footnote-629-2\" class=\"return-footnote\" aria-label=\"Return to footnote 2\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":17,"menu_order":7,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Impact of People Analytics on Strategy\",\"author\":\"Nina Burokas\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc-attribution\",\"description\":\"Untitled\",\"author\":\"Mimi Thian\",\"organization\":\"Unsplash\",\"url\":\"https:\/\/unsplash.com\/photos\/lp1AKIUV3yo\",\"project\":\"\",\"license\":\"cc0\",\"license_terms\":\"Unsplash License\"}]","CANDELA_OUTCOMES_GUID":"586f901d-4768-4430-b366-b94a78b62609, 2b132bd7-13f8-4f18-a446-4924ba729e26","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-629","chapter","type-chapter","status-publish","hentry"],"part":621,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/users\/17"}],"version-history":[{"count":11,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/629\/revisions"}],"predecessor-version":[{"id":3306,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/629\/revisions\/3306"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/parts\/621"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/629\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/media?parent=629"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapter-type?post=629"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/contributor?post=629"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/license?post=629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}