30/8/2016

BigDatainHumanResources:TalentAnalytics(PeopleAnalytics)ComesofAge

http://onforb.es/WQQW01

JoshBersinContributor

IanalyzecorporateHR,talentmanagementandleadership.
OpinionsexpressedbyForbesContributorsaretheirown.

LEADERSHIP

2/17/2013@8:00PM 100.932views

BigDatainHumanResources:Talent
Analytics(PeopleAnalytics)Comesof
Age
GartnerexpectsthemarketforBigDataand
analyticstogenerate$3.7Trillioninproducts
andservicesandgenerate4.4millionnewjobsby
2015.Whilemostofthetalkisaboutapplying
BigDatatomarketingandconsumerbusinesses,
thereisanevenbiggeropportunitytoapply
BigDatatoHumanResources.(WecallitTalent
AnalyticsnowrenamedtoPeopleAnalytics)
WhatisBigDatainHR?
Therearearound160millionworkersintheUS
alone,andmostcompanyslargestexpenseis
payroll.Infactinmostbusinessespayrollis40%
ormoreoftotalrevenue,meaningthattotalUS
payrollexpenseismanybillionsofdollars.
Howwelldoorganizationstrulyunderstandwhat
drivesperformanceamongtheirworkforce?The
answer:notreallyverywell.Doweknowwhy
onesalespersonoutperformshispeers?Dowe
understandwhycertainleadersthriveandothers
flameout?Canweaccuratelypredictwhethera
candidatewillreallyperformwellinour
organization?

http://www.forbes.com/sites/joshbersin/2013/02/17/bigdatainhumanresourcestalentanalyticscomesofage/print/

1/6

30/8/2016

BigDatainHumanResources:TalentAnalytics(PeopleAnalytics)ComesofAge

Theanswertomostofthesequestionsisno.The
vastmajorityofhiring,management,promotion,
andrewardsdecisionsaremadeongutfeel,
personalexperience,andcorporatebelief
systems.
ThisisliketheVicePresidentofmarketing
spendingmillionsofdollarsonanewmarketing
campaignbecauseheorshealwaysdoesitthis
way.Itsanobsoletewaytomakedecisions.
AnExample:HiringtheBestSalesPerson
Letmegiveyouanexample:
Oneofourclients,alargefinancialservices
company,operatesunderabeliefsystemthat
employeeswithgoodgradeswhocomefrom
highlyrankedcollegeswillmakegood
performers.Sotheirrecruitment,selection,and
promotionprocessisbasedontheseacademic
drivers.
Severalyearsagooneoftheiranalystsperformed
astatisticalanalysisofsalesproductivityand
turnover.Theylookedatsalesperformanceover
thefirsttwoyearsofanewemployeeand
correlatedtotalperformanceandretentionrates
againstavarietyofdemographicfactors.
Whattheyfoundwasastounding.Theresultsare
shownbelow.

Fig1:Whatreallymattersinsalesperformance
(financialservicescompany)
Whatdiddrivesalesperformance:
Anaccurate,grammaticallycorrect
resume
Havingcompletedsomeeducation
frombeginningtoend
Havingsuccessfulsalesexperiencein
highpriceditems
Demonstratedsuccessinsomeprior
job
Abilitytoworkunderunstructured
conditions.
http://www.forbes.com/sites/joshbersin/2013/02/17/bigdatainhumanresourcestalentanalyticscomesofage/print/

2/6

30/8/2016

BigDatainHumanResources:TalentAnalytics(PeopleAnalytics)ComesofAge

WhatdidNOTmatter:
Wherethecandidatewenttoschool
WhatGPAtheyhad
Thequalityoftheirreferences.

DataTellstheStory
Ifyouvedonealotofhiring,youknowhowhard
itcanbetoassessanindividualslikelihoodof
success.
Well,despitea30yearbeliefsystemwhichmade
thiscompanysuccessful,datashowedadifferent
story.Oncethisdatawasputbackintothe
recruitingprocess,thecompanysawmorethan
$4Mimprovementinrevenuesinthenextfiscal
period.
BigDataTellsaStory,butWeHaveto
Listen
Companiesareloadedwithemployee,HR,and
performancedata.Forthelast30yearswehave
captureddemographicinformation,performance
information,educationalhistory,joblocation,
andmanyotherfactorsaboutouremployees.Are
weusingthisdatascientificallytomakepeople
decisions?Notyet.
This,tome,isthesinglebiggestBigData
opportunityinbusiness.Ifwecanapplyscience
toimprovingtheselection,management,and
alignmentofpeople,thereturnscanbe
tremendous.
HowtoLeverageBigDatainHR
Howdoyouleveragethishugeopportunityin
yourcompany?Welloftenyouhavethisdata
already,butyouneedtheanalyticexperienceand
skillstoperformtherightanalysis.Anditall
startswithaskingtherightquestions.
MostcompanieshavelotsandlotsofHRdata
(employeedemographics,performanceratings,
talentmobilitydata,trainingcompleted,age,
academichistory,etc.)buttheyareinnoposition
touseit.
OurnewestresearchonHRsystemsshows,in
fact,thattheaveragelargecompanyhasmore
than10differentHRapplicationsandtheircore
HRsystemisover6yearsold.Soittakeseffort
andenergytobringthisdatatogetherandmake
senseofit.
Mostimportantlyofall,thereisarealdiscipline
todataanalytics.Itdemandsskillsindata
analysis,cleaning,statistics,visualization,and
http://www.forbes.com/sites/joshbersin/2013/02/17/bigdatainhumanresourcestalentanalyticscomesofage/print/

3/6

30/8/2016

BigDatainHumanResources:TalentAnalytics(PeopleAnalytics)ComesofAge

problemsolving.MostHRprofessionalsdonot
yethavetheseskills,socompanieshavetofind
thesepeopleandbringthemtogethertoworkon
HRdata.

Fig2:BersinbyDeloitteTalentAnalytics
MaturityModel
NowistheTime
Nowisthetimetofocusontalentanalytics.Our
clientsareworkingonmanyhighreturn
applicationswhichapplytonearlyevery
business:
Employeeretentionwhatcreates
highlevelsofengagementand
retention?
Salesperformancewhatfactors
drivehighperformingsales
professionals?
Accidentclaimswhatfactorsand
whichpeoplearelikelytocreate
accidentsandsubmitclaims?
Leadershippipelinewhoarethe
mostsuccessfulleadersandwhyare
somebeingdevelopedandothersare
not?

http://www.forbes.com/sites/joshbersin/2013/02/17/bigdatainhumanresourcestalentanalyticscomesofage/print/

4/6

30/8/2016

BigDatainHumanResources:TalentAnalytics(PeopleAnalytics)ComesofAge

Lossanalysiswhyaresome
locationsmorepronetotheftand
lossandwhatcausesthevariation?
Customerretentionwhattalent
factorsdrivehighlevelsofcustomer
satisfactionandretention?
Expectedleadershipandtalentgaps
whereareourcurrenttalentgaps
intheorganizationandwhatgaps
canwepredictincomingyears?
Candidatepipelinewhatisthe
qualityofourcandidatepipelineand
howdowebetterattractandselect
peoplewhoweknowwillsucceedin
ourorganization?

Overthelasttenyearswehavebeenstudying
applicationsofmeasurementwithinHRandthis
areahasnowrisentothetop.WhenweaskedHR
leaderstodescribetheirtopopportunitiesfor
valuecreationlatelastyear,measuringand
predictingtalentperformanceratedamongthe
topthree.
BigDatainHRishere.
Ifyouwouldliketolearnmoreabouthowto
developahighperformingtalentanalytics
solution,pleasecontactusorjoinusatour
upcomingresearchconferenceIMPACT2013:
TheBusinessofTalent.Wewillbe
demonstratingsomeexcitingnewsolutionsand
youcanmeetwithmorethan500seniorHRand
Talentleaderstounderstandtheiranalytics
solutions.
Youcanfollowmetostayuptodateontrends,
research,andnewsinallareasofHR,
leadership,andtalentmanagementontwitter
at@josh_bersin.Formoreinformationon
BersinbyDeloitte,pleasevisit
http://www.bersin.com.
ThispublicationcontainsgeneralinformationonlyandDeloitteisnot,bymeans
ofthispublication,renderingaccounting,business,financial,investment,legal,
tax,orotherprofessionaladviceorservices.Thispublicationisnotasubstitute
forsuchprofessionaladviceorservices,norshoulditbeusedasabasisforany
decisionoractionthatmayaffectyourbusiness.Beforemakinganydecisionor
takinganyactionthatmayaffectyourbusiness,youshouldconsultaqualified
professionaladvisor.

Deloitteshallnotberesponsibleforanylosssustainedbyanypersonwhorelies
onthispublication.

AboutDeloitte

Asusedinthisdocument,DeloittemeansDeloitteConsultingLLP,asubsidiary
ofDeloitteLLP.Pleaseseewww.deloitte.com/us/aboutforadetailed
descriptionofthelegalstructureofDeloitteLLPanditssubsidiaries.Certain
servicesmaynotbeavailabletoattestclientsundertherulesandregulationsof
publicaccounting.

http://www.forbes.com/sites/joshbersin/2013/02/17/bigdatainhumanresourcestalentanalyticscomesofage/print/

5/6

30/8/2016

BigDatainHumanResources:TalentAnalytics(PeopleAnalytics)ComesofAge

RECOMMENDEDBYFORBES

HR,Leadership,Technology,andTalent
ManagementPredictionsfor2013
TheMostExpensiveHomeListinginEveryState
2016
TheWorstCareerAdviceI'veEverHeardIsAlso
TheMostCommon
TheRichestPersonInEveryState
HowToWriteBetterEmails

Thisarticleisavailableonlineat:http://onforb.es/WQQW01

2016Forbes.comLLCAllRightsReserved

http://www.forbes.com/sites/joshbersin/2013/02/17/bigdatainhumanresourcestalentanalyticscomesofage/print/

6/6