People Analytics

People analytics applies big data methods to talent management. Organisations apply analytics to recruiting, onboarding, and retention. This work uncovers surprising sources of talent and counter-intuitive insights regarding the drivers of employee performance.

Insight from an HR Director

Why choose people analytics?
HR Directors seek to reduce employee turnover.

Meet Catherine…
Catherine is the HR Director at a large commercial construction company, she needs to reduce employee turnover from 18 to 14%.

Stabilising the workforce
Although Catherine’s organisation is growing a bit faster than the competition. The leaders believe they can capture even more market share by improving workforce stability. The first step was to understand their current level of turnover and benchmark this against their competitors. The second step would require Catherine to calculate the true cost of staff turnover. This helps the leadership team decide how much to invest in improvements.

The lack of an analytics solution forces Catherine’s team to create and review reports manually. This manual admin kept Catherine in a fog of tedium. She could not gain the strategic distance necessary to understand the organisation’s turnover problem. Meanwhile, it was clear that turnover has been costing the company significant amounts of money.

Volatile conditions
Understanding turnover costs would allow Catherine’s organisation to make realistic decisions about the value of investing in a staff retention programme. However, constant changes in the market make it difficult to calculate accurate turnover costs. Without this information, it’s not possible for Catherine to optimise her organisation’s rewards and recognition program.

Finding alignment points
A recent cultural transformation now sees turnover as an unnecessary cost and focused efforts begin to encourage staff retention. Catherine realised that to reach her turnover goal, she needed accurate data to give line managers early warning so they can intervene before employees leave.

Catherine and her team identified a selection of possible factors that could be contributing to turnover. She then liaises with the rest of the leadership team to understand the key outcomes they need from the people analytics project. This required an intensive process of data exploration and discussion amongst the senior leadership team. The key alignment points were revenue growth, project quality, and project delivery speed.

The impact of motivation
The implementation of a dynamic people analytics solution has revealed to Catherine a complex picture of what motivates employees to stay and what motivates them to leave.

The average cost per turnover at Catherine’s organisation is £9,870. She’s responsible for over 3,400 employees with an annual turnover of 612 employees. Before the transformation, turnover cost her organisation £6,040,440 per year. Reaching the 14% target is saving Catherine’s organisation £1,342,320 year on year.

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