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Contents
Transforming HR:
Workforce analytics
Workforce performance
and business strategy:
Unite 3
Harnessing data:
Marching up the
maturity curve 11
Insights to-go
17
Appendix: Additional
data charts 18
About PwC HRS
19
20
Trends in workforce
analytics
Capturing the latest results from US Human
Capital Effectiveness Benchmarks, 2014
Workforce performance
and business strategy:
Unite 3
Harnessing data:
Marching up the
maturity curve 11
Insights to-go
17
Appendix: Additional
data charts 18
About PwC HRS
19
20
Contacts &
Contacts
and
Membership 21
acknowledgements 21
Trends in workforce analytics: Capturing the latest benchmark results from US Human Capital Effectiveness Reports, 2014
Contents
Transforming HR:
Workforce analytics
Workforce performance
and business strategy:
Unite 3
Harnessing data:
Marching up the
maturity curve 11
Insights to-go
17
Appendix: Additional
data charts 18
About PwC HRS
19
20
#1
#2
#3
#4
Contacts &
Contacts
and
Membership 21
acknowledgements 21
Trends in workforce analytics: Capturing the latest benchmark results from US Human Capital Effectiveness Reports, 2014
Contents
Transforming HR:
Workforce analytics
Workforce performance
and business strategy:
Unite 3
Harnessing data:
Marching up the
maturity curve 11
Insights to-go
17
Appendix: Additional
data charts 18
About PwC HRS
19
20
Contacts
and
Contacts &
Membership 21
acknowledgements 21
$102,210
$102,000
$101,566
$100,000
$98,000
$97,855
$96,000
$94,000
2010
2011
2012
2013
28.8%
28.2%
25%
20%
22.6%
15%
2010
2011
2012
2013
$360,000
$344,432
Headcount management
$340,000
$320,000
$338,773
2010
2011
Trends in workforce analytics: Capturing the latest benchmark results from US Human Capital Effectiveness Reports, 2014
2012
2013
Contents
Transforming HR:
Workforce analytics
Workforce performance
and business strategy:
Unite 3
Harnessing data:
Marching up the
maturity curve 11
Insights to-go
17
Appendix: Additional
data charts 18
About PwC HRS
19
20
Contacts &
Contacts
and
Membership 21
acknowledgements 21
8%
7%
7.0%
6.0%
6%
5%
4%
3%
8.8%
8.0%
4.4%
5.0%
4.3%
2010
2011
Overall Voluntary
2012
2013
High performer
Trends in workforce analytics: Capturing the latest benchmark results from US Human Capital Effectiveness Reports, 2014
Workforce performance
and business strategy:
Unite 3
Harnessing data:
Marching up the
maturity curve 11
Insights to-go
17
Appendix: Additional
data charts 18
About PwC HRS
19
20
Our work in conducting employee engagement surveys and benchmarking across numerous industries shows that 86% of employees indicate
that they intend to stay with their organization for the next year.
Interestingly, our attrition-risk predictive solutions show that the response
to this question can be a powerful predictor of actual attrition behavior.
To gain further insight, we asked this question of employees within one
organization in a different way. Instead of providing respondents with
a five-point agree/disagree scale, we gave them a series of attrition
timeframes of:
One-year
Two-to-three years
Three-to-five-years, and so on
Predictive models revealed that responses of one-year and two-tothree years significantly foreshadowed actual attrition in the next 12
monthssuggesting that respondents who are actively seeking new
opportunities might shy away from responding within one year, but
may feel somewhat safer responding two-to-three years even when
they intend to depart sooner.
Trends in workforce analytics: Capturing the latest benchmark results from US Human Capital Effectiveness Reports, 2014
Contents
Transforming HR:
Workforce analytics
Workforce performance
and business strategy:
Unite 3
Harnessing data:
Marching up the
maturity curve 11
Insights to-go
17
Appendix: Additional
data charts 18
About PwC HRS
19
20
Contacts
Membership 21
Contacts &
and
acknowledgements 21
Trends in workforce analytics: Capturing the latest benchmark results from US Human Capital Effectiveness Reports, 2014
Contents
Transforming HR:
Workforce analytics
We see two significant hiring trends. First, organizations are hiring more people.
Our study shows that the percentage of employee headcount for new external
hires has grown in the last three years, increasing by nearly 39.8% from 2010
to 2013. Second, first year of service turnover has increased for the second
consecutive year, from 22.6% in 2012 to 24.1% in 2013.
Workforce performance
and business strategy:
Unite 3
Harnessing data:
Marching up the
maturity curve 11
So, while hiring quantity has increased, hire quality has dropped. Given these
trends, its reasonable to consider that organizations may relapse to pre-recession
Insights to-go
17
19
20
Contacts &
Membership 21
Contacts
and
acknowledgements 21
25%
20%
24.1%
22.7%
21.5%
22.6%
15%
11.5%
10%
12.9%
13.7%
9.8%
5%
2010
Appendix: Additional
data charts 18
2011
2012
External recruitment rate
2013
Trends in workforce analytics: Capturing the latest benchmark results from US Human Capital Effectiveness Reports, 2014
Contents
Transforming HR:
Workforce analytics
Workforce performance
and business strategy:
Unite 3
Harnessing data:
Marching up the
maturity curve 11
Insights to-go
17
Appendix: Additional
data charts 18
About PwC HRS
19
20
Contacts &
Contacts
and
Membership 21
acknowledgements 21
$2,000
$1,923
$1,500
$1,995
$1,610
$1,495
$1,000
2010
2011
2012
2013
Trends in workforce analytics: Capturing the latest benchmark results from US Human Capital Effectiveness Reports, 2014
Contents
Transforming HR:
Workforce analytics
Workforce performance
and business strategy:
Unite 3
Harnessing data:
Marching up the
maturity curve 11
Insights to-go
17
Appendix: Additional
data charts 18
About PwC HRS
19
20
Contacts &
Contacts
and
Membership 21
acknowledgements 21
Trends in workforce analytics: Capturing the latest benchmark results from US Human Capital Effectiveness Reports, 2014
10
Contents
Transforming HR:
Workforce analytics
Workforce performance
and business strategy:
Unite 3
Harnessing data:
Marching up the
maturity curve 11
Pilot
Build process and governance
Insights to-go
17
Appendix: Additional
data charts 18
About PwC HRS
19
20
Contacts &
Contacts
and
Membership 21
acknowledgements 21
High
What is likely to happen
and how can we be
better prepared?
Predictive
solutions
Predictive analytics
Workforce planning
Why did it happen
and how/where can 3
we improve?
Measurement
maturity
What happened and
how do we compare on
a defined set of metrics?
What happened?
1
Low
Low
Ad hoc metrics
and reports
Workforce surveys
Executive dashboards
Descriptive
benchmarking &
dashboards
Metrics/benchmarking
High
Trends in workforce analytics: Capturing the latest benchmark results from US Human Capital Effectiveness Reports, 2014
11
Contents
Transforming HR:
Workforce analytics
Workforce performance
and business strategy:
Unite 3
Harnessing data:
Marching up the
maturity curve 11
Insights to-go
17
Level 1
Level 4
Level 2
Organizations are not only able to identify what
happened, but they also are able to extract key data
elements to compute standardized metrics that allow
for systematic tracking and comparisons with peers.
Forexample:
Did we develop internal mobility for high performers
or low performers?
Appendix: Additional
data charts 18
19
20
Contacts &
Contacts
and
Membership 21
acknowledgements 21
Level 3
Organizations begin to answer the why and how
questions:
Why did my high performers quit?
How many new hires do I need to meet our projected
revenue growth in a given area?
Trends in workforce analytics: Capturing the latest benchmark results from US Human Capital Effectiveness Reports, 2014
12
Contents
Transforming HR:
Workforce analytics
1. Find the traits and skills that feed success based on your strategy.
Build management skills and cultivate strong leadership; set the
tone at the top to cultivate the right corporate culture.
2
Workforce performance
and business strategy:
Unite 3
Harnessing data:
Marching up the
maturity curve 11
Insights to-go
17
Appendix: Additional
data charts 18
About PwC HRS
19
20
Trends in workforce analytics: Capturing the latest benchmark results from US Human Capital Effectiveness Reports, 2014
13
Contents
Transforming HR:
Workforce analytics
Workforce performance
and business strategy:
Unite 3
Harnessing data:
Marching up the
maturity curve 11
Insights to-go
17
Appendix: Additional
data charts 18
About PwC HRS
19
20
Trends in workforce analytics: Capturing the latest benchmark results from US Human Capital Effectiveness Reports, 2014
14
Contents
Transforming HR:
Workforce analytics
Workforce performance
and business strategy:
Unite 3
Harnessing data:
Marching up the
maturity curve 11
Insights to-go
17
Appendix: Additional
data charts 18
About PwC HRS
19
20
The following practices can help you overcome the challenges inherent
in executing a data driven Total Rewards strategy:
Use the business intelligence generated by workforce analytics to
inform the companys total rewards strategy.
Determine which of the employee behaviors they are trying to
promote align with the companys values.
Design rewards programs that guide, promote, and compensate the
behaviors that will strengthen the companys culture and deliver
the best individual results.
Leverage advanced conjoint analysis or total reward optimization to
better align programs with employee preferences.
Our findings show that companies increasingly rely on workforce
analytics to achieve business results. Organizations that use that
information wisely to engage the critical talent will be better
positioned to win the talent war.
Trends in workforce analytics: Capturing the latest benchmark results from US Human Capital Effectiveness Reports, 2014
15
Contents
Transforming HR:
Workforce analytics
Workforce performance
and business strategy:
Unite 3
Harnessing data:
Marching up the
maturity curve 11
Insights to-go
17
Appendix: Additional
data charts 18
About PwC HRS
19
20
Trends in workforce analytics: Capturing the latest benchmark results from US Human Capital Effectiveness Reports, 2014
16
Insights to-go
Contents
Transforming HR:
Workforce analytics
Workforce performance
and business strategy:
Unite 3
Harnessing data:
Marching up the
maturity curve 11
Insights to-go
17
Appendix: Additional
data charts 18
About PwC HRS
19
20
Trends in workforce analytics: Capturing the latest benchmark results from US Human Capital Effectiveness Reports, 2014
17
Workforce performance
and business strategy:
Unite 3
$80,000
Insights to-go
$78,000
Appendix: Additional
data charts 18
About PwC HRS
19
20
$20,000
$81,502
18%
$18,978
$79,916
$19,000
16%
$18,364
$79,000
$79,251
15.3%
$17,862
$18,000
15.1%
14%
$17,000
$76,813
2010
13.8%
$17,176
$77,000
$76,000
$81,000
Harnessing data:
Marching up the
maturity curve 11
17
$16,000
2011
2012
2013
11.6%
12%
2010
2011
2012
2013
2010
2011
2012
2013
High-potential voluntary
separation
6%
10.5%
4.4%
10%
4%
8.7%
2.4%
2.8%
8%
2%
7.7%
6%
0%
2010
2011
2012
2013
2011
2012
2013
Trends in workforce analytics: Capturing the latest benchmark results from US Human Capital Effectiveness Reports, 2014
18
Workforce performance
and business strategy:
Unite 3
Harnessing data:
Marching up the
maturity curve 11
Insights to-go
17
Appendix: Additional
data charts 18
About PwC HRS
19
20
Trends in workforce analytics: Capturing the latest benchmark results from US Human Capital Effectiveness Reports, 2014
19
Workforce performance
and business strategy:
Unite 3
Harnessing data:
Marching up the
maturity curve 11
Insights to-go
17
Appendix: Additional
data charts 18
About PwC HRS
19
20
Trends in workforce analytics: Capturing the latest benchmark results from US Human Capital Effectiveness Reports, 2014
20
Contacts
Acknowledgements
Contents
Transforming HR:
Workforce analytics
Workforce performance
and business strategy:
Unite 3
Harnessing data:
Marching up the
maturity curve 11
Insights to-go
17
Appendix: Additional
data charts 18
About PwC HRS
19
20
Kristina Dunphy
Senior Associate
Brandon Robertson
Director
Bhushan Sethi
Managing Director
Kim Starmann
Director
Mariana Uzcategui
Director
2014 PricewaterhouseCoopers LLP. All rights reserved. PwC refers to the United States member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity.
Please see www.pwc.com/structure for further details. This document is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. PM-14-0332