Strategic Workforce Planning & Analytics During …

1 Strategic Workforce Planning & Analytics DuringUniversity Sector Change10thUniversities HR Benchmarking Conference1 November 2013 Ephraim Spehrer-Patrick, Workforce Strategy & Planning LeaderPacificOlivia Tsen,Principal, TalentLeadership & Organisational PerformanceMERCER1 Strategic Workforce Planning & Analytics DuringUniversity Sector Change1. university Sector Context2. Strategic Workforce Planning3. Workforce Analytics4. Case Study: OECDQ & AAgendaMERCER2 Strategic requires managing contradictionsUniversities today face a range of contradictions .. and tough choicesHave talent surpluses in some shortages in other areasandValue and seek diversity from a cohesive cultureandWant efficient structures growing emphasis on innovationand leadershipandAre constrained by to retain top talentandDesire to increase use of technologysolutionscompete with online educationprovidersandNeed to provide clear vision less certain about some futurechallenges and changesandMERCER3 DynamicsPotential Workforce & organisation impactsUniversity SectorDrivers for more Strategic Workforce management Difficulty attracting Highly mobile Workforce (Gen X, Y and Z)

2 Loss of talent toprofessional practice Differentiating as an employer Inspiring leadership needed to attract talent Casualisation of Workforce Ability to attract research funding and bestand brightest staff and studentsGlobalCompetitionfor Talent Demand driven funding Increased competition Cost constraints Restructuring faculties /schools /departments Diversifying revenue streams Retention and engagement Greater accountability for results Clearer performance standards Change managementFundingPressures Skill shortages Ageing populationsDemographicShifts Global mobility and recruitment Loss of specialist knowledge Reputational risks Online learning and teaching capability Skill shortages inspecialist areas Ageing population TechnologicalinnovationDemographicShifts MERCER4 November 6, 2013 Strategic Workforce Planning & Analytics :Mercer s Point of View and ApproachMERCER5* According to research from Bersin & Associates, 2011: developing advanced Workforce Planning capabilities Crucial process helps HR leadersprioritiseScience + ArtOne of the leastdefined HRprocesses /disciplinesRanked one of thehighest priorities* Analytics +PlanningStrategic Workforce PlanningWhat is it?

3 MERCER6 Strategic Workforce PlanningWhat it is and what it isn tResourceAllocationPerformance &DevelopmentProcessCareerPlanningStrateg icWorkforcePlanningOperationalStrategicF unctionlevelIndividuallevelIt is future-oriented goesbeyond the one-yearhorizon focused oncritical workforcesegmentsMERCER7 Workforce Planning is asystematic processfor identifying andaddressingthe gapsbetween the current and future workforceresources and Workforce PlanningDefinedIt provides arational basis for prioritising, developing, and funding thepeople practicesto support the university strategy and LocationRight PeopleRight Time with theRight CostMERCER8 November 6, 2013 Funding / Budget Funding decline or increase Increasing productivity requirements Increasing revenuePrograms / Courses Policy changes New programs or courses Consolidation of programs orcoursesOperational New technology Process todeliver specificoutcomesWorkforce scenariosthat focus 5 yearscenariosStrategic Workforce starts by understanding where the university isheaded, and the turns it could take.

4 Re-calibrating forchange Increasingproductivity Improvingperformance Investing for futureexpansion Building capabilitiesfromwithinCostsCountsCapabil itiesStructureLocationsMERCER9 November 6, 2013 Strategic Workforce PlanningKey process stepsWorkforce Solution Design( Workforce Plan) Workforce Analysis(Supply, Demand & Gap) Strategic Setting &PreparationUnderstandorganisation strategydriversAnalysing currentworkforce structureIdentifying criticalcapabilities and rolesCurrent & FutureWorkforce SupplyCurrent & FutureWorkforce DemandGAP ANALYSISLOCATIONPEOPLETIME/COSTBuy Solutions(recruiting, co-& outsourcing, partnering)Build Solutions(developing, retaining, insourcing)Redeploy Solutions(exit, transfer, turnover)AWorkforce Plandescribes actionable solutions and their impact on Workforce gaps / 6, 2013 Workforce Planning Review of last decadeFour Archetypes of AlignmentSlow to reactDemand01 -02 03 -04 05 -06 07 -08 09 -10 OverreactionDemand01 -02 03 -04 05 -06 07 -08 09 -10 Business Demand Workforce PortfolioCautiousDemand01 -02 03 -04 05 -06 07 -08 09 -10 AlignmentDemand01 -02 03 -04 05 -06 07 -08 09 -10 /InvestmentBanksMERCER11 November 6, 2013 CurrentStateTraditional PlanningScenario PlanningHow should we translate our organisation strategy /plan to future Workforce demand scenarios?

5 Appropriate for long-term Planning and toforce out-of-the-box O D AYOption AFundingIncreasedOption BFundingMaintainedOption CFundingCutCurrentStateAppropriate in relatively stable environment. Best case(+10 %) Base case Worst case(-10 %)FUTURET O D AYCurrentStateMERCER12 November 6, 2013 CostCountsCapabilitiesLocationRole ARole BRole CRole DRole ESignificant actionNo actionSome actionHot spotsThrough this process, hot spots can be identified,leading to a prioritisation of possible actionsMERCER13 November 6, 2013 Mercer / The Conference Board, 2010 Level 1 Level 2 Level 3 Level 4 Budget driven headcount planningWorkforce dashboardsStrategicworkforceplanning & analyticsHumancapital Planning Headcount data (FTE) Retrospective, static analysis andreporting ( cost, basicdemographic data) Internal and external labour marketanalysis data Benchmarking ( attrition,productivity, HR processes)

6 Shared view on critical workforcesegments, capabilities + gaps Predictive models and scenarios Integrated in organisation strategyprocess Organisation-wide governance ( for Analytics and Planning )OPERATIONALbSTRATEGICaMaturity of Workforce Planning & AnalyticsDifferent levels of maturity in organisationsMERCER14 November 6, 2013142013 Mercer Research with the World Economic Forum (WEF)GLOBAL GOOD PRACTICE REPORTMERCER15 November 6, 201315152013 Mercer Research with the World Economic Forum (WEF)TALENT INVESTMENT RISINGFEW HAVE HIGHLY EFFECTIVE TALENT PLANSMERCER16 November 6, 201361% of universities have a Strategic Workforce planPREVALENCE OF A Workforce Planning STRATEGYMERCER17 November 6, 2013Of those that have a plan, most have a time horizon of 1-5 yearsPERIOD COVERED IN A Workforce PLANMERCER18 November 6, 2013 Workforce Planning strategies are heavily dependent onstudent demand for coursesCONSIDERATIONS WHEN DEVISING A Workforce Planning STRATEGYMERCER19 November 6, 2013 The Analytics JourneyMERCER20 November 6, 2013 Survey participantsUNIVERSITY BASENUMBER OF FTE*Other.

7 Includes universities in New ZealandMERCER21 November 6, 2013 ReactivechecksSimulations& forecastingCorrelationsBenchmarksOn-goin greportsCausalmodelingAnecdotesMeasureme nt continuumMoving from I Think To I Know LeastpowerfulMostpowerfulMERCER22 MoreSophisticationLess50% of universities mostfrequently use basic remaining 50% useexternal or universities are using moreadvanced analyticsCURRENT ANALYTICSB asic Analytics such as ongoing headcount/turnover reportsare most frequently usedMERCER23 Projections and forecasts are approaches that will enableuniversities to make better Workforce decisionsMoreSophisticationLessBetter Workforce decisions aremade as a result of moresophisticated workforceanalytics such as futureforecasts and projectionsbased on current dataWORKFORCE PLANNINGMERCER24 Vice Chancellors and

8 Senior Executives, Managers and HR areall interested in the use of Workforce analyticsINTERESTS urvey participants stronglyagree that HR leaders andSenior Executives and VCsare interested in workforceanalytics ( projections,simulations, predictivemodelling)MERCER25HR functions have the skills to conduct basic analyticsBasic AnalyticsSophisticatedAnalyticsHR SKILLS Most HR functions have the skills and capabilities to conduct basic Workforce Analytics such as ongoingreports and benchmarks However, many lack the skills to perform sophisticated skills such as projections, simulations and predictivemodellingStrongly disagreeMERCER26 Workforce analysis is generally completed by aCentre of Excellence (CoE) consisting of ~ 2 FTEsRESOURCING23%haveworkforceanalyticsd ecentralisedthroughoutthe university9%are currentlydecentralised but haveplans for COEwithin 12 months68%of universities completeworkforce analysisin a Centre of Excellence76%of universities have 2 FTE responsible forworkforce related analysis4%of universities have0 FTE responsible forworkforce analysis16%of universitieshave 3 5 FTE inworkforce analysis4%of universities have6 - 10 FTE responsiblefor Workforce analysisMERCER27 Universities want to use Workforce Analytics to supportworkforce Planning and drive efficiency gainsREASONS FOR FUTURE USE OF Workforce ANALYTICSMERCER28 FOUNDATIONALADVANCEDO utputInformationUsesToolsCounts, rates, and tabulationsW H ATis happening.

9 What is our turnover rate? How many promotions didwe make? What are spans of control? What is current productivity? Reporting (internal and external) Tracking progress toward goals Monitoring trendsBusiness intelligenceProven cause-and-effectrelationshipsWHY| HOW to change it: Why do people quit? What experiences are linked toadvancement? What are optimal spans? How can productivity increase? Analyse alignment Informing policy decisions Direction to achieve goalsStatistical modeling techniquesThe Journey: Two Categories of MeasurementMERCER29 Every organisation has aninternal labour market either by design or default People come in, advance,and leave Employees play to theorganisation s Leadership s choices andinvestments produceexceptional, nominal, ornegative effects Descriptive analysisThe Concept(1 ) ILM Mapping Causal analysis (drivers)(2) ILM Analysis Internal Labour Markets (ILM)Combining Foundational (1) with Advanced Analytics (2)

10 Promotions764853 HIRESEXITSCAREERLEVELL ateralMovesTotal EmployeesMERCER30 Thereal powerof ILM analysis comes from measuring andmodeling the drivers of these talent flows1172125190312116 Hires174912318422786 ExitsPromotions751766404963 Level 81685830 Careerlevel3383 Lateralmoves234453411868138168185134129 Totalworkers1172125190312116 Hires174912318422786 ExitsPromotions751775176640664049634963 Level 8168 Level 81685830 Careerlevel33833383 Lateralmoves234453411868138168185134129 TotalworkersKnow whoyou areselectingKnow whatyou arerewardingKnow whataccounts forperformancedifferencesKnow whatretainsemployeesMERCER31 Advanced Analytics : Example for ILM Analysis Previoussurveys ofperceptionssuggested that pay andworkload were mostcritical to analysis ofactualbehaviourshowedthat career opportunitiesmost affected ofperceptionssuggested that pay andworkload were mostcritical to analysis ofactualbehaviourshowedthat career opportunitiesmost affected models on which these results are based control for individual attributes, organisational factors, and external case exampleMERCER32 November 6, 2013 Case Study.