Empowering Success With Big Data-Driven Talent Acquisition

David Bernstein – VP Data Analytics

July 15, 2013

Background

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Market Interest In…

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Huge Interest in “Big Data”

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Why Is There So Much Interest?

• The promise of what you can do with Big Data

• Golden opportunity to contribute to the success and profitability of the business

• A new way to look at data and business issues –Real time, patterns and trends, and forecasting

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So, What is Big Data?

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What is Big Data?Buzz phrase – Squishy….no single definition

• Official Oxford Definition (2013) - data of a very large size, typically to the extent that its

manipulation and management present significant logistical challenges

• Unofficial definition: Convergence is building around the following:

» Gartner’s 3 “V’s – A data set that is created through the combination of high Volume and

Velocity from a Variety of sources

» IBM’s 4th V – Veracity

• Technical Component - Due to the enormity of the data traditional data

acquisition, storage, and processing tools will not suffice

• Paradigm Shift: Traditional Structured vs. Creative Discovery Models

=====================================================================

• Key Facets- Big, Fast, and “Different” – Blended together, Allowing for

Predictive/Forecasting and Real-Time Analysis

• Layman’s definition is emerging. Less focus on “what it is.” Instead the focus is

shifting to “why it is important?” and “how it can be used?”

» i.e. “Big Data” is collection of activities that center around the analysis of large sets of data to

determine if there are any Patterns that could be used to Predict Performance.

Hallmarks of Big Data

• Data in Motion - Streaming vs. Snapshot

– See the “story” unfolding. Able to mitigate if needed

• Discovery - Pattern and Trend Analysis

– Leverage those insights faster

• Statistical Analysis – Hindsight to Foresight

– Correlation and Causation

– Predictive Analytics8

Question…Does HR Really Have Big Data?

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• Volume – Does not have to be terabytes– Thousands of candidates, Hundreds to tens of thousands of employees

• Velocity – Does not have to be data created every second– HR data is created on daily, weekly, monthly, and quarterly cycles

• Variety – Does not have to be from hundreds of sources– Numerous HR systems

(ATS, HR, Comp, Benefits, Payroll, LMS, Performance, etc.) , Non HR internal sources (Social Media, Web logs, Financial Performance, etc.) and external sources (Government, Social, Vendors, etc.)

Answer: Yes. The volume, velocity, and variety are therefore relative to the business function of HR. The quantity, speed, and variety of the sources that comprise HR Big Data are relative to the business cycles, transactions, and the size of the business that HR is operating

in.

Big Data in HR

Examples of where Big Data can and is being used by HR today:

• Compensation Benchmarking

– Common

• Workforce Planning

– Nascent/Emerging

• Selection Testing

– Moderate

• Areas ripe for “Big Data” analysis:

– Team Performance

– Learning & Development 10

Evolution of HR

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HR’s role is participating in and creating business strategy. 80% of

HR Leaders now report to the CEO. What stories does the data

tell? What insights can be derived and applied?

HR’s Big Data Challenges

• No clear understanding of what it is or how to apply it

• Lower comfort level with metrics and analytics in general

• Skills gap

• Bandwidth issues - Daily Priorities

• Limited Budgets

And Yet – A Growing Understanding of the Need to “Speak” the Language of Business

– $’s and Data 12

Analytic & Big Data Readiness

Let’s Go To The Polls…

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The Facts

• Only 6% of HR organizations report that they have excellent analytic skills internally. Most have not yet invested the time it takes to build a holistic analytics function. Due to limited headcount, priority is given to core responsibilities.

• Only 8% of companies report that they have begun to implement a Predictive Analytics strategy into their HR Strategy and Planning activities.

• Most reporting has been focused on HR Operational metrics vs. using data to drive planning and decision making.

• The United States alone faces a shortage of 140,000 to 190,000 people with analytical expertise and 1.5 million managers and analysts with the skills to understand and make decisions based on the analysis of big data.

The Opportunity:

• Companies in the top third of their industry in the use of data driven decision making were, on average, 5% more productive and 6% more profitable than their competition.

Who Said This?

“Today, many companies are reporting that their number oneconstraint on growth is the inability to hire workers with thenecessary skills.”

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Peter Capelli– Professor of Management, The Wharton School

Of Business - Present

William Jefferson Clinton – President of the United States of America 1993 - 2001

John Francis “Jack” Welch, Jr. – Chairman and CEO of General

Electric 1981 - 2001

Why Applying Big Data To Talent Acquisition Matters

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• Talent Is Clearly A Differentiator

• Talent is what drives innovation

• “War for Talent / Competitive Talent Acquisition

• Candidates can only take on job at a time•

• Talent Constraint Issues

• PwC Study

• Boston Consulting Group Study

Paradigm Shift

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Moving From a JIT/Customer Service Orientation

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To Being Proactive and Strategic

Value Propositions forTalent Acquisition

• Paradigm Shift–

– Proactive and Foresight driven

• Talent needs assessment – What, When & Where

– Focus on building talent sourcing strategies that align to the business plan

– Increase focus candidate and hiring manager engagement vs. transactional aspects of the process

– Tied to a “Workforce Plan”

• Smarter Spend –– Reduced Cost Per “Applicant” and “Hire”

– Ability to reduce or get broader coverage with the marketing budget

• Precision and Speed –– Know before you begin – Sources and Difficulty

– Narrow casting – No more Post & Pray/Spray

– Timeliness

What if you could accurately predict the outcome?

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What If?• What would you be able to do if you could…

– More accurately forecast which channels to source from, how long the sourcing cycle will take and how much candidate flow you can anticipate?

– Be able to use that information to be “proactive” in your talent acquisition activities?

– To understand the effectiveness of any mitigation actions you’ve taken in real-time?

– To have the competitive “talent” intelligence regarding how well your marketing efforts are working, in real-time?

– Have insight into the available supply and demand for talent?

• “Recruitability Index” and “Poaching Protection”

– Could tie Sourcing to future Performance and Retention

Think about how these insights and being proactive can give you a competitive advantage. Make faster, evidenced-based decisions. Take quicker actions.

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Talent Acquisition Sources

22The Number of Communication Has Exploded

SourcesGreatest Scrutiny Should Be Put Where Money is Spent!

Applying Big Data To Talent Acquisition In Your Shop

• Start With The End in Mind – Decide What You Want to Address– Reduced Attrition, Align TA with Business Objectives

(Growth, Pace of Business, Smarter Budget/Spending)

• Workforce Planning / Talent Needs Assessment– Focus on Mission Critical Positions

– Keep it Simple • Formula: (# of Incumbents x Attrition Rate) + (# of Incumbents

x Growth %) /12

• Know Your Typical Conversion Funnel– By Job and Source 24

Applying Big Data To Talent Acquisition

Big Data Doesn’t Have To Be Hard!

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Big Data Doesn’t Have To Be Hard!

Begin With The End In Mind!

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Big Data Doesn’t Have To Be Hard!

• Start with your internal data in your core ATS and HR systems • Review your Employment Site weblogs • Benchmark – Compare the above metrics with external sources – i.e. consulting

firms, peer companies, consortiums, etc.• Work with your job boards to capture the key metrics they have about your

company – i.e. how often your company is searched for, how often your jobs are viewed, how often they are clicked on, etc.

• Know your Candidate Conversion Funnel Metrics – including cost per milestone• Subscribe to data services – i.e. Web traffic data, Google Ad-Words, Vendor and

Government Labor Data, etc.• Social Data/Sentiment Analysis – measure your Facebook, Twitter, and LinkedIn

Traffic – i.e. number of Likes, Follows, Re-Tweets, etc. and determine if there is a correlation with your employer brand and recruitment marketing efforts

• Partner with your outsourced vendors who are supporting any of your transactional activities to capture the data they capture and blend with your analysis.

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Sourced

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Responses

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Interviewed

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Hired

Sample Conversion Funnel

Sentiment Analysis - LinkedIn

Sentiment Analysis - Facebook

Avoid Creating Dashboard Dizziness

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Create The Right Visuals That Reveal The Right Story!

Big Data & Talent Acquisition In Action – Brief Case Studies

• Manufacturing employer– Achieved “fully staffed” status for their hourly workers for the first time

ever by determining attrition patterns and adjusting their sourcing strategy accordingly

• Software and services employer – Determined skills gaps and built out training and talent acquisition

strategies that enabled them to meet customer demands

• Financial services employer– Increased recruitment marketing coverage, reduced number of media

outlets, increased quality of candidate ratio, and reduced time to hire –all without increasing their spend

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Appendix

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A Tale of Two Recruiters

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Can You Relate?

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Barely Able To Keep Up With The Requisition Load And Resume Flow

Then, Another Hiring Manager Calls And Says,

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“I Finally Got My Requisition Approved. How Soon Can We Get Someone To Start?”

And There You Are…

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Trying To Remain Cool & Calm

Your Management Thinks…

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But In Truth, I Feel Like This…

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How Will I Market This Job?

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Too Many Choices

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Not Enough Time

Which Pond To Fish In?

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Talent Acquisition Is Competitive –I Know It Is Critical That I Can…

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Market My Message In The Right Places, The First Time… Ahead Of The Competition

I Wish There Were An Easier Way

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I Wish I Could

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Work Smarter Not Harder!

I Wish I Had Better Tools

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Put Big Data To Work For You

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No More Just Using The Usual Outlets

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No More Relying On Single Sources

No More Posting And Spraying

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The Talent Pipeline Challenges

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How To Build It? Will It Have The Talent?

A Tale of Two Recruiters

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Which One Would You Rather Be?

In the end – it’s all about ….

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Find Candidates, Fill Jobs Faster, Spend

Smarter!

Questions?

David Bernstein

VP – Big Data for HR 925-275-8102

David.Bernstein@eQuest.comBlog: www.equest.com/news/floating-point

LinkedIn Profile: www.linkedin.com/in/davidsethbernsteinLinkedIn Group: http://linkd.in/VMZzqm

Twitter: www.twitter.com/dbernste 56