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How Technology has Transformed HR• Jonathan Gunter, Associate Consultant HR Systems• November 30th, 2015

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Agenda• Introduction• The Early Stages of Human Resources• The Growth of the HR function• Evolution of HR Systems & Technology• The Emergence of Big Data• How will this apply to HR?• Q&A

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Introduction• B.Comm in HRM from University of Guelph• Hired to Morneau Shepell in Aug. 2010, one of

the largest HR consulting firms in Canada• Started in Total Rewards & HRIS• Seconded to ERP Implementation Project,

which evolved into HR Systems & Technology role

• Since then, involved in multiple HR technology enhancement and implementation projects

• Enrolled in Certificate Program with University of Toronto for Enterprise Data Analytics

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Human Resources played a less strategic role when the economy was primarily production based…

Primary Org Focus “Personnel Dept”Economic Driver

PRODUCTIO

N

!!

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The Growth of the HR Function

• Economic shift from production-based economy to knowledge-based economy

• The “War on Talent” started in the 1990s• Rise of the global workforce• Progressive companies now embrace HR as

strategic business partner• Workforce management strategy critical to

driving the bottom line

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Evolution of HR Systems & Technology (Bersin by Deloitte, 2015)

Process Automation

Integration & New Talent

Apps

Analytics & “Systems of

Engagement”

2000 2015

• HRIS• Comp & Benefits

Administration

• Applicant Tracking• Recruitment &

Sourcing• Learning

Management Systems

• Workforce Planning

• Social Recognition• Mobile HR Apps• Real Time

Engagement• Predictive

Analytics• Self-Service Apps• Culture

Assessment

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Human Resources Management Systems

• Abbreviated as ‘HRMS’ or ‘HRIS’• Implemented to reduce manual workload• Track employee information related to status,

compensation, skills & competencies• Intersection of Human Resources (HR) and

Information Technology (IT)

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Process Automation

• Increased complexity for the role of HR resulted in a need to automate HR systems & processes:

-> Payroll -> Time & Attendance

-> Performance -> Benefits Administration

-> Scheduling -> Absence Management

-> Recruitment -> Learning/Talent Management

-> Personnel Data Management

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Integration & Talent Applications

• Multiple systems supporting HR functions› 33% of large organizations have 10+ HR Systems

• Need integration programming in order for systems to exchange information

• Applicant Tracking Systems › Database for handling recruitment activities

• Learning Management Systems› Administer e-learning courses› Often used for certification training

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Analytics & ‘Systems of Engagement’ (Bersin by Deloitte, 2015)

• Shift from ‘System of Record’ to ‘System of Engagement’

• Mobile Platform – Apps› 83% of organizations were expected to invest in mobile

technology in 2015› Smartphone sales have increased nearly ten-fold in last

five years

• Embedded Analytics – Use Data as an Asset› Move from Operational Reporting (what has happened)

to Predictive Reporting (what will happen)

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Transparency is the New Norm

• Easier for candidates to gather information on companies

• Job candidates expect companies to convey honest messaging about culture

• Important for companies to have focused message that current and prospective employees can identify with

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A story on the impact of Big Data…

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What is Big Data?

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“From the dawn of civilization until 2003, humankind generated five exabytes of data. Now we produce five exabytes every two days…and the pace is accelerating.”

- Eric Schmidt, Executive Chairman, Google

The Emergence of Big Data

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What is Big Data?

• Everything we do leaves a trail of data which can be mined and analyzed

• Characterized by the ‘Four V’s’› Volume, velocity, variety, veracity

• The ‘Datafication’ of Everything› “The Internet of Things”› Metadata = Data about data

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How can Big Data be harnessed and leveraged

for HR?

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Data Analytics in HR

• Recruitment & Selection• Retention Analytics• Talent Management

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In Hiring, Algorithms Beat Instinct (Harvard Business Review, May 2014)

• Study argues that humans are very good at specifying needs for position, but tend to base hiring decisions on inconsequential factors

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Retention Analytics Models (Bersin by Deloitte, 2015)

RetentionAnalytics Models

• Performance• Compensation• Mobility• Goals • Education• Work History

• Location• Job• Social Profile• Compensation• Connections• Work History

External Data

Internal Data

• Flight Risks• Retention Drivers• Talent Problems

Outcomes

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Is HR Going to the Geeks? (Marr, 2015)

“ASKING THE RIGHT

QUESTION”

DATA COLLECTION

DATA ANALYSIS &

INSIGHT

PRESCRIPTIVE ACTION

• Do managers impact employee performance?

• Performance Data

• “Best Manager” Award

• Qualitative Interviews

• Plot performance data

• Text analytics on qualitative data

• Identify core competencies of good managers

• Insights embedded into performance evaluations

• Alert system to detect ‘good’ and ‘struggling’ managers

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HR Analytics at Work…Retention Analytics

“I received an alert last month from the HR system that there is a 75% probability that Joe is likely to leave for a new position that opened at a competitor…percentage jumped to 95% when he requested a day off last Monday – likely for a job interview…Mondays and Fridays are usually interview days.”

- Jac Fitz-Enz, CEO of Human Capital Source Inc., from Predictive Analytics for Human Resources (2014)

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Have you met Watson?

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Great Authors on HR Technology & Analytics

• Jac Fitz-Enz- ROI of Human Capital- New HR Analytics- Predictive Analytics for HR

• Josh Bersin- HR Technology for 2016: Ten

Disruptions on the Horizon- Catalog of HR Technology Articles at

http://home.bersin.com/

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• Bernard Marr- Big Data: Using Smart Big Data Analytics and

Metrics to Make Better Decisions and Improve Performance

- Catalog of Articles on LinkedIn

• Viktor Mayer-Schonberger & Kenneth Cukier- Big Data

Great Authors on Big Data

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References

• Big Data, Viktor Mayer-Schonberger & Kenneth Cukier (2015)• Is HR Going to the Geeks?, Bernard Marr (March 2015)• In Hiring, Algorithms Beat Instinct, David Klieger, Nathan Kuncel, & Deniz

Ones, Harvard Business Review (May 2014)• Predictive Analytics for Human Resources, Jac Fitz-Enz & John R. Mattox III

(2015)• HR Technology 2015 – Ten Disruptions: Ignore Them At Your Own Peril,

Josh Bersin (December 2014)• Watson and the Jeopardy! Challenge, IBM Research (Nov 2013), https://

www.youtube.com/watch?v=P18EdAKuC1U• Human Resources Management System, Wikipedia (2015).• Learning Management Systems, Wikipedia (2015).

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• Email: jgunter@morneaushepell.com• LinkedIn:

- https://ca.linkedin.com/in/jonathan-gunter-91969b1a

Contact Information