People Analytics in the Era of Big Data: Changing the Way You Attract, Acquire, Develop, and Retain Talent

406 Pages·2016·4.52 MB·English

by  Jean Paul Isson

Praise for People Analytics in the Era of Big Data
“This book provides easy-to-understand processes for drawing competitive infor-
mation out of Big Data and turning it into applicable knowledge. In short, this book is
both a compelling argument and a framework for the reader on which to build a talent
management strategy and work plan.” —Dr. Jac Fitz-enz, CEO, Human Capital
Source
“Talent is one of an organization’s greatest assets, and analytics must be part of the
overall talent strategy. This book provides the business leader and hiring manager with
a compelling framework to leverage analytics across the entire talent life cycle.” —Chip
Smith, Chief Marketing Officer, Sears Home Appliances and Services
“People Analytics in the Era of Big Data is a practical guide that’s an essential read for
any HR professional who wants to get a handle on the landscape of People Analytics and
how it can increase workforce return on investment.” —Rathin Sinha, Founder and
CEO, JobFindah Network, and former CEO, America’s Job Exchange
“People are the most valuable asset in an enterprise. Jean Paul and Jesse have given
us seven pillars that transform how we attract, develop, and retain people. Forward-
thinking leaders should read this book.” —Michael C. Krauss, @ C Level columnist,
Marketing News, and President, Market Strategy Group
“The topics covered in People Analytics in the Era of Big Data touch the core of what
we as HR people should be preoccupied with. People Analytics are the prerequisite foun-
dation for any real talent strategy.” —Mieke Van de Capelle, Chief HR Officer,
Perfetti Van Melle
“Companies live and die by their ability to attract and develop high-value tal-
ent. People Analytics in the Era of Big Data provides a key framework to help compa-
nies leverage analytics to get the most from their talent investments.” —Neil Costa,
Founder and CEO, HireClix
“Talent analytics is a must for any organization to ensure that investment in talent is
well targeted and delivering the desired results. People Analytics in the Era of Big Data pro-
vides HR leaders with important building blocks to develop an effective People Analytics
practice.”  —Kathy Andreasen, Chief People Officer, Endurance International
Group
“Without question, talent is the essential ingredient in an organization’s success
or failure. Unfortunately decisions about talent are typically dependent on gut feelings
and immeasurable interpersonal relationships. Finally there is a playbook on how to
collect, interpret, and act on the talent data so organizations can recruit and retain talent
better.” —RD Whitney, Group Vice President, Diversified Communications
“Whether you call it the “War for Talent” or the “Talent Tsunami,” there is no debate
that the ability to acquire a world-class workforce will be the competitive differentiator
for companies that want to out-think, out-innovate, and simply beat their competition.
People Analytics in the Era of Big Data provides organizations with revolutionary thinking
and the prescriptive tools on how to leverage Big Data to significantly improve the
quality of their workforce.” —Steve Pogorzelski, CEO, Avention OneSource, and
former President, Monster.com
“The authors have found a compelling way to bring together two of the most
important focus areas for any business leader: analytics and recruiting. People Analytics in
the Era of Big Data is essential reading not just for HR professionals but for entrepreneurs
like me who recognize the importance of talent, team, and culture.” —John Kelly,
CEO, CoachUp
“Big Data and analytics are hot topics in all areas of business these days, and
talent management is no exception. This book provides a solid foundation for leaders
who want to use analytics to drive ROI across their entire talent life cycle.” —Wayne
Cooper, Executive Chairman, Chief Executive Group, and CEO, The Chief
Executive Network
“This is a must read for anyone looking for a practical and actionable approach to
leverage people analytics in their organization.” —Matt Gough, CEO, Echovate
“People Analytics in the Era of Big Data contains an easy-to-apply framework to one
the hottest topics in analytics today. Leaders who wish to improve the ROI from their
workforce management practices should take heed of the advice and techniques in this
book.” —Roger Baran, Ph.D., Associate Professor of Marketing, and Director,
Asian Programs, DePaul University
“Thorough research, incisive analysis, and well-chosen case studies are the hall-
marks of Isson and Harriott’s work. They weave all of that together with clear, cogent
arguments about why and how data analytics will permeate every aspect of the HR,
talent management, and recruiting life cycles. Best practices based on anecdotes or
instinct will no longer satisfy line management. It’s time for corporate talent managers
to get on board. If you don’t quite get how to apply data in these ways, this book will
be your primer.”  —Glenn Gutmacher, Vice President, Diversity Talent Sourcing,
State Street Corporation, and Founder, Recruiting-Online.com
“In today’s Big Data explosion, it’s imperative for every business leader to lever-
age analytics to optimize their talent management. JP and Jesse’s book provides the
framework and actionable insights every leader needs to compete and win with People
Analytics.” —Stephane Brutus, Interim Dean, John Molson School of Busi-
ness, Concordia University
 “Human capital is the number one source of competitive advantage in the twenty-
first century. Like finance, product, and marketing before it, the field of human capital
is now flooded with data but deprived of frameworks, processes, and methodologies
to make sense of it. This is what this book provides: a practical guide to applying data
science’s best practices to the field of human capital. My hope is that it helps HR depart-
ments across industries take their legitimate seat at the business strategy table. The
world needs this—badly.” —Louis Gagnon, CEO, Ride.com, and former CMO and
CPO, Audible
“People Analytics is a new territory for most HR managers, which is enabled by
more systematic data collection and advances in machine learning and analytics. This
book shows how to apply analytics across an entire life cycle of employee management.
With many real-life examples, this is a must-read for HR practitioners and managers.”
—Minha Hwang, Analytics Consultant/Expert, Double Ph.D. (MIT and Stanford)
People Analytics
in the Era of
Big Data
Changing the Way You Attract, Acquire,
Develop, and Retain Talent
Jean Paul Isson
Jesse S. Harriott
Cover image: © Sergey Nivens/Shutterstock
Cover design: Wiley
Copyright © 2016 by Jean Paul Isson and Jesse S. Harriott. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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Library of Congress Cataloging-in-Publication Data:
Names: Isson, Jean Paul, 1971– author. | Harriott, Jesse, author.
Title: People analytics in the era of big data : changing the way you
attract, acquire, develop, and retain talent / Jean Paul Isson, Jesse S.
Harriott.
Description: 1 | Hoboken : Wiley, 2016. | Includes index.
Identifiers: LCCN 2016001834 | ISBN 9781119050780 (hardback) |
ISBN 978-1-119-23315-2 (epdf) |
ISBN 978-1-119-23316-9 (epub) | 978-1-119-08385-6 (obook)
Subjects: LCSH: Personnel management. | Employees—Recruiting. | BISAC:
BUSINESS & ECONOMICS / Human Resources & Personnel Management.
Classification: LCC HF5549 .I687 2016 | DDC 658.3—dc23 LC record available
at http://lccn.loc.gov/2016001834
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
I dedicate this book to my daughters, Roxane and Sofia, who
have been my inspiration for so many things I do. Daddy was
not available as usual to play with you and hopes when you
read this book you will be proud of your patience. A special
thanks to my wife, Marjolaine, for her love and support taking
care of our little Sofia to give me more time to write.
—JP Isson
This book is dedicated to all the unsung analytical heroes,
working tirelessly to uncover new insights, predict future
business trends, and drive business impact. Keep pushing
forward and never give up.
—Jesse Harriott
Contents
Foreword xi
Preface xiii
Acknowledgments xvii
About the Authors xxiii
List of Case Studies and People Interviewed xxvii
Chapter 1 The People Analytics Age 1
The People Analytics Advantage 3
The World of Work Has Changed 10
Notes 31
Chapter 2 How to Migrate from Business Analytics to People
Analytics 33
A Short History of Analytics Adoption 35
Marketing and Human Resources Similarities 39
Advanced Business Analytics and Advanced People
Analytics 44
The Promise of Analytics and People Analytics Bridges 50
Building a People Analytics Center of Excellence 53
Notes 64
References 65
Chapter 3 The Seven Pillars of People Analytics Success 67
Data and Tools Challenge 71
The Seven Pillars of People Analytics Success 76
Leveraging the People Analytics Framework 77
Workforce Planning Analytics Pillar 79
Sourcing Analytics Pillar 80
Acquisition/Hiring Analytics Pillar 82
Onboarding, Culture Fit, and Engagement Pillar 84
Performance Assessment and Development and Employee
Lifetime Value Pillar 86
vii
viii ▸ Contents
Employee Churn and Retention Pillar 88
Employee Wellness, Health, and Safety Pillar 90
Notes  96
Chapter 4 Workforce Planning Analytics 99
What Is Workforce Planning? 101
Workforce Planning Analytics 102
Why Should You Care About Workforce Planning
Analytics? 104
Key Components of Workforce Planning Analytics 108
Making an IMPACT with Workforce Planning Analytics 112
Workforce Planning Analytics Best Practices: Dos and
Don’ts 128
Notes 129
Chapter 5 Talent Sourcing Analytics  131
The Business Case for Talent Sourcing Today 132
Why You Need to Care about Your Talent Sourcing Today 135
Talent Sourcing in the Era of Big Data and Advanced
Technology 138
The Mobile Impact on Talent Sourcing 167
Putting the IMPACT Cycle into Action 169
Notes 172
Chapter 6 Talent Acquisition Analytics 175
What Is Talent Acquisition Analytics? 177
How Talent Acquisition Works 190
Application Phase 191
Preinterview Assessment Analytics 194
Interviews: Separating the Wheat from the Chaff 196
Putting It All Together: Predictive Analytics for Selection 198
Notes 203
Chapter 7 Onboarding and Culture Fit 205
Organizational Culture 206
Onboarding Process 207
Stages of Onboarding 209
Early Employee Needs 212
OPEN Analytical Framework for Effective Onboarding 213
Time to Productivity and Other Outcome Measures 216
Create an Onboarding Predictive Model 217
Tying It All Together 217
Notes 222
Contents ◂ ix
Chapter 8 Talent Engagement Analytics 223
Importance of Employee Engagement 225
Employee Engagement Surveys 227
Making Employee Engagement Surveys
Predictive 229
Moving Beyond the Survey: Employee Engagement
Measures 232
Notes 236
Chapter 9 Analytical Performance Management 237
Why You Should Care about Performance Management
Analytics 238
Linking Individual Objectives to Company 
Objectives 239
Defining Performance Measures 243
Performance Incentives and Promotion 245
Provide Insight to Senior Management 247
Benefits of Analytical Performance Management 249
Best Practices 250
Predictive Analytics and Graph Theory to Optimize Career
Pathways and Employee Promotion 251
Note 252
References 252
Chapter 10 Employee Lifetime Value and Cost Modeling 255
Understanding the Most Expensive Asset 256
Are Employees Costs or Assets? 256
The Basis for Advanced Analytics 257
Chapter 11 Using Retention Analytics to Protect Your Most
Valuable Asset 283
Traditional Approaches Are Failing 285
What Is Retention, Anyway? 285
What You Need and How It Works 286
The Business Case 288
Deploying Retention Analytics . . . Piece of Cake? 294
How to Implement Proactive Talent Retention Models 295
Data for Talent Attrition Predictive Modeling 298
Putting Your Employee Attrition Findings to Work 302
The Segmentation Strategy of Talent Retention Model
Insights 303
Notes 305
x ▸ Contents
Chapter 12 Employee Wellness, Health, and Safety to Drive
Business Performance and Loyalty  307
What Is Employee Wellness? 310
Why Should You Care about Workplace Wellness? 311
Employee Wellness Program Best Practices 320
Optimizing Your Employee Wellness Health and Workplace
Safety with Predictive Analytics 325
Notes 328
Chapter 13 Big Data and People Analytics  331
What Is Big Data? 332
Big Data and People Analytics 336
Leveraging People Analytics 338
Workforce Planning Analytics Pillar 339
Sourcing Analytics Pillar 341
Acquisition/Hiring Analytics Pillar 343
Onboarding, Culture Fit, and Engagement Pillar 345
Performance Assessment and Development
and Employee Lifetime Value Pillar 347
Employee Churn and Retention Pillar 349
Employee Wellness, Health, and Safety Pillar 351
Notes 355
Chapter 14 Future of People Analytics  357
Rise of Employee Behavioral Data 359
People Analytics Moves beyond the Averages 361
Predictive Becomes the New Standard 363
Automated Big Data Analytics 363
Big Data Empowers Employee Development 365
Models Become the New Gold of People Analytics 366
People Analytics Becomes More Accessible 366
People Analytics Becomes a Specialized Department 367
Employee Data Privacy Backlash 368
Quantification of HR 369
Notes 372
Index 373
Foreword 
People Analytics in the Era of Big Data does a great job of melding ana-
lytic processes and methods with the mass of data that is growing
exponentially every day. Future success in talent management will be
largely dependent on an organization’s ability to mine that database.
The days of scanning job boards, college recruiting trips, open houses,
and advertising are obsolete. Organizations’ main problem is twofold.
One, there is no competitive advantage in applying these recruitment
processes. Everyone can and does use them, and the results are simi-
lar rather than unique. Two, these methods are all behind the com-
petitive curve. Nothing within them speaks to the special demands of
the future because they do not uncover and express true future talent
demands. At best, they are simply common tools.
The good news is, as the authors so clearly explain, that diving
into the Big Data ocean with predictive analytics fishing gear virtually
ensures that you will catch exactly what you’re fishing for. First, think
about the talent pool. In truth, there is no shortage of qualified people
for any one company. The talent ocean has not been overfished for
the needs of your company. The problem is that there are many boats
fishing. You need a world‐class talent acquisition system. This is where
predictive analytics comes to the rescue.
There is a shortage of twenty‐first‐century talent acquisition strat-
egies. Recruitment doesn’t start in the employment section of the
human resources department. Employment methods, by whatever
label is in vogue, are simply functional tools. Everything starts with
the organization’s purpose, goals, and strategic plans. It has been clear
for decades that issues of organizational purpose are often not fully
addressed. Statements that the goal is to increase market share by x
percent next year are accepted as purpose statements. Not true. They
are nothing more than wishes. Management must first be absolutely
clear regarding the purpose of the organization expressed in terms of
its role in society. Books have been written about this, yet seldom is
there a deep dive into purpose.
xi