We’re Already Living in the Future of Talent Analytics

We’re Already Living in the Future of Talent Analytics

Recently at the Harvard Business Review, management professor Thomas H. Davenport asserted that HR “is right up there with the most analytical functions in business—and even a bit ahead of a quantitatively-oriented function like finance.” Davenport backs this claim with findings from a global survey of senior managers, directors, and VPs at large companies by Oracle, on which he collaborated. The survey found that many HR leaders are well-versed in using data and predictive analytics to make talent management decisions:

  • 51% of HR respondents said that they could perform predictive or prescriptive analytics, whereas only 37% of Finance respondents could undertake these more advanced forms of analytics.
  • 89% agreed or agreed strongly that “My HR function is highly skilled at using data to determine future workforce plans currently (e.g. talent needed),” and only 1% disagreed.
  • 94% agreed that “We are able to predict the likelihood of turnover in critical roles with a high degree of confidence currently.”
  • 94% also agreed that, “We have accurate, real-time insight into our employees’ career development goals currently.”
  • When asked “Which of the following analytics are you using?” “artificial intelligence” received the highest response, with 31%. When asked for further detail on how respondents were using AI, the most common responses were “identifying at-risk talent through attrition modeling,” “predicting high-performing recruits,” and “sourcing best-fit candidates with resume analysis.”
  • These findings suggest that the analytics transformation in HR is farther along than you might have thought, with the caveat that the survey respondents were from companies with $100 million in revenue or more, and are thus more likely to have the capacity to deploy new techniques and technologies that may be out of reach for smaller organizations. It should come as no surprise that more and more companies are adopting AI and analytics into their HR functions; what’s new in this survey data is that HR functions are becoming increasingly confident in the maturity and capability of their analytics programs.

    In terms of where companies are deploying talent analytics, Oracle’s findings track with what we have seen elsewhere: The lowest-hanging fruit is in predicting turnover, while there’s also a lot of promise in AI-powered recruiting, predicting performance, and career pathing. The focus on attrition makes sense, as employees who quit often time that decision to leave around predictable life and career events and drop lots of hints about their plans beforehand.

    If you can use data to detect these warning signs and head off unwanted departures, that can save your organization considerable amounts of money. IBM CEO Ginni Rometty made headlines earlier this month when she told attendees at CNBC’s @Work Talent + HR Summit that IBM’s AI technology was able to predict which workers were planning to quit with 95 percent accuracy:

    IBM HR has a patent for its “predictive attrition program” which was developed with Watson to predict employee flight risk and prescribe actions for managers to engage employees. Rometty would not explain “the secret sauce” that allowed the AI to work so effectively in identifying workers about to jump (officially, IBM said the predictions are now in the 95 percent accuracy “range”). Rometty would only say that its success comes through analyzing many data points.

    “It took time to convince company management it was accurate,” Rometty said, but the AI has so far saved IBM nearly $300 million in retention costs, she claimed.

    But predicting turnover with enough accuracy to add value may not require IBM-level AI capabilities. A new study from Peakon finds that employees begin showing clear signs of wanting to quit a full nine months before they pull the trigger on their resignation. A big-data study drawn from over 32 million employee survey responses in 125 countries, the Peakon report points to several key indicators of attrition that show up months in advance: declining engagement and loyalty, as well as dissatisfaction based on unchallenging work, an inability to discuss pay, an unsupportive manager, and the lack of a clear path to advancement in the organization.

    In a recent interview with David McCann at CFO, data scientist Jon Christiansen notes that it’s much easier to predict who will stay than who will leave, but highlights a few indicators that consistently point toward a greater likelihood that an employee will quit, such as whether the employee feels that their performance is evaluated fairly or that they have control over their workday. Other signs include an employee avoiding conflict, siloing themselves, focusing excessively on rewards over the common goal of the organization, and facing either too much or too little pressure at work.

    The advantage for a company like IBM, which continues to invest heavily in AI, is that it can delegate the detection of these patterns to an algorithm. Predicting quits was the first area the tech giant’s HR function focused on when deploying AI, IBM’s chief human resources officer Diane Gherson explained to Jena McGregor at the Washington Post:

    IBM had already been using algorithms and testing hypotheses about who would leave and why. Simple factors, such as the length of an employee’s commute, were helpful but only so telling. “You can’t possibly come up with every case,” Gherson said. “The value you get from AI is it doesn’t rely on hypotheses being developed in advance; it actually finds the patterns.”

    For instance, the system spotted one software engineer who hadn’t been promoted at the same rate as three female peers who all came from the same top university computer science program. The women had all been at IBM for four years but worked in different parts of the sprawling company. While her manager didn’t know she was comparing herself to these women, the engineer was all too aware her former classmates had been promoted and she hadn’t, Gherson said. After the risk was flagged, she was given more mentoring and stretch assignments, and she remains at IBM.

    IBM is also using its Watson AI for other talent-related purposes, such as learning and development or career pathing, Carrie Altieri, IBM’s vice president of communications for people and culture, noted in a recent interview with Riia O’Donnell at HR Dive:

    AI has been a driving force of innovation for IBM’s HR team. Cognitive talent alerts mine for patterns; it searches for employees who’ve been in a job longer than usual (which could signal flight risk) and can determine whether they need more training to move up. …

    AI also can personalize learning and development for each job role and lead the way in making learning a central aspect of a company’s culture. Altieri said that more than 45,000 learners are visiting IBM’s learning platform every day and 98% of employees access it each quarter. While the company requires 40 hours of learning per year, staff average around 50 hours, regardless of tenure. Learning is a huge part of the culture at IBM, she explained, and the new system gives managers the tools to have more intentional discussions with staff.

    And like other tech companies experimenting with these technologies, IBM is not only deploying its AI capabilities internally, but also selling them as a service to other organizations. Last November, the company announced the launch of IBM Talent & Transformation, a new business venture offering AI skills training in addition to services that “harness the power of AI personalization to guide employees in developing skills and pursuing opportunities to grow within the company.”

    More Organizations Are ‘Crowdsourcing’ Product Ideas from Employees

    More Organizations Are ‘Crowdsourcing’ Product Ideas from Employees

    One major consequence of our increasingly digital society and economy is that the next great business idea really can come from anywhere. Companies are increasingly taking this lesson to heart and looking for ways to solicit ideas from their entire community of employees, not just those formally dedicated to the development of new business. Last week, Digiday’s Max Willens took note of this trend in the media, observing the innovative techniques publishers are using to generate product ideas, such as a “Shark Tank”-style competition Politico tried out last summer:

    Politico joins other publishers that are turning to their own employees to develop new revenue ideas. Before it was acquired by Meredith last fall, Time Inc. ran a similar internal competition that attracted nearly 60 submissions from employees. The Globe and Mail in Toronto and New York Daily News have run their own accelerator programs for years. Those programs have resulted in The Globe and Mail’s Workplace Awards, a profitable award and events program, and an ad-viewability tool at the Daily News.

    Finding new sources of revenue has become a top priority for publishers everywhere. But in these cases, the goal is also to instill entrepreneurial thinking in a mature industry.

    This concept is being tried in many industries, not just publishing. In our recent and ongoing research at CEB, now Gartner, we’ve seen many organizations turning to their employees through these types of ideation programs—some of which are much more effective than others. As you might imagine, inviting entire workforces to generate ideas can result in a certain amount of idea or information overload. The more interesting solutions we’ve seen guide employees to focus on and share the most helpful kinds of ideas, creating a sort of self-filtering mechanism.

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    IBM Unveils Watson AI Assistant for Businesses

    IBM Unveils Watson AI Assistant for Businesses

    Watson Assistant, the latest entry into the AI-powered virtual assistant market, made its debut on Tuesday at IBM’s Think conference in Las Vegas, CNET’s Ben Fox Rubin reports. Unlike Amazon’s consumer-focused Alexa, however, Watson Assistant is an enterprise-oriented technology that “will function as the behind-the-scenes brains for a variety of new digital helpers made by a variety of businesses”:

    For example, Watson Assistant is already in use at Munich Airport to power a robot that can tell you directions and gate information. The assistant is in development by BMW for an in-car voice helper. Also, Chameleon Technology in the UK created a Watson Assistant-driven platform called I-VIE that helps people manage their energy usage.

    “We looked at the market for assistants and realized there was something else needed to make it easier for companies to use,” said Bret Greenstein, IBM’s global vice president for IoT products. …

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    IBM Settles Non-Compete Suit Against Former Diversity Chief

    IBM Settles Non-Compete Suit Against Former Diversity Chief

    IBM made headlines last month when it filed a lawsuit against its former Chief Diversity Officer and Vice President of HR, Lindsay-Rae McIntyre, claiming that her decision to accept a new position as Chief Diversity Officer of Microsoft violated a year-long non-compete agreement she had signed with IBM. McIntyre, the suit claimed, was privy to data and methods pertaining to IBM’s diversity and inclusion program that constituted trade secrets and would inevitably influence the work she did for their competitor.

    In a court filing Monday, IBM revealed that it had settled the suit on February 25 and that McIntyre would delay the start of her new position at Microsoft until July, GeekWire reports:

    Terms of the settlement weren’t disclosed, but Microsoft said in a statement this afternoon that McIntyre will be officially starting in her new position this summer. … A judge in the case had issued a temporary restraining order preventing McIntyre from working at Microsoft pending a preliminary injunction hearing that was slated to take place next week.

    “We’re pleased the court granted IBM’s motion for a temporary restraining order, protecting IBM’s confidential information and diversity strategies,” an IBM spokesperson said. “We’re glad the action has been resolved to the satisfaction of all parties and that Ms. McIntyre will not begin her new responsibilities until July.”

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    IBM Suit Against Former Diversity Chief Illustrates Growing Value of D&I

    IBM Suit Against Former Diversity Chief Illustrates Growing Value of D&I

    Microsoft announced on Sunday that it had hired Lindsay-Rae McIntyre as its next Chief Diversity Officer, reporting directly to Chief People Officer Kathleen Hogan and leading “a multitude of existing cross-company initiatives to further Microsoft’s progress in building a diverse and inclusive culture.” McIntyre comes to Microsoft after two decades at IBM, where her most recent titles included Chief Diversity Officer and Vice President of HR.

    Not so fast, says IBM, which filed suit against McIntyre on Monday, claiming that her new position at Microsoft violates a year-long non-compete agreement and puts IBM’s trade secrets at risk, GeekWire’s Todd Bishop reported:

    The suit, filed federal court in New York today, describes McIntyre as one of the company’s “most senior executives with knowledge of IBM’s most closely guarded and competitively sensitive strategic plans and recruitment initiatives,” including “confidential strategies to recruit, retain and promote diverse talent.”

    In her new role at Microsoft, she would compete for the many of the same types of hires she previously recruited for IBM, the suit says. … IBM claims in its suit that it will be “inevitable” for McIntyre to use IBM’s trade secrets against the company.

    In its complaint, IBM argues that Microsoft itself recognizes the competitive advantage of keeping diversity data and strategies private, pointing to an ongoing class-action lawsuit alleging that Microsoft discriminates against women, in which the tech giant has resisted efforts by plaintiffs to force it to hand over detailed diversity data: “As Microsoft has admitted, disclosure of the very type of confidential information that McIntyre possesses—non-public diversity data, strategies and initiatives—can cause real and immediate competitive harm.”

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    IBM Expands Parental Leave to 20 Weeks for New Mothers

    IBM Expands Parental Leave to 20 Weeks for New Mothers

    IBM has joined the list of tech companies overhauling their parental leave policies to court working mothers in the US. The company’s VP of Employee Benefits, Barbara Brickmeier, announced on Wednesday that the company had updated its parental leave policy, applying retroactively to IBM babies born or adopted after November 2016: New mothers will now have up to 20 weeks of paid leave, rather than 14, and leave for new fathers, partners, and adoptive parents has been doubled from six to 12 weeks.

    Parents can take this time off at any time during the first year after the birth or adoption, and IBM will also reimburse up to $20,000 of employees’ adoption of surrogacy expenses. Brickmeier also highlights some other changes the tech giant has made to support parents, especially mothers, in its workforce:

    As medical diagnosis has improved, our society has recognized the potential of special needs services for children. Our Special Care for Children Assistance Plan reimburses employees $50,000 towards applicable services for each child with mental, physical or developmental disabilities.

    In addition, we continue to adapt our popular family-friendly programs, which include:

    • Our 2015 milk delivery program for nursing moms who travel on business has been expanded to international travel;
    • Childcare center and after-school center discounts across the U.S.;
    • Expanding expectant mother parking to IBM locations across 50 states;
    • Investing in child care centers with guaranteed priority status for IBM families through our Global Work/Life Fund;
    • A range of maternity and mindfulness services;

    IBM already scored high on indices of working-mother-friendly employee benefits and corporate environments, and is both following and driving forward an industrywide benefits war to attract and retain working mothers to help fill their talent gaps. It has also developed, in partnership with iRelaunch, a re-entry program for mid-career women who have taken extended career breaks, such as to care for a child or elderly parent.

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    IBM’s Re-Entry Program Targets Mid-Career Women

    IBM’s Re-Entry Program Targets Mid-Career Women

    Faced with a large number of women in STEM fields who exit the workforce mid-career, many employers in the tech sector have been looking for ways to bring these women back, both to address overall skills shortages and to improve diversity and inclusion. These women are typically mothers who leave their jobs either to devote their time exclusively to raising children or in response to workplace cultures that don’t allow them to balance family and career; though they may not intend to drop out of the job market permanently, in their fast-changing fields, a career gap of just few years can make it very hard to re-enter—and some of these women have gaps of a decade or more.

    To help them get back on their professional feet, some companies have launched re-entry initiatives or “returnships”: internship or mentorship programs for mid-career employees that enable them to rapidly update their skills and re-establish their professional networks. Erin Carson at CNET profiles IBM’s re-entry program, a 12-week internship that places mid-career women with STEM backgrounds in one of the company’s various business lines:

    Participants get a mentor and work on an actual project, whether it’s in data analytics or programming. The idea is that the program can create a smooth transition for its interns, get them up to speed and give managers a chance to see the interns’ work before hiring them.

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