Workforce Analytics: Moving from I Think to I Know
Could you be making unsound decisions about your talent pool? This three-part case study examines how Mercer helped several of our clients see the light around data-driven workforce management.
Best-in-class organizations use workforce analytics and planning as an input into their talent strategy in order to make smart decisions about the right priorities for workforce policies and programs. Sometimes the analysis reinforces the assumptions already made, but it can also show a different, better way forward.
Myth-Bust assumptions based on intutition
We worked with a client to help disprove assumptions the company had made based onintuition and, in doing so, saved it over £30 million. The company was experiencing high turnover in a key revenue-generating role. The client assumed that increasing the salary was the best strategy to decrease turnover; however, data analysis showed that manager stability and internal movements would have a much bigger impact. By focusing on these strategies, the client reduced turnover by over 20%.
Identify talent segments that impact revenue
We helped a client identify which workforce characteristics had the biggest impact on revenue. The company then targeted interventions in these directions, resulting in a revenue gain of £25 million. We found that the company locations with more experienced employees performed better: each additional year of average service increased revenue per customer by 4%. However, the organization was paying a premium for new hires and high-performing, tenured employees were leaving the company. The client strengthened career tracks and expanded variable pay opportunities to reverse this trend.
Future-proof the organizations against the risks of talent
Shortages. We worked with a client to create a 10-year forecast for their workforce supply and demand against critical roles that required more than eight years of experience. We created new internal career paths for roles with significant gaps and low availability in the external market. If the client had not developed a new pool of talent internally for these critical roles, it would have had to recruit expensive experienced workers from competitors, or be forced to shut down key operations. An HR function with the capability to translate data about its people and performance into insightful recommendations on how to best engage, mobilize, reward, assess, and develop the workforce will be positioning itself at a competitive advantage within its organization. As a result, it will secure its position as a critical player in the boardroom.