QUICK FILTERS
Featured
4 min read
Steve Hall
When it comes to People Analytics, the most valuable tool is one that lets you to ask the right questions and explore solutions. Canned insights can't answer the real questions you need to answer. Recently, during a demo with a prospective client, a question came up that perfectly illustrates how One Model is a platform built for problem-solving rather than just offering irrelevant canned insights. The Situation: A Forecasting Challenge The scenario began with a focus on Female Representation metrics, specifically forecasting whether the organization was on track to meet its diversity targets for women. The forecast feature showed trends for different job levels, and while representation looked promising for some levels, there was a noticeable downward trend for the executive level. Naturally, the prospect wanted to know: Why is this happening? This was not a question with an easy, pre-packaged answer. Instead, it required a deeper dive into the data—an approach that highlights One Model's value as a tool for discovery and insight generation. Digging Deeper: How We Tackled the Problem To address the question, we demonstrated how to use filters and visualizations to isolate and explore the data. Here's how it unfolded: Applying Filters: We filtered the data by job level and gender to focus specifically on female executives. From there, we looked at key metrics like net hiring trends and termination rates. Identifying Patterns: The data revealed a significant drop in representation between 2023 and 2024, which appeared dramatic due to the auto-scaling of the graph. Exploring Causes: By clicking through different visualizations, we identified that termination rates, particularly "other" terminations, were higher than expected. Using One Model's hotspot maps, we further pinpointed the specific business unit and region where the issue was most acute. Forming Hypotheses: Using this information, we leveraged One Model's built-in predictive AI capabilities to identify potential turnover drivers and develop actionable insights. Flexibility Matters This scenario underscores something critical about One Model: We don’t solve all your problems; we give you the tools to solve them. Other platforms that rely on rigid, canned use cases might struggle in this situation; no solution can offer pre-built analyses for all possible scenarios. Without a pre-built guide addressing their specific issue in this specific organization, the user will hit a wall. One Model, by contrast, enables users to dynamically filter, explore, and analyze data to uncover answers. Why This is Critical for People Analytics This scenario demonstrates the real-world challenges of People Analytics. Insights are rarely handed to you on a silver platter. Instead, they require a combination of curiosity, exploration, and judgment —qualities not even AI will bring to the table. While some HRBP-level professionals might not engage in this level of analysis, advanced People Analytics practitioners understand that solving complex, niche problems—like representation trends at a specific level—requires more than surface-level data. The One Model Advantage Here’s why One Model is different: Speed: Because One Model creates a unified single source of truth for your organization, you can explore complex interactions without having to manually manipulate data, saving you time. Flexibility: You’re not limited to prebuilt Storyboards or canned content. You can adapt and dig into unique questions in real-time, even in situations where you need to create new metrics to explore an issue. Depth of Insights: By enabling dynamic exploration, One Model allows for nuanced and complete answers that out-of-the-box solutions can’t deliver. The takeaway from this use case is simple: Good insights require effort. Platforms that promise quick, prebuilt solutions often oversimplify problems or deliver incomplete answers. One Model’s strength lies in empowering users to dig deeper and uncover real insights—even when the questions are complex. With One Model, you’re not just using a People Analytics platform—you’re solving real problems.
Read Article
Featured
7 min read
Steve Hall
Reporting specialists and data analysts are often required to predict the future for stakeholder groups. They do this through a variety of models, including forecasting and annualization. Although both methodologies aim to predict future values, their applications and the mathematical logic behind them vary significantly, catering to different business needs. What is Annualization and Its Significance? Annualization is a mainstay for finance and accounting but there are situations where it may be useful in HR contexts. It can be used to estimate year-end values for turnover rates, total new hires, and job openings filled, based on current data. Annualization works well when: There is little volatility in the metric across time periods There is little seasonality in the metric The metric is not likely to trend upward or downward during the course of the year Simplify Annualization with One Model One Model streamlines the computation of annualized metrics. By selecting the "Year to Date" option and "Annualize" in "Time Functions," the system will only consider the current year's data, offering a clear example of annualization at work. The Case for Forecasting Forecasting provides several benefits over annualization. While annualization typically only considers data points from the current year, forecasting can: Utilize data from a much wider time frame and range of data points Factor in seasonal fluctuations and trends Provide a more nuanced view of potential future states with confidence intervals, which is especially valuable for HR metrics that exhibit variability (e.g., number of hires, number of terminations, and termination rates). Simplify Forecasting With One Model One Model simplifies forecasting with its Embedded Insights feature. Just create a time-series line graph for your metric and use the feature to extend your forecast to the year's end. Increasing the number of data points, by adjusting the time metric from monthly to weekly or daily, for instance, can enhance forecast accuracy by capturing shorter-term cycles that may be present in the data. Including data from at least 30 data points will improve the accuracy of your forecasts and if annual seasonality is present, including data covering two or more years will also improve accuracy. You can adjust forecast parameters to align the final forecast period with the year-end. After running the forecast, simply click on the last data point in the visualization to see the forecasted value and its confidence interval. For more complex situations where the current year data pattern is expected to shift relative to last year’s pattern, One AI can be used to create a predictive model that incorporates additional internal and external features to improve accuracy. Making the Choice: Annualizing or Forecasting? Annualization and forecasting each have their strengths and weaknesses. Deciding between them depends on your data and your stakeholders’ needs. Sometimes a rough approximation is good enough; other times, a precise estimate or a range of values (e.g., a confidence interval) will be required. Annualization Forecasting Only considers data from the current year Can leverage data from multiple years Only needs a single month of data to start the estimation process One Model will need at least 4 data points to produce a forecast, but forecast accuracy suffers with so few data points unless the metric progresses in a very linear fashion Does not adjust for seasonality or trend Accounts for trends and seasonality Very simple approach requiring little input regarding computations and easy to understand More sophisticated approach that may prompt questions from end-users (luckily One Model provide embedded information describing the forecast) Estimates made early in the year are likely to be inaccurate Estimates made early in the year are likely more accurate than Annualization, especially when data from the prior year are utilized Will always underestimate or overestimate if a trend is present Can produce more accurate results even when trend is present Alternatives and Strategic Adjustments Alternatives like the 12-month rolling average provide another strategy for estimating year-end values, accommodating changes anticipated over the year. For specific metrics, like annual turnover, manually adjust the year-end prediction using expert analysis or the expected effects of internal actions. Depending on the metric being forecasted, it may also be reasonable to manually adjust the year-end value based on general projections for the year. For instance, to predict next year's annual turnover, start with the current end-of-year rate and refine it using projections from external experts or by considering the expected effects of internal measures aimed at reducing turnover. One Model Simplifies Forecasting and Annualization You might encounter scenarios where estimating year-end values for a metric is necessary. Although predicting these values with absolute precision is challenging, One Model can generate reasonable estimates, bearing in mind that sudden changes mid-year could significantly affect forecast accuracy. In practice, forecasting, particularly with One Model's Embedded Insights, tends to be more effective than annualization, especially at the start of the year. However, the accuracy of forecasting is impacted by decisions related to data inclusion and model parameters. Forecasting may also require a bit more effort to maintain, albeit minimal. Fortunately, One Model simplifies the use of both annualization and forecasting. In fact, using both methods to create estimates can be practical. When the results are close, opting for the annualized figure might be preferable for its simplicity. If results differ, the underlying data should be evaluated and the method that best aligns with the data’s characteristics should be used. One Model has you covered regardless of the situation you face and the approach you prefer or choose.
Read Article
Featured
9 min read
Steve Hall
In organizational management, span of control plays a key role in defining how streamlined and agile a company can be. Understanding the Span of Your Manager-to-Employee Relationships At its core, span of control refers to how many people a manager or supervisor directly oversees. The optimal number depends on a variety of factors including job type and job level, and most organizations set targets using rules of thumb and experience. The span of control metric helps determine if the organization is structured appropriately, with too large a span of control leading to ineffective management and manager burnout, and too small a span of control leading to inefficiency. To calculate your average span of control, divide the total number of direct reports by the total number of supervisors. For instance, if there are 100 direct reports to 10 supervisors, the average span of control is 10. Exploring the 2 Types of Span of Control In the context of organizational structure, span of control is classified as either wide or narrow. Each type presents unique advantages and challenges, so it is not a one-size-fits-all proposition. The choice between a wide and narrow span of control depends on various factors, including: The nature of the organization's work and its structural preferences Industry norms Complexity of tasks Managerial capacity Job level Both wide and narrow spans have their place, even across departments and job levels within an organization. The key is to find a balance that maximizes efficiency, promotes effective management, and aligns with the organization's overall goals. Wide Span of Control In a wide span of control, a single manager supervises many subordinates. This structure is often seen in companies with flat organizational structures, with fewer layers between the top and bottom levels and a shorter chain of command. Wide structures are also more common at lower levels in organizations. Features: Low supervision overhead costs Prompt response from employees Improved coordination Suitable for repetitive or low-skill tasks Advantages: Encourages delegation of authority Facilitates better manager development Ensures clear policies Promotes autonomy among subordinates Fewer levels in the managerial structure Cost-effective Suitable for larger firms and repetitive tasks Well-trained subordinates Disadvantages: Risk of supervisors being overburdened Potential loss of control for superiors Need for highly qualified managing employees Hindered decision-making Increased workload for managers Unclear duties for team members Confusion among subordinates Management challenges in large teams Reduce manager-employee interactions Narrow Span of Control Conversely, a narrow span of control is characterized by a manager overseeing a smaller number of subordinates. This approach is prevalent at the top or middle management levels, especially when tasks are complex and require more support from superiors. Features: Ideal for new managers to gain supervisory experience Beneficial for managing remote or diverse teams Necessary for jobs requiring frequent manager-employee interactions Useful in new operations and for employee training Advantages: Easier communication and management in small teams High specialization and labor division Better opportunities for staff advancement Direct supervision by managers over each subordinate Effective communication between subordinates and managers More layers in the management structure for easier control Improved management control and effective supervision Disadvantages: The potential of stifling of employees' creativity due to excessive manager control Slower decision-making in extended hierarchies Limited cross-functional problem-solving Higher costs due to more managerial positions Delays in information transmission and decision-making The Challenge of Manual Span Management Effective span management is a balancing act, nearly impossible to achieve without technology. Strong span management requires examining spans vertically, horizontally, and over time; this creates a complex situation that is not easily or effectively handled without well-orchestrated data. Span Management Impacts A high manager-to-employee ratio might lead to insufficient attention to each team member, potentially affecting employee development and performance. Conversely, a low ratio could indicate inefficiencies and a bloated organizational structure that erodes profitability. Span Management in Different Industries Span management requires a tailored approach, as the ideal ratio varies by industry and job function. In labor-intensive industries, a higher ratio is often more manageable, whereas in knowledge-based sectors, a lower ratio might be preferable to ensure quality supervision and mentorship. Seasonal Staffing Certain industries or departments may experience fluctuations in workload at different times of the year, necessitating a flexible approach to span management. During peak seasons, managers may need to handle more direct reports or delegate responsibilities more effectively, while in slower periods, they may focus on training and development. A dynamic strategy can maintain efficiency without compromising the quality of supervision or employee growth. The Role of HR and Analytics in Span of Control Human Resources plays a critical role in monitoring and adjusting the span of control. HR can track this metric in real-time by using analytics tools to help maintain an optimal balance. People analytics software like One Model offers capabilities to analyze and adjust management span of control across various levels and departments, ensuring organizational efficiency and employee satisfaction. Data-Driven Span of Control Analysis Span of control analyses help organizations identify optimal structures and make precise staffing decisions in response to changes over time. Using people analytics tools, HR can dissect span of control across different dimensions such as department, geography, and manager level. Analysts should examine span of control: Both vertically and horizontally, and over time Relative to gross and net revenue Relative to employee-related outcomes such as engagement and retention It is not practical or effective to evaluate and manage span of control manually; this is an area where robust data can be used to drive effective decision making and optimize outcomes. However, to kickstart this analysis, even basic data from a core HCM or HRIS system can be enlightening. Metrics like span of control and organizational layers are akin to stepping on a scale — they provide immediate feedback on the state of your organizational structure. Within this discussion, key metrics such as span of control trends and visualization of layers and organizational units are invaluable. One crucial metric, for instance, is the number of managers with only one or two direct reports. This simple statistic can reveal much about the nature of your management structure. These insights are essential for keeping talent management processes aligned with business reality. If your current team or technology cannot readily provide these views, it may be time to reconsider your approach and tools. It took our team under 5 minutes to find the ratio between managers and non-managers. How long will it take your team to answer Question #38 on the People Analytics Challenge? Setting Targets for Span of Control Setting the right targets for span of control involves considering various factors, including industry norms, organizational structure, and management levels. A higher ratio may be effective for frontline or production roles, while senior management might require a lower ratio to strategize and lead effectively. Organizations often set their span of control targets based on industry benchmarks, aiming for a median that balances efficiency and managerial attention. Variations in span of control targets can be set for different organizational units, such as contact centers, corporate offices, and field operations. But the best organizations strive to surpass industry norms and link span of control metrics with outcomes of interest such as efficiency, profitability, employee engagement, and voluntary turnover. By doing so, they can optimize span of control to drive desired outcomes. Mastering Span of Control with One Model Understanding and effectively managing the span of control is crucial for any organization seeking to optimize its structure for maximum efficiency and employee development. With One Model, organizations can gain the insights needed to make informed decisions about their management structures, ensuring they are well-equipped to adapt to changing market demands and internal growth dynamics. One Model also supports next-level span-of-control analytics by allowing organizations to link span-of-control with operational metrics, moving the organization from descriptive analytics into the realm of optimization. After all, blindly following industry benchmarks won't ensure optimization within the organization. One Model is equipped to support optimization through the modeling core HRIS data, employee engagement data, employee performance data, and operational data related to production, safety, and financial outcomes. If you aren’t using a tool to measure and track span of control, you’re missing out. If you aren’t linking span of control to business metrics that matter, you’re really missing out.
Read Article
Featured
12 min read
Steve Hall
Understanding the subtleties of organizational promotion dynamics offers a window into career advancement opportunities or lack thereof and can uncover both desirable and undesirable organizational outcomes. Key among these insights is the internal promotion rate. This metric goes beyond mere numbers to reveal the depth of employee development, engagement levels, and the effectiveness of human resources strategies in fostering high performers and nurturing talent for higher-level job roles. Analyzing Organizational Health Through Promotion Metrics The internal promotion rate, calculated as the percentage of employees promoted in a given period, can offer human resources professionals a clear view of their employee development opportunities. Strong promotion rates tell us that development opportunities are available and being acted upon, and we can use these rates to identify areas of celebration and opportunity with the organization. Promotion activity is linked with retention as employees who receive promotions are encouraged to stay through increased pay and responsibility, and it shows other employees that growth, development, and advancement opportunities are provided by the organization. Real-time promotion data becomes a strategic asset in understanding how promotions influence employee morale and retention, and allows HR leadership to craft promotion protocols and goals. Here are several analyses where promotion rates could be used: Career Path Ratio - Used to gauge the success of internal grooming of managers, performance management process controls or compensation cost management. Cross-Function Mobility - This metric identifies skills development of high-potential employees through diversity of experience. Promotion Speed Ratio - Once you have the promotion rate, you can divide total tenure to understand how fast employees are being promoted. Upward Mobility - You can divide promotions by internal movements to understand your upward mobility paths compared to all. Performance to Promotion ratio - This will help you understand how performance ratings correspond to promotions. Gender and Ethnic Diversity Staffing Breakdown - Examining gender and diversity breakdowns with hierarchical levels and promotion rates can help identify and address any "glass ceilings" that may be present, offering a more comprehensive understanding of gender and diversity dynamics within the workforce. Turnover Breakdown - Assessing turnover rates in tandem with gender and ethnic diversity breakdowns and promotion rates is crucial for gaining a holistic perspective on the organization's gender- and diversity-related challenges and opportunities, contributing to a more nuanced analysis of workforce dynamics. Promotions into higher level positions, achieved through performance management cycles, non-competitive moves, or competitive moves, reflect strong individual performance and readiness for greater responsibility. They serve as recognition and rewards for outstanding performance within an organization. While a high promotion rate suggests robust performance and managerial strength, it could also result from flawed performance management or succession planning processes. Conversely, a low rate may indicate a lack of qualified internal talent or organizational constraints that make it difficult for internal talent to move upward. Low rates could also reflect a bias towards “buying” external talent. Analyzing promotion rate requires considering an employer's performance management policies for accurate interpretation. Ultimately, the internal promotion rate is a multifaceted indicator, reflecting how effectively an organization nurtures its talent and commits to long-term development while upholding diversity and inclusion principles. How to Calculate Promotion Rate The internal promotion rate is a straightforward yet revealing metric. First, you need the right data to get the right answers. Locate both your core workforce and mobility data. Formula: Promotions / Average Headcount * 100 For example, suppose your organization has 500 employees on average for the period and 50 employees were promoted within a year. The internal promotion rate would be: 50 / 500 x 100 = 10% However, this calculation only provides a surface-level understanding. Organizations must explore how promotion rates vary across different demographics and departments to gain deeper insights. How to Track Promotions Across Diverse Demographics Understanding how to track promotions effectively can provide crucial insights beyond mere statistical data; it highlights the diversity and inclusivity of an organization's workplace practices. By examining promotion rates across various workforce segments, including diversity groups, job roles, business units, age groups, and tenure groups, organizations can better understand their approach to career advancement and how it impacts different demographic groups. Diversity Groups and Career Advancement When analyzing promotion rates among diverse groups, it becomes possible to spot biases or disparities. This is crucial for ensuring that career advancement opportunities are equitable and accessible to all employees, regardless of their background. Today's businesses must monitor hiring metrics and analyze diversity reporting effectively to make meaningful changes. People analytics software can remove bias and give companies data to support workplace diversity and inclusion programs and policies. One Model customers like Colgate use our people analytics software to build powerful visuals to track and communicate their progress, increase workplace inclusion at every step, and build an enduring diversity-rich strategy. Job Roles, Business Units, and Growth Opportunities The potential for career growth and progression within an organization can vary significantly across job roles and business units. For example, a department experiencing rapid expansion may witness higher promotion rates as roles broaden and the demand for new leadership surges. This dynamic highlights the importance of strategic HR functions like succession planning in shaping career pathways and organizational resilience. Succession planning is more than just a process; it's a strategic effort to identify critical positions and groom potential successors for these key roles. When a vital role becomes vacant, organizations with robust succession planning can promptly fill the gap with a capable and prepared individual, enhancing operational continuity. This proactive approach ensures organizational readiness for future changes and signals to employees a clear trajectory for growth and advancement within the company. Effective succession planning intertwines seamlessly with people analytics. Clarifying objectives and progress is essential to shape the future workforce strategically. This clarity is best achieved through metrics that track and measure the effectiveness of succession strategies. Metrics and analytics can provide insights into the readiness of potential successors, the distribution of talent across the organization, and the impact of training and development initiatives aimed at preparing employees for future roles. Another crucial aspect of succession management is its ability to boost employee motivation. Employees are more engaged and motivated when they perceive opportunities for growth and advancement within their current organization. Seeing a well-defined path to potentially step into key roles enhances their commitment and drives their performance, aligning their personal growth aspirations with the organization's strategic goals. It took my team 5 min 16 sec to pull these charts together. How quickly can you complete the People Analytics Challenge? Age, Tenure, and Upskilling Younger employees or those with shorter tenures tend to have steeper promotion trajectories than their more experienced counterparts. Early career persons will need to be promoted more frequently as they begin to master their discipline. The time between promotions tends to increase as higher job levels are achieved. The time it takes to go from Specialist to Manager is typically much shorter than going from VP to SVP. PwC’s Global Workforce Hopes and Fears Survey found the biggest priorities for younger workers are training, development, flexibility, autonomy, and transparency on social issues. One key distinction among Generation Z workers (ages 18 to 24) is that they are more vocal in their demands than older generations. Specifically, they are more than twice as likely to ask for a promotion in the next year (38% of Gen Z and 37% of Millennials, compared to 16% of Baby Boomers). High-potential employees, especially, are keen to embrace new challenges, learn, and grow. Providing robust professional development and training opportunities boosts employee confidence and enhances their value to the employer. This investment leads to higher performance, satisfaction, and productivity, positively impacting the internal promotion rate. Organizational Culture and Structure The shared values, beliefs, and behaviors within an organization significantly influence employee experiences and, by extension, their promotion prospects. A positive workplace culture correlates with higher sales, profits, and productivity, while a negative culture can drive high turnover. HR professionals can assess employee performance against the organization's culture and values to understand how workplace culture affects employees. Changes in organizational structure have been shown to impact employee performance directly. HR can be pivotal in shaping workplace culture to enhance promotion rates. This involves fostering open communication, transparency, and respect across the organization and ensuring all employees feel included. Company values should be reinforced during onboarding and through ongoing training and leadership programs. Limitations of Promotion Rate Metric This metric falls short of providing a comprehensive evaluation of promotions in relation to other internal movements, such as transfers. It does not delve into the nature of promotions, whether they transpire within the routine course of performance reviews or if they involve transitions into higher-level positions within different organizational units. Furthermore, it lacks specificity regarding the hierarchical level at which these promotions occur. Importantly, it does not shed light on the consequential aspects of promotions, such as changes in compensation or increased responsibilities that often accompany these advancements in an individual's career trajectory. In order to obtain a more nuanced understanding of the dynamics at play, a more comprehensive assessment that encompasses these facets would be necessary. Streamlining Promotion Tracking with One Model How promotions are tracked within an organization is just as crucial as the data itself. An effective tracking system not only gathers data but also segments it meaningfully. This is where One Model plays a pivotal role, offering an advanced yet user-friendly suite of tools that effortlessly disaggregate data across various essential metrics. Simplifying Complex Data with One Model — One Model’s platform is designed to ease tracking and analyzing promotion data complexities. With its sophisticated, intuitive interface, HR professionals can quickly segment and analyze data across departments, gender, diversity, and cohort groups. This comprehensive approach enables organizations to gain deeper insights into their promotion dynamics and make more informed decisions. Departmental Breakdown Made Easy — Understanding promotions within specific departments is critical to identifying growth opportunities and potential areas for improvement. One Model allows for a detailed departmental breakdown, clarifying which areas excel in employee advancement and which might need a more focused approach. Gender and Diversity Analysis for Inclusivity — A crucial aspect of modern HR is fostering an inclusive workplace culture. One Model simplifies the process of conducting thorough gender and diversity analyses. By providing clear insights into promotion rates across different demographic groups, One Model helps businesses ensure that all employees, regardless of gender or background, have equal growth opportunities. Cohort Group Analysis for Targeted Development — Cohort group analysis, such as examining promotion rates among new hires or high-potential employees, is vital for shaping effective talent development strategies. One Model’s tools enable HR professionals to perform nuanced analyses of various cohort groups, helping to tailor development programs and career progression pathways that align with individual and organizational goals. The OPM Promotion Calculator and GS Promotion Rate While discussing promotion rates, tools like the OPM promotion calculator, particularly relevant in government jobs utilizing the General Schedule (GS) system, are worth noting. Although indirectly related, such calculators can offer benchmarks for understanding promotion norms in broader industries. The Significance of a Comprehensive Analysis More than merely calculating the average promotion rate is required. A comprehensive analysis, considering all the segments above, is imperative. It ensures a fair and inclusive work environment and helps align workforce development with organizational goals. Understanding and effectively managing internal promotion rates is a multifaceted process. Organizations must go beyond merely calculating these rates; they should deeply analyze variations across demographics and departments. Tools like One Model facilitate this process, providing a seamless solution for tracking and analyzing promotion data, ensuring that every aspect of workforce development is aligned with broader business objectives. Ready to take your analysis to the next level? Request a demo and watch me breakdown promotion rate live.
Read Article
Ready to Get the Most Out of Your HR Data?
