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n an economic climate characterized by cost-cutting and increased regulatory
requirements, organizations face growing demands to reduce employee turnover,
cut unnecessary costs across the board, optimize investments in employee
training, and much more. For executives especially, that means moving away from
soft measurements such as improvements and adopting quantifiable metrics to
monitor the overall business.

Employers can now leverage hard data to plot a course for the future instead of
merely reacting to workforce issues once these begin to negatively impact growth.
Meaningful data points can include recruitment costs, compensation and benefits
expenses, talent development investments, and many more. Collecting,
interpreting, and applying this data empowers executives to take a smarter, more
proactive approach to driving corporate strategy.

People-centric business intelligence (BI) allows for the analysis of critical employee
data and assists with the execution of informed day-to-day decisions and longer-
term evaluations about employees and related business issues. Using these
analytics wisely, in a unified context, translates into a more agile, comprehensive
approach to managing the needs of an entire workforce, giving your organization a
significant competitive advantage in the struggle to find and retain talent. This
paper highlights some of the most valuable strategic metrics that BI tools can
deliver to executives.

Level-Setting Compensation
Top organizations know performance-based compensation is highly effective in
attracting, motivating, and retaining outstanding employees. However, its important
for an organization to continuously revisit its compensation plans to ensure the
success of a pay-for-performance strategy.



BI helps organizations by correlating compensation with performance targets,
skills, seniority, and other factors. For instance, an executive can analyze
compensation across a variety of dimensions (e.g., department, location, gender,
or seniority) to determine its market competitiveness. The result: lower turnover
and recruitment costs.



I
Companies need BI
tools that are
delivered fully
integrated with a
comprehensive HR,
payroll, benefits, and
talent management
solutionso that the
BI tools can analyze
and report on all
areas that impact the
bottom line.
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Reducing Unnecessary Overtime Expenses
In many industries, overtime can be a major source of budget overages, and
keeping these runaway labor expenses in check can be a year-round challenge.
Additionally, compensation-related disputes originating from overtime hours can
lead to expensive litigation. And due to more aggressive legislation, employers are
bound to face larger wage and hour-related claims and increased risk in the years
to come.
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BI helps significantly reduce
overtime. With easy-to-
access graphs and charts,
for example, an executive
can instantly identify
potentially inefficient or
duplicate scheduling as well
as seasonal spikes.

Using BI tools for human
capital management (HCM)
to analyze data by
department, organization,
job, location, supervisor, month, or other factors enables decision makers to
determine where scheduling adjustments and staffing/shift changes could decrease
overtime costs.

Cost-Effective Benefits Analysis
While attractive employee
benefits packages can help
bring in talent, employer-paid
or subsidized benefits are also
a major cost center for most
companies. Whats more, a
survey conducted by Watson
Wyatt Worldwide and the
National Business Group on
Health found that 85% of
companies say that their
strategy for healthcare cost
sharing will be a major part of
their overall value proposition
over the next five years.
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To maintain a competitive advantage, employers must ensure theyre offering the
most cost-effective plans. Organizations must have a complete picture of the true
and full costs to the business as well as employee participation levels by location,
benefits plan, organization level, and other criteria. This is more important than
ever with imminent changes in healthcare and compliance reporting on company-
paid benefits. The right BI tools, integrated with a unified HCM solution, can make
providing these metrics a breeze.

_________________________
1
Jonathan A. Segal, The New Workplace Revolution: Wage and Hour Lawsuits,
FORTUNE, May 29, 2012.
2
2013 Employer Survey on Purchasing Value in Health Care, National Business Group on
Health/Towers Watson.


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Turnover Analysis: Keeping Your Best and Brightest
Employee turnover costs can range from six to 36 months of salary and benefits.
And losing employees within the first year can be especially costly when you factor
in all expenses from hiring to termination to replacement.

To keep turnover costs in check, companies should think proactively and develop a
range of solutions designed to solve the underlying causes of employee attrition. A
plan also should be in place for monitoring turnover ratesdifferentiating between
voluntary and involuntaryfor key positions or departments.




BI can effectively consolidate and monitor factors such as location, department,
seniority, gender, supervisor, salary, promotions, and skills plus analyze their
impact on turnover. And with intelligent BI tools, executives can quickly and easily
drill into increasing levels of detail and perform complex analysis to understand the
cause of employee turnover. For example, what departments are experiencing the
greatest turnover and why?

These analytics help companies create a profile of at-risk employees and take
necessary actions to prevent attrition.

Recruiting Top
Talent
Whether its newspaper
ads, agencies, job fairs, or
employee referrals,
companies invest heavily
to attract top talent. How
can an organization
assess if that spending is
attracting the right people?
Many companies scratch
the surface by calculating
their average cost-per-
hire. However, executives
should also consider
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measuring and tracking their companys recruitment performance, or the overall
quality of hire. Comprehensive metrics like these empower organizations with
valuable insight and expert feedback on its hiring activities.

With BI, recruitment efforts can be measured based on the time required to recruit.
From there, companies can easily calculate the time, money, and recruitment
method to recruit a specific employee, and correlate these metrics to the
employees post-hire performance. Executives might find one method attracts more
job candidates in a shorter time or at a lower cost, but that the people are not as
highly qualified as those identified by another recruiting channel that costs more or
takes more time. In this way, organizations can see which methods deliver the
highest-quality candidates.

Optimizing Training and Development Investments
The investment companies make in employee development can be among their
highest line itemsin fact, spending on training jumped by 12% for U.S.
companies last year.
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Companies need to know if those investments are producing
tangible returns, such as increased sales or greater productivity. Furthermore,
business leaders must identify current skills and anticipate future gaps, plus
allocate training resources to
ensure optimal productivity.

With the right BI tools,
executives can confidently
demonstrate the value of
training programs by tracking
improvements in employee
performance and the
effectiveness of training
programs as it correlates to
training costs. Additionally,
training budgets can be
estimated for the upcoming year. Analytics like these can help companies better
control their human capital investment.

Choosing the Optimal Solution
Each of these metrics offers potent insights into the decisions your executives can
make to maximize business performance, efficiency, and growth. But
independently, each set of data points can provide only partial insight into the
complex nature of your human capital. The true power in workforce business
intelligence comes in the form of a comprehensive solution for all areas of HCM
that integrates unified reporting and analytics tools out-of-the-box. Furthermore, a
high degree of accessibility, flexibility, and cohesiveness in these tools will easily
separate a best-in-class solution apart from the rest.

These are some features you should look for when choosing a workforce analytics
solution:
BI unified with core HR. All reporting should be unified with core HR,
payroll, and talent management functionality enabling you to track all
relevant metrics in one place, across teams, departments, and locations for
your entire organization. This single source for all reporting and analytics
can unleash the strategic potential of each individual area.
Emphasis on user experience. Merely having advanced functionality is
not enough for a best-in-class solution: it must be user-friendly with an
intuitive and consistent user interface. Technology should be a
complement to decision-making for executives, not an obstacle in its path.

1
The Corporate Learning Factbook 2013, Bersin by Deloitte
Detailed metrics can
help companies more
effectively utilize
their HR data to
make fact-based
decisions about their
human capital
investments.
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Time spent requesting help from IT to run reports or decipher metrics is
time that could be spent on more strategic activities.
Strong customizability. The solution should be highly flexible, with a wide
variety of useful reports available out-of-the-box, along with fully
customizable reporting capabilities and dashboards. Custom reports
should be easy to create, run, modify, and save for future use.
Predictive analytics. Best-in-class BI
can leverage a wealth of people data
across multiple relevant metrics to help
predict trends and decision outcomes,
enabling you to effectively plan for the
future. The most advanced predictive
analytics can have incredible results,
such as sophisticated algorithms that
can estimate the likelihood that an
employee will stay at your organization.

If your solution does not have this combination
of functionality, user experience, customization,
and poweror can only report on isolated
componentsyour companys strategy may lag
behind ongoing workforce trends, miss out on
valuable opportunities for cost savings, or in the
worst case, make decisions on talent based on
incomplete or misleading data.

Conclusion
The right BI tools can provide your organization with expert workforce visibility in
order to achieve improved financial results.

Detailed metrics can help companies more effectively utilize their HR data to make
fact-based decisions about their human capital investments. Through BI analysis,
executives can not only identify what factors contribute to a more effective
workforce, they can also see what may be negatively impacting long-term goals.

But whats the key to finding the right BI tools? Companies need BI tools that are
delivered as part of a comprehensive HCM solutionso that the BI tools can
analyze and report on all areas of HR that impact the bottom linenot just benefits
or recruiting alone, for example. Look for an end-to-end HCM solutionone that
shares a common database for comprehensive HR, payroll, benefits, and talent
managementthat includes built-in BI tools out-of-the-box.


For more information, please visit www.ultimatesoftware.com.

Ultimate is a leading cloud provider of people management solutions, with more than 10 million people
records in the cloud. Built on the belief that people are the most important ingredient of any business,
Ultimate's award-winning UltiPro delivers HR, payroll, time, and talent management solutions that
seamlessly connect people with the information and resources they need to work more effectively.
Founded in 1990, the company is headquartered in Weston, Florida, and has more than 1,800
professionals focused on developing the highest quality solutions and services. In 2013, Ultimate was
ranked #9 on FORTUNE'S list of the 100 Best Companies to Work For, and Minyanville Media Inc.
named Ultimate among the top 10 most ethical businesses in the U.S. In its Cloud Buyers Bill of Rights
Certification, Constellation Research awarded Ultimate its highest level of certification. Ultimate has
more than 2,500 customers with employees in 146 countries, including Adobe Systems Incorporated,
Culligan International, Major League Baseball, Pep Boys, and Texas Roadhouse. More information on
Ultimate's products and services for people management can be found at www.ultimatesoftware.com.




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2013 Ultimate Software Group, Inc. All rights reserved.

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November 2013





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