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The focus foranalytics differsamong metro areaBased on specialty information listed on the LinkedInprofiles of professionals using HR analytics, we canassess the areas they focus on within their fields.Compensation, benefits, productivity, and performanceare the most established focus areas, making a nearclean sweep across metro regions, while retention andemployer brand receive less focus across all regions.In San Francisco, where tech is the top industry byemployment volume, culture and diversity appearshigher on the list than in other cities. An increasedspotlight on diversity (or lack thereof) at techcompanies in the mainstream media could be areason for the heavy focus on that topic.4 Of course,with larger HR analytics teams (on average) at techcompanies, they may simply have greater bandwidthto take on more experimental analytical projects. Andit can’t be discounted that the lack of focus on cultureand diversity analysis in most major metros could be aresult of poor data availability and quality. For example,according to Fortune, only 3% of companies on the2017 Fortune 500 list were fully transparent aboutdiversity data.5Los Angeles – which has seen a net outflow of talentto San Francisco in recent months – is perhapsunsurprisingly more focused on talent acquisition thanany of the other top metro areas in the North Americanregion.6In Washington, D.C., a city with among the largestlevels of skill scarcity, workforce planning ranks higherthan the other metro areas.7 lanca Myers, Women and Minorities in Tech, by the Numbers, Wired.com,BMarch 27, 20185 Stacy Jones and Grace Donnelly, Why We Logged Every Fortune 500Company’s Diversity Data, Or Lack Thereof, Fortune, June 16, 20176LinkedIn Workforce Report, May 4, 20187Ibid4NORTH AMERICA - PROFESSIONALS WHO LEVERAGE ANALYTICS IN HRTOP USE CASES FOR HR ANALYTICS BY REGION1. New York2. San Francisco3. Washington, D.C.4. Chicago5. BostonCompensation & BenefitsCompensation & BenefitsCompensation & BenefitsCompensation & BenefitsCompensation & BenefitsProductivity &PerformanceProductivity &PerformanceProductivity &PerformanceProductivity &PerformanceProductivity &PerformanceTalent DevelopmentCulture & DiversityWorkforce PlanningTalent AcquisitionTalent AcquisitionCulture & DiversityTalent AcquisitionTalent DevelopmentTalent DevelopmentTalent DevelopmentTalent AcquisitionTalent DevelopmentTalent AcquisitionCulture & DiversityCulture & DiversityEmployee EngagementEmployee EngagementCulture & DiversityWorkforce PlanningEmployee EngagementWorkforce PlanningWorkforce PlanningEmployee EngagementEmployee EngagementWorkforce ionEmployer BrandEmployer BrandEmployer BrandEmployer BrandEmployer Brand6. Los Angeles7. Dallas/Fort Worth8. Atlanta9. Toronto10. SeattleCompensation & BenefitsCompensation & BenefitsCompensation & BenefitsCompensation & BenefitsCompensation & BenefitsTalent AcquisitionProductivity &PerformanceProductivity &PerformanceProductivity &PerformanceProductivity &PerformanceProductivity &PerformanceTalent DevelopmentTalent DevelopmentTalent AcquisitionTalent DevelopmentTalent DevelopmentTalent AcquisitionTalent AcquisitionTalent DevelopmentCulture & DiversityCulture & DiversityCulture & DiversityCulture & DiversityCulture & DiversityTalent AcquisitionEmployee EngagementWorkforce PlanningEmployee EngagementEmployee EngagementWorkforce PlanningWorkforce PlanningEmployee EngagementWorkforce PlanningWorkforce PlanningEmployee ntionEmployer BrandEmployer BrandEmployer BrandEmployer BrandEmployer Brand* Top regions in North America are based on the volume of professionals whose profiles indicated they deal in some capacity with HR analytics work— a subset of these professionals also have HR analytics titles. In this analysis, topic rankings are defined based on volume of profile mentions byprofessionals that leverage analytics in HR.10

03Building a data-drivenHR function11

David WhiteSenior Director, Talent InsightsLinkedInSTRUCTURING AN HR DATA ANALYTICS TEAMWe spoke with David White, Senior Directorand leader of LinkedIn’s analytics functionin the HR department, to learn about thecompany’s structure, goals, and operations.ConsultingSingle Point Contacts for HR Leadership TeamLine of Business & Center of Excellence Consulting, Analysis & InsightsBuilding an Insights-Driven CultureLinkedIn’s HR department has a specialized analyticsteam whose mission is “better, faster talent decisions.”The objective of the team is to turn talent data intoinsights that drive action, as well as measure andimprove results once action is taken. LinkedIn’sanalytics function is composed of 16 people andbroken into three key specialties: data, consulting, andresearch. It reports directly to the CHRO.The team has a wide range of technical andfunctional skills, including statistics, machine learning,programming languages (ex: R, Presto, Hadoop),consulting, survey research, and organizationalpsychology. Balancing the teams’ skills is critical,because applying talent analytics effectively requiresmultiple disciplines working toward a single goal.To stay on task, the talent analytics team has anembedded member within its HR business partners,keeping the line of communication open, aligningobjectives and strategies, and ensuring the analyticsteam doesn’t operate in a silo.The team seeks to solve a number of business issues,including workforce effectiveness, workforce planning,talent acquisition, and diversity. More recently, theteam has partnered with engineering to create ageolocation strategy for new products and markets,allowing LinkedIn to better understand its competitivelandscape.DataTalent Portal (self-service)Scaleable and Repeatable VisualizationsData Modeling and StructureResearchDeep Competitive InsightsArtificial Intelligence/Machine LearningLongitudinal Research12

Building skills andcapabilitiesBuilding an effective HR analytics team requires anunderstanding of the skills you need on hand. Welooked at the skill profiles of professionals who workedon some form of talent analytics and we found threedistinct skill sets: HR Domain: Skills include recruiting and placement,compensation and benefits, talent management,employee engagement, employer branding, andworkforce planning. Domain knowledge is key toapplying statistics and analytics to ensure thatyou’re addressing the right problems with the rightapproach. Business & Strategic Thinking: Skills include businessdevelopment and relationship management, as wellas skills that are important but difficult to quantify(such as leadership). A critical component of anytalent analytics work is the ability to develop afunctional hypothesis, convert data into actionableinsights, communicate those insights articulately,and make data-driven recommendations for thebusiness. Data & Analytics: Skills include everything from HRsoftware expertise, statistical analysis and datamining to big data and machine learning. Analyticsspecialists need to understand data and know whichare the right tools to use when cleaning, extracting,combining, analyzing, and/or visualizing datasets.SKILLS RELEVANT TO GENERALHR PROFESSIONALS VS. HR ANALYTICS SPECIALISTSHR DomainData AnalyticsRecruiting and PlacementSourcingStatistical Analysis and DataMiningHR Analytics, Data Analytics,Data Management Statistics,Data Mining, Predicitve AnalysisSAS, R, PythonCompensation and BenefitsPayroll, Benefits negotiationOther HR Domain SkillsTalent Management, EmployeeEngagement, Employer Branding,Workforce Planning, EmployeeTraining, OrganizationalDevelopmentStrategyBusiness Development andRelationship ManagementStrategy and StrategicPlanningBusiness AnalysisManagement and LeadershipBusiness IntelligenceSAP Business Objects, TableauHR membersadoptinganalytics18%Big Data and MachineLearningMarket Research and InsightsQuantitative and QualitativeResearch, Market ResearchHR softwareSAP products, SAP ERP, ATS,Taleo, HRIS, Data Management,Workday, PeoplesoftData Engineering and DataWarehousingData Marts, Data Integration,Data GovernanceDatabase Management &SoftwareSQL, Databases13

Goal-specific skillsNORTH AMERICA — PROFESSIONALS WHO LEVERAGE ANALYTICS IN HRSKILL SET REQUIRED FOR HR ANALYTICS BY USE CASEOf course, a one-size-fits-all approach for skillsdevelopment is never the smartest strategy. Theskills required changes based on the type of analysisrequired. For example, professionals who worked ontalent analytics related to culture and diversity are morelikely to have market research and insight skills whilethose with a workforce planning focus are typicallymore skilled in HR software and business analysis.In fact, 17% of professionals who use analytics toaddress culture and diversity list skills related to marketresearch on their profiles compared to the 10% whosefocus is on workforce planning.HR Software60%Machine Learning40%Statistical Analysisand Data Mining20%Business AnalysisBig Data0%Data Engineering andData WarehousingMarket Researchand InsightsBusiness IntelligenceDatabase Management and SoftwareWorkforce PlanningCulture & Diversity17% of professionals using analytics to address Culture &Diversity have Market Research & Insights skills, compared to just10% of those with a Workforce Planning focus.14

04Applying analytics to answercritical talent questions15

Successful adoption of analytics dependson how you apply itIntroducing an analytics function into your HR team goes beyond simply investing in talent with the right skillsand identifying key business focus areas – you also need to understand where and how to apply it in a practicalsense.The key to success in utilizing data is understanding how to apply it to your business, your needs, and yourorganizational goals. Whether it’s the recruiter, HR business partner, VP HR, or the learning & developmentconsultant, it’s HR professionals who are using data and insights to make a business case, highlight gaps, andhave strategic conversations with senior leadership. Thus, access to analytics makes HR professionals moreefficient in their jobs and provides them with the tools to elevate their position in the organization.The vision should be to make analytics available in a digestible format that is simple to access, so the general HRpractitioner can easily reference and use it.In fact, many organizations already provide – or plan to provide – a majority of HR data to HR business partners.By sharing data, the analytics and respective insights won’t be wasted by sitting in a siloed, specialized team,and are instead available for the entire HR function.In this section, you’ll learn about LinkedIn’s vision for the application ofanalytics and how you can use insights to fuel your talent strategy.16

Talent intelligenceLINKEDIN HAS CREATED THE WORLD’S LARGEST TALENTMARKETPLACE WHERE CANDIDATES AND COMPANIESINTERACT EVERY DAYLinkedIn’s vision is to create economic opportunity forevery member of the global workforce. Executing onthat vision begins with mapping the digital economy –or creating the world’s first economic graph.LinkedIn’s Economic Graph is a digital representationof the global economy based on data generatedfrom 560 million members, 50,000 skills, 20 millionemployers, more than 15 million open jobs, and 60,000educational institutions.LinkedIn has created the world’s largest talentmarketplace where candidates and companies areinteracting every single day. While 10 years ago wehad a relatively small collection of profiles and someengagement, we now have a robust community wherebillions of interactions are taking place every day.The insights generated from these billions ofinteractions can enable today’s HR leaders to answersome of the most deep and complex questions raisedby the CEO and senior business leaders.This ammunition adds a data-driven foundation toyour point of view, your experience, and yourdecisions.Talent intelligence can enable your team to marry theirinstincts with these insights to make the right decisionsor elevate their position in the organization, while alsoensuring that people are a competitive advantage forthe business.ConnectionsEducationIndustryConnections at companyOpen candidateAlumniSkillsMacro labor trendsLocation interestJob cationJob searchesCompany sizeSalaryCurrent employeesContent viewJob viewsCompanies followedCulture & valuesSimilar companiesIn the next few pages, find out howorganizations can use insights fromLinkedIn to answer critical questionsacross the employee life cycle.17

WorkforcePlanningEmployeeEngagement& gagementTalent Pool AnalysisFIND THE RIGHT TALENT IN THE RIGHT LOCATIONTALENT DEMOGRAPHIC AND COMPETITIONThe graph below shows supply and demand of talent for a job profile or skill set. This includes talent poolcompetition in different cities, which can help you make decisions on pipelining, talent acquisition strategy,employer branding investment, and geo-location strategy.Overview Why do I find it difficult to hire talent with certainskill sets?Supply and Demand RegionProfessionals on LinkedIn Where should I open my new Research &Development center or my new office?406K Do I need to evaluate and increase my employerbranding investment?Competition for TalentLowModerateWorkforce Planning:This analysis shows competition for the talent poolin different cities, which helps an organization makedecisions on pipelining, competitive talentacquisition strategy, employer branding investmentand geo-location strategy.HighLevel of competition is in the top 50%compared to other talent poolsCompetition Trend0.2%change in avg. InMails per memberlast 12 months vs. prior 12 monthsSize of Bubble: Indicates the total # of LI professionals in regioncolor: Indicates the competition for talent, derived from Recruiter InMailmessages receivedHigh CompetitionModerateSupplyCompetition for TalentLocationProfessionalsDemand1New York, NY42KHigher2Los Angeles, CA20KHidden Gem3Chicago, IL20KHigherTrendLowHidden GemAvg. Annual Comp 95K- 88K 94K18

EmployeeEngagement& RetentionAlumniEngagementGender DiversityUNDERSTAND ENGAGEMENT WITH FEMALE TALENTGender Diversity:40%Attracting Female Talent How do I build a gender diverse workforce?of members who engaged with you onLinkedIn are women. Why do I find it difficult to engage and hirefemale leaders?*Engagement includes members who follow/viewyour LinkedIn page or view your jobs. How does my organization compare to competitorswith respect to diversity? As compared to your industry over timeThis type of analysis shows how femaletalent engages with your organization compared toindustry and peer averages across functions andseniority levels. It can be used for benchmarking andrevealing areas of opportunities for you, whichcan lead to decisions on diversity initiatives andemployer branding. Across business functions% of engaged members that are womenYourPeerIndustryCompany Average 22%Finance39%43%34%Human Resources61%58%52%IT32%31%22%32%30%28%Jun 15Sept 15Your CompanyDec 15Mar 16Jun 16Peer AverageSept 16Dec 16Mar 17Industry Average19

WorkforcePlanningTalentSourcingEmployeeEngagement& rce Skills DensityCOMPARING SKILLS DENSITY TO IDENTIFY STRENGTHS & GAPSYOUR ENGINEERING WORKFORCE HAS A HIGHER CONCENTRATION OF AI, CYBER SECURITY &CLOUD COMPUTING SKILLS COMPARED WITH PEERS How does the skills profile of myworkforce compare to my competitors?Big Data94% What competencies are my competitorsinvesting in?75% Where should I focus in reskilling andupskilling my workforce?56%37%Cyber Security19%Artificial IntelligenceEngineers in your companySkills Analysis:MobileDevelopmentThis type of analysis shows how your organizationcompares to your competitors in the penetrationand adoption of certain skills. It can be usedfor various purposes, such as analyzing skillsgaps, understanding competitors’ investment incapabilities, and building out the upskilling andreskilling strategy for your workforce.Cloud ComputingEngineers in peer company20

TalentSourcingWorkforcePlanningEmployeeEngagement& DevelopmentEmployeeRetentionAlumniEngagementBrand AuditMEASURING THE STRENGTH OF A COMPANY’S EMPLOYER BRANDYOUR COMPANY’S TALENT BRAND RANKS THIRD OF EIGHT COMPETITORS20%18%Talent Sourcing: How strong is my employer brandcompared to my competitors?18%16%The employer of choice has a brandthat is 1.6x stronger than yours! Is my employer brand growing stronger orweaker over time? How can I grow my employer brand?16%14%AVG TBI: 11.8%11%12%10%10%9%10%Peers9% Peers A7%8%3 of 8This type of analysis shows how your organizationcompares with peers with respect to the Talent BrandIndex (TBI). The Talent Brand Index is calculated basedon engagement of LinkedIn members with your Jobsand Career Page on LinkedIn. Peers B Peers C Peers D6% Peers E Peers F4% Peers G2%0%Employerof choiceWeakertalent brand21

WorkforcePlanningTalentSourcingEmployeeEngagement& al MobilityUNDERSTAND INTERNAL MOVEMENT BETWEEN DEPARTMENTSIDENTIFY THE MOST COMMON CROSS-FUNCTIONAL MOVEMENTS AMONG YOUR EMPLOYEESEmployee Engagement& Development: What are the most common internal movements? Which internal mobility paths lead tohigher retention?This type of analysis shows the most common internalcareer paths for your employees. You can benchmarkthis against your peers and industry to build careergrowth plans for high potential talent, which will help toprevent attrition of top talent.22

Case Study: NielsenEmployee Engagement& DevelopmentUsing data to identify internal mobility as a key to retentionOne of Nielsen’s businesses engaged its People Analytics team to understand why the company was losingtalent. Starting with five years of people data in a (big) spreadsheet and some hypotheses, they identified thefactors most highly correlated with attrition.The biggest finding was that employees with a change in job responsibilities due to promotion or lateralmovement within the past two years were much less likely to leave. This insight prompted Nielsen’s leadershipto make it easier for employees to pursue jobs internally, identify “at-risk” high performers, and proactively putopportunities in front of them.The ImpactMore opportunities for employeesThere was an 8x increase in internal mobility in the initiative’s first year.This was the furthest thing froman academic exercise. This directlyimpacted the business. Everybody feelsretention. The data let us make solidrecommendations that the companycould take action on immediately.Chris LouieSVP, People Analytics and TalentAcquisition, NielsenIncreased employee retentionMost groups achieved a 5-10% increase in annual retention of their at-risk employees.Immediate credibility for talent analyticsThe analysis caught the attention of other business leaders and has since been replicated for other Nielsen units.23

TalentSourcingWorkforcePlanningEmployeeEngagement& ion & Tenure AnalysisCOMPARE ATTRITION RATES AND TENURE WITH INDUSTRY PEERSYOUR COMPANY’S ATTRITION IS HIGHEST BETWEEN THREE AND SIX MONTHS OF JOINING,COMPARABLE TO INDUSTRY PEERSAttrition % vs. PeersYour company26%Peer 1Peer 225%23%Peer 3Employee Retention:24% What types of roles have the highest attrition rate? What is the average tenure of your employees?Attrition by TenureYour companyPeer 1Peer 2Peer 3This analysis shows the tenure of your employees, andwhen they are most likely to leave.39%38%37% 37%30%26%19% 19%15%10% 10%20% 20%18%13%13%11%9% 3 months9%7%3-6 months7-9 months10-12 months 12 months24

WorkforcePlanningTalentSourcingEmployeeEngagement& DevelopmentEmp

Data analytics can help organizations hire the right candidate for the right job at the right time. . According to the PwC CEO survey, 77% of CEOs believe the biggest threat to their business is the lack of availability of key skills. With CEOs so concerned about talent, it's important for the CHRO to help plan for the .