Human Resources: Modeling the Financial Impact of Increased Promotions in an Economic Recovery

Using data to quantify the potential impact of specific workforce decisions is an essential component of strategic HR management. This is especially critical in a challenging economy, where stronger scrutiny of costs puts greater pressure on HR leaders to responsibly allocate financial resources. At Thrivent Financial for Lutherans, the $6 billion financial services company based in Minneapolis, MN, a short-term salary freeze has prompted investigation into the potential cost impact of the next round of internal promotions. This webcast will outline the steps that Thrivent’s analytics team took to structure its analysis, calculate the financial metrics that were ultimately presented to senior executives, and deliver the results in through a compelling data-driven story.

In today’s challenging economy, it is essential that HR leaders are able to use workforce analytics to make fact-based decisions about the workforce. With the current focus on cost management offering little margin for error, quantifying the financial impact of new HR policies and programs is a critical step in the strategy process.

However, to what extent are HR leaders able to support senior executive decisions with data-driven insights about their people and processes? Where can workforce analytics offer the greatest return-on-investment?

For Thrivent Financial for Lutherans, the $6 billion financial services company based in Minneapolis, MN, the use of data to influence HR decisions has become standard operating procedure. Through an Analytics Center of Excellence, the firm’s senior leaders and business partners have regular access to key metrics, issue-based reports, and deep dive analyses.

For example, a short-term salary freeze has prompted investigation into the potential cost impact of the next round of internal promotions, scheduled for Q1, 2010. The recently-completed analytics study looked at three main questions:

Is there a pent-up demand for promotions due to the recent salary freeze?
What is the forecast for 2010 promotions and the corresponding cost impact under three different scenarios?
What is the overall financial impact of off-cycle (non-merit related) salary increases?

This webcast will outline the steps that Thrivent’s analytics team took to structure its analysis, calculate the financial metrics that were ultimately presented to senior executives, and deliver the results in through a compelling data-driven story.

This webcast has been approved for 1.0 General credits through HRCI

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