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Singin' In The Rain

September 9, 2016

Getting an HR analytics initiative off the ground can be a truly daunting task. If you are like most companies you have found plenty of people who gladly offer a plethora of “rain on your parade” reasons why your initiative will stall-out or fail. Here are a few great reasons to implement an enterprise workforce planning and analytics tool that will have you Singin’ In The Rain.

 

 #1 Predicting Demand

One of our customers wanted to staff more effectively. We integrated several data sources and used our solution to apply statistics in a comprehensive multi-dimensional way. This allowed the company to predict a clear future and plan accurately.

Prior to implementing Vemo solutions the company was having great difficulty managing and maintaining accurate staffing levels. There was chronic overstaffing when work volumes lagged and chronic understaffing when work volumes increased. The company response to this volatility was reactive and brought an endless cycle of furloughs, contractors, and costly overtime. The company’s reactions were not effectively addressing the core problem and seemed to only exacerbate the situation.

After implementing Vemo the company used our tools to build a predictive demand and predictive supply model. On the demand side work volumes were successfully correlated to need by worker type. We also discovered that the time it took for various positions to reach full productivity ranged from 6 months to several years. This helped to accurately staff people with the right skills at the right time. The organization finally had a consistent and clean view of data and could now take proactive and targeted actions for hiring/training/development and this in turn drove the right revenue and profitability. Conservatively the solution saves the company over 1 million per year, and that is before factoring in the benefits of supply modeling.

Perhaps this model could be highly impactful for your organization, because of its scale and the possibility of leveraging demand driver and volume-based workforce planning to better predict needs. This model can also ensure smoother, more effective, uses of overtime.

 

 

#2 Integrating HR & Finance

By integrating both the talent-based workforce planning and the financial-based budgeting processes through one entry point Vemo was able to help an industrial manufacturing customer on a global scale.

Previous to implementing Vemo these processes worked separately, which created many wasted labor hours in data entry, wasted reconciliation hours, and less-than-ideal benefits from their programs.  

After Vemo implementation our system not only allows creation of headcount and FTE plans but also populates actual/forecasted costs, standard costs, real estate, burden and more. This information can front-end the Financial budgeting and forecasting process and provide the full detail on labor to Finance without Finance having to populate their system with employee-level details. This is an option, not a requirement, but several customers have realized multi-million dollar savings by integrating these processes, as well as a much cleaner and more coordinated workforce planning/budgeting process.

The Finance department of this customer estimated that there was a hard savings of $500,000 in the first year, by virtue of doing workforce planning in Vemo and creating an Operating Expense view on top of headcount/FTE planning including salaries, burdens, cost drivers, etc.

Perhaps your company could also import financial budgets to be used as targets within the tool (or sometimes “right-size” caps or other targets as well). When planning, the headcount waterfalls allow the user to see how their ending forecast projects against Budgeted headcount/FTE/Salary and thus allowing more budget-appropriate planning decisions overall.

 

#3 Cost savings with centralized HR Analytics Function

For several customers Vemo solutions facilitated substantial cost savings by centralizing the analytics function.  

Some Vemo customers who were previously spending several full time equivalent salaries on cleaning data, fixing issues and assembling data found that those resources were no longer necessary or their skills and labor could be applied elsewhere strategically. In one case, a customer was able to cut its FTE requirement in half while centralizing the field based and HR-analytics function. Customers have gained more control of the overall analytics and reporting approach within their organizations.

You will be glad to know that our tool is cost-neutral and highly practical delivering the kind of information that is in highest demand in the organization through a number of simple to use, standardized, highly visual reports. In no case has a customer added a FTE to leverage the analytics side of the solution (For our planning modules, sometimes the change management program associated with a new way of operating does increase headcount). Vemo has a data-driven model that is highly friendly to changes in data, with excellent processing and error handling.

 

#4 Predictive Analytics

One of our technology customers was experiencing excessive turnover in pivotal positions and had tried different approaches to solve the problem for several years without much success. The ability to truly understand and reduce turnover remained illusive. The customer stated that the level of turnover caused projects to run behind and reduced the needed capacity for innovation.  

By implementing the Vemo predictive analytics solution the customer was able to estimate the precise risk of turnover for each employee in the critical functions, allowing the customer to better understand what its risk would be on an individual employee level and evaluate which risks were of greatest concern. It also demonstrated the drivers of turnover and consequently we were able to make a number of suggestions through counterfactual modeling. This is a feature both in our tool (and available as a consulting offering) that showed how turnover would change based on changes in pay policies, promotion/lateral policies, structural work group changes, benefits, and a number of other factors. These policy revelations allowed the company to make calculated strategic interventions.  

After the program launched, the customer identified that the turnover for Vemo-identified high-risk employees was 4x the overall employee base in the functional areas. After this was determined, the customer applied certain interventions and the high-risk employee turnover is now operating at a lower multiple than pre-intervention.

Perhaps your company could explore these same policy applications to see how it would affect retention, along with other various discoveries. Vemo offers unlimited scenario planning that can be applied to any forecast making the potential gains endless.

 

Vemo is a leader in workforce planning and analytics subscription software and predictive analytics consulting services. Vemo differentiates itself in the market by its expertise, innovation and customer-oriented approach.

 

For more information: info@vemoworkforce.com

 

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