Considering building in-house solution for you people analytics challenges?
See experiences and learn about hidden costs from people analytics leaders that have built internal solutions before
Read experiences below
“So much I wish I knew: challenges of navigating internally approved infrastructure tools, cost accrued by switching HR tech stack, etc. Would definitely encourage People Analytics teams to focus more on quick analyses and data consultations as a basis to understand what's needed before embarking on the build journey, even if that's the final destination. Time to value takes so much longer w/ build and teams need to keep delivering value in the meantime regardless!”
Patty Smith, People Analytics Manager at Cruise ex-Lattice Analytics leader, HBS MBA
“The maintenance on the following are enough to make me pull my hair out... APIs, data models, role-based security, UX enhancements/preferences, stakeholder speed expectations, data augmentation... You can spend years getting that right, when there are already vendors that do all that. Spend your time doing the higher value analyses on initiatives that leaders need.”
Dan George, Adjunct Professor at Vanderbilt University CHRO, People Analytics Leader, 2020 NELA Winner
“Some of these problems are probably obvious, but I didn't realize them at the time:
Once you turn something on, you can't just walk away from it and expect it to run itself. Have a clear plan for maintenance and support that aligns to your user group(s). This means you'll have to earmark time/resources to maintenance/updates, which could slow you down on future builds.
The culture of the organization you operate in is going to influence the level of rigidity/flexibility you can build into the tool; align ahead of time but plan for enhancements.
Think critically if a tool is even the right way to do things. Sometimes you aren't in a position of readiness as an organization to turn something into a tool because you haven't actually settled on a process or way of working yet.
If something doesn't work well, you'll get lots of feedback. If it does work well, you're more likely to hear a “thank you” or silence and have to pull for feedback. Build active feedback solicitation into your process up front.”
Nicholas Bremner, PhD, Senior Manager People Decision Science at Uber
“What I wish I would have known?...So many things:
Why didn't I know it would take so long?
Why is our data so horrible?
Why does a "build" require us to "buy" so much tech to get up to speed?
Why does no one care how hard this is? I could go on...”
Cole Napper, PhD, VP of People Analytics at Orgnostic Directionally Correct podcast host, ex-Toyota, ex-Texas Instruments
“Here are several thing that I’ve learned from the experience:
People analytics products/tools are only 1/3 the value of people analytics yet tend to absorb 2/3rds the budget or more if you try and build in house.
Your first product builds should be on use cases that save end users time. Give people time back and you are a hero.
Don't build your own from scratch in house in 99% of cases, especially if you want to scale.
Good data engineers are expensive and the ones that really know HR and want to stay there are unicorns. The list goes on.”
Ryan Hammond, PhD, Head of Total Rewards at Datavant ex-Airtable, ex-Nike, Co-founder at Syndio
“I love building stuff and all our stuff is built on good data foundations so some of the common challenges around data quality don’t come up often for me, but I’d still say:
Just because you (the person building the tool) think something is simple to use does not mean the user will find it simple (or that it is simple)
You’ll start redesigning your tools within about 1 minute of publishing them into the user community
You will want to try and incorporate every cool trick you’ve seen on a YouTube tutorial even if a simple single bar chart will work
A simple data table is your best friend
Read storytelling with data by Cole Nussbaumer Knaflic before you start doing anything!
You aren’t a UX or design expert so don’t expect your work to be incredibly “pretty” straight away.”
Matt Harrison, Head of People Analytics Europe & Latin America at Ericsson
“What you need to know:
Data engineering is key. Ensure that you have the necessary infrastructure and skills to design and maintain the data flow. Don't cut corners, you don't want to build something unmanageable. If it's not a skill you have internally in HR (and it may make sense not to have it), make sure the Data team has resources allocated to your project (in our case, we insisted on having 1 FTE fully allocated to our budget).
Managing access is harder than you think. Row level security is a necessity, so model the data with that in mind. You don't want to manage each person individually.
It will take more time. It may even cost the same, but it will definitely be a longer project.
Now, the advantages of building it vs buying:
the project itself is a good way of upskilling people• you can fully customize the solution and define the KPIs to make sure the transition easier. They get the number they are used to, just better presented. You may also have some specific areas which aren't addressed at all if you buy a tool (this was the main factor for us to decide to build it)• if you have a company DW/Portal, it's easier to integrate HR data with other areas - Finance, Production/Operations, whatever is important to contextualize the work.”
Ricardo Tavares, Head of HR Analytics & Transformation at CUF - Hospitais e Clínicas
Orgnostic solution price ⓘ
Enter the Orgnostic solution price proposed to you by Orgnostic’s Sales team.
Insights Impact
Inputs for calculations of the potential savings derived from Orgnostic's insights.
Number of employees ⓘ
Number of people working at your company.
Median annual salary ⓘ
Median annual salary of employees at your company.
Annual employee turnover ⓘ
Annual employee turnover at your company.
Number of open positions ⓘ
Number of planned open positions for the following year at your company.
Revenue estimate ⓘ
Annual revenue estimate ($) of your company.
Cost per Hire ⓘ
The estimate of how much the cost to hire one new employee. A good benchmark for the cost per hire is anywhere between $2,000 to $5,000. This figure can be lower or higher depending on your business’s size, location, industry, and open positions
Replacement cost per employee ⓘ
The cost of replacement per employee ranging between 100% and 400% of median annual salary in your company.
Your current absenteeism rate ⓘ
This number represents the current absenteeism rate at your company.
Difference between current and reduced absenteeism has to be equal to or more than 2
Internal build
Inputs for calculations of the direct costs of internal analytics solution development.
Number of HR systems in use ⓘ
Number of HR system your company is using and you are ready to integrate with the Orgnostic platform. (HRIS, ATS, Performance Management, Learning Management Platform, Employee Surveys platform, etc.)
Annual cost of your reporting system ⓘ
(e.g. Tableau, Power BI etc)
Tableau example:
2 creators licenses x 70$ = 140x12 months = 1680$
2 explorers licenses X 42$ = 82x12 months = 984$
10 viewers licenses X 15$ = 150x12 months = 1800$
Overall - 4464$ + some minor hidden costs.
Cost of all equipment needed for DIY development ⓘ
Your lump sum of all equipment cost necessary for DIY development.
Number of engineers involved in development ⓘ
We suggest at least 4 employees for the in-house development (one Data Engineer, one BE Engineer, one FE Engineer and one Data Analyst).
Median pay rate of your engineer ⓘ
Median pay rate of your engineer planned for the DIY development.
Total compensation for your PA team ⓘ
Your estimated monthly compensation for an PA team.
Dedicated monthly period working on reporting and admin tasks ⓘ
Expected percentage of PA team’s monthly time working on reporting and admin tasks.
Annual improvement parameters
used in the calculations based on the expected improvements
by using Orgnostic
Improvement in retention percentage ⓘ
Conservative approximation: Retention improvement between 1-50% by using Orgnostic.
Improvement in revenue per employee as a result of
culture and engagement activities ⓘ
Conservative approximation: Revenue per employee improvement between 0.5-25% by using Orgnostic.
Time-to-Hire improvement in days ⓘ
Conservative approximation: Reduction of Time-to-Hire between 1-100 days by using Orgnostic.
Reduced absenteeism by ⓘ
Conservative approximation: Reduction of absenteeism between 1-20% by using Orgnostic. Orgnostic can help you to improve employee well-being, better employee engagement, and foster a teamwork culture.
Difference between current and reduced absenteeism has to be equal to or more than 2
Your ROI =
Saving first year
$523.2k
+
$70.5 k
$16.4k
Investment first year
=36.2
times more savings in case you go with Orgnostic
Time to implement your in-house solution
34 weeks
Time to Orgnostic’s implementation
1 day ⓘ
Time may vary in case you are using internal tools or highly customizable enterprise HR systems.
Min time - 20 minutes
Median time - 8 hours
Max time - 6 weeks
Insights Impact
or how much you would save by improving your metrics with Orgnostic
your Time-to-Hire by
10days would save you at least
The number of open positions for the following year is multiplied by the number of days you can save for Time to Hire and by the median annual salary in your organization. We divide the multiplication product by 365 days to normalize the annual value. This is a worst case estimate assuming that everyone we hire is bringing in value of at least 1x their salary over the course of the first year.
$76k
Reducing your Cost-per-Hire by
10% would save you at least
The number of open positions for the following year is multiplied by your approximate cost per hire. And finally, the product is multiplied by 10% reduction of your cost per hire.
$20k
Reducing your attrition by
2% would save your team at least
Annual turnover percentage transcribed in absolute numbers to showcase how reduction of x% of voluntary turnover impacts number of replacement hires.
15 replacement hires
Improving annual retention by
2% as a result of the insights stemming
from Orgnostic would save you at least
The number of employees is multiplied by your improved retention (current annual employee turnover - improved retention) and median annual salary.
$354.9k
Reducing average absenteeism costs by
reducing the absenteeism rate by 2% would
save you at least
Hours: The number of employees is multiplied by the reduced absenteeism rate and 2080 hours (per year, i.e. 40 hours x 52 weeks).
Cost: The number of employees is multiplied by the median annual salary and current absenteeism rate and then subtracted by the same multiplication in which we used your reduced absenteeism rate.
3.2k hours / $42.2k
1% increased in
revenue per employee as a result of
engagement and culture optimizations based on insights
provided by Orgnostic would save you at least
The number represents your current revenue per employee subtracted from the expected improved revenue per employee from using Orgnostic.
$30k
ⓘ
Your burn rate is higher than revenue, making RpE (revenue per employee) a suboptimal metric for tracking productivity.
Internal Build Impact
...or how much would you save by not DIY an alternative solution
Cost of your 1developer working on the
in-house solution would be
The number of HR systems is multiplied by 16 weeks (approximately the time necessary to implement one system) and divided by the number of engineers working on the implementation. Then, this result is multiplied by the median hourly pay and 40 hours to get the cost for the engineering capacity working on the implementation.
$1.5k
ⓘ
The factors in these calculations are approximated based on the Brook's law with the assumption of communication overhead and training overhead.
Automating reporting for the PA team saves 10% of their time, an annual savings of
Your working on the reporting would
Your PA team’s monthly compensation is multiplied by the portion of the PA team’s monthly work time and by 12 months to show the annual cost.
$54k
Cost of all equipment needed for your
in-house development would be
Your estimated cost for all equipment and licences you need for the in-house implementation.
$10k
Cost of your reporting system used for your
in-house development would be
Your estimated cost for all reporting system licences you need for the in-house implementation.
$5k
Time to value — the time needed to finish
all the in-house development and have the first insights
The number of HR systems is multiplied by 16 weeks (approximately the time necessary to implement one system) and divided by the number of engineers working on the implementation.
34 weeks
Your Investment
...or how much you would pay for your Orgnostic plan
The cost of your annual plan to have the
Orgnostic platform running would cost you
$16.4k
ⓘ
It is an estimate based on our current pricing plan and weighted based on the company size. Therefore, the price would be precisely defined during the demo calls for the bigger company size (more than 1000).
Time to value — depending on your tech
stack, the time needed to integrate the data and
show you your first insights will vary from
Min - 20 minutes
Median - 8 hours
Max - 6 weeks
ⓘ
Here you can explore all the tool combinations that can be integrated in less than 1 day. Learn more.
“So much I wish I knew: challenges of navigating internally approved infrastructure tools, cost accrued by switching HR tech stack, etc. Would definitely encourage People Analytics teams to focus more on quick analyses and data consultations as a basis to understand what's needed before embarking on the build journey, even if that's the final destination. Time to value takes so much longer w/ build and teams need to keep delivering value in the meantime regardless!”