Study Finds Organizations that Adopt Visier for Workforce Intelligence Outperform Others
Visier customers achieve an average return on equity more than double the U.S. average, and reduce manager resignations by 30% within two years of using Visier
Analysis finds the value enterprises gain from Visier Workforce Intelligence includes strategic business benefits, such as improved margins and increased revenue per employee; savings and gains from improved HR effectiveness; and savings from technology and labor cost efficiencies.
VANCOUVER, BC and SAN JOSE, CA – February 21, 2017 — A new study from Visier, developer of the leading people strategy platform, has found that when organizations use workforce data to inform their people decisions and strategies, they significantly outperform businesses that do not. The study, which analyzed key financial performance metrics from publicly-traded Visier customers and compared them to public data, found that Visier customers earned a 22.1% average return on equity, more than double the U.S. market average of 10.8%.
As well, the study found Visier customers achieved significant HR and business benefits, including: reducing manager resignation rates by 30% and critical talent resignation rates by 44%; increasing margins; and increasing revenue per employee.
“Today, more than ever, corporate strategy hinges on people strategy, giving HR a massive opportunity to create value for the business,” says John Schwarz, Founder and CEO, Visier. “This report highlights how companies that adopt Visier Workforce Intelligence as their people strategy platform create better business outcomes, achieving a clear competitive advantage.”
Research for the Economic Impact report — which was led by Lexy Martin, Visier’s Principal for Research and Customer Value, and former lead author of the Sierra-Cedar Human Resources Systems Survey, the longest running and most acclaimed HR tech survey — found that Visier customers are experiencing significant business benefits.
“The value of workforce intelligence grows as organizations mature in their use of it,” says Lexy Martin, Principal for Research and Customer Value, Visier. “Initial value is often calculated in terms of cost efficiencies gained through the adoption of a new technology solution. This is typically followed by measuring, analyzing and ultimately improving key HR metrics – for instance, reducing unwanted turnover. Finally, organizations that are the most advanced in the use of workforce intelligence can connect their people strategy and decisions to the improvement of key business outcomes, such as revenue, profits, customer satisfaction, margins, or industry-specific metrics.”
Key Visier Economic Impact Report Findings:
- Reduced Resignation Rates:
- After using Visier for two years, the quit rates of Visier customers for their overall employee population dropped from 40% to 48% below average rates as reported by the U.S. Bureau of Labor Statistics — a 13% improvement compared to the overall market. A 10,000-person organization that reduces turnover by a total of 13% can reduce its workforce costs by more than $15 million per year.
- After using Visier for two years, Visier customers experienced an average 30% decrease in manager-level employees resignations — a significant improvement given hiring and retaining top-level managers is more difficult than ever before.
- A Visier banking industry customer used Visier to identify how to improve retention of an important revenue-producing role at bank branches experiencing high turnover, and reduced the annual turnover rate for that role by 44%.
- Business Impact and Strategic Value:
- A financial services firm used Visier to assess the effectiveness of different initiatives to reduce turnover, including addressing pay inequities, improving manager communications with employees, and training and development programs. The firm saw an uplift of $200,000 in annual revenue for every retained employee who received additional training.
- A Visier manufacturing customer identified how they could improve performance—and decrease costs—by better connecting compensation policies to employee results.
- A Visier professional services customer optimized the makeup of its consulting teams for multi-year, multi-million-dollar contracts— improving margins by $1 to $3 million per contract.
- A Visier financial services customer improved the accuracy of its workforce plan from 78% to 95%, identifying a surplus of roughly $97 million the business could invest elsewhere.
- 53% Greater Revenue Per Employee:
- Aggregate performance can also be measured in terms of revenue per employee. Visier customers generate an average of $641,100 in revenue per employee, outperforming other U.S. organizations by 53%.
- More Than Double Return On Equity:
- When publicly-traded Visier customers are compared to all U.S. organizations, Visier customers outperform. In January 2016 the average return on equity across all industry sectors in the U.S. was 10.8%. For publicly-traded Visier customers, the average return on equity in September 2016 was 22.1%, more than double the average of all publicly-traded U.S. organizations.
- Technology Cost Savings:
- Because the Visier product is delivered as a service and — uniquely — all costs are included in the annual subscription, Visier’s total cost is typically 5-20% of the cost of building a custom solution — and organizations can be up and running in less than eight weeks.
- Labor Cost Savings:
- Visier also generates substantial labor cost efficiencies. By implementing Visier, Forrester Consulting identified that Yahoo saved $2,238,167 over three years by reducing the number of employees it would have needed to hire for its workforce analytics and reporting team.
Visier’s Applied Big Data solutions are enabling the world’s best led organizations to outsmart and outperform their competition through better insights, planning, and decision making.
Today, more than ever, corporate strategy is connected with people strategy. Yet understanding how to best hire, develop, engage, and retain a workforce — to continually drive better business performance — requires strategic data-driven insight and planning. This is a challenge for most businesses, which are drowning in data that they lack the capabilities or budgets to realize.
Visier solves this problem by providing complete solutions purpose-built for HR in the cloud. Delivered as a service, the products leverage Visier’s patented multi-dimensional in-memory technology. With hundreds of best practice questions built in, Visier solutions are unmatched in their content, capabilities, ease of use, security, and cost effectiveness.
Founded by respected innovators in business intelligence the company’s leadership team has a proven track record of technical, operational, and strategic management success with companies such as Business Objects, IBM, SAP, and Oracle. With millions of customer employee records in the cloud, Visier is proud to count a quickly growing number of the world’s best brands among its customers — who are taking the lead in transforming their people strategy with Visier.
For more information, visit http://www.visier.com.