Client
A major governmental institution with 1.3 million employees seeking to understand the future financial impact of different reward strategies projected 10 years into the future.
Industry
Governmental Institution
Service
Tech
R,R-studio,Excel,Predictive Modeling
Challenge
Through workshops and scoping sessions, the client developed several reward strategies. They needed to understand the financial impact of each strategy compared to the current situation. Specifically, they required a 10-year cost projection for 1.3 million employees’ fixed salaries and allowances, identifying which employee groups would be most significantly impacted and might require compensation.
We took on the
following challenges:
- Develop the logic for the calculation model that simulates the reality for different reward scenario’s
- Tailor the business logic based on the available data
- Obtain, analyze and pre-process different historical data sources to create a usable dataset of employee characteristics
- Account for various employee groups and their specific allowances
- Handle large-scale data processing for 1.3 million employees
- Presenting the results in plain and understandable language
Solution
Data-Driven Forecasting
Used 5 years of historical data to compose necessary variables and employee characteristics.
Employee career progression
Developed a model that calculates career progression on individual employee basis to accurately calculate impacted groups.
Cooperatively compose business logic
Together with the client developed a calculation method that fits reality.
Scenario forecasts
Extended the model to be able to calculate several scenarios.
Management summary
Created a management summary in plain and understandable language containing data driven insight and logic.
Impact
Year to Year results
The model would calculate the projected costs and employee career progression on a year to year basis
Insight into process success
Creation of the ability to reallocate engineering resources months in advanced optimizing resources utilization.
Strategic Planning
Enhancing long-term workforce planning capabilities, enabling strategic decision-making with for example subcontractors.
Planning efficiency
Recusing planning time while significantly improving the quality and reliability of resource forecasts.