Category Archives: HR technology

The Zenefits Saga Continues

It appears Zenefits woes are continuing—and if the predictions of one consultant are correct, they aren’t likely to end anytime soon.

Yesterday, Washington State Insurance Commissioner Mike Kreidler ordered Zenefits to “cease free distribution of its employee benefits software, noting the tactic violates Washington state insurance law against inducements,” his office’s statement reads.zenefitslogo

Washington is said to be the first state to take action against the company for violating inducement laws. Under an agreement with Kreidler, Zenefits can challenge the order within 90 days.

The state took issue with the fact that Zenefits required clients to designate it as its broker of record and then collected insurance commissions from the products it sold in order for them to access its free software.

“The inducement law in Washington is clear,” Kreidler said. “Everyone has to play by the same rules.”

Following the announcement, Zenefits’ General Counsel Josh Stein posted the following on the company’s website

“Today, Zenefits has reached a compromise agreement with the Washington Office of the Insurance Commissioner (OIC) on how Zenefits will price its services in Washington State.  Beginning January 1, at the order of OIC, Zenefits may no longer provide free software services in Washington. As a result, Zenefits will charge all Washington state customers $5 per employee per month for our core HR product.”

Stein went on to say …

“The Washington viewpoint is a decidedly minority view. Since its founding, Zenefits has had conversations with regulators about our business model, which includes some free HR apps. Many states have looked into the issue and concluded that free software from Zenefits is not a problem; in fact, it’s in the interest of consumers. Only one state other than Washington has disagreed.  Utah’s department of insurance tried to force Zenefits to raise prices for consumers, and Utah’s state legislature and governor quickly took action, passing a bill to clarify that its rebating statute should not be interpreted to prohibit innovative new business models that deliver value to consumers.”

Earlier today, I spoke with Rhonda Marcucci, partner and consultant in Gruppo Marcucci, a Chicago-based HR and benefits technology consulting firm.

Zenefits has created its own regulatory scrutiny reputation for the rest of its life, Marcucci told me. In this case, she said, “I don’t think it is driven so much by the brokers but by the insurance departments who are extremely angry about the licensing piece—so that now invites more scrutiny in other places. Brokers may have brought it to [the attention of insurance regulators], but the way I look at this, Zenefits is a regulatory penalty box—and they will be, I think, forever.”

Marcucci noted that every state, except for California, has some kind of no rebating or inducement laws for transactions. But that doesn’t necessarily mean that every employer is following the law.

At the end of day, she said, states typically base their decision on enforcing these laws by “who screams the loudest.”

As far as Zenefits is concerned, Marcucci said, it’s realistic to expect that other states might follow Washington’s lead, especially those states with difficult regulatory insurance environments such as New York.

Undervaluing the Human Element

If you’ve heard it from one CHRO, you’ve heard it from a hundred: Our people are our greatest asset.

A new Korn Ferry Institute study suggests that most CEOs also appreciate the hard-working employees within the organizations they lead—just maybe not quite as much as they value technology.

More specifically, the recent survey saw 63 percent of 800 business leaders from multimillion-dollar global organizations saying that technology will be their greatest source of competitive advantage in five years. In addition, 67 percent said they believe technology will create greater future value than human capital will within their firms, and 44 percent said the prevalence of robotics, automation and artificial intelligence figure to make people “largely irrelevant in the future of work.”

As if that wasn’t hard enough for employees to hear, consider that people didn’t crack the top five in terms of assets that CEOs predict will be most critical half a decade from now. Technology ranked No. 1, followed by research and development, products/services, brand and real estate (offices, factories and land, for example.)

“CEOs have a significant blind spot in the way they perceive people,” according to the Korn Ferry Institute study, “tending to undervalue human capital.”

These “distorted perceptions” demonstrate the extent to which the individual is being pushed to the periphery of tomorrow’s workplace—and the danger in failing to recognize the potential of employees to generate value, the report continues.

In placing a greater emphasis on technology and tangible assets, chief executives “may be demonstrating, in a big way, what experts call tangibility bias. Facing uncertainty, they are putting a priority in their thinking, planning and execution on the tangible—what they can see, touch and measure.”

In the report, Korn Ferry Search Vice Chairman, CEO and Board Services Alan Guarino cautions against taking that approach while overlooking human capital.

“Leaders are placing a high emphasis on technical skills, technological prowess and the ability to drive innovation in their new senior recruits—elements critical for modern organizations,” says Guarino. “However, the financial reality proven by this study—that the value of people outstrips that of machines by a considerable distance—must give CEOs pause for thought.”

The ability to lead and manage culture—”so-called ‘soft skills,’ ” says Guarino—will become “critical factors of success for companies in the future of work, as they seek to maximize their value through their people.”

Who knows the organization’s people better than the HR executive? And, if what Guarino says is true, one could look at this study’s findings as a tremendous opportunity for the HR leader to help the CEO see the tremendous worth of human capital, and to help make the organization’s workers an irreplaceable, invaluable part of tomorrow’s workforce.

Thriving in a Data-Driven World

It’s impossible to have a conversation about recruiting these days without talking about the role of data.

Magnifying glass and documents with analytics data lying on tablSo, I suppose it’s no surprise then to hear John Sullivan, author and professor at San Francisco State University, focus his opening keynote presentation at Recruiting Trends 2016, at the Hilton in Austin, Texas, on the role of data in the hiring decision-making process. (Recruiting Trends, which was acquired by LRP Conferences last November, is being held this week in conjunction with the Talent Acquisition Tech Conference.)

During his keynote titled “Forget the Hype: Data-Based Recruiting Reveals What Actually Works,” Sullivan told attendees that employers need to be much more data-driven.

If you ask CEOs what the biggest challenge is that they’re facing, human capital turns out to be No. 1, Sullivan said. “What’s not so good is that we’ve been a challenge for four straight years,” he continued. “And if you’ve been a challenge for four straight years, it means something needs to change.”

These same CEOs also said they believe recruiting the right talent has a huge impact on business success, Sullivan added.

So, if the impact is that significant, he said, that begs the question, “How come [recruiters] have no money?”

“I would argue it’s because we don’t make a very good business case,” Sullivan said. “We say we hired 20 people, but we don’t say those people brought in $20 million.”

In a fast-changing world, he explained, data tells you what works and what doesn’t work. But you need to be looking at the right data, he added. Google at one time looked at a candidate’s GPA, but the research found that grades made no difference in the quality of talent it hired—so it stopped paying attention to that metric.

“Stop having opinions about what’s the best source for hiring people,” he said. “Sure, you can have opinions, but if you want to influence hiring managers, you’re going to want to have facts that back your recommendations up.”

Sullivan also pointed out that CEOs care about quality of hire, and you should, too.

Most employers pay close attention to metrics such as the cost of hire, he said, but they should be focusing their attention instead on measuring the impact of their hiring decisions.

When you hire Cleveland Cavaliers basketball star Lebron James, what you should be measuring is the impact he’s going to be having on your organization over the next 10 years, he said.

In other words, employers need to be thinking about the big picture.

Sullivan also pointed out that most companies don’t measure the failure rates of the people they hire, but should. He used the example of birth control, where there’s a 9-percent failure rate. If birth control doesn’t work, he joked, you might end up with 20 years of misery. Well, the same could be said of hiring. If you get it wrong, that bad hire could be in your organization forever.

Transforming Talent Acquisition

As a talent-acquisition leader, it’s your job to take care of three constituencies: your organization’s hiring managers, the job candidates and, last but not least, the people who work within the TA function.

That was the recurring theme from two TA leaders who spoke about their roles in transforming the talent-acquisition function during two  separate sessions earlier this week at the ERE Conference in New Orleans: Tracie Montgomery, director of talent acquisition and diversity at firm Sedgwick, the nation’s largest third-party administrator; and Steve Knox, General Electric’s head of global talent acquisition, strategy and operations.

At GE, the Boston-based conglomerate’s efforts to recast its image from that of a stodgy industrial firm to a hotbed of digital innovation has, by necessity, included its talent acquisition function as it seeks to attract the software engineers and computer science majors who might otherwise never consider the company as a place to build a career.

“We’re closely partnering with our marketing department on our employee-value proposition,” said Knox.

GE has also has hired an “employee experience leader” to transform its recruiting experience into “a candidate-centric one,” said Knox. “We got some pushback from hiring managers on this, but we reminded them that it’s about the candidates.”

Candidate care is also a priority at Memphis-based Sedgwick, said Montgomery. “I tell my team: ‘Advocate for your candidate. Prep them to let them know who’ll they’ll be interviewing with, explain the career path for that position — it’s TA’s job to get that person ready.’ ”

Knox and his team have also been paying close attention to candidates after they’re hired to see how they’re performing, which marks a change from before, he said.

“We’re now holding TA accountable to how well the people we hired are doing,” he said, adding that determining quality of hire isn’t quite so straightforward now that GE has discontinued its performance ratings. The team relies on regular feedback from managers instead, said Knox.

GE has also replaced its 15-year old applicant-tracking system, which had been “customized by us to the point that it was no longer useful” with a new, mobile-enabled system; using tools such as LinkedIn Elevate to send out tailored content to candidates on a daily basis; using Tableau software to monitor metrics and putting in place GE’s first-ever dedicated sourcing team, said Knox.

Line managers at GE are also helping the company enliven its job descriptions with short videos in which they explain what they’re looking for in candidates, said Knox. This is helpful in attracting diverse candidates, which is a major priority for GE, he said.

“When female and minority candidates see someone who looks like them talking about GE, they tend to say ‘Hey, people like me can work there,'” said Knox.

After Montgomery joined Sedgwick in 2014, she created an internal “talent acquisition college” for Sedgwick’s recruiters to help them become talent advisors, not just recruiters .

“Recruiting is recruiting, but talent acquisition is consulting,” she said. “I had to get my team’s mindset from recruiting to talent acquisition.”

Montgomery put in place a team of three managers to ensure the TA function is hitting its goals in areas such as time-to-hire and regularly surveys hiring managers on their satisfaction with the TA function. Talent acquisition professionals on her team are expected to be able to forge and maintain strong relationships with candidates and hiring managers, she said. “Getting those relationships established is absolutely key.”

GE’s Knox is also focusing on helping his TA team enhance its skills. “It keeps me up at night, wondering how we keep our TA team motivated and developed,” he said. GE has established competencies for the TA team and is using assessments to determine where gaps lie, said Knox. Members of the TA team can also do self-assessments to find their own gaps and are provided with resources to fill them, he said.

“Our goal is to build a world-class TA function,” said Knox.

In HR Tech, All that Glitters is not Gold

After a week of bold pronouncements about things to come, one respected observer wrapped up this year’s HR Technology Conference & Exposition with a sober warning: New software isn’t always the answer.

Peter Cappelli, a professor of management at the University of Pennsylvania’s Wharton School and veteran thought leader in human resources, urged executives to think critically about the practical benefits of shiny new HR technology.

The multibillion-dollar industry offers dazzling possibilities through applications of cutting-edge techniques such as artificial intelligence. But that doesn’t mean new software will always produce results worth the cost and effort, Cappelli warned.

“All kinds of things are possible,” he said in a closing keynote address in Chicago on Friday. “That doesn’t mean they’ll take over.”

Many in the business world believe the pace of technological change is faster than ever, and accelerating. That makes buzzword-laden vendor sales pitches tempting because they offer a chance to catch the edge of the next big wave. But Cappelli believes we overestimate the pace of real change.

To illustrate the point, he noted that offices are not much different today than they were a half-century ago. Word processing, for example, has been in offices since the 1980s. A visitor from that decade to a modern office “wouldn’t be surprised by that much,” Cappelli said.

He said experts in the subject generally agree that the pace of technological change in recent decades is slower than in the 1960s – with transistors, for example, and sweeping advances in chemistry. The pace was even quicker in the 1910s, with telephones, radios and automobiles transforming business in fundamental ways. “Now that was dramatic technological change,” he said. The social-media revolution of recent years, by contrast, “didn’t change the way people live.”

Many innovations fail to catch on because they turn out to be too expensive or too hard to use. One example: VCRs. Once they were expected to eliminate TV commercials because viewers would skip over commercials. But most consumers could never figure out how to program their machines, Cappelli noted.

That’s not to say that software hasn’t transformed business, of course. Certain innovations have been particularly important to HR: file-sharing technologies that allow outsourcing, for example. Others include job boards and their successors, enterprise resource planning programs and LinkedIn as a tool to find candidates.

But Cappelli urged caution in adopting platforms that promise dramatic results from “big data,” “machine learning”or “predictive analytics.” Those techniques have value in some settings, Cappelli said. But deriving valuable insights from a complex analysis of HR data often will cost too much and take too long. In the end “you might find something – you might not.”

Cappelli’s prescription is for HR leaders to focus first on what problem they are trying to solve, and get the data needed for a straightforward solution. Instead of focusing on employee engagement under the assumption that engagement improves performance, for example, employers might be better advised to just study what characterizes high-performing workers, he said.

Solutions that allow organizations to standardize, organize and simplify their data often make sense, Cappelli said. One example: Switching from a rating-based performance management system to one based on frequent manager check-ins cries out for technology to properly organize records of those conversations.

Cappelli also thinks dashboards are valuable – digital tools to measure what is happening with a workforce in real time. They can give HR leaders early warning of trouble or important trends.

In the end, Cappelli says, employers need to take a back-to-basics approach before splurging on advanced analytic capacities with uncertain potential.

“If you want to spend some money, you want to spend it first figuring out your own data, figuring out who is a good employee,” he said. “If you don’t have that, ‘machine learning’ isn’t going to do anything for you.”

 

Engaging the Talent of Tomorrow

ThinkstockPhotos-494940180Diane Gherson, CHRO at IBM Corp., laughs when she recalls the role technology played in improving the employee experience when she first joined the Armonk, N.Y.-based technology giant 14 years ago.

At that time, she says, managers received emails notifying them when team members’ birthdays were coming up, for example.

“And that was really exciting,” Gherson told the audience at this morning’s opening session at the HR Technology Conference at Chicago’s McCormick Place.

Now, she says, managers receive frequent messages with much more information on their employees. For instance, managers get notes telling them that a given employee hasn’t received recognition for his or her role in, say, a special project.

Gherson’s example was just one illustration of how technology has changed the way managers and employees do their jobs at IBM. As part of this morning’s “Engaging and Retaining the Talent of Tomorrow” panel discussion, moderated by Emmy and Peabody Award-winning journalist and Starfish Media Group CEO Soledad O’Brien, Gherson was one of four HR executives sharing the stage, and sharing insights into how the employee experience continues to change, and how HR is using technology to meet changing employee expectations.

Along with Dermot O’Brien, CHRO at ADP, Scott Pitasky, executive vice president and chief partner resources officer at Starbucks, and Francine Katsoudas, chief people officer at Cisco Systems, the assembled HR leaders also examined recent research findings that illuminate just how much those expectations are changing.

ADP’s recent Evolution of Work study found, for example, that 58 percent of workers saying they believe that traditional hierarchical structures in the workplace will soon be a thing of the past. The survey also found 95 percent of employees saying they believe they will soon be able to work from anywhere.

The number of workers who anticipate working where and when they choose presents opportunities as well as challenges, says Katsoudas.

At Cisco, “we believe in a concept that everything good happens in teams,” Katsoudas told the audience.

That said, teams can still thrive while working in disparate locations, she adds. Katsoudas and the Cisco HR team has focused on helping managers “really connect with their team members, and really connect them with the strengths of their individual team members.”

For example, managers rely on the company’s talent management platform to check in to see how their team members are progressing on a given project or task, and tweak their roles if need be. Managers can also send brief surveys to their direct reports, to get a feel for the level of engagement throughout their teams, and solicit suggestions on how to improve the employee experience.

As how, when and where employees work continues to change, “technology can actually reconnect us to the workforce,” says ADP’s O’Brien.

And, “it provides us with enough data,” adds Gherson, “to help us find ways to make the employee experience better.”

Citi’s Search for Innovation

There are plenty of tried and true ways to identify hot new HR technologies for your organization. Of course, you can attend events thinkstockphotos-489083454such as the HR Technology Conference and Expo, where this year more than 400 companies are demonstrating and sharing their solutions. Or you can read HRE, which regularly covers innovative new human resource tools, including its annual Top HR Products Awards.

But as attendees at an HR Tech Conference session titled “The Smarter Worklife Challenge: Transforming Software Selection to Drive Innovation” learned yesterday, HR leaders can also take a less traditional path.

Last fall, New York-based Citi, with the help of PwC, launched its first-ever Smarter Worklife Challenge, a competition aimed at uncovering innovative digital HR solutions, particularly those being developed by smaller entities that might not be on Citi’s radar.

As PwC Global Head of HR Disruptive Technology Bryon Abramowitz explained, Citi cast as wide a net as possible with the goal of identifying eight innovative solutions in eight different HR categories: recruitment, onboarding, real-time feedback and career development, training and mobility, connecting/social, predictive analytics, executive management and undetermined (essentially, anything else that didn’t fall in the other categories).

A total of 231 companies entered the competition by sending in a short three-to-five-minute video that explained the benefits and value of their solution. Judges reviewed the entries and selected 19 they felt deserved to go to the next step, which was to demo their solution at a one-day event held on Feb. 11 in the Tribeca section of Manhattan. All of them were assigned a coach, who helped them prepare their pitch.

“Many of the participants were small vendors,” Jeff Bienstock, global head of HR technology at Citi, pointed out. “But they were very innovative and creative.”

The competition gave these companies the rare opportunity to make their pitch in front of a company the size of Citi. Teams that made the final cut shared a cash award of up to $50,000, but as Abramowitz noted, the real prize was a contract with Citi, along with the feedback and experience they received as a result of going through the process.

To arrive at the final eight, Citi live-streamed the demos to potential users, who, along with those present in the room, rated them in real time.

Each winning vendor was also given an internal executive sponsor to help ensure funding and provide direction.

According to a press release issued by Citi, the Smarter Worklife Challenge award recipients included: Rocketrip (an employee-rewards solution), Infolio (a digital-workplace solution), Cooleaf (an employee-connectivity solution), Agolo (a business-intelligence solution), Butterfly (an employee-feedback solution), Yandiki (a people-management solution), HRIZONS (a career-information-management solution), GamEffective (an employee-gamification solution) and Starmind (an employee-choice award).

Of the final eight, Bienstock said, two decided not to move forward, two are currently in contract and the remainder are at other stages of the process.

Dropbox Refines Its Employer Brand

If, to paraphrase Jeff Bezos, your employer brand “is what people say about you when you’re not in the room,” then you need to “weaponize” an all-too-underutilized resource (your employees) to help ensure those conversations will be positive, The Muse CEO Kathryn Minshew told attendees at the HR Technology Conference on Wednesday afternoon.

A positive employer brand can help HR cut through the misperceptions about a company that might be holding people back from applying for jobs there, said Minshew. Getting employees to share positive stories and sentiments about working at your company is key–but those “testimonials” won’t be effective if they come across as canned, generic and similar to what everyone else is doing, she said.

“Posting a video that shows a bunch of guys talking about the company’s ‘commitment to excellence’ isn’t going to do anything other than show that you know how to use buzzwords,” said Minshew, whose co-presenter for the session on employer branding was Christy Childers, global employer brand manager for cloud storage firm Dropbox.

Childers explained how Dropbox was able to correct the misperception within the talent marketplace that it was a only business-to-consumer company through the shrewd use of its strong employer brand. Correcting this misperception was important, because Dropbox was going after the business-to-business market and needed salespeople experienced in selling to large enterprises in order to succeed, said Childers.

“We had to supplement our employer brand in order to let these people know we weren’t just B2C,” she said. This strategy was also necessary because Dropbox is a mid-sized company with only 2,000 employees–it did not have the recruiting staff available to spend 20 minutes on the phone with each potential candidate explaining Dropbox’s B2B strategy.

Working with The Muse, Childers and the HR team sent videographers to interview Dropbox employees for video testimonials explaining the type of work they did and why they enjoyed their jobs.

Engaging the video subjects by asking them the right questions is a must, said Childers. “In the past, we’d had videos in which employees said things like ‘My favorite part of working at Dropbox is the great people,’ which is so humdrum. You need to ask them specific questions geared to the work they’re doing, that align with the interests of the candidates you want to attract.”

Rather than “What do you like best about working at Dropbox?” the employees were asked things like “How is your team innovating? How are you using this programming language to get those results?” These sorts of questions are more likely to get employees to open up about the type of work they do, resulting in content that would be of much greater interest to candidates than simple platitudes would be, said Childers.

Video testimonials are critical because “at the end of the day, people trust other people,” said Minshew. Passive candidates in particular are more receptive to watching a short video testimonial from employees than to traditional outreach methods, she said.

Getting great content was only half the battle, said Childers. The content must be seen by the people you’re targeting, she said, which requires a distribution strategy via social media, content platforms, SEO optimization, and encouraging existing employees to share the videos to their own networks, she said. Dropbox was ultimately able to greatly increase the volume of applications it received from experienced candidates for the positions it was seeking to fill, she added.

Dropbox’s employer brand strategy extends to its job descriptions, which now include more information on why candidates should consider working for the company, said Childers.  “You can get higher quality candidates by explaining why they should consider your company–I think this is an underutilized part of the content conversation.”

Companies employing a strategy similar to Dropbox should carefully track which messages garner the most interest among the candidates they’re seeking to attract–and they should also exercise patience, said Childers.

“Don’t get discouraged by early results, this takes time to build,” she said. “But when content works, it really works.”

Prepare for Technology Disruptions

Fasten your seat belts. It’s going to be a bumpy ride.

HR tech guru Josh Bersin may not have quoted Bette Davis, but that was his message to a large crowd in Chicago on Tuesday for the opening of the 2016 HR Tech Conference and Expo. The conference brings vendors, HR executives, industry experts and others together once a year to josh_bersin_rassess the state of digital innovation for human resources.

Bersin, principal and founder of the Bersin by Deloitte consultancy, set the stage for the conference by describing a chaotic environment for employers and software vendors. Technology is allowing companies to do more things than ever before with data, but many have yet to reap the rewards in productivity, he said.

“We have more disruption and change … than ever before,” Bersin said. But “despite the best efforts of our technology providers, technology is not making our lives better.”

Bersin noted that the digital revolution has produced relatively modest gains in productivity, compared to other major technological advances of history. “All the research we do … seems to show we are not adapting to technology very well,” Bersin said. In some cases, “it’s actually making our work harder.”

One illustration he cited is the recent decline in vacation usage by U.S. workers. People are working more hours, but aren’t necessarily producing more.

Making companies more productive and workers happier will require a rethinking of the way organizations operate, Bersin said. Few any more are strict hierarchies. Rather, in practical terms, they are interlinked networks of teams. HR leaders must choose digital tools that help workers connect with each other, he said.

That means orchestrating digital tools in a way that serves and motivates employees. “We have to bring this together into a seamless employee experience,” he said.

Bersin described the evolution of HR technology as a series of leaps. Starting with a focus on benefits administration and compensation at the turn of the millennium, the industry has advanced through tools for hiring, e-learning, performance management, and newer tools in the last year such as corporate-culture assessment and real-time engagement monitoring.

He sees that progression continuing over the next decade into software that reinvents performance management, video-based learning, social recognition for employees, wellness and more expansive tools for managing work that perhaps are no longer truly HR applications.

Bersin urged HR executives to move thoughtfully in adopting new technology. “We have to be the curators of technology,” he said. “We can’t just get more stuff and bring it into our companies.”

Increasingly, HR technology will develop through a process called design thinking, Bersin said. Rather than labor for years to produce an application that then must be taught to employees, companies increasingly will roll out small tools that are refined in response to how employees use them.

“This is the future of how you have to deliver HR solutions,” he said.

A Badge for a Brave New World

This morning’s Washington Post profiles a Boston-based company called Humanyze that has developed a high-tech employee badge that records the employee’s every conversation, monitors their movement in the workplace and delivers this information to management to help them evaluate performance. Some people may see this as a brilliant innovation, while many others will probably view it as a terrifyingly Orwellian invasion of privacy (although it should be noted that the badge will not record activities in bathroom locations, so there’s that).

Actually, the badges don’t record the actual conversations of employees, just “how they say it.” They deliver the information to bosses in aggregate form, so they don’t get to look at individuals’ personal data, according to Humanyze. And, employees can choose whether or not to wear the badges, Humanyze CEO Ben Waber told the Post. “If you don’t give people choice, if you don’t aggregate instead of showing individual data, any benefit would be dwarfed by the negative reaction people will have of you coming in with this very sophisticated sensor,” he said.

Each badge (the latest versions of which are slightly larger than a credit card) hangs around the wearer’s neck like a lanyard and is equipped with two microphones for real-time voice analysis and sensors that track where you are in the office. The information collected by the devices can be invaluable in helping companies determine which of their locations are the most and least-productive, and why, said Waber.

The process is based on research that shows that the success, or failure, of a certain location is often based on the amount and quality of interaction between employees at the location and the facility’s physical layout.

He provided the Post with the following example:

A bank has hundreds of retail locations. Some perform really well. Some don’t perform as well. The executives want to understand what the high-performing branches do differently. It turns out that in one company, the high-performing branches were very cohesive. The people who work in that branch talk a lot to each other. The people in the lowest-performing branches almost never talk to each other. The company used Humanyze technology to identify that issue and also change how they pay people and how they organize the branches’ management process. Top line sales grew 11 percent.”

Humanyze has sold thousands of the badges to Fortune 2000 companies around the world, Waber said. The company doesn’t make money on the badges themselves; instead, it makes money on the data it produces, he said.

“Within three or four years, every single ID badge is going to have these sensors,” he said. “We are only scratching the surface right now.”