HR Metrics

ve

e r cs a Matter June 12, 2007

Titles you can't find anywhere else

Try Scribd FREE for 30 days to access over 125 million titles without ads or interruptions! Start Free Trial Cancel Anytime.













Agenda • • •

Welcome lc ome & Introduct Introd uctio ion n e

easureme suremen ourney

Five iv e Metri Metrics cs that th at Matter Matter – Average Headcount – Age Staffi Staffing ng Breakdown Breakdown – – Termination erminati on Rate Rate – Employ mpl oyee ee Engageme ng agement nt Index















Today’s Presenters

Paige Menge e n o rm roup

Brian Kelly e n o rm roup















The Inf Infohr ohrm m Gro Group up •

Glob Global al lea leade derr in on-de on-dema mand nd work workfo forc rcee repor reportiting ng,, analy analytitics cs & plan planni ning ng solutions

•

Thre Threee prima primary ry off offic ices es:: Bris Brisba bane ne,, AU; AU; Wash Washin ingt gton, on, DC; DC; Lond London, on, UK

•

Founded in 1982

•

Origin Original al partne partnerr in in CLC CLC Metric Metricss Prog Program ram;; acqu acquire iredd Corpo Corporat ratee Exec Executi utive ve Board’s interest in 2006; ongoing research relationship re lationship F

bli &

i t

t















Infohrm’s Core Capabilities: A Partnership Model Our Capabilities • Busi Busine ness ss Infor Informa matition on

Our Expertise Expertis e • Busi Busine ness ss Repo Report rtin ingg Serv Servic ices es

• Busi Busine ness ss Imp Impac actt

• Workf orkfor orce ce Repo Report rtin ingg Ser Servi vice cess • Workforce Plannin • Busi Busine ness ss & Emp Emplo loye yeee Sur Surve veyi ying ng • Huma Humann Cap Capitital al Mana Manage geme ment nt ROI ROI •

us ne n es s

or orce na y ca erv ce c es

• Metri etrics cs & Benc Benchm hmar arkking ing • Strat trateg egiic HR HR Con Consu sulltin ting

Flexibl lexible e Solu olutitions ons • Programs • Tools















Repr pre esentativ sentative e Cl Cl ient Li List st































Visi ision on of “ Human Capital ” Measurement Most HR Measurement Initiatives Aspire to Align HR and Corporate Strategy and to Enable Managers to Make Better Workforce-Related Decisions Primary Goals of HR Measurement 70%

Percentage of Survey Respondents Citing Each Item as One of the Top Three Goals of HR Measurement Efforts 60%















Many Obs bsttacl cle es Bl B l oc ockk the t he Road Road While the Following Challenges Have Taken Taken Precedence in Establishing a Human Capital Measurement System for HR … Primary Challenges of HR Measurement 70%

Percentage of Survey Respondents Citing Each Item as One of the Top Three Challenges of HR Measurement Efforts

61%















The Journey: Jour ney: Fou ourr St ages of Val ue Cr Cr eati on Transform HR from “Service Provider” Provi der” to “Business Driver” Driver ” High Consistent HC Reporting Note : The first two levels of business impact are enabled by a successful rollout strategy. Enabling the third and forth levels requires significant cultural and behavioural change in the HR function.

Business Insight

HC Metrics Embedded

Phase 4 Phase 3

Business Driver















A Bal Bal anci ncing ng Act: Ac t: Common Conc Conce er ns vs v s Uni Unique que Str Stra ategies Pattern of KPI Selection Reflects Both Common Human Capital Concerns and Unique Corporate Strategies Portion of Members Selecting Each Measure 100% 90%

Common Concerns The Gold Standard: 60% or greater penetration: • Termi ermina nati tion on Rate Rate • Staffi Staffing ng Rate (by (by gender gender,, ethnic ethnic backgro background und,, …)































The Str Strugg uggll e to Focus Focu s on o n HR Measu sures res that t hat Matt Matte er















Five Metrics That Matter















For orma matt fo forr Rema Remaii ni ning ng Measur asure es















Average Headcount







































































































































































Termination Rate Case Study #1 Company’s Sales Department concerned about high termination rates •

Findin Finding: g: Sales Sales regions regions which which termin terminate atedd low perform performers ers had had lower lower profita profitabil bility ity than those branches who kept low performers – Low performers were those employees employees with the the shortest tenure – Branches who kept kept low performers and gave them them time to “grow” into their their roles saw higher long-term profitability















Termination Rate Case Study #2 Company concern co ncerned ed about Call Call Center turnov tur nover er – Involuntary terminations overwhelmingly overwhelmingly driven by failure to pass licensing exam, so need better upfront screening –

“ ,” bonuses, and promotion and development opportunities

160% 140% ) % ( e t a R n o i t

120% 100% 80%

Voluntary Involuntary















Termination Rate Case Study #2 Company concern co ncerned ed about Call Call Center turnov tur nover er – Further research needed to determine whether caused caused by labor market, competition, type of work, management, etc. 61%

s n o i t a c o L r e t

37%

42%

10%

34%

15%

32% 22% 29%

16% 13%

Voluntary Termination Rate















Termination Rate Case Study #2 Company concern co ncerned ed about Call Call Center turnov tur nover er •

n ng : g non-exemp erm na on ra es may e cause termination rates

y ow exemp

– Few opportunities for advancement advancement if there are are no managerial positions open ng – Long tenure in exempt position could mean managers are very “far removed” from the challenges of the non-exempt role















Termination Rate Limitations • Does Does not not indi indica cate te vol volun unta tary ry vs. vs. invo involu lunt ntar aryy term termin inat atio ionn • Does Does not show show spec specifi ificc reason reasonss for termin terminati ation on (bet (better ter opport opportuni unity, ty, manager, compensation, returning to school, etc) • Does Does not not refl reflec ectt who who is lea leavi ving ng or or how how thos thosee empl employ oyee eess are are bei being ng replaced to demonstrate true impact on the workforce composition

















Termi erminat natii on Rate Related Related Measur Measures es • • • •

Average Te Termination Va Value Compe ompens nsaation tion Sa Satitissfac faction tion Inde Indexx Employee Retention Index External Hire Rate Involun olunttary Te Termination Ra Rate















Employee Engagement Index Formula: ’ important:

Derived from survey methodology

1. Help Helpss meas measur uree empl employ oyee ee dis discr cret etio iona nary ry effo effort rt to to the the firm firm 2. Le di

indi indi at fo tu















Employee Engagement Index Case Study Major re r etail cha ch ain in i n the food service servic e indust ind ustry ry determining determini ng link li nk between between employe mploy ee engage engageme ment nt (in the t he company) company) and store sto re profit prof itabili ability ty • •

Findi Finding ng #2: #2: Empl Employ oyee ee enga engage geme ment nt is link linked ed to stor storee prof profititab abililitityy















Empl mployee oyee Engage Engageme ment nt Inde Indexx Li Limit mita atitions ons • Value Value of the measur measuree depe depends nds on the effect effective ivenes nesss of of surv survey ey design design and delivery • Su Surv rvey ey answ answer erss can can refl reflec ectt tem tempo pora rall eve event ntss















Empl mploy oyee ee Eng ngage agement ment Index Rel Rel ated Mea Measu surres • Age St Staffing Br Breakdown • Voluntar Termination Rate • Employee Commitment Index • Employee Re Retention In Index































The Metri Metrics cs Standard















Workf orkforce orce Analy Analytitics cs and Work orkfor force ce Planning Planning Works orkshops hops















2007 Infohrm Human Capital Analytics Conference















Wor orkf kfor orce ce Pl Pl anni nning ng Summit Summit















HR Metrics

Recommend Documents