Critical Metrics for Talent Management in Reporting to Boards and Investors

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Speaker: David CreelmanCEOCreelman Research Inc.

Moderator: Connie CreelmanHalogen

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Connie CostiganDirector of Marketing CommunicationsHalogen

David CreelmanCEOCreelman Research Inc.

Critical Metrics for Talent Management in Reporting to Boards and Investors

Presented by:David CreelmanCEO, Creelman Research

“Smarter Annual Reports: How companies are integrating financial and human capital reporting” Laurie Bassi, David Creelman Andrew Lambert

Agenda

1. What’s happening in the world of reporting to investors and boards.

2. How it effects you.

3. What do to.

The (old) World of Annual Reports

Hey guys, what about human

capital?

Hey guys, what about human

capital?

At Last the Tide is Coming In

Who’s Playing on Our Team

Mary Schapiro

Michael Bloomberg The Prince of Wales

Richard Branson

What’s the Goal?

• Beyond financial measures • Concise• Relevant

• An integrated story

What Gets Reported?

Atlantia

What Gets Reported

Many Human Capital Metrics are Reported

• Diversity• By level• By ethnic group• By geography

• Employee surveys• Engagement• “Proud of what we do”• “Passionate about customers”

• Health and safety• Number of lost time injuries

• Career mobility• # of internal promotions &

transfers

• Labor relations• % unionized• # of grievances

• Recruiting• #of new hires, by gender,

region..

• Reward• Average pay increase for

managers…

How to Decide What to Report

• Do stakeholders expect it?• (e.g. Diversity)

• Do we have the data?• (e.g. Investment in training)

• Does it help tell our story of value creation?• (e.g. Leadership quality)

A Model to Organize the Story

The Best Way to Start

• Do something internal now, so you are ready to do something external when asked

• Do something relevant, concise and easy for stakeholders to understand

• Pick three strategic business initiatives then tell the story of how human capital investments support those initiatives

• Make sure you have some metrics to support your story

• Frame the “so what?” in terms of risk management• Later on, add in any other metrics stakeholders

expect

For example…

• Issue: Rapid growth in China• Human capital investment: New software to speed

recruitment• Story: Explain what & why

• Metrics: e.g. Number of hires, Time to fill (in China), Quality of hire (in China).

• Risk: Insufficient recruitment would put revenue targets at risk

The big metrics

• Heath & Safety• Lost time due to injury• Fatalities

• Skills• Investment in training• Hours of training / employee

• Leadership• Relevant employee survey results

• Alignment• Relevant employee survey results

• Engagement• Engagement score

• Talent pipeline• Depth of succession pool

Making it happen in real life

Customized based on what you need to report

on: Diversity, Age, Gender, Geography,

Unionization

on: Diversity, Age, Gender, Geography,

Unionization

Talent Management Tools that Support Reporting

on: Tenure, Career Mobility

Strong Data Foundation Gives Insight Across Talent Programs

At-a-Glance: How is the organization tracking against corporate objectives?

At-a-Glance: Is Learning & Development Happening and Effective?

Drill-down: Succession Pipeline

What it Means to You

Recommendations

1. Learn the basics and talk to leadership about “human capital reporting” in whatever context it will capture their interest

2. Pilot an HR report

3. Create a road map to build needed systems and processes

4. Ask to be involved

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Critical Metrics for Talent Management in Reporting to Boards and Investors

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Transcript of Critical Metrics for Talent Management in Reporting to Boards and Investors

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