2 21tmhalogensoftwarefinalslidesv2 130222115623 Phpapp01 (1)

You can listen to todays webinar using your computers speakers or you may dial into the teleconference.

If you would like to join the teleconference, please dial 1.650.479.3208 and enter access code: 925 187 276 #.

You will be on music hold until the seminar begins.

#TMwebinar

Speaker: Dr. Christopher LeeAssociate Vice Chancellor, Human ResourcesVirginia Community College System

Moderator: Connie Costigan Director of Marketing CommunicationsHalogen Software

#TMwebinar

Developing Metrics to Evaluate HR's Contribution to the Achievement of

Organizational Goals Presenter:

Dr. Christopher Lee, PhD, SPHR

2013 Halogen Software Inc. Confidential Not to be used, copied or redistributed without Halogens prior written permission.

AGENDA Business Case Business Strategy Ask Business Related Questions Checklist of Considerations Tips to Deploy Metrics Use Examples Q&A


Albert EinsteinAny intelligent fool can make things

bigger and more complex... It takes a touch of genius - and a lot of courage to

move in the opposite direction.


PresenterPresentation Notes

Definition of MetricsA business metric is any type of measurement used

to gauge some quantifiable component of a company's performance, such as return on

investment (ROI), employee and customer churn rates, revenues, EBITDA, and so on.

Metric = How to Keep Score


Business Case for Metrics

Its Strategic It Matters Enhances HR Credibility Proof of HR Effectiveness Helps to Improve Organization Its what business does


Business Case(How Do I Know HRs Making an Impact)

Reduce Costs Improve Revenue Improve Quality Increase Customer Satisfaction Contribute to Growth


Organizations measure what they treasure!~Anonymous

What gets measured, gets done.~ Peter Druker


STRATEGIC OPERATIONAL

Turnover of Key Positions Turnover

Revenue Per FTE Time to Hire

Profits Per Employee Absenteeism

Diversity turnover Employee Demographics

Intent to Stay/Go Results Employee Satisfaction

Engagement Score Results Number of Accidents

Labor/Operating Costs Lost Work Days

% Impact of Pay Increases Training Satisfaction 2013 Halogen Software Inc. Confidential Not to be used, copied or redistributed without Halogens prior written permission.

Data Metrics


Strategic Metrics

Impact MeasuresMarrying HR Metrics with Business

Data


IMPACT

We offer our engineers 20-percent time so that theyre free to work on what theyre really passionate about. Google Suggest, AdSense for Content, and Orkut are among the many products of this perk.

~http://www.google.com/jobs/lifeatgoogle/englife/index.html


Marry HR Data with Business DataA core focus of the RBS HR function was to

help business leaders utilize key people measures such as employee engagement, turnover and leadership effectiveness. The

human capital strategy enabled the provision of this data side-by-side with business data,

such as customer service scores and business performance measures.

~The Royal Bank of Scotland Group: The Human Capital Strategy


Process Ask A Series of Questions Get Others Involved Draw Connections to Business Compare with Standards Share Results Take Actions Ask More Questions


We learn more by looking for the answer to a question and not finding

it than we do from learning the answer itself.

Lloyd Alexander


Why Does HR Exist?

A. To provide full employment for math-phobic professionals?

B. To provide for the care and feeding of employees?

C. To help organizations meet their goals?D. To comply with appropriate laws/regulations?


Metrics


Concepts Correlation Causation Longitudinal/Trends


Preparatory Activities Know the Business of the Business Interpret Environmental Scan Produce data/reports for Decisions/Actions


Indira Gandhi

The power to question is the basis ofall human progress.



Old Questions?What can we count?

What should we measure in HR?What metrics are most important to the

organization?

New QuestionsWhat is most important to the organization?

What can HR do to help the organization meet these objectives?


Questions?What is most important?Why is it most important?

What can HR do to help this most important thing?

Ask the 2nd and 3rd QuestionWhat happens next?

What do we do now that we know this?If this is what it is?

What does this tell us about?If we change x, will it improve y?


So What?Will it helps us save money?

Drive Revenue?Increase customer retention?

Revenue, Costs, Quality, Customers!


Methods Dashboards Key Performance Indicators Balanced Scorecard CBA/ROI You dont know Jack (Fitz-enz & Phillips) Index Card (Business Necessity, Strategy Focused)


Sources of Data Existing operational data sources

HR Data (compensation, benefits, training assessments, budgets, etc.)

Employee Satisfaction Surveys Exit interviews HR Technology systems Interviews & Focus Groups


Sources of Data (2) Industry Benchmarking Surveys

(SHRM, World at Work etc.) Customer Data Direct Observation Business Reports


Organizational Competency Metrics


PresenterPresentation NotesCompetencies are sometimes referred to as the "currency" or "language" of talent management. A strong competency model forms the foundation of your talent management processes allowing you to: ensure your culture and values are reflected in your talent management processestrack performance over timeprovide a framework for building future leaderscompare the talent and potential of your workforceThis is an example report showing improvement of key organizational competencies over time to help HR demonstrate

Goal Achievement Metrics


PresenterPresentation NotesThe ability to demonstrate whether individual goals which are linked to organizational goals are on or off track is a compelling HR metric that clearly links performance management processes to the achievement of organizational goals.

Bench Strength Metrics


PresenterPresentation NotesIn succession planning the strategic insight of knowing which individuals are high potentials, which individuals are at risk of leaving is critical to building organizational bench strength and competing in the long term.

Training Effectiveness Metrics


PresenterPresentation NotesDevelopment planning that is focused on improving key competencies should be measurable in terms of better outcomes.

Necessary But, Not Sufficient

Turnover Cost Per Hire

Cost of Turnover HR Staffing/# of Employees

Voluntary Turnover % Of Employee Complaints

Involuntary Turnover Healthcare Cost Per Employee

Average length of service Absenteeism Rate

Average age of employees Yield Rate

Time to Hire Internal Promotions Rate 2013 Halogen Software Inc. Confidential Not to be used, copied or redistributed without Halogens prior written permission.

Strategic Metric Examples

% Employees who feel mgmt supports their success

Increase productivity/Training(ROI)

% Increase in Pay for % in Performance

Training Costs/Revenue by unit

Intent to Stay % Employee Satisfaction/Training $Turnover percentage by manager Avg Rating Group/Leader RatingCompensation/Sales Ratio Staffing/Unit of ProductionRating/Sales Ratio Cost hire by positionCompensation/Rating Ratio


Happy Marriage

% Employees who feel mgmt supports their success

Department Performance,Sales,

Employee Satisfaction/By Unit Customer Sales/By UnitAppraisal Rating Retention of Key Talent (& slackers)Appraisal Rating Compensation

Recruitment, retention, source, etc. DiversityTurnover Percentage by Manager Managers Rating

Employee Satisfaction RetentionCompensation Budget Total Operating Expenses


Metric Quality Checklist Strategic Simple Specific Small Number Actionable Timely


Strategic Tied to . . .

Mission Strategy Goal Initiative (Period).

Owner, Sponsor, Customer


Simple K.I.S.S. Simple to

Collect* Communicate Use


SpecificRelated to target area of business

activity, effort, or performance

Small Number1 2 per HR area

6-15 overall


High-performing companies take a radically different approach to HR. They put much more

effort than low performers into measuring workforce performance,

High performers actually focus efforts on fewer, carefully chosen HR projects, but they keep refining

and experimenting in these areas to make them stronger.

~ High-Performing Companies Make HR a Strategic Partner, Others Don't2010, The Boston Consulting Group (BCG) and the World Federation of People Management

Associations (WFPMA).


Actionable Action taken based upon results Decisions made as a result Improve quality of business decision


Timely Regular interval Just in Time Alerts


Developing Metrics to Evaluate HRs Contribution

Though standards are evolving, simple figures will not necessarily provide enough information. Many companies track retention, for example, but to solve a turnover problem, HR needs to discover why people leave. HR adds value when professionals decide not only what to measure, but also how to interpret the data when compared to benchmarks and how to improve its methodology to get the kind of information the organization can use to achieve its overall goals.

~HR Measurement and Metrics: Gaining HR a Seat at the Strategy Table


Impact

In the very early days, Google got rid of all managers. Although they were later reintroduced, a belief persisted within the company that managers do not really make a difference.

So the analytics team looked at a combination of performance review data and employee surveys, where employees review their bosses to determine whether there were significant differences between the impact of the best and worst bosses. The answer from the data was a resounding yes.

~http://www.google.com/jobs/lifeatgoogle/englife/index.html


Technology Tools

Automates Data Gathering, so that you can concentration on


Actions/DecisionsAsk Better QuestionsShare and Compare

Define MetricMake Information

Gather data 2013 Halogen Software Inc. Confidential Not to be used, copied or redistributed without Halogens prior written permission.

Chan Master Mingjiao

Accumulate learning by study, understand what you learn by

questioning.



Tips Summary So What? Test Impact, not information measures Look Outward, Not Inward Target audience is Operations Merge HR Data with Business Data Report cost of doing nothing Recommend uses of metric w/ reports Fewer, Better Each metric has a customer


Review Identify Business Purpose Ask a series of questions Agree upon Metrics with customers

Benchmark, where appropriate Identify use of information before gathering information

Refine and Repeat (?????) 2013 Halogen Software Inc. Confidential Not to be used, copied or redistributed without Halogens prior written permission.

Q&A

Additional questions regarding the webinar? Contact:Christopher Lee- [email protected]

For additional Halogen Software inquiries or to request a personalized demonstration, contact: Connie Costigan [email protected]


Join Our Next TM Webinar How to Avoid Bad Hires Through

Reference Checking

Tuesday, February 26, 2013TM Webinars start at 2 p.m. Eastern / 11 a.m. Pacific

Register for upcoming TM Webinars at www.talentmgt.com/webinars

Join the Talent Management magazine Networkhttp://network.talentmgt.com/

#TMwebinar

Developing Metrics to evaluate hrs contribution to the achievement of organizational goalsDeveloping Metrics to Evaluate HRs Contribution to the Achievement of Organizational GoalsDeveloping Metrics to Evaluate HR's Contribution to the Achievement of Organizational GoalsAGENDASlide Number 5Definition of MetricsBusiness Case for MetricsBusiness Case(How Do I Know HRs Making an Impact)Slide Number 9Slide Number 10Slide Number 11Strategic MetricsIMPACTMarry HR Data with Business DataProcess Why Does HR Exist?Slide Number 18ConceptsPreparatory ActivitiesSlide Number 21Old Questions?Questions?Slide Number 24MethodsSources of DataSources of Data (2)Organizational Competency MetricsGoal Achievement MetricsBench Strength MetricsTraining Effectiveness MetricsSlide Number 32Slide Number 33Slide Number 34Metric Quality ChecklistStrategicSimpleSpecificSlide Number 39ActionableTimelyDeveloping Metrics to Evaluate HRs ContributionImpactTechnology ToolsSlide Number 45Slide Number 46Tips SummaryReviewQ&ASlide Number 50

2 21tmhalogensoftwarefinalslidesv2 130222115623 Phpapp01 (1)

Documents

Transcript of 2 21tmhalogensoftwarefinalslidesv2 130222115623 Phpapp01 (1)