5 Employee Relations Metrics you Should be Tracking & Why
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Transcript of 5 Employee Relations Metrics you Should be Tracking & Why
5 Employee Relations Metrics you Should be Tracking & WhyMarch 29, 2012
Twitter Hashtag: #dovetailhr
Who is Dovetail?
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Dovetail is a leader in employee support software enabling organizations to:
reduce administrative costs, increase productivity, and improve service delivery.
Customer Snapshot:
Speaker Introduction
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Cathy Missildine-MartinCo-founder & Chief
Performance OfficerIntellectual Capital Consulting
Twitter Hashtag: #dovetailhr
Audience Poll Question
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What are you currently measuring in HR?
Efficiency metrics like cost/hire and turnover Effectiveness metrics like training program ROI HR Impact metrics like revenue/emp, Human Capital ROI All of the Above None of the Above
Objectives: What we will learn today
Why ER metrics are just as important to HR analytics as performance metrics
How to use technology to track, measure and report on ER metrics
What ER metrics you should be tracking and what they reveal
How to use ER metrics to drive corporate policy change
What is a Metric Anyway?
A number is just that, a stand alone figure
A metric is different from a number because it can contain multiple elements
A 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, or EBITDA.
Business metrics are part of the broad area of business intelligence, which comprises a wide variety of applications and technologies for gathering, storing, analyzing, and providing access to data to help enterprise users make better business decisions
Phase 1
Phase 2
Phase 3
Phase 4
Phase 5
Impact• Creating Change• Achieving Strategic
Goals• Congratulations,
You have arrived at the true purpose of Analytics!
Justification• Foundational human capital
investments • Data collection• Reporting• Rudimentary tools• Distributed efforts
Measurement• Metrics defined • HR Scorecards &
Dashboards • Leadership
accountability• Standardization• Improvements
celebrated
Effectiveness• Key Performance
Indicators• Cohesive efforts• Process
improvement• Expanded
organizational accountability
• More sophisticated tools
Value Creation• Genuine Insights• Decisions based on
data & learnings• Connections between
people investment and business outcomes defined
• Predictive Models• Cultural shifts
Data leads to Insights …. Insights lead to ActionPrice to Play Poker (what you need)•Executive Support•The Right Tools•The Right People
Analytical Roadmap
Provided by: STEVE WOOLWINE, PHR, Chief of Staff, Talent and Human Capital Services, SEARS HOLDINGS CORPORATION
Making the Business Case
Human Capital expense is a company’s greatest expense
Doing more with less
Start small (low hanging fruit)
Better decision making
Eliminates confusion over what is important (linkage to strategy)
Words of Wisdom
“After 30 years studying HR Departments, I have found the largest single difference between a great HR department and an average one, is the extensive use of metrics.”
Dr. John Sullivan , HR Metrics the World Class Way
3 Types of HR Metrics
• HR Tracking/numbers internal HR DepartmentHR Efficiency
• HR ProgramsHR Effectiveness
• Outcomes bases on investment in human capital
• Linked to strategic outcomesHR Impact
Efficiency Metrics
1. Recruiting Metrics-time to fill, cost per hire QOH2. Compensation Metrics-budget variance, %
redlined, actual/market %3. Benefits-Benefits %/total comp, benefits
cost/emp4. Training-training cost/emp, training hours/emp,
average perfect scores5. Employee Relations-# Grievances, cost of
grievances'
How do you get ER Metrics?
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Documented Grievances
Centralized Repository
Ability to Produce Metrics
Creating a Grievance Case
Grievance Cases Average Cost ($) 2011
Tracking Case Metrics
Grievance Cases Average Cost ($) 2011
Visibility into Case History
Grievance Cases Average Cost ($) 2011
Why ER Metrics are important?
Cost standpoint
Employee engagement
Litigation
Time
Continuous improvement
What Can We Learn From the Data?
1. Must get to root cause of the ER issues so that prevention is the goal
2. True cost of grievances
3. True resources spent on grievances
4. Prevention of ER issues leads to better employee engagement
What are you currently measuring in Employee Relations?
Poll Question
Tracking Metrics (number of grievances) Cost Metrics Root Cause Metrics All of the Above None of the Above Other
Which 5 ER Metrics are Important?
1. Tracking Activity/Grievance rate
2. Cost of a grievance
3. Root cause analysis
4. Average close time
5. Employee Relations ROI
1. Tracking activity
# of grievances/time By manager By department By region By facility
ADR success Rate
Reporting on Activity
Grievance Cases Average Cost ($) 2011
Grievance Cases March 2012 By Manager
Reporting on Activity
Grievance Cases Average Cost ($) 2011
Grievance Cases March 2012 By Department
Reporting on Activity
Grievance Cases Average Cost ($) 2011
Grievance Cases March 2012 By Region
Reporting on Activity
Grievance Cases Average Cost ($) 2011
Grievance Cases March 2012 By Facility
2. Cost of Grievances
Investigation time (Manager, HR & Legal)
Employee time
Lost productivity
Outside/Inside counsel
Cost Analysis
Grievance Cases Average Cost ($) 2011
Grievance Cases 2011 Average Cost
3. Root Cause Analysis
Manager/Supervisor errors
Policy/Procedures
Training
Poor hires
Reporting on Root Cause
Grievance Cases Average Cost ($) 2011
Grievance Cases March 2012 By Root Cause
Root Cause Analysis
Grievance Cases Average Cost ($) 2011
Grievance Cases March 2012 By Location and RCA
4. Average Close Time
How many days does it take to resolve an issue from the day the issue is raised until resolved
$$$$$
Case Closed
Reporting on TTR
Grievance Cases Average Cost ($) 2011
Grievance Cases 2011 Average TTR (Days)
5. ROI ER Program
How much money over time has an effective ER program saved the organization
How much more revenue is earned due to lack of ER issues
Revenue/emp Profit/emp
The Disconnect
“HR professionals are failing to predict staff grievances accurately. In spite of the sources of grievance remaining constant, it is evident that there is a mismatch between what HR professionals have expected and what has actually happened in practice.”
*2012 The State of HR Report, http://www.hrmagazine.co.uk/hro/news/1020911/the-hr-
investing-talent-failing-predict-staff-grievances
End Goal: Predicting ER Issues
ButterfliesAdd Turnover %
ER Analysis
Change Seekers
Add Turnover %ER Analysis
True LoyalistsAdd Turnover %
ER analysis
Morale Busters
Add Turnover %ER Analysis
High Performance
Low Performance
Engagement
Using ER Metrics to Drive Change
Promotes a culture of continuous improvement
Increases productivity of workforce and managers
Uncover potential issues before they become expensive and explosive
Metrics hold managers accountable for actions…what gets measured gets done
Questions?
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Contact Us
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Dovetail Software
(800)684-2055
@dovetail
dovetailsoftware.com/dovetailconnectblog
dovetailsoftware.com
Cathy Missildine-Martin
(678)797-5331
@cathymartin
intellectualcapitalconsulting.blogspot
intellectual-capital.net
Next Steps
Visit our Resource Center: dovetailsoftware.com/resources
Latest Whitepaper: An HR Case Management System is Essential to Protecting your Organization’s Reputation and Bottom Line
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