Abc Of Hr Metrics 144
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Transcript of Abc Of Hr Metrics 144
HR’s Role As An Information Analyst
Today’s Objectives What are Metrics? Why Measure? What to Measure? How to Measure? How to Analyze Data? How to Report Data?
What are HR Metrics? Relating to measures
Involving or proceeding by measurements
Method of tracking the effectiveness of HR
What you value about HR programs and the equivalent monetary value
Language of management
HR Excuses Against Metrics “You can’t measure what we do…” Lack of clear purpose for measuring Lack of cooperation between
departments Difficulty extracting data from multiple
systems Difficulty understanding and analyzing
metrics Numbers used to draw inaccurate
conclusions
Why Measure?
If you can’t measure it, you can’t understand it. If you can’t understand it, you can’t control it.If you can’t control it, you can’t improve it.
The Improvement Process
Understand
Measure
Control
Improve
Importance of HR Metrics
Quantify the value of HR Guide workforce strategies Maximize HR’s return on investments Provide measurement standards Show what HR contributes to business
results Make the business case for HR’s
objectives
Why Measure?
Communicate performance expectations
Discover gaps in strategies
Make better decisions
Address the trend toward value reporting
What to Measure?
Measure outcomes not activity Begin with efficiency measures Develop metrics geared towards your
organization’s goals and strategies Establish metrics to monitor key HR
practices proven to grow human capital Use metrics that will encourage
change and help us make better decisions about human capital
Creating a measurement team is recommended
Communicate importance of metrics to team
Team should select metrics together Determine how metrics will be defined Obtain leadership buy-in Disseminate the tasks
Collecting Data
Strategic Relationships
Process must be owned by Executives, Managers, HR, Finance, and IT
Takes time and will power May require an investment in
information technology support services to support human capital measurement and reporting opportunities
Requires the fostering of key strategic relationships to ensure favorable outcomes
Getting Started
Assess your data
Build your metrics
Create meaningful measures
What do you already track?
Where should you focus?
What metrics would be useful?
Assessing Your Data
Determine your measures
Select benchmarks for comparison similar services same size similar organizational structure similar budget
Compare your results
Building Your Measures
Compare your value to the percentiles used by benchmarks
Assess desirability of your position in relation to your organizational goals
Develop metrics that assess efficiency, strategic value, and effectiveness
Creating Meaningful Measures
Data Integrity
Quality of data is critical Garbage in….garbage out So…..
Check the math Watch out for zeros Compare results to each other Conduct a sanity test
Data Sources
HRIS (PeopleSoft, SAP, CostPoint, etc.) Surveys Interviews SHRM Watson-Wyatt WorldatWork Mercer Saratoga Institute IPMA
What Can Be Measured?
Staffing and Hiring Work ProcessesCompetent Employees
Turnover RatesReduced Time-to-Fill for Vacancies
Training Costs
Number of Employees
TrainedCost per Hire
Voluntary Separations
Who’s Measuring What?
Georgia Technology Authority New Hire Quality Internal Promotions Training Impact Voluntary Turnover Alternative Work Schedule Participation Employee Satisfaction Performance Plans Developed Development Plans Implemented
Formula: Total Voluntary Separations / Regular Headcount
Purpose: Voluntary Separation Rate looks at the
percentage of regular headcount that voluntarily left the organization.
This metric is an excellent indicator of problems within the organization, including but not limited to inadequate compensation and/or benefits, lack of opportunities for promotion, low employee morale, inadequate training, and/or improper assessment of employee's qualifications (over or under qualified).
Voluntary Separation Rate
Voluntary Separation Rate
Calculation:13,894 / 141,277
Total Voluntary Separations / Regular Headcount
=
9.8%
Formula: The number of business days to fill a vacantposition. This is counted from the day theposition becomes vacant to the date a newemployee starts in the job.
Purpose: Time to Hire shows length of time it takes to
fill vacant positions. This metric is an indicator of organization's
ability to recruit and hire new employees.
Time to Hire - Definition
Time to Hire - Calculation
11/1/2006 - 8/1/2006Date of Hire - Date of Vacancy
=
65 business days
Formula: Total Training Cost / Regular Headcount Trained
Purpose: Training Cost Factor - average dollars spent on
training for each regular employee receiving training
This metric is an indicator of the organization's investment in training and can also be used to monitor training costs and the organization's return on investment.
Training Cost Factor - Definition
Training Cost Factor - Calculation
$31,131,631 / 249,700Total Training Cost / Regular Headcount Trained
=
$124.68
Pulling it All Together
• Can you explain it in one sentence?
• Is the area it measures high priority for the organization?
• Can people in the organization remember and explain it?
• Is the number simple to get and understand?
• Does the source for the data have credibility?
Key Thoughts
Take “baby steps” by starting with a few key metrics.
You don’t have to change the whole organization at once.
Measurement and management go hand in hand.
Analyzing Data
Microsoft Excel Formulas
Sum Average & Median Time Calculations
Charts & Graphs Pie Bar Scatter
Reporting Data
Microsoft Word Reports
Tables Graphs Charts
Microsoft Access Database
Tables Queries Reports
PowerPointInserting graphs
Exit Salaries vs. Years Exp.
$20,000.00
$25,000.00
$30,000.00
$35,000.00
$40,000.00
$45,000.00
$50,000.00
$55,000.00
$60,000.00
$65,000.00
$70,000.00
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Years Experience
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