Measuring HR Systems_KPMG
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Transcript of Measuring HR Systems_KPMG
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Measuring HR Systems. Results of 2010
KPMG HR Benchmarking Survey
Alevtina Borisova
Partner, KPMG
TAX
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2010 ZAO KPMG, a company incorporated under the Laws of the Russian Federation, a subsidiary of KPMG Europe LLP, and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in Russia.
PEOPLE SERVICES
Since middle of 1990 - HR is no longer seen as administrators, but as
people to be involved in high-level strategic discussions, which means:
Technically
1. Shared Service Centers2. Centers of Expertise
3. HR Business partners (HR generalists)
4. Advisor of Management
5. Center of Communication
Per se
Appreciation of the value of human assets
Strategic thinking
Orientation to business needs and certaintargets
Making HR function more efficient
How to set up closer connection between business and HR?
Human Resources Transformation
2
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2010 ZAO KPMG, a company incorporated under the Laws of the Russian Federation, a subsidiary of KPMG Europe LLP, and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in Russia.
2010 ZAO KPMG, a company incorporated under the Laws of the Russian Federation, a subsidiary of KPMG Europe LLP, and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in Russia.
Subordination of HR Head
82.93%
12.20%
Deputy General Director
General Director
Evaluating HR Effectiveness
81,58% of 2009 HR Benchmarking participants
evaluate HR Function effectiveness:
Turnover rate
Budget targets
Employee satisfaction surveys results
Headcount of support functions
Russian Practice
How to involve HR Head in strategy developing process?
What metrics to use for evaluating HR Function effectiveness?
How to define target values for these metrics?
3
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2010 ZAO KPMG, a company incorporated under the Laws of the Russian Federation, a subsidiary of KPMG Europe LLP, and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in Russia.
2010 ZAO KPMG, a company incorporated under the Laws of the Russian Federation, a subsidiary of KPMG Europe LLP, and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in Russia.
Approaches
Approaches to Measure HR Effectiveness*
HR Management by Objectives
Value of Information
Surveys
HR Case Studies
HR Auditing
HR Key Indicators
HR Cost Monitoring
ROI
HR Benchmarking
Measurement focus
Moderate
Moderate
Goal Setting for HR Performance Measures
Attitudes/Perceptions
Qualitative Description with Data Low
Efficiency/Existence of Practices Low
Program/Function Performance Measures
Program/Function Low
Benefits vs. Costs High
Performance Measures/Practices
*Jack J. Phillips The Human Resources Scorecard: Measuring the Return on investment
4
High
High
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2010 ZAO KPMG, a company incorporated under the Laws of the Russian Federation, a subsidiary of KPMG Europe LLP, and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in Russia. 5
HR Benchmarking is the comparison of the numerical and qualitative indicators of a
companys HR management system to the same indicators of other companies.
What is HR Benchmarking
Collecting
measurable data
characterizing HR
management system
Assessing the
efficiency of HR
management
processes
Assessing HR ROI
Revenue per employee Personnel costs as % of revenue
Personnel costs per employee Payroll as % of total personnel costs Personnel Turnover HR Function FTE Ratio Costs of various benefits per employee Percentage of vacancies filled Training costs per employee
Headcount planning
and the budgeting of
HR costs
KPMG HR Benchmarking covers over 100
benchmarks in the following areas:
Financial and Statistical Data Headcount and Responsibilities of the Support
Functions (HR and Finance)
Compensation and Benefits Recruitment and Onboarding Training and Development Company Image and Corporate Culture
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2010 ZAO KPMG, a company incorporated under the Laws of the Russian Federation, a subsidiary of KPMG Europe LLP, and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in Russia.
Headcount and personnel costs
3.60%
35.51%
68.41%
27.29%
11.68%
1.58%
0% 20% 40% 60% 80%
Top Managers
Middle Managers
SpecialistsBlue collars
Sales employees
Support employees
Headcount by employee category
(% of total headcount, median)
7,9%
11,6%
12,8%
23,5%
0% 20% 40%
Personnel costs as a percent of revenue(median)
Banks and financecompanies
Production andautomotive
Headquarters
FMCG and Farmacy
Top Management
Middle Management
SpecialistsProduction workers
Sales Specialists
Support Staff
Banking and Finance
Industrial Products
FMCG
Pharmaceuticals
6
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2010 ZAO KPMG, a company incorporated under the Laws of the Russian Federation, a subsidiary of KPMG Europe LLP, and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in Russia.
Salary Dynamics Prognosis for 2010-2011
7
2010 salary changes, by employee category
January-April 2010
2%
6%
9%
11%
34%
38%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Twice and more
February
March
January
April
No changes
Median Average 25th
Percentile 75th
Percentile
Total 10% 10% 8% 12%
Top Managem ent 10% 11% 9% 11%
Middle Managem ent 10% 12% 8% 12%
Specialists 10% 11% 8% 12%
Product ion W orkers 11% 11% 9% 12%
Sales Specialists 10% 11% 9% 13 %
Support Staf f 10% 10% 8% 12%
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2010 ZAO KPMG, a company incorporated under the Laws of the Russian Federation, a subsidiary of KPMG Europe LLP, and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in Russia.
Changes to Bonus Plans in 2009-2010
8
2009 Dynamics
2010 Dynamics
Changes to Bonus Plans in 2009
Change of terms Reduction of plans Increase of plans No Changes
Management 15% 15% 6% 67%
Sales Departm ents 20% 9% 9% 63 %
Other Employees 11% 13 % 2% 74%
Changes to Bonus Plans in 2010
Change of terms Reduction of plans Increase of plans No Changes
Managem ent 8% - 6% 86%
Sales Departm ents 19% - 6% 75%
Other Employees 6% - 4% 89%
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2010 ZAO KPMG, a company incorporated under the Laws of the Russian Federation, a subsidiary of KPMG Europe LLP, and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in Russia.
Benefits
9
24%
27%
32%
41%
44%
46%
51%
61%
63%
71%
90%
95%
0% 20% 40% 60% 80% 100%
Mobile phone compensation
Welfare assistance
Health insurance
Sick leave compensation
Life insurance
Corporate cars
Com an roducts at a discount
Sickness without medical certificate
Meals
Maternit leave com ensation
Corporate discounts for certain services
Per diem above statutory norms
The most widespread benefits
% of all participants
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2010 ZAO KPMG, a company incorporated under the Laws of the Russian Federation, a subsidiary of KPMG Europe LLP, and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in Russia.
4%
7%
13%
76%
0% 20% 40% 60% 80%
Reduction of plans
Change of t erms
Increase of plans
No
Changes to Benefits in 2009-2010
10
5%
5%
9%
82%
0% 20% 40% 60% 80% 100%
Change of terms
Increase of plans
Reduction of plans
No
Changes to Benefits in 2009(% of all replies)
Changes to Benefits in 2010(% of all replies)
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2010 ZAO KPMG, a company incorporated under the Laws of the Russian Federation, a subsidiary of KPMG Europe LLP, and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in Russia.
Personnel Turnover
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Unappropritae salary level
Lack of opportunity for professional andcareer growth
Personal reasons
Working conditions
Turnover Causes Rank
11,3%
5,6%
9%
12% Banks and FinancialcompaniesFMCG and Farmacy
Production
All companies
Personnel Turnover
Compensation
Career and professional growth
Personal reasons
Working conditions
Banking and Finance
21%
Pharmaceuticals
FMCG
Industrial Products
All companies
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2010 ZAO KPMG, a company incorporated under the Laws of the Russian Federation, a subsidiary of KPMG Europe LLP, and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in Russia.
Recruiting
12
The number of vacancies filled by internal
candidates (median)
Percentage of vacancies filled
The number of vacancies filled by recruitment agencies
96.08%
18.03%
The number of vacancies filled by internal candidates 16.67%
17.57%
16.61%
25.75%
10.00%
0% 5% 10% 15% 20% 25% 30%
Banking and Finance
Industrial Products
Pharmaceuticals
FMCG
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2010 ZAO KPMG, a company incorporated under the Laws of the Russian Federation, a subsidiary of KPMG Europe LLP, and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in Russia.
Training
13
Number of trained employees
Number of employees trained by external providers
58.78%
21.05%
Training hours per 1 employee 7
Methods of evaluating the effectiveness of training
2.86%
34.29%
65.71%
82.86%
0% 20% 40% 60% 80% 100%
Employees' satisfaction with learning
Measuring employees' knowledge and skills
change
Evaluation of employees behaviour change afterlearning
HC ROI measurement
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2010 ZAO KPMG, a company incorporated under the Laws of the Russian Federation, a subsidiary of KPMG Europe LLP, and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in Russia.
Talent and Succession Pools
14
Number of employees (as % of average headcount)
Succession Pool Talent Pool
3.17% 2.15%
Number of filled vacancies
3.17% 2.15%
Turnover
1% 3.33%
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2010 ZAO KPMG, a company incorporated under the Laws of the Russian Federation, a subsidiary of KPMG Europe LLP, and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in Russia. 1515
Motivation and Company Image
Non-financial motivation programs /
recognition programs Professionalism rewards Loyalty rewards Rewards to anniversaries, holidays
90% of all participants
Regular employee satisfaction
surveys
Building image among employees
Employee satisfaction surveys on annual basis
67% of all participants
Corporate events
Internal communications (corporate media, etc.)
81% of all participants
External image programs Sponsorship / charity (71%) Employer brand programs (54%)
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2010 ZAO KPMG, a company incorporated under the Laws of the Russian Federation, a subsidiary of KPMG Europe LLP, and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in Russia. 16
Presentor detailes:
Alevtina Borisova
PartnerTax and legal
+7 (495) 937 4477
ZAO KPMG
www.kpmg.ru
The informationcontained herein is of a general nature and is notintended to addressthe circumstances of anyparticular individual or entity. Although
we endeavor to provideaccurate andtimelyinformation,therecan be no guarantee that such information is accurate as of thedate it is received or that it
will continueto be accurate in the future.No oneshould acton suchinformation without appropriate professional advice after a thorough examinationoftheparticular situation.