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High Performance HR

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High Performance HR …

High Performance HR
Maximizing People for Profits
September 1, 2011

Published in: Business, Technology

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  • 1. Confidentional High Performance HR Maximizing People for Profits September 1, 2011
  • 2. The People Profit Connection Did you know…..  The average dealership spends$2.5 Million on payroll (NADA) That the cost of a bad hire is 1.5 to 2 x the annual salary? That companies spend on average $1700 per employee to comply with workplace regulations? That harassment cases cost on average – Pre-trial settlements: $300,000. – Litigation judgments: $1.8 Million 2– KPA CONFIDENTIAL –
  • 3. The People Profit Connection Did you know….. That on average 35% of operating expense is attributed to employee compensation and benefits?  The average implemented employee suggestions saves a company $6,224 in operational expenses according to the Employee Involvement Association  The typical worker wastes about 2 hours a day- and the cost is a staggering $759 billion a year nationwide! (SHRM) 3– KPA CONFIDENTIAL –
  • 4. Hire, Retain, Engage 4– KPA CONFIDENTIAL – Engage Retain Hire Select the best because you have a choice Keep the best with a good working environment Engage to maximize productivity
  • 5. Hire the right person for the right job • Dealerships report they spend less than 4 hours in the hiring process* • Cost of bad hire is 2 to 3 times the annual salary • 95% of a managers time is spent on 5% of the employees Bad hires cost you money, and even worse they keep you up at night! *survey of 268 dealerships 5– KPA CONFIDENTIAL –
  • 6. Are you using the right tools for the job • Effective job application form • Conduct a behavioral interview • Personally conduct references • Perform background check • Use a scorecard to make objective decision If the answer to any of these questions is anything but yes- then you are taking on more risk than is necessary and increasing your chance of making a bad hire 6– KPA CONFIDENTIAL –
  • 7. The Five Tools Effective Application Behavioral Interview Reference Checking Background Checking Candidate Scorecard 7– KPA CONFIDENTIAL –
  • 8. The Five Habits Follow a defined process Use the five tools Always be recruiting Include others in the process Never talk yourself into saying yes 8– KPA CONFIDENTIAL –
  • 9. Hire the right person for the right job • Using the five habits and the five tools will: – Establish a proven method to reduce the risk of making a bad hire- do what works! – Save time by using the five tools to screen out poor fit early in the process- don’t waste your time! – Reduce the time you spend on management by hiring the right person in the first place- spend your time on your top employees! Time is money, can you afford to make poor hiring decisions? 9– KPA CONFIDENTIAL –
  • 10. Retaining Employees • Spending time on retention is good business – Reduces training – Improved productivity – Creates an attractive workplace • Retaining poor employees is bad business – Performance reviews – Disciplinary action plans Remember that 95% of a manager’s time is spent on 5% of the employees, but your goal is to reverse this equation in your dealership 10– KPA CONFIDENTIAL –
  • 11. The Engaged Organization Employees ManagersExecutives 11– KPA CONFIDENTIAL –
  • 12. Employees Employees align what they want — and what the business needs— and then take action to achieve both 12– KPA CONFIDENTIAL – Ownership Clarity Action
  • 13. Managers Managers understand each employees talents and skills and match to the businesses objectives — while at the same time creating personal, trusting relationships 13– KPA CONFIDENTIAL – Coaching Relationships Dialague
  • 14. Executives Executives demonstrate consistency in words and actions, communicate a lot, and align business practices and behaviors throughout the organization to drive results and engagement. 14– KPA CONFIDENTIAL – Trust Communication Culture
  • 15. Cultivate an Ownership Mentality • Education – How does the company make money – How can do I impact or take away value • Measure – Key Performance Indicators – High Visibility/High Accountability • Incent – Self funding incentive plans – Align behavior to financial objectives 15– KPA CONFIDENTIAL –
  • 16. Four Key Performance Indicators • Employee Costs • Employee Turnover/Retention • Employee Engagement/Satisfaction • Workplace Compliance 16– KPA CONFIDENTIAL –
  • 17. Employee Costs • Average Costs of an Employee – Salary – Benefits • Percentage of Revenue by Employee • Employment Costs as a % of Operating Expenses • % of time lost to absences • Average overtime per employee 17– KPA CONFIDENTIAL –
  • 18. Employee Turnover/ Retention • Total replacement hires per year • Total cost to hire • % of new hires achieving 6 months • % of new hires achieving 12 months • % of new hires achieving satisfactory appraisals • Cost of training per employee 18– KPA CONFIDENTIAL –
  • 19. Employee Engagement/Satisfaction Annual measurements on attitudes and beliefs…  Compensation and benefits  Co-workers, managers  Promotion opportunities  Training  Work Tasks 19– KPA CONFIDENTIAL –
  • 20. Workplace Compliance • Total number of complaints • Total number of lawsuits/audits – cost of defense as a % of revenue • Lost time to accidents • Training – Measure impact of training year to year against lawsuits and complaints 20– KPA CONFIDENTIAL –
  • 21. Maximizing the People Profit Connection • What makes a company attractive to candidates makes it easy to retain employees • Use the five tools and five habits to hire the right person for the right job • Spend time upfront to hire the right person, it is a good use of your time • Don’t spend your time on the bottom 5%, spend your time on the top 25% • Measure KPIs for HR annually, can’t measure, can’t improve • Ownership mentality makes all the difference 21– KPA CONFIDENTIAL –
  • 22. Questions and Answers 22– KPA CONFIDENTIAL – QUESTIONS?
  • 23. Contact Information 23– KPA CONFIDENTIAL – Kathryn Carlson kcarlson@kpaonline.com 303-228-8765