Strategic Business Intelligence for HR - 6 HR Metrics No Executive Should Be Without by Ultimate Software

3,709 views

Published on

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
3,709
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
21
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Strategic Business Intelligence for HR - 6 HR Metrics No Executive Should Be Without by Ultimate Software

  1. 1. Strategic Business Intelligence for HR: 6 HR Metrics No Executive Should Be Without By analyzing and reporting on the full range of human capital management (HCM) data, business intelligence (BI) uncovers the insights executives need for smarter staffing, planning, and budgeting decisions.
  2. 2. 2 Ultimate Software Proprietary and Confidential n an economic climate characterized by cost-cutting and increased regulatory requirements, HR faces growing demands to communicate the value it creates in ways that CEOs can better appreciate. That means moving away from soft measurements such as “improvements” and adopting quantifiable metrics similar to those executives use to monitor the overall business. Meaningful HR metrics can include things such as recruitment costs, employee retention rates, and employee satisfaction metrics. BI enables HR to proactively improve performance, analyze critical HR data, and explore different workforce metrics. Here are some of the most valuable strategic metrics that BI tools can deliver to HR: Turnover Analysis: Keeping Your Best and Brightest Employee turnover costs can range from six to 36 months of salary and benefits. To increase retention rates, companies must proactively identify factors leading to turnover. BI can consolidate and monitor factors such as location, department, seniority, gender, supervisor, salary, promotions, and skills and analyze their impact on turnover. These analytics help companies create a profile of at-risk employees and prevent attrition. Level-Setting Compensation Top organizations know performance-based compensation is highly effective in attracting and retaining outstanding employees. BI helps HR design benefits and policies by correlating compensation with performance targets, skills, seniority, and other factors. For example, an HR executive can analyze compensation across a variety of dimensions (e.g., department, location, gender, or seniority) to determine if it is competitive. The result: lower turnover and recruitment costs. Reducing Unnecessary Overtime Expenses In many industries, overtime can be a major component of operating expenses. But BI can significantly reduce OT by identifying potentially inefficient or duplicate scheduling as well as seasonal spikes. BI tools for human capital management enable HR to analyze and minimize overtime hours and costs by department, organization, job, location, supervisor, month, or other factors and determine where scheduling adjustments and staffing/shift changes could decrease overtime costs. Cost-Effective Benefits Analysis Employer-paid or subsidized benefits are a major cost center for I With the right metrics, HR can not only deliver additional value, savings, and increased productivity to the business, but also can more clearly articulate to the CEO and executive team the vital role HR plays in business success. BI enables HR to proactively improve performance, analyze critical HR data, and explore different workforce metrics.
  3. 3. 3 Ultimate Software Proprietary and Confidential most companies. To ensure an organization offers the most cost- effective plans, it must have a complete picture of the true and full costs to the business as well as employee participation levels by location, benefit plan, organization level, and other criteria. The right BI tools, integrated with an HRMS/payroll solution, can make providing these metrics a breeze. Recruiting Top Talent Whether it’s newspaper ads, agencies, job fairs, or employee referrals, companies invest heavily to attract top talent. How can an HR professional assess if that spending is attracting the right people? Many HR departments calculate their average cost-per-hire. However, this tells only part of the story. With BI, HR professionals can measure recruitment efforts based on the time required to recruit. From there, they could easily calculate the time, money, and recruitment method to recruit a specific employee, and correlate these metrics to the employee’s performance. The HR department might find one method attracts more job candidates in a shorter time or at a lower cost, but that the people are not as highly qualified as those identified by another recruiting channel that costs more or takes more time. In this way, the manager can see which methods deliver the highest-quality candidates. Optimizing Training and Development Investments The investment companies make in employee development can be among their highest line items—$56.8 billion for U.S. companies last year. Companies need to know if those investments are producing tangible returns, such as increased sales or greater productivity. What’s more, HR departments must identify current skills and anticipate future gaps, and allocate training resources to ensure optimal productivity. With the right BI tools, HR managers can measure improvements in employee performance and the effectiveness of training programs as it correlates to training costs. Conclusion The right BI tools can empower HR executives with visibility into how they can contribute to improving the company’s bottom line. With the right metrics, HR can not only deliver additional value, savings, and increased productivity to the business, but also can more clearly articulate to the CEO and executive team the vital role HR plays in business success. But what’s the key to finding the right BI tools? HR professionals need BI tools that are delivered fully integrated with a comprehensive HRMS, payroll, benefits, and talent management solution—so that the BI tools can analyze and report on all areas that impact HR— not just benefits or recruiting alone, for example. To find BI tools that can analyze any component of human capital management most efficiently, look for an end-to-end HCM solution that includes built-in BI tools out-of-the-box. HR professionals need BI tools that are delivered fully integrated with a comprehensive HRMS, payroll, benefits, and talent management solution—so that the BI tools can analyze and report on all areas that impact HR.
  4. 4. 4 Ultimate Software Proprietary and Confidential For more information, please visit www.ultimatesoftware.com. Ultimate is a leading cloud provider of people management solutions, with more than 10 million people records in the cloud. Built on the belief that people are the most important ingredient of any business, Ultimate's award- winning UltiPro delivers HR, payroll, time, and talent management solutions that seamlessly connect people with the information and resources they need to work more effectively. Founded in 1990, the company is headquartered in Weston, Florida, and has more than 1,700 professionals focused on developing the highest quality solutions and services. In 2013, Ultimate was ranked #9 on FORTUNE'S list of the “100 Best Companies to Work For,” and Minyanville Media Inc. named Ultimate among the top 10 most ethical businesses in the U.S. In its Cloud Buyer’s Bill of Rights Certification, Constellation Research awarded Ultimate its highest level of certification. Ultimate has more than 2,500 customers with employees in 146 countries, including Adobe Systems Incorporated, Culligan International, Major League Baseball, Pep Boys, and Texas Roadhouse. More information on Ultimate's products and services for people management can be found at www.ultimatesoftware.com. 2013 Ultimate Software Group, Inc. All rights reserved. The information contained in this document is proprietary and confidential to The Ultimate Software Group, Inc. No part of this document may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording, for any purpose without the express written permission of The Ultimate Software Group, Inc. No part of this document may be extracted and/or used out of the context of the full published document for any reason. This document is for informational purposes only and is subject to change without notice. Ultimate Software makes no warranties, express or implied, with respect to this document or any statements contained therein and specifically disclaims any warranties including but not limited to those for a particular purpose. This document contains or may contain statements of future direction concerning possible functionality for Ultimate Software’s products and technology. Ultimate Software disclaims any express or implied commitment to deliver functionality or software unless or until actual shipment of the functionality or software occurs. UltiPro is a registered trademark of The Ultimate Software Group, Inc. All other trademarks referenced are the property of their respective owners. August 2013 2000 Ultimate Way Weston, FL 33326 1 800-432-1729 www.ultimatesoftware.com
  5. 5. 5 Ultimate Software Proprietary and Confidential ultiproinfo@ultimatesoftware.com

×