You can listen to today’s webinar using your computer’s       speakers or you may dial into the teleconference.          I...
Speaker:     Dr. Christopher Lee             Associate Vice Chancellor, Human Resources             Virginia Community Col...
Developing Metrics to Evaluate HRs                  Contribution to the Achievement of                         Organizatio...
AGENDA     • Business Case     • Business Strategy     • Ask Business Related Questions     • Checklist of Considerations ...
Albert Einstein         Any intelligent fool can make things        bigger and more complex... It takes a      touch of ge...
Definition of Metrics            A business metric is any type of measurement used               to gauge some quantifiabl...
Business Case for Metrics        • It’s Strategic        • It Matters        • Enhances HR Credibility        • Proof of H...
“Business” Case                             (How Do I Know HR’s Making an Impact)        • Reduce Costs        • Improve R...
Organizations measure what they treasure!                                         ~Anonymous                           Wha...
STRATEGIC                                                OPERATIONAL  Turnover of Key Positions                           ...
Data                                             Metrics© 2013 Halogen Software Inc. Confidential – Not to be used,copied ...
Strategic Metrics                                      Impact Measures         Marrying HR Metrics with Business          ...
IMPACT         We offer our engineers “20-percent time” so         that they’re free to work on what they’re         reall...
Marry HR Data with Business Data         A core focus of the RBS HR function was to           help business leaders utiliz...
Process     • Ask A Series of Questions     • Get Others Involved     • Draw Connections to Business     • Compare with St...
Lloyd Alexander          We learn more by looking for the        answer to a question and not finding          it than we ...
Why Does HR Exist?     A. To provide full employment for math-phobic       professionals?     B. To provide for the ‘care ...
Metrics© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written ...
Concepts        • Correlation        • Causation        • Longitudinal/Trends© 2013 Halogen Software Inc. Confidential – N...
Preparatory Activities     • Know the “Business” of the Business     • Interpret Environmental Scan     • Produce data/rep...
Indira Gandhi            The power to question is the basis of                   all human progress.© 2013 Halogen Softwar...
Old Questions?                          What can we count?                    What should we measure in HR?               ...
Questions?                    What is most important?                   Why is it most important?           What can HR do...
So What?                         Will it helps us save money?                                 Drive Revenue?              ...
Methods        • Dashboards        • Key Performance Indicators        • Balanced Scorecard        • CBA/ROI        • You ...
Sources of Data        • Existing operational data sources               • HR Data (compensation, benefits, training asses...
Sources of Data           (2)        • Industry Benchmarking Surveys               • (SHRM, World at Work etc.)        • C...
Organizational Competency Metrics© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed withou...
Goal Achievement Metrics© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen...
Bench Strength Metrics© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s...
Training Effectiveness Metrics© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without H...
Necessary But, Not Sufficient  Turnover                                                            Cost Per Hire  Cost of ...
Strategic Metric Examples  % Employees who feel mgmt                                           Increase productivity/Train...
Happy Marriage               % Employees who feel mgmt Department Performance,                   supports their success Sa...
Metric Quality Checklist        • Strategic        • Simple        • Specific        • Small Number        • Actionable   ...
Strategic        • Tied to . . .           • Mission           • Strategy           • Goal           • Initiative         ...
Simple        • K.I.S.S.        • Simple to           • Collect*           • Communicate           • Use© 2013 Halogen Sof...
Specific            Related to target area of business             activity, effort, or performance                       ...
High-performing companies take a radically          different approach to HR. They put much more       effort than low per...
Actionable        • Action taken based upon results        • Decisions made as a result        • Improve quality of busine...
Timely        • Regular interval        • Just in Time        • Alerts© 2013 Halogen Software Inc. Confidential – Not to b...
Developing Metrics to Evaluate HR‘s                             Contribution       Though standards are evolving, simple f...
Impact         In the very early days, Google got rid of all managers. Although         they were later reintroduced, a be...
Technology Tools            Automates Data Gathering, so that you can                       concentration on …© 2013 Halog...
Actions/Decisions                                        Ask Better Questions                                        Share...
Cha’n Master Mingjiao                        Accumulate learning by study,                        understand what you lear...
Tips Summary        •   So What? Test        •   Impact, not information measures        •   Look Outward, Not Inward     ...
Review        • Identify Business Purpose        • Ask a series of questions        • Agree upon Metrics with          cus...
Q&A       •    Additional questions regarding the webinar? Contact:            Christopher Lee- chris@performanceconversat...
Join Our Next TM Webinar       How to Avoid Bad Hires Through            Reference Checking          Tuesday, February 26,...
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Developing Metrics to Evaluate HRs Contribution to the Achievement of Organizational Goals

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When deployed properly, the human resources function should be a driver of organizational success. The measures and methods of tracking and managing HR activities are equally important as the activities themselves. Learn to develop and use the right metrics to prove HR’s impact on the bottom line and how technology makes this process easier to manage, and take a strategic approach to work to ensure that the HR activities are having their intended impact.

Join this webinar and discover how to:

Define various measures, methods, metrics and evaluation protocols.
Compare and contrast HR metrics and business metrics (HR metrics with a strategic linkage) to demonstrate the difference in how the value of HR activities can lead to productivity and profitability.
Use ROI/cost benefit protocols to determine the effectiveness of HR interventions.
Design and use technology tools to virtually automate data collection and analysis activities.
Utilize strategic management principles when developing and implementing HR activities to ensure organizational effectives by design.

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Developing Metrics to Evaluate HRs Contribution to the Achievement of Organizational Goals

  1. 1. You can listen to today’s webinar using your computer’s speakers or you may dial into the teleconference. If you would like to join the teleconference,please dial 1.650.479.3208 and enter access code: 925 187 276 #. You will be on music hold until the seminar begins. #TMwebinar
  2. 2. Speaker: Dr. Christopher Lee Associate Vice Chancellor, Human Resources Virginia Community College SystemModerator: Connie Costigan Director of Marketing Communications Halogen Software #TMwebinar
  3. 3. Developing Metrics to Evaluate HRs Contribution to the Achievement of Organizational Goals • Presenter: Dr. Christopher Lee, PhD, SPHR© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  4. 4. AGENDA • Business Case • Business Strategy • Ask Business Related Questions • Checklist of Considerations • Tips to Deploy Metrics • Use Examples • Q&A© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  5. 5. Albert Einstein Any intelligent fool can make things bigger and more complex... It takes a touch of genius - and a lot of courage to move in the opposite direction.© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  6. 6. Definition of Metrics A business metric is any type of measurement used to gauge some quantifiable component of a companys performance, such as return on investment (ROI), employee and customer churn rates, revenues, EBITDA, and so on. Metric = How to Keep Score© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  7. 7. Business Case for Metrics • It’s Strategic • It Matters • Enhances HR Credibility • Proof of HR Effectiveness • Helps to Improve Organization • It’s what business does© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  8. 8. “Business” Case (How Do I Know HR’s Making an Impact) • Reduce Costs • Improve Revenue • Improve Quality • Increase Customer Satisfaction • Contribute to Growth© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  9. 9. Organizations measure what they treasure! ~Anonymous What gets measured, gets done. ~ Peter Druker© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  10. 10. STRATEGIC OPERATIONAL Turnover of Key Positions Turnover Revenue Per FTE Time to Hire Profits Per Employee Absenteeism Diversity turnover Employee Demographics Intent to Stay/Go Results Employee Satisfaction Engagement Score Results Number of Accidents Labor/Operating Costs Lost Work Days % Impact of Pay Increases Training Satisfaction© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  11. 11. Data Metrics© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  12. 12. Strategic Metrics Impact Measures Marrying HR Metrics with Business Data© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  13. 13. IMPACT We offer our engineers “20-percent time” so that they’re free to work on what they’re really passionate about. Google Suggest, AdSense for Content, and Orkut are among the many products of this perk. ~http://www.google.com/jobs/lifeatgoogle/englife/index.html© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  14. 14. Marry HR Data with Business Data A core focus of the RBS HR function was to help business leaders utilize key people measures such as employee engagement, turnover and leadership effectiveness. The human capital strategy enabled the provision of this data side-by-side with business data, such as customer service scores and business performance measures. ~The Royal Bank of Scotland Group: The Human Capital Strategy© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  15. 15. Process • Ask A Series of Questions • Get Others Involved • Draw Connections to Business • Compare with Standards • Share Results • Take Actions • Ask More Questions© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  16. 16. Lloyd Alexander We learn more by looking for the answer to a question and not finding it than we do from learning the answer itself.© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  17. 17. Why Does HR Exist? A. To provide full employment for math-phobic professionals? B. To provide for the ‘care and feeding’ of employees? C. To help organizations meet their goals? D. To comply with appropriate laws/regulations?© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  18. 18. Metrics© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  19. 19. Concepts • Correlation • Causation • Longitudinal/Trends© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  20. 20. Preparatory Activities • Know the “Business” of the Business • Interpret Environmental Scan • Produce data/reports for Decisions/Actions© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  21. 21. Indira Gandhi The power to question is the basis of all human progress.© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  22. 22. Old Questions? What can we count? What should we measure in HR? What metrics are most important to the organization? New Questions What is most important to the organization? What can HR do to help the organization meet these objectives?© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  23. 23. Questions? What is most important? Why is it most important? What can HR do to help this most important thing? Ask the 2nd and 3rd Question What happens next? What do we do now that we know this? If this is what it is…? What does this tell us about? If we change ‘x’, will it improve ‘y’?© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  24. 24. So What? Will it helps us save money? Drive Revenue? Increase customer retention? Revenue, Costs, Quality, Customers!© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  25. 25. Methods • Dashboards • Key Performance Indicators • Balanced Scorecard • CBA/ROI • You don’t know Jack (Fitz-enz & Phillips) • Index Card (Business Necessity, Strategy Focused)© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  26. 26. Sources of Data • Existing operational data sources • HR Data (compensation, benefits, training assessments, budgets, etc.) • Employee Satisfaction Surveys • Exit interviews • HR Technology systems • Interviews & Focus Groups© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  27. 27. Sources of Data (2) • Industry Benchmarking Surveys • (SHRM, World at Work etc.) • Customer Data • Direct Observation • Business Reports© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  28. 28. Organizational Competency Metrics© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  29. 29. Goal Achievement Metrics© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  30. 30. Bench Strength Metrics© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  31. 31. Training Effectiveness Metrics© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  32. 32. Necessary But, Not Sufficient Turnover Cost Per Hire Cost of Turnover HR Staffing/# of Employees Voluntary Turnover % Of Employee Complaints Involuntary Turnover Healthcare Cost Per Employee Average length of service Absenteeism Rate Average age of employees Yield Rate Time to Hire Internal Promotions Rate© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  33. 33. Strategic Metric Examples % Employees who feel mgmt Increase productivity/Training supports their success (ROI) % Increase in Pay for % in Training Costs/Revenue by unit Performance Intent to Stay % Employee Satisfaction/Training $ Turnover percentage by manager Avg Rating Group/Leader Rating Compensation/Sales Ratio Staffing/Unit of Production Rating/Sales Ratio Cost hire by position Compensation/Rating Ratio© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  34. 34. Happy Marriage % Employees who feel mgmt Department Performance, supports their success Sales, Employee Satisfaction/By Unit Customer Sales/By Unit Appraisal Rating Retention of Key Talent (& slackers) Appraisal Rating Compensation Recruitment, retention, source, etc. Diversity Turnover Percentage by Manager Manager’s Rating Employee Satisfaction Retention Compensation Budget Total Operating Expenses© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  35. 35. Metric Quality Checklist • Strategic • Simple • Specific • Small Number • Actionable • Timely© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  36. 36. Strategic • Tied to . . . • Mission • Strategy • Goal • Initiative • (Period). • Owner, Sponsor, Customer© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  37. 37. Simple • K.I.S.S. • Simple to • Collect* • Communicate • Use© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  38. 38. Specific Related to target area of business activity, effort, or performance Small Number 1 – 2 per HR area 6-15 overall© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  39. 39. High-performing companies take a radically different approach to HR. They put much more effort than low performers into measuring workforce performance…, — High performers actually focus efforts on fewer, carefully chosen HR projects, but they keep refining and experimenting in these areas to make them stronger. ~ High-Performing Companies Make HR a Strategic Partner, Others Dont 2010, The Boston Consulting Group (BCG) and the World Federation of People Management Associations (WFPMA).© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  40. 40. Actionable • Action taken based upon results • Decisions made as a result • Improve quality of business decision© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  41. 41. Timely • Regular interval • Just in Time • Alerts© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  42. 42. Developing Metrics to Evaluate HR‘s Contribution Though standards are evolving, simple figures will not necessarily provide enough information. Many companies track retention, for example, but to solve a turnover problem, HR needs to discover why people leave. HR adds value when professionals decide not only what to measure, but also how to interpret the data when compared to benchmarks and how to improve its methodology to get the kind of information the organization can use to achieve its overall goals. ~HR Measurement and Metrics: Gaining HR a Seat at the Strategy Table© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  43. 43. Impact In the very early days, Google got rid of all managers. Although they were later reintroduced, a belief persisted within the company that managers do not really make a difference. So the analytics team looked at a combination of performance review data and employee surveys, where employees review their bosses to determine whether there were significant differences between the impact of the best and worst bosses. The answer from the data was a resounding “yes”. ~http://www.google.com/jobs/lifeatgoogle/englife/index.html© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  44. 44. Technology Tools Automates Data Gathering, so that you can concentration on …© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  45. 45. Actions/Decisions Ask Better Questions Share and Compare Define Metric Make Information Gather data© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  46. 46. Cha’n Master Mingjiao Accumulate learning by study, understand what you learn by questioning.© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  47. 47. Tips Summary • So What? Test • Impact, not information measures • Look Outward, Not Inward • Target audience is Operations • Merge HR Data with Business Data • Report cost of doing nothing • Recommend uses of metric w/ reports • Fewer, Better • Each metric has a customer© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  48. 48. Review • Identify Business Purpose • Ask a series of questions • Agree upon Metrics with customers • Benchmark, where appropriate • Identify use of information before gathering information • Refine and Repeat (?????)© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  49. 49. Q&A • Additional questions regarding the webinar? Contact: Christopher Lee- chris@performanceconversations.com • For additional Halogen Software inquiries or to request a personalized demonstration, contact: Connie Costigan – ccostigan@halogensoftware.com© 2013 Halogen Software Inc. Confidential – Not to be used,copied or redistributed without Halogen’s prior written permission.
  50. 50. Join Our Next TM Webinar How to Avoid Bad Hires Through Reference Checking Tuesday, February 26, 2013TM Webinars start at 2 p.m. Eastern / 11 a.m. Pacific Register for upcoming TM Webinars at www.talentmgt.com/webinars Join the Talent Management magazine Network http://network.talentmgt.com/ #TMwebinar

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