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5 Employee Relations Metrics youShould be Tracking & WhyMarch 29, 2012 Twitter Hashtag: #dovetailhr

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Who is Dovetail? Dovetail is a leader in employee support software enabling organizations to:  reduce administrative costs,  increase productivity,  and improve service delivery.Customer Snapshot: 2

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Speaker Introduction Cathy Missildine-Martin Co-founder & Chief Performance Officer Intellectual Capital ConsultingTwitter Hashtag: #dovetailhr 3

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Audience Poll Question What are you currently measuring in HR?  Efficiency metrics like cost/hire and turnover  Effectiveness metrics like training program ROI  HR Impact metrics like revenue/emp, Human Capital ROI  All of the Above  None of the Above 4

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Objectives: What we will learn today Why ER metrics are just as important to HR analytics as performance metrics How to use technology to track, measure and report on ER metrics What ER metrics you should be tracking and what they reveal How to use ER metrics to drive corporate policy change

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What is a Metric Anyway? A number is just that, a stand alone figure A metric is different from a number because it can contain multiple elements 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, or EBITDA. Business metrics are part of the broad area of business intelligence, which comprises a wide variety of applications and technologies for gathering, storing, analyzing, and providing access to data to help enterprise users make better business decisions

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Analytical RoadmapPrice to Play Poker (what you need)•Executive Support•The Right Tools•The Right People Phase 5 Phase 4 Impact • Creating Change Phase 3 Value Creation • Achieving Strategic • Genuine Insights Goals Phase 2 Effectiveness • Decisions based on • Congratulations, data & learnings You have arrived at • Key Performance Indicators • Connections between the true purpose of Phase 1 Measurement people investment Analytics! • Cohesive efforts and business • Metrics defined • Process outcomes defined Justification • HR Scorecards & improvement • Predictive Models Dashboards • Foundational human capital • Expanded • Cultural shifts • Leadership organizational investments accountability accountability • Data collection • Standardization • More sophisticated • Reporting • Improvements tools • Rudimentary tools celebrated • Distributed efforts Provided by: STEVE WOOLWINE, PHR, Chief of Staff, Talent and Human Capital Services, SEARS HOLDINGS CORPORATION

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Making the Business Case Human Capital expense is a company’s greatest expense Doing more with less Start small (low hanging fruit) Better decision making Eliminates confusion over what is important (linkage to strategy)

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Words of Wisdom“After 30 years studying HR Departments, I have found the largest single difference between a great HR department and an average one, is the extensive use of metrics.” Dr. John Sullivan , HR Metrics the World Class Way

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3 Types of HR Metrics HR Efficiency • HR Tracking/numbers internal HR Department HR • HR Programs Effectiveness • Outcomes bases on investment HR Impact in human capital • Linked to strategic outcomes

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Efficiency Metrics1. Recruiting Metrics-time to fill, cost per hire QOH2. Compensation Metrics-budget variance, % redlined, actual/market %3. Benefits-Benefits %/total comp, benefits cost/emp4. Training-training cost/emp, training hours/emp, average perfect scores5. Employee Relations-# Grievances, cost of grievances

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How do you get ER Metrics? Documented Grievances Ability to Produce Metrics Centralized Repository 13

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Creating a Grievance Case

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Tracking Case Metrics

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Visibility into Case History

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Why ER Metrics are important? Cost standpoint Employee engagement Litigation Time Continuous improvement

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What Can We Learn From the Data? 1. Must get to root cause of the ER issues so that prevention is the goal 2. True cost of grievances 3. True resources spent on grievances 4. Prevention of ER issues leads to better employee engagement

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Poll Question What are you currently measuring in Employee Relations?  Tracking Metrics (number of grievances)  Cost Metrics  Root Cause Metrics  All of the Above  None of the Above  Other

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Which 5 ER Metrics are Important? 1. Tracking Activity/Grievance rate 2. Cost of a grievance 3. Root cause analysis 4. Average close time 5. Employee Relations ROI

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1. Tracking activity # of grievances/time  By manager  By department  By region  By facility ADR success Rate

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Reporting on Activity Grievance Cases March 2012 By Manager

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Reporting on Activity Grievance Cases March 2012 By Department

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Reporting on Activity Grievance Cases March 2012 By Region

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Reporting on Activity Grievance Cases March 2012 By Facility

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2. Cost of Grievances Investigation time (Manager, HR & Legal) Employee time Lost productivity Outside/Inside counsel

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Cost Analysis Grievance Cases 2011 Average Cost

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3. Root Cause Analysis Manager/Supervisor errors Policy/Procedures Training Poor hires

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Reporting on Root Cause Grievance Cases March 2012 By Root Cause

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Root Cause Analysis Grievance Cases March 2012 By Location and RCA

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4. Average Close Time How many days does it take to resolve an issue from the day the issue is raised until resolved $$$$$ Case Closed

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Reporting on TTR Grievance Cases 2011 Average TTR (Days)

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5. ROI ER Program How much money over time has an effective ER program saved the organization How much more revenue is earned due to lack of ER issues  Revenue/emp  Profit/emp

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The Disconnect “HR professionals are failing to predict staff grievances accurately. In spite of the sources of grievance remaining constant, it is evident that there is a mismatch between what HR professionals have expected and what has actually happened in practice.” *2012 The State of HR Report, http://www.hrmagazine.co.uk/hro/news/1020911/the-hr- investing-talent-failing-predict-staff-grievances

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End Goal: Predicting ER Issues True Butterflies Loyalists High Performance Add Turnover % Add Turnover % ER Analysis ER analysis Change Morale Low Performance Seekers Busters Add Turnover % Add Turnover % ER Analysis ER Analysis Engagement

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Using ER Metrics to Drive Change  Promotes a culture of continuous improvement  Increases productivity of workforce and managers  Uncover potential issues before they become expensive and explosive  Metrics hold managers accountable for actions…what gets measured gets done

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Questions? 37

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Contact Us dovetailsoftware.com intellectual-capital.net @dovetail @cathymartin dovetailsoftware.com/dovetailconnectblog intellectualcapitalconsulting.blogspot (800)684-2055 (678)797-5331 Dovetail Software Cathy Missildine-Martin info@dovetailsoftware.com cathymartin@intellectual-capital.net 38

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Next Steps Visit our Resource Center: dovetailsoftware.com/resources Latest Whitepaper: An HR Case Management System is Essential to Protecting your Organization’s Reputation and Bottom Line Upcoming Events  DIR Power to Purchase Technology Expo  April 26th, Palmer Events Center, Austin, TX  Visit us at Booth #432  Free for Public Sector Employees  IHRIM HRMStrategies Conference & Technology Expo  May 1st – 2nd, Hilton Chicago, Chicago, IL  Visit us at Booth #914  Early Bird Registration Rate through March 30th 39