HR Metrics That Matter Ward Christman Senior Consultant
What is a Metric? <ul><li>Noun </li></ul><ul><li>A standard for measuring or evaluating something; basis for assessment  <...
Why HR Metrics?   <ul><li>HR Metrics is Evolving </li></ul>1990 Metrics 1995 2000 2010 Benchmarking Analytics Prediction <...
Top Talent Management Impacts on EBITA <ul><li>Money, Money, Money </li></ul><ul><li>“ Top performing talent management or...
Gartner's Model for Types of Workforce Analytics Solutions
Which HR Metrics? <ul><li>Goal: Find metrics that can align talent with business strategy. </li></ul><ul><li>Example: Work...
Tying HR to the business <ul><li>Capital = Assets available for use in the production of further assets </li></ul>Human Ca...
Who needs to be on the HR Metrics Team? <ul><li>CHRO – champion & caretaker </li></ul><ul><li>CFO – bottom line </li></ul>...
What data and what to do with it? <ul><li>Step 1 </li></ul><ul><ul><li>Gather metrics being used by C-Suite </li></ul></ul...
What data and what to do with it? <ul><li>Step 1 - Interviewing C-Suite </li></ul><ul><ul><li>Ask what metrics they watch ...
Sample Collection Grid CEO CFO CIO CHRO Business Driver #1 New business Cost containment ROI on technology Employee perfor...
What data and what to do with it? <ul><li>Step 2 - Gather data & metrics from HR etc. </li></ul><ul><ul><li>HRIS and/or Pa...
Sample Organization Grid Benefits Comp/Rewards & Recognition Learning & Development Succession Planning Career Development...
What to do with the data? <ul><li>Step 3 – Correlate Steps 1 & 2 </li></ul><ul><ul><li>How do I correlate? </li></ul></ul>...
 
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12 hr metrics

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12 hr metrics

  1. 1. HR Metrics That Matter Ward Christman Senior Consultant
  2. 2. What is a Metric? <ul><li>Noun </li></ul><ul><li>A standard for measuring or evaluating something; basis for assessment </li></ul><ul><li>Adjective </li></ul><ul><li>Of or relating to the meter or the metric system </li></ul>
  3. 3. Why HR Metrics? <ul><li>HR Metrics is Evolving </li></ul>1990 Metrics 1995 2000 2010 Benchmarking Analytics Prediction <ul><ul><li>Goal: Use metrics to make HR a key asset of the business decision support system. </li></ul></ul>
  4. 4. Top Talent Management Impacts on EBITA <ul><li>Money, Money, Money </li></ul><ul><li>“ Top performing talent management organizations posted earnings before interest, taxes and depreciation, and amortization (EBITDA ) that are 15% higher than peer companies .” </li></ul>
  5. 5. Gartner's Model for Types of Workforce Analytics Solutions
  6. 6. Which HR Metrics? <ul><li>Goal: Find metrics that can align talent with business strategy. </li></ul><ul><li>Example: Workforce Planning </li></ul><ul><li>Why is it HOT? </li></ul><ul><li>Increased Focus on Internal Mobility and Promotions </li></ul><ul><li>Introduction of Career Planning and Career Maps </li></ul><ul><li>Debut of Predictive Hiring </li></ul>Internal Mobility Recruiting Workforce Planning
  7. 7. Tying HR to the business <ul><li>Capital = Assets available for use in the production of further assets </li></ul>Human Capital Management value curve Efficiency Service Loyalty Productivity Performance Retention
  8. 8. Who needs to be on the HR Metrics Team? <ul><li>CHRO – champion & caretaker </li></ul><ul><li>CFO – bottom line </li></ul><ul><li>CEO – business initiatives </li></ul><ul><li>CIO – technology ROI </li></ul><ul><li>CMO – brand influence </li></ul><ul><li>CSO – top line </li></ul><ul><li>HRIS and Talent Management team – data hounds </li></ul>
  9. 9. What data and what to do with it? <ul><li>Step 1 </li></ul><ul><ul><li>Gather metrics being used by C-Suite </li></ul></ul><ul><ul><ul><li>CFO – EBITA, Profitability, etc. </li></ul></ul></ul><ul><ul><ul><li>CEO – Customer retention, new market growth etc. </li></ul></ul></ul><ul><ul><ul><li>Etc. </li></ul></ul></ul><ul><li>Step 2 </li></ul><ul><ul><li>Gather metric data from HR team & others </li></ul></ul><ul><ul><ul><li>Enlist HRIS and Talent Management team </li></ul></ul></ul><ul><ul><ul><li>Partner with operations and IT as needed </li></ul></ul></ul><ul><li>Step 3 </li></ul><ul><ul><li>Correlate steps 1 and 2! </li></ul></ul><ul><ul><li>Create a dashboard to present & monitor </li></ul></ul>
  10. 10. What data and what to do with it? <ul><li>Step 1 - Interviewing C-Suite </li></ul><ul><ul><li>Ask what metrics they watch </li></ul></ul><ul><ul><li>Probe for leading indicators (vs. lagging) </li></ul></ul><ul><ul><ul><li>Employee engagement </li></ul></ul></ul><ul><ul><ul><li>Customer intent to renew or buy again </li></ul></ul></ul><ul><ul><ul><li>Employee alignment </li></ul></ul></ul><ul><ul><li>Ask what they would watch if they could </li></ul></ul><ul><ul><li>Ask how they think HR can help </li></ul></ul>
  11. 11. Sample Collection Grid CEO CFO CIO CHRO Business Driver #1 New business Cost containment ROI on technology Employee performance Business Driver #2 Speed to market Shareholder value Security of customer data Retention Business Driver #3 Client Retention Business Driver #4 Shareholder value Business Driver #5 Business Driver #6 Business Driver #7
  12. 12. What data and what to do with it? <ul><li>Step 2 - Gather data & metrics from HR etc. </li></ul><ul><ul><li>HRIS and/or Payroll </li></ul></ul><ul><ul><ul><li>Headcount, turnover/retention, tenure </li></ul></ul></ul><ul><ul><ul><li>Comp package </li></ul></ul></ul><ul><ul><ul><li>Peer comparisons </li></ul></ul></ul><ul><ul><li>Talent Acquisition System (Recruiting) </li></ul></ul><ul><ul><ul><li>Cost per hire, Time to Fill, etc. </li></ul></ul></ul><ul><ul><li>Talent Management System's) </li></ul></ul><ul><ul><ul><li>Inventory skills, competencies </li></ul></ul></ul><ul><ul><ul><li>Performance history (HIPOs), work history </li></ul></ul></ul><ul><ul><ul><li>Career paths, preferences (relo, FT/PT, etc.) </li></ul></ul></ul><ul><ul><li>Other data points related to C-Suite list </li></ul></ul><ul><ul><ul><li>Employee Satisfaction ratings </li></ul></ul></ul><ul><ul><li>Categorize above by job, division etc. </li></ul></ul>
  13. 13. Sample Organization Grid Benefits Comp/Rewards & Recognition Learning & Development Succession Planning Career Development Goal attainment Performance Management Hire top performers ROI on ATS Hire for less cost Hire top talent faster Talent Acquisition (Recruiting) CHRO CIO CFO CEO
  14. 14. What to do with the data? <ul><li>Step 3 – Correlate Steps 1 & 2 </li></ul><ul><ul><li>How do I correlate? </li></ul></ul><ul><ul><ul><li>Use top 10 list as starting point </li></ul></ul></ul><ul><ul><ul><li>Focus on CEO </li></ul></ul></ul><ul><ul><ul><li>Look at industry benchmarks and demographics </li></ul></ul></ul><ul><ul><ul><ul><li>Make score cards </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Make meaningful or don’t do it </li></ul></ul></ul></ul><ul><ul><ul><li>Enlist experts (inside and outside) </li></ul></ul></ul><ul><ul><ul><li>Leverage technology </li></ul></ul></ul><ul><ul><li>Create a dashboard to present & monitor </li></ul></ul><ul><ul><ul><li>Use existing tools (Excel, TMS, HRMS, Cognos) </li></ul></ul></ul><ul><ul><ul><li>Enlist experts like DoubleStar, InfoHRM, etc. </li></ul></ul></ul>

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