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HUMAN RESOURCES MANAGEMENT
(HRM) METRICS & ANALYTICS
CHARLES COTTER Ph.D candidate, MBA, B.A (Hons), B.A
CITY LODGE HOTEL, FOURWAYS
22-25 AUGUST 2017
www.slideshare.net/CharlesCotter
4-DAY, TRAINING
PROGRAMME OVERVIEW
• Introduction to and the evolution of HRM metrics
• Defining the fundamental concepts
• Applying a strategic mind-set and –approach to HRM
Metrics
• Building a business case for HRM Metrics and Analytics –
benefits and challenges
• Identifying best practice and critical success factors
• Applying the 5-step, HRM Analytics process
• Case studies and Reading Articles
• What type of HRM Metrics does your organization currently
utilize?
• Describe the organizational impact, level of maturity and
credibility of these HRM Metrics
• What does your organizational HRM Metrics architecture look
like?
• What is the current degree of HRM practitioner competency
of HRM metrics/analytics?
• Review the benefits of HR Metrics. Is there a business case for
applying HR Metrics?
10-POINT FOUNDATION AND “STARTER-PACK”
FOR STRATEGIC HRM METRICS
#1: Adopt a strategic
mindset
#2:Change
management must
run parallel to HRM
Metrics in “business
unusual”
environment
#3: Streamline and
systematic HRM
metrics process
#4: HRM Metrics is
not a “desktop”
exercise
#5: Adopt a
measurement
culture & build
capacity & skills
for digital literacy
10-POINT FOUNDATION AND “STARTER-PACK”
FOR STRATEGIC HRM METRICS
#6: Re-inject
scientific principles,
processes and tools
& credibility into
HRM Metrics
e.g. 3 E’s
#7: Drill down &
segment HRM
metrics
#8: Apply the 4 C’s
to HRM Metrics
Reporting
#9: Don’t adopt a “Big
Bang” approach –
start small, think big
and scale up
#10: Automation -
utilize a 4-G digital
data analysis solution
THE FUTURE OF HRM METRICS &
ANALYTICS?
“HRM will have to migrate from the
fundamentals of people science to the
complexities of data science.”
HRM METRICS/ANALYTICS TASK TEAM – 2017?
INTRODUCTORY ACTIVITY
• Individual activity:
• Complete the following statement by inserting one word only. As a
HR Manager, in order to effectively apply and utilize HRM analytics, I
need to/to be………………………………………………
• Jot this word down and find other learners who have written down
the same word.
• Write this word down on the flip-chart.
• Each learner will have the opportunity to explain their choice of
word.
PH.D. RESEARCH – STRATEGIC HRM/D FACTORS
(COTTER, 2017)
• N = 465 (global)
• Selected deficient factors (on 4-point scale):
 #1: Curating modern learning experience: 2.77
 #2: HRM/D Architecture: 2.82
 #3: Top management support: 2.83
 #4: Enhanced skills set of HRM/D practitioners: 2.89
 #5: Future-proofing the organization: 2.91
 #6: Strategic mindset of HRM/D: 2.97
• HRM/D Capability gap index (differential between compliance and importance):
 #1: Enhanced skills set of HRM/D practitioners: -0.44
 #2: Curating modern learning experience: -0.42
 #3: HRM/D Architecture: -0.38
 #4: Strategic mindset of HRM/D: -0.31
 #5: Future-proofing the organization: -0.31
• Metrics are simply measurements. Metrics track activity, but
don’t necessarily show a causal relationship.
• HRM Metrics - Measurements used to determine the value and
effectiveness of HR strategies.
• Differentiation between People and HRM Measures
• Human capital analytics examine the effect of HRM metrics
on organizational performance.
• In more general terms, analytics look for patterns of similarity
between metrics. By using analytics over time, HRM can
become predictive.
DEFINING THE FUNDAMENTAL CONCEPTS
STRATEGIC PERSPECTIVE – HRM
METRICS/ANALYTICS
Strategic HRM and correlation to metrics/analytics
The Balanced Business Scorecard
Strategy Mapping
HRM Scorecard:
• Key people measures from the organization’s scorecard
• The second class of measures should be the HR measures
Linking business strategy to personal objectives
BALANCED SCORECARD
EXAMPLE:
STRATEGY
MAP
EXAMPLE: STRATEGY MAP
STRATEGIC HRM VALUE CHAIN
LEARNING
ACTIVITY 1
• Group discussion:
• Evaluate to what extent
your current HRM
Analytics processes and
practices comply with the
principles of strategic
management i.e. use of
Balanced Scorecard and
HR Scorecard
methodologies and
Strategy Mapping etc.
• Identify gaps and
recommend improvement
strategies.
BUILDING A BUSINESS CASE FOR HRM
METRICS/ANALYTICS
• Introduction to the organizational performance
impact of HRM metrics and analytics
• Value of HRM M-E-T-R-I-C-S
• Strategic business partnering
ORGANIZATIONAL IMPACT OF HRM
METRICS/ANALYTICS
• According to a HRO Today Institute study (2013), number-crunchers rule the HR roost -
companies that use employee-performance data to improve ongoing talent acquisition
outperform their competition 58% of the time and by margins of up to 200%.
• According to the CIPD, HR analytics enables HR managers and teams to understand more about
the people in their organization, how they’re performing and how they’re creating value for the
organization.
• In turn, this enables HR practitioners and business leaders to make better business decisions.
• It’s also the main way that HR teams can demonstrate the impact that HR policies and
processes are having on the organization.
• Business managers are increasingly interested in how to use HR concepts more effectively, and
so HR analytics is an important way in which HR teams can evaluate and improve people and
business performance.
THE VALUE OF M-E-T-R-I-C-S
• Measure the contribution of employees and predict the quality
of performance
• Explore evidence-based relationships between employee
engagement and learning and development
• Tap into new sources of competitive intelligence and stay ahead
of the pack
• Retain and engage your organization’s top talent by utilizing
tools needed to anticipate future success
• Implement process mapping across HR for hiring and inducting
new employees
• Communicate the most relevant and actionable data to top
management
• Strategize optimal measurement methodologies and marshal
resources that create value for customers, investors, executives,
and employees
BENEFITS OF HRM METRICS
• Metrics help you ensure that you are meeting your goals and customer
needs
• Metrics help you focus
• Metrics tell you where to spend your money
• Metrics tell you what to stop doing
• Metrics eliminate confusion – “What you measure and reward takes away
all doubt about what is important”
• They help push continuous improvement
• There is a low degree of awareness of the impact of HRM programs
whether, positive or negative, because HR leaders have not been delivering
metrics that show the value of their programs or investments.
• Quantification issue - metrics enable leaders and decision makers in
organizations towards more efficient and better delivery of HR services
• “Based on corporate culture, organizational values and strategic business
goals and objectives, human capital measures indicate the health of the
organization.” (Lockwood, 2006)
• If HR professionals don’t measure their function’s effectiveness and
providing decision-making leaders the data they need, HR will continue to
be undermined and eventually sidelined when it comes to having a seat at
the table – strategic business partner.
IMPERATIVE OF HRM METRICS
BENEFITS OF HRM METRICS
• Metrics allow you to come across as an expert
• Distributing metrics can change individual behaviour
• Metrics are superior to culture in changing the behaviour of your
managers
• Metrics can help to improve your relationship with the CFO and CIO
• Metrics can build coordination/cooperation
• Metrics can help to build self-confidence
BENEFITS OF HRM METRICS
• Using metrics sends the message that you are “new school”
• Metrics tell you what to reward
• Modern ERP and ATS systems make it easier
• Metrics can allow HR to provide evidence of its strategic impact
• Metrics can demonstrate the rand impact of HR programs
• Create a HRM business value chain
LEARNING
ACTIVITY 2
• Group discussion:
• By means of a cost-
benefit analysis,
determine if there’s a
viable, feasible and
sustainable business
case for HRM Metrics
and Analytics.
CRITICAL SUCCESS FACTORS AND CHALLENGES OF
HRM METRICS AND ANALYTICS
• Best practice principles
• Critical success factors
• Top vendors for HRM analytics
• Constraints and Criticisms
10 BEST PRACTICE PRINCIPLES OF HRM
METRICS/ANALYTICS
• #1: Top performing companies drill down metrics to a deeper level and
communicate to decision-makers more effectively.
• #2: Data becomes part of a “holistic solution” The data is more accessible
and used by more people than with lower-performing companies.
• #3: Given that it’s an integrated solution, it has fewer inconsistencies and
offers greater reliability of data.
• #4: Top performers have a dashboard of Key Performance Indicators KPIs).
• #5: They have a centralized, standardized, cloud-based depository that is
distributable and searchable by standard key words and search strings.
10 BEST PRACTICE PRINCIPLES OF HRM
METRICS/ANALYTICS
• #6: Top performers will have records that include hyperlinks—such as a link
to someone’s LinkedIn profile—for real time updating.
• #7: They have established a dashboard that summarizes the data into
meaningful segments along with overall statistics.
• #8: Metrics are most commonly reported on a monthly basis or quarterly
basis, and then rolled up into a year-end report.
• #9: Top performers had a specific approach to metrics: What separated the
top performers from everyone else was not only what the metrics are, but
how well the data was segmented or drilled down.
• #10: A similar best practice is to deliver metrics that roll up to specific
business units and divisions.
CRITICAL SUCCESS FACTORS FOR HRM
METRICS/ANALYTICS
• Showing HR's real value
• Knowing how to interpret the results about the status of
human capital in a meaningful manner.
• If measurement, assessment and evaluation are to play a part
in achieving sustainable organization performance, they
should be impact-oriented, forward-looking and focused on
the entire HR system, not just on individual HR practices.
• The importance of HR capability
• Guarding against point-in-time measurements only
HOW DO I MAKE A SUCCESS OF MY HRM
METRICS?
• A point-in-time measurement very often appears to be
meaningless, unless you can compare it to a set standard or
benchmark, and/or view its position in a trend that may be
emerging.
Put it in the right context
Asking the right questions
Framing of my results
Reports the complete story
Always strive for improvement
HOW TO USE HRM METRICS EFFECTIVELY?
• Measure what is important
• Involve Key Stakeholders
• Work out the implications
• Drill down to meaningful chunks
• Convince and Influence
• Dig deeper and explore the root causes
• Set achievable goals for improvement
• Own the goals in partnership with the line
• Ensure action takes place as a result
• Keep the momentum going
TOP VENDORS FOR HRM
METRICS/ANALYTICS
• The real leaders in analytics are:
 Oracle
 SAP
• They have the most sophisticated and integrated analytics solutions
• In terms of smaller vendors the frontrunners are:
 SumTotal Systems
 PeopleFluent
• The real value is in providing actionable information and recommendations.
• Top performers are more likely to ask themselves one vital question: What will the CEO
or CFO do as a result of learning this information?
DEFICIENCIES IN HRM
METRICS/ANALYTICS
Logic Analytics Measures Process
COMMON ERRORS WITH HRM
METRICS/ANALYTICS
• One of the biggest mistakes that are so often reported is TOO MANY
MEASURES - Developing more metrics than it is feasible to maintain
and utilize
• Developing and implementing HR metrics in a vacuum
• The Top 20 Major Faults with Most HR Metric Approaches according
to Sullivan (refer to pages 37-45)
• “HR teams are not very analytical in their thinking yet. That is holding
them back from doing more data-driven decision making.” (Bersin)
• Over-reliance on Spreadsheets
Source: The State of Workforce Analytics and
Planning 2014 Survey Report
for workforce metrics and analytics
- With low satisfaction rates
Source: Visier WFA Usage Survey, 2012
SURVEY - AREAS TO IMPROVE TO EXPAND
WORKFORCE ANALYTICS CAPABILITIES
Is HRM
LEARNING
ACTIVITY 3
• Group discussion:
• By referring to the best
practice principles, critical
success factors and expert
criticism, evaluate your
organization’s current
degree of HRM Analytics
maturity/sophistication.
• Identify gaps and
recommend improvement
strategies.
HRM ANALYTICS MATURITY MODEL
(BERSIN BY DELOITTE)
Source: The State of Workforce Analytics and
Planning 2014 Survey Report
Source: The State of Workforce Analytics and
Planning 2014 Survey Report
TRANSFORMING HRM TO A DATA
SCIENCE-DRIVEN FUNCTION
HRM ANALYTICS PROCESS
HRM METRICS PROCESS – BASIC MODEL
HRM METRICS AND ANALYTICS PROCESS
5-STEP HRM ANALYTICS PROCESS
• Step 1: Identify where HRM can make a strategic impact in
the organization
• Step 2: Develop appropriate metrics around these areas
• Step 3: Obtain data relating to relevant metrics
• Step 4: Draw out insight from the data
• Step 5: Project and take action to communicate metrics and
related insights information to provide a robust basis for
strategic change and improvement
THE 5 E’s OF
HRM ANALYTICS
• Exploration
• Examination
• Extraction
• Evaluation
• Extrapolation
STEP 1: IDENTIFYING WHERE HRM CAN MAKE A STRATEGIC
IMPACT (EXPLORATION)
• This process step focuses on determining the areas
where HRM can make a strategic impact within the
organizational context.
• It enables HR management team to identify priority
areas for measurement which are aligned with
organizational goals and strategies.
• Identify capability opportunities or problem areas
from a business partner perspective.
• Sources for information collection, retrieval and
analysis.
SOURCES FOR INFORMATION COLLECTION,
RETRIEVAL AND ANALYSIS
• Employee and management surveys and interviews
(for employee contentment, communications, rewards
system etc.)
• Performance appraisals (to measure productivity,
attendance)
• HR records (to track communications, turnover,
recruiting efficiency, retention, promotions, and
succession planning)
• Employee files (to research productivity, attendance,
training etc.)
STEP 1: EXPLORATION
• A critical first step is to ensure that HRM is measuring the right things.
• The design and development of relevant HR metrics requires reflection and
discussion in order to determine what it takes for the organization to succeed and
to understand how HR can add value.
• Three issues underpin effective measurement (CIPD, 2011):
 Aligning measurement with goals
 Take a business partner perspective
 Adding value by focusing on building capability
• Identify organizational burning issues
• Identify industry, market and macro-environment Disruptors, trends and patterns
STEP 2: SELECTING APPROPRIATE
METRICS FROM WHICH
ORGANIZATIONAL INSIGHTS CAN BE
DRAWN (EXAMINATION)
• HRM Measures:
 Efficiency (10%) – traditional
 Effectiveness (20%) – transactional
 Impact (70%) – transformational
• Categories of HRM Metrics:
 First Tier (most valued)
 Second Tier (lesser valued)
• Commonly used HRM Metrics
• Refer to Annexure A: HRM Scorecard
Template (page 74); Annexure B:
Comprehensive HRM Metrics (pages 75-
114) and Annexure B: HRM
Effectiveness Metrics (pages 115-123)
STEP 2: EXAMINATION - HRM MEASURES
BROAD CATEGORIES
OF HRM MEASURES
 Workforce Demographics
 HR Efficiency
 Remuneration
 Skills Development, Training & Education
 Productivity
 Provisioning and Recruitment
 Risk Analysis
 Staff Retention
FREQUENTLY USED HRM METRICS (PWC)
10
TYPICAL STATISTICS OBTAINED IN COMPILING HRM
METRICS
 Revenue factor, which is company total revenue divided by the amount of
full time employees
 Human capital value added (revenue minus operating expense and cost of
compensation/benefit divided by the total amount of full time employees)
 Human capital return on investment: Revenue minus operating expenses
and cost of compensation benefit divided by cost of compensation/benefit
 Total compensation revenue ratio which is cost of compensation/benefit
divided by revenue
 Labour cost revenue ratio, which is cost of compensation/benefit plus
other employee costs (bonuses, mileage paid, incentives) divided by
revenue
10
TYPICAL STATISTICS OBTAINED IN COMPILING HRM
METRICS
 Training investment factor equals the total cost of training divided by total
amount of training attendees
 Cost per hire, which includes advertising, agency fees, relocation, and
others divided by operating expenses
 Health care costs per employee (total health care cost divided by total
amount of employees)
 Turnover costs, which is equal to hiring costs plus training costs plus other
costs (turnover rate during first year of employment is key)
 Voluntary separation rate is the total number of people who quit or
retired divided by the total amount of employees
Present x Productive 
Productivity
Q: Are your employees contributing to the success of the organisation.
Are you connecting human capital & business measures.
? Productivity measures on an annual and a quarterly basis
? Compare to national averages
Specific metrics -
 Return on Human Capital Investment
 Revenue per Full-Time Equivalent (FTE)
 Profit per FTE
Critical HR Measures - forTrue Business Impact
Critical HR Measures - forTrue Business Impact
Time to fill vacancy x Quality of hire 
Recruitment Effectiveness
Q: Are you recruiting new talent of a high calibre. Are they staying.
Are they performing.
? Business-impact shortfalls in capacity
? Consistently increasing organization’s performance through
improved talent
Specific metrics -
 Vacancy Rate
 FirstYearTurnover Rate
 New Hire Performance
 Time to Fill
RECRUITMENT METRICS
Critical HR Measures - forTrue Business Impact
Rate ofTurnover x Retention of critical top talent 
Critical Talent Retention
Q: Is your top talent / your vitally important workers / your competitive
advantage – resigning, or at risk of resigning, at a greater rate than your
less crucial employees.
? Overall tenure trends
? Career development
Specific metrics -
 Resignation Rate
 Resignation Rate ofTop Performers
 Promotion Rate and PromotionWaitTime
 Engagement Index
 Market Compensation Ratio
ENGAGEMENT’S EFFECT ON 9 KEY
PERFORMANCE INDICATORS
5 STEPS TO FIND THE RIGHT MEASURES
LEARNING
ACTIVITY 4
• Group discussion:
• Apply step 1
(Exploration) and step 2
(Examination) of the
HRM Analytics process
to a defined
organization.
• With step 2, refer to
Annexures A, B and C
for guidelines.
AGREE OR DISAGREE? WHY?
STEP 3: DATA
COLLECTION
CRITERIA – 3 E’s
• Data collection is the process
of gathering and measuring
information on targeted variables in an
established systematic fashion, which
then enables one to answer relevant
questions and evaluate outcomes.
 Evidentiary
 Empirical
 Ethical
HindSIGHT InSIGHT ForeSIGHT
Gather Data and Report Make sense of data by
Monitoring and
Analysis
Develop Predictive Models
Akshay Raje, Director, Fab.com
STEP 3: OBTAIN DATA RELATING TO
RELEVANT METRICS (EXTRACTION)
The top performing
companies were using a
variety of drilled-down
metrics, having the
people to analyze them,
and communicating
them effectively.
This process step focuses
on how HRM can most
effectively communicate
the insights drawn from
metrics to inform action
and hence enable HRM to
deliver maximum strategic
impact.
Effective decision-
making, based on robust
measures and metrics,
therefore, requires HR
professionals to think
carefully about the
relationships that need
to be established to
enable appropriate
information-sharing of
these insights.
STEP 3: EXTRACTION – PROCESS STEPS
• #1: There is the initial “harvesting” or gathering of unstructured
data from the web.
• #2: The normalization stage—preparing harvested data for
analysis. Normally, a relational database such as MySQL is used,
but NoSQL can also be used.
• #3: The data is given additional structure with metadata, or
tagging. Analytics can then be presented through a dashboard.
• The process of collecting and updating the data from the myriad of
internet sources has to be automated. Advanced Programming
Interfaces (APIs) can enable different digital platforms to share
dynamic data and feed it into other applications, such as a
company’s own database.
STEP 3: EXTRACTION – CHALLENGES
CONFRONTED
• Struggling to use unstructured data
• Difficulty tying talent acquisition data to business results
• Problems with storing, retrieving and integrating data
• There is rarely a systematic approach to integrating disparate systems. Legacy data
systems often don’t talk to each other. There are missing links between ATS and
HRIS systems.
• The data exchange is often clumsy at best, requiring rekeying of data and manual
interventions.
• The successful transfer of data from multiple sources, such as an ATS, a recruiting
site or a social network with an HRIS System is the most problematic part.
• Failure to get the most of ATS
Source: The State of Workforce Analytics and
Planning 2014 Survey Report
Source: The State of Workforce Analytics and
Planning 2014 Survey Report
STEP 4: DRAWING OUT INSIGHTS FROM
DATA (EVALUATION)
• The HRM function and measurement capability
• HR professionals have long been data collectors, amassing and keeping
track of employees’ personal information, salary rates and the annual
number of retirements. But to grasp the potential of HR analytics, HR
managers need to become data interpreters.
• Top performing companies invest in personnel who have analytic and
process-oriented capabilities, those people who can install the necessary
methodological disciplines necessary to use the information effectively.
• Identify root causes and cause-effect linkages and -relationships
• Action planning – interventions and solutions
• Data mining is a process used by companies to turn raw data into useful
information.
DATA ANALYSIS
• Data analysis involves critical analysis and interpretation of figures and
numbers, and attempts to find rationale behind the emergence of
main findings.
• In data analysis, the researcher is expected to turn raw numbers into
meaningful data through the application of rational and critical
thinking. The same figure within data set can be interpreted in many
different ways; therefore it is important to apply fair and careful
judgment.
• Three popular quantitative data analysis software, namely: Microsoft
Excel, Microsoft Access and SPSS.
DMAIC RCA PROCESS (ILLUSTRATION)
CAUSE EFFECT/FISHBONE DIAGRAM
5-WHY ANALYSIS
HRM ACTION PLAN (INTERVENTION)
TEMPLATE
LEARNING
ACTIVITY 5
• Group discussion:
• Apply steps 3
(Extraction) and 4
(Evaluation) of
the HRM
Analytics process
to a defined
organization.
STEP 5: PROJECT AND TAKE ACTION TO COMMUNICATE METRICS AND RELATED
INSIGHTS INFORMATION TO PROVIDE A ROBUST BASIS FOR STRATEGIC CHANGE AND
IMPROVEMENT (EXTRAPOLATION)
• Projection of data – forecasting (PREDICTIVE ANALYTICS)
• To communicate HRM Analytics, tell a story (NARRATIVE)
• “Data is abundant, but if you don’t give it context, it’s just a
bunch of numbers.”
• Internal benchmarks (to compare their business units to
others in the organization)
• Support comes after results are delivered, not before. “It
really comes back to how credible you are. You get buy-in
when you show up repeatedly with accurate numbers and
you can relate the story to how the company’s performing.”
STEP 5: EXTRAPOLATION - REPORTING
• HR analytics reporting
• How the information is communicated to the organization, particularly the
C-suite, is critically important.
• Companies simply produce spreadsheets that offer no easy and timely way
to present what is happening in the business.
• Like any good research report, it is vital to present meaningful information
and identify actionable insight that can be used to make positive change.
• Tactically, the best practice organizations, distribute multiple reports to
multiple levels. Tailored reporting to address the specific needs, and ideally
focuses on very specific business impacts.
• If the metrics being shown convey business impact, quarterly reporting of
5-10 of the most critical, agreed-to KPIs is warranted.
DIFFERENT OBJECTIVES, DIFFERENT
METHODOLOGIES
http://www.inostix.com
(Reporting)
Historical metric
 “Last year’s corporate turnover rate was 8%.”
Predictive analytic
 “As a result of a drop in the regional unemployment rate, there is an 86% chance that the turnover rate
in this job family will dramatically increase from last year’s 8% up to 12% within the next six months,
and up to 16% within 10 months.”
Actionable Predictive Analytic
 Adds a cost element - “We project that this 100% increase in turnover will reduce your group’s
productivity over the next 10 months by 17% resulting in a reduced output value of R812,000.”
 Also adds a ‘recommended action’ - “we should implement personalized retention plans for the top
performing 20% in this job family; they cost R2,000 each to develop and have a 89% success rate.
ACTIONABLE, PREDICTIVE ANALYTICS —
THE NEXT BIG THING IN TALENT MANAGEMENT
Dr. John Sullivan, Professor, Talent Management Speaker and Advisor
HR METRICS REPORTING – 4 C’S
• COSTS
• CAUSES
• CONSEQUENCES
• CURE
LEARNING
ACTIVITY 6
• Group discussion:
• Apply step 5:
Extrapolation and
Reporting of the
HRM Analytics
process to a
defined
organization.
CASE STUDY
• CASE STUDY 1: FOUR BEST PRACTICES AT
WORK AT GOOGLE
A retention algorithm
Predictive modeling
Improving diversity
An effective hiring algorithm
LEARNING
ACTIVITY 7
• Group discussion:
• By reviewing case
study 1, identify
what best
practice
principles, lessons
and insights can
be drawn.
CASE STUDY
• CASE STUDY 2: BIRMINGHAM CITY COUNCIL
The context
Metrics
Acting on the information
Informing decision-making
Sharing knowledge
LEARNING
ACTIVITY 8
• Group discussion:
• By reviewing case
study 2, identify
what best
practice
principles, lessons
and insights can
be drawn.
READING ARTICLE 1
• The Top 10 Strategic HR and TA Metrics That CEOs Want to
See (Dr. John Sullivan)
• The Top 7 Strategic HR Metrics for Impressing Your CEO:
Revenue per employee
The improvement in the performance of new hires (quality of
hire improvement)
Performance turnover in key jobs
Dollars of revenue lost due to position vacancy days
Track a metric covering the highest impact current “hot” talent
problem at your firm
A contribution to productivity survey to identify which HR
programs helped to increase productivity
The percentage of HR strategic goals that were met
READING ARTICLE 1
• Three (3) Additional Strategic Metrics for the
Recruiting Function:
New hire failure rate
Applications per employee
Diversity hires in customer-impact positions
• Final Thoughts
LEARNING
ACTIVITY 9
• Group discussion:
• By reviewing
Reading Article 1,
identify what
best practice
principles, lessons
and insights can
be drawn.
READING ARTICLE 2
• READING ARTICLE 2: Here’s What HR Must Do to Have the
Business Impact CEOs Want (Dr. John Sullivan)
• The 8 action steps for becoming high impact:
#1: Accept accountability for improving people-management results
#2: Demand a shift to data-based decision-making
#3: Measure and increase workforce productivity
#4: Make managers accountable for great people management
#5: Build a competitive advantage
#6: Expect reporting on continuous improvement
#7: Measure quality and error rates in people management programs
#8: Calculate your ROI
• Final thoughts
LEARNING
ACTIVITY 10
• Group discussion:
• By reviewing
Reading Article 2,
identify what
best practice
principles, lessons
and insights can
be drawn.
CONCLUSION
• Key points
• Summary
• Questions
CONTACT DETAILS
• Charles Cotter
• (+27) 84 562 9446
• charlescot@polka.co.za
• LinkedIn
• Twitter: @Charles_Cotter
• http://www.slideshare.net/CharlesCotter

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HRM Metrics and Analytics

  • 1. HUMAN RESOURCES MANAGEMENT (HRM) METRICS & ANALYTICS CHARLES COTTER Ph.D candidate, MBA, B.A (Hons), B.A CITY LODGE HOTEL, FOURWAYS 22-25 AUGUST 2017 www.slideshare.net/CharlesCotter
  • 2. 4-DAY, TRAINING PROGRAMME OVERVIEW • Introduction to and the evolution of HRM metrics • Defining the fundamental concepts • Applying a strategic mind-set and –approach to HRM Metrics • Building a business case for HRM Metrics and Analytics – benefits and challenges • Identifying best practice and critical success factors • Applying the 5-step, HRM Analytics process • Case studies and Reading Articles
  • 3. • What type of HRM Metrics does your organization currently utilize? • Describe the organizational impact, level of maturity and credibility of these HRM Metrics • What does your organizational HRM Metrics architecture look like? • What is the current degree of HRM practitioner competency of HRM metrics/analytics? • Review the benefits of HR Metrics. Is there a business case for applying HR Metrics?
  • 4. 10-POINT FOUNDATION AND “STARTER-PACK” FOR STRATEGIC HRM METRICS #1: Adopt a strategic mindset #2:Change management must run parallel to HRM Metrics in “business unusual” environment #3: Streamline and systematic HRM metrics process #4: HRM Metrics is not a “desktop” exercise #5: Adopt a measurement culture & build capacity & skills for digital literacy
  • 5.
  • 6. 10-POINT FOUNDATION AND “STARTER-PACK” FOR STRATEGIC HRM METRICS #6: Re-inject scientific principles, processes and tools & credibility into HRM Metrics e.g. 3 E’s #7: Drill down & segment HRM metrics #8: Apply the 4 C’s to HRM Metrics Reporting #9: Don’t adopt a “Big Bang” approach – start small, think big and scale up #10: Automation - utilize a 4-G digital data analysis solution
  • 7. THE FUTURE OF HRM METRICS & ANALYTICS? “HRM will have to migrate from the fundamentals of people science to the complexities of data science.”
  • 8. HRM METRICS/ANALYTICS TASK TEAM – 2017?
  • 9. INTRODUCTORY ACTIVITY • Individual activity: • Complete the following statement by inserting one word only. As a HR Manager, in order to effectively apply and utilize HRM analytics, I need to/to be……………………………………………… • Jot this word down and find other learners who have written down the same word. • Write this word down on the flip-chart. • Each learner will have the opportunity to explain their choice of word.
  • 10.
  • 11. PH.D. RESEARCH – STRATEGIC HRM/D FACTORS (COTTER, 2017) • N = 465 (global) • Selected deficient factors (on 4-point scale):  #1: Curating modern learning experience: 2.77  #2: HRM/D Architecture: 2.82  #3: Top management support: 2.83  #4: Enhanced skills set of HRM/D practitioners: 2.89  #5: Future-proofing the organization: 2.91  #6: Strategic mindset of HRM/D: 2.97 • HRM/D Capability gap index (differential between compliance and importance):  #1: Enhanced skills set of HRM/D practitioners: -0.44  #2: Curating modern learning experience: -0.42  #3: HRM/D Architecture: -0.38  #4: Strategic mindset of HRM/D: -0.31  #5: Future-proofing the organization: -0.31
  • 12.
  • 13.
  • 14.
  • 15. • Metrics are simply measurements. Metrics track activity, but don’t necessarily show a causal relationship. • HRM Metrics - Measurements used to determine the value and effectiveness of HR strategies. • Differentiation between People and HRM Measures • Human capital analytics examine the effect of HRM metrics on organizational performance. • In more general terms, analytics look for patterns of similarity between metrics. By using analytics over time, HRM can become predictive. DEFINING THE FUNDAMENTAL CONCEPTS
  • 16.
  • 17. STRATEGIC PERSPECTIVE – HRM METRICS/ANALYTICS Strategic HRM and correlation to metrics/analytics The Balanced Business Scorecard Strategy Mapping HRM Scorecard: • Key people measures from the organization’s scorecard • The second class of measures should be the HR measures Linking business strategy to personal objectives
  • 19.
  • 22.
  • 23.
  • 24.
  • 26. LEARNING ACTIVITY 1 • Group discussion: • Evaluate to what extent your current HRM Analytics processes and practices comply with the principles of strategic management i.e. use of Balanced Scorecard and HR Scorecard methodologies and Strategy Mapping etc. • Identify gaps and recommend improvement strategies.
  • 27.
  • 28. BUILDING A BUSINESS CASE FOR HRM METRICS/ANALYTICS • Introduction to the organizational performance impact of HRM metrics and analytics • Value of HRM M-E-T-R-I-C-S • Strategic business partnering
  • 29.
  • 30. ORGANIZATIONAL IMPACT OF HRM METRICS/ANALYTICS • According to a HRO Today Institute study (2013), number-crunchers rule the HR roost - companies that use employee-performance data to improve ongoing talent acquisition outperform their competition 58% of the time and by margins of up to 200%. • According to the CIPD, HR analytics enables HR managers and teams to understand more about the people in their organization, how they’re performing and how they’re creating value for the organization. • In turn, this enables HR practitioners and business leaders to make better business decisions. • It’s also the main way that HR teams can demonstrate the impact that HR policies and processes are having on the organization. • Business managers are increasingly interested in how to use HR concepts more effectively, and so HR analytics is an important way in which HR teams can evaluate and improve people and business performance.
  • 31. THE VALUE OF M-E-T-R-I-C-S • Measure the contribution of employees and predict the quality of performance • Explore evidence-based relationships between employee engagement and learning and development • Tap into new sources of competitive intelligence and stay ahead of the pack • Retain and engage your organization’s top talent by utilizing tools needed to anticipate future success • Implement process mapping across HR for hiring and inducting new employees • Communicate the most relevant and actionable data to top management • Strategize optimal measurement methodologies and marshal resources that create value for customers, investors, executives, and employees
  • 32. BENEFITS OF HRM METRICS • Metrics help you ensure that you are meeting your goals and customer needs • Metrics help you focus • Metrics tell you where to spend your money • Metrics tell you what to stop doing • Metrics eliminate confusion – “What you measure and reward takes away all doubt about what is important” • They help push continuous improvement
  • 33. • There is a low degree of awareness of the impact of HRM programs whether, positive or negative, because HR leaders have not been delivering metrics that show the value of their programs or investments. • Quantification issue - metrics enable leaders and decision makers in organizations towards more efficient and better delivery of HR services • “Based on corporate culture, organizational values and strategic business goals and objectives, human capital measures indicate the health of the organization.” (Lockwood, 2006) • If HR professionals don’t measure their function’s effectiveness and providing decision-making leaders the data they need, HR will continue to be undermined and eventually sidelined when it comes to having a seat at the table – strategic business partner. IMPERATIVE OF HRM METRICS
  • 34.
  • 35. BENEFITS OF HRM METRICS • Metrics allow you to come across as an expert • Distributing metrics can change individual behaviour • Metrics are superior to culture in changing the behaviour of your managers • Metrics can help to improve your relationship with the CFO and CIO • Metrics can build coordination/cooperation • Metrics can help to build self-confidence
  • 36. BENEFITS OF HRM METRICS • Using metrics sends the message that you are “new school” • Metrics tell you what to reward • Modern ERP and ATS systems make it easier • Metrics can allow HR to provide evidence of its strategic impact • Metrics can demonstrate the rand impact of HR programs • Create a HRM business value chain
  • 37. LEARNING ACTIVITY 2 • Group discussion: • By means of a cost- benefit analysis, determine if there’s a viable, feasible and sustainable business case for HRM Metrics and Analytics.
  • 38.
  • 39. CRITICAL SUCCESS FACTORS AND CHALLENGES OF HRM METRICS AND ANALYTICS • Best practice principles • Critical success factors • Top vendors for HRM analytics • Constraints and Criticisms
  • 40. 10 BEST PRACTICE PRINCIPLES OF HRM METRICS/ANALYTICS • #1: Top performing companies drill down metrics to a deeper level and communicate to decision-makers more effectively. • #2: Data becomes part of a “holistic solution” The data is more accessible and used by more people than with lower-performing companies. • #3: Given that it’s an integrated solution, it has fewer inconsistencies and offers greater reliability of data. • #4: Top performers have a dashboard of Key Performance Indicators KPIs). • #5: They have a centralized, standardized, cloud-based depository that is distributable and searchable by standard key words and search strings.
  • 41. 10 BEST PRACTICE PRINCIPLES OF HRM METRICS/ANALYTICS • #6: Top performers will have records that include hyperlinks—such as a link to someone’s LinkedIn profile—for real time updating. • #7: They have established a dashboard that summarizes the data into meaningful segments along with overall statistics. • #8: Metrics are most commonly reported on a monthly basis or quarterly basis, and then rolled up into a year-end report. • #9: Top performers had a specific approach to metrics: What separated the top performers from everyone else was not only what the metrics are, but how well the data was segmented or drilled down. • #10: A similar best practice is to deliver metrics that roll up to specific business units and divisions.
  • 42. CRITICAL SUCCESS FACTORS FOR HRM METRICS/ANALYTICS • Showing HR's real value • Knowing how to interpret the results about the status of human capital in a meaningful manner. • If measurement, assessment and evaluation are to play a part in achieving sustainable organization performance, they should be impact-oriented, forward-looking and focused on the entire HR system, not just on individual HR practices. • The importance of HR capability • Guarding against point-in-time measurements only
  • 43. HOW DO I MAKE A SUCCESS OF MY HRM METRICS? • A point-in-time measurement very often appears to be meaningless, unless you can compare it to a set standard or benchmark, and/or view its position in a trend that may be emerging. Put it in the right context Asking the right questions Framing of my results Reports the complete story Always strive for improvement
  • 44. HOW TO USE HRM METRICS EFFECTIVELY? • Measure what is important • Involve Key Stakeholders • Work out the implications • Drill down to meaningful chunks • Convince and Influence • Dig deeper and explore the root causes • Set achievable goals for improvement • Own the goals in partnership with the line • Ensure action takes place as a result • Keep the momentum going
  • 45. TOP VENDORS FOR HRM METRICS/ANALYTICS • The real leaders in analytics are:  Oracle  SAP • They have the most sophisticated and integrated analytics solutions • In terms of smaller vendors the frontrunners are:  SumTotal Systems  PeopleFluent • The real value is in providing actionable information and recommendations. • Top performers are more likely to ask themselves one vital question: What will the CEO or CFO do as a result of learning this information?
  • 46. DEFICIENCIES IN HRM METRICS/ANALYTICS Logic Analytics Measures Process
  • 47. COMMON ERRORS WITH HRM METRICS/ANALYTICS • One of the biggest mistakes that are so often reported is TOO MANY MEASURES - Developing more metrics than it is feasible to maintain and utilize • Developing and implementing HR metrics in a vacuum • The Top 20 Major Faults with Most HR Metric Approaches according to Sullivan (refer to pages 37-45) • “HR teams are not very analytical in their thinking yet. That is holding them back from doing more data-driven decision making.” (Bersin) • Over-reliance on Spreadsheets
  • 48. Source: The State of Workforce Analytics and Planning 2014 Survey Report for workforce metrics and analytics - With low satisfaction rates
  • 49. Source: Visier WFA Usage Survey, 2012 SURVEY - AREAS TO IMPROVE TO EXPAND WORKFORCE ANALYTICS CAPABILITIES
  • 51. LEARNING ACTIVITY 3 • Group discussion: • By referring to the best practice principles, critical success factors and expert criticism, evaluate your organization’s current degree of HRM Analytics maturity/sophistication. • Identify gaps and recommend improvement strategies.
  • 52. HRM ANALYTICS MATURITY MODEL (BERSIN BY DELOITTE)
  • 53. Source: The State of Workforce Analytics and Planning 2014 Survey Report
  • 54. Source: The State of Workforce Analytics and Planning 2014 Survey Report
  • 55.
  • 56. TRANSFORMING HRM TO A DATA SCIENCE-DRIVEN FUNCTION
  • 58. HRM METRICS PROCESS – BASIC MODEL
  • 59. HRM METRICS AND ANALYTICS PROCESS
  • 60. 5-STEP HRM ANALYTICS PROCESS • Step 1: Identify where HRM can make a strategic impact in the organization • Step 2: Develop appropriate metrics around these areas • Step 3: Obtain data relating to relevant metrics • Step 4: Draw out insight from the data • Step 5: Project and take action to communicate metrics and related insights information to provide a robust basis for strategic change and improvement
  • 61. THE 5 E’s OF HRM ANALYTICS • Exploration • Examination • Extraction • Evaluation • Extrapolation
  • 62. STEP 1: IDENTIFYING WHERE HRM CAN MAKE A STRATEGIC IMPACT (EXPLORATION) • This process step focuses on determining the areas where HRM can make a strategic impact within the organizational context. • It enables HR management team to identify priority areas for measurement which are aligned with organizational goals and strategies. • Identify capability opportunities or problem areas from a business partner perspective. • Sources for information collection, retrieval and analysis.
  • 63. SOURCES FOR INFORMATION COLLECTION, RETRIEVAL AND ANALYSIS • Employee and management surveys and interviews (for employee contentment, communications, rewards system etc.) • Performance appraisals (to measure productivity, attendance) • HR records (to track communications, turnover, recruiting efficiency, retention, promotions, and succession planning) • Employee files (to research productivity, attendance, training etc.)
  • 64. STEP 1: EXPLORATION • A critical first step is to ensure that HRM is measuring the right things. • The design and development of relevant HR metrics requires reflection and discussion in order to determine what it takes for the organization to succeed and to understand how HR can add value. • Three issues underpin effective measurement (CIPD, 2011):  Aligning measurement with goals  Take a business partner perspective  Adding value by focusing on building capability • Identify organizational burning issues • Identify industry, market and macro-environment Disruptors, trends and patterns
  • 65.
  • 66.
  • 67.
  • 68.
  • 69.
  • 70.
  • 71.
  • 72. STEP 2: SELECTING APPROPRIATE METRICS FROM WHICH ORGANIZATIONAL INSIGHTS CAN BE DRAWN (EXAMINATION) • HRM Measures:  Efficiency (10%) – traditional  Effectiveness (20%) – transactional  Impact (70%) – transformational • Categories of HRM Metrics:  First Tier (most valued)  Second Tier (lesser valued) • Commonly used HRM Metrics • Refer to Annexure A: HRM Scorecard Template (page 74); Annexure B: Comprehensive HRM Metrics (pages 75- 114) and Annexure B: HRM Effectiveness Metrics (pages 115-123)
  • 73. STEP 2: EXAMINATION - HRM MEASURES
  • 74.
  • 75. BROAD CATEGORIES OF HRM MEASURES  Workforce Demographics  HR Efficiency  Remuneration  Skills Development, Training & Education  Productivity  Provisioning and Recruitment  Risk Analysis  Staff Retention
  • 76. FREQUENTLY USED HRM METRICS (PWC)
  • 77.
  • 78. 10 TYPICAL STATISTICS OBTAINED IN COMPILING HRM METRICS  Revenue factor, which is company total revenue divided by the amount of full time employees  Human capital value added (revenue minus operating expense and cost of compensation/benefit divided by the total amount of full time employees)  Human capital return on investment: Revenue minus operating expenses and cost of compensation benefit divided by cost of compensation/benefit  Total compensation revenue ratio which is cost of compensation/benefit divided by revenue  Labour cost revenue ratio, which is cost of compensation/benefit plus other employee costs (bonuses, mileage paid, incentives) divided by revenue
  • 79. 10 TYPICAL STATISTICS OBTAINED IN COMPILING HRM METRICS  Training investment factor equals the total cost of training divided by total amount of training attendees  Cost per hire, which includes advertising, agency fees, relocation, and others divided by operating expenses  Health care costs per employee (total health care cost divided by total amount of employees)  Turnover costs, which is equal to hiring costs plus training costs plus other costs (turnover rate during first year of employment is key)  Voluntary separation rate is the total number of people who quit or retired divided by the total amount of employees
  • 80. Present x Productive  Productivity Q: Are your employees contributing to the success of the organisation. Are you connecting human capital & business measures. ? Productivity measures on an annual and a quarterly basis ? Compare to national averages Specific metrics -  Return on Human Capital Investment  Revenue per Full-Time Equivalent (FTE)  Profit per FTE Critical HR Measures - forTrue Business Impact
  • 81. Critical HR Measures - forTrue Business Impact Time to fill vacancy x Quality of hire  Recruitment Effectiveness Q: Are you recruiting new talent of a high calibre. Are they staying. Are they performing. ? Business-impact shortfalls in capacity ? Consistently increasing organization’s performance through improved talent Specific metrics -  Vacancy Rate  FirstYearTurnover Rate  New Hire Performance  Time to Fill
  • 83. Critical HR Measures - forTrue Business Impact Rate ofTurnover x Retention of critical top talent  Critical Talent Retention Q: Is your top talent / your vitally important workers / your competitive advantage – resigning, or at risk of resigning, at a greater rate than your less crucial employees. ? Overall tenure trends ? Career development Specific metrics -  Resignation Rate  Resignation Rate ofTop Performers  Promotion Rate and PromotionWaitTime  Engagement Index  Market Compensation Ratio
  • 84. ENGAGEMENT’S EFFECT ON 9 KEY PERFORMANCE INDICATORS
  • 85. 5 STEPS TO FIND THE RIGHT MEASURES
  • 86. LEARNING ACTIVITY 4 • Group discussion: • Apply step 1 (Exploration) and step 2 (Examination) of the HRM Analytics process to a defined organization. • With step 2, refer to Annexures A, B and C for guidelines.
  • 88. STEP 3: DATA COLLECTION CRITERIA – 3 E’s • Data collection is the process of gathering and measuring information on targeted variables in an established systematic fashion, which then enables one to answer relevant questions and evaluate outcomes.  Evidentiary  Empirical  Ethical
  • 89. HindSIGHT InSIGHT ForeSIGHT Gather Data and Report Make sense of data by Monitoring and Analysis Develop Predictive Models Akshay Raje, Director, Fab.com
  • 90. STEP 3: OBTAIN DATA RELATING TO RELEVANT METRICS (EXTRACTION) The top performing companies were using a variety of drilled-down metrics, having the people to analyze them, and communicating them effectively. This process step focuses on how HRM can most effectively communicate the insights drawn from metrics to inform action and hence enable HRM to deliver maximum strategic impact. Effective decision- making, based on robust measures and metrics, therefore, requires HR professionals to think carefully about the relationships that need to be established to enable appropriate information-sharing of these insights.
  • 91. STEP 3: EXTRACTION – PROCESS STEPS • #1: There is the initial “harvesting” or gathering of unstructured data from the web. • #2: The normalization stage—preparing harvested data for analysis. Normally, a relational database such as MySQL is used, but NoSQL can also be used. • #3: The data is given additional structure with metadata, or tagging. Analytics can then be presented through a dashboard. • The process of collecting and updating the data from the myriad of internet sources has to be automated. Advanced Programming Interfaces (APIs) can enable different digital platforms to share dynamic data and feed it into other applications, such as a company’s own database.
  • 92. STEP 3: EXTRACTION – CHALLENGES CONFRONTED • Struggling to use unstructured data • Difficulty tying talent acquisition data to business results • Problems with storing, retrieving and integrating data • There is rarely a systematic approach to integrating disparate systems. Legacy data systems often don’t talk to each other. There are missing links between ATS and HRIS systems. • The data exchange is often clumsy at best, requiring rekeying of data and manual interventions. • The successful transfer of data from multiple sources, such as an ATS, a recruiting site or a social network with an HRIS System is the most problematic part. • Failure to get the most of ATS
  • 93. Source: The State of Workforce Analytics and Planning 2014 Survey Report
  • 94. Source: The State of Workforce Analytics and Planning 2014 Survey Report
  • 95. STEP 4: DRAWING OUT INSIGHTS FROM DATA (EVALUATION) • The HRM function and measurement capability • HR professionals have long been data collectors, amassing and keeping track of employees’ personal information, salary rates and the annual number of retirements. But to grasp the potential of HR analytics, HR managers need to become data interpreters. • Top performing companies invest in personnel who have analytic and process-oriented capabilities, those people who can install the necessary methodological disciplines necessary to use the information effectively. • Identify root causes and cause-effect linkages and -relationships • Action planning – interventions and solutions • Data mining is a process used by companies to turn raw data into useful information.
  • 96.
  • 97. DATA ANALYSIS • Data analysis involves critical analysis and interpretation of figures and numbers, and attempts to find rationale behind the emergence of main findings. • In data analysis, the researcher is expected to turn raw numbers into meaningful data through the application of rational and critical thinking. The same figure within data set can be interpreted in many different ways; therefore it is important to apply fair and careful judgment. • Three popular quantitative data analysis software, namely: Microsoft Excel, Microsoft Access and SPSS.
  • 98. DMAIC RCA PROCESS (ILLUSTRATION)
  • 101.
  • 102. HRM ACTION PLAN (INTERVENTION) TEMPLATE
  • 103. LEARNING ACTIVITY 5 • Group discussion: • Apply steps 3 (Extraction) and 4 (Evaluation) of the HRM Analytics process to a defined organization.
  • 104. STEP 5: PROJECT AND TAKE ACTION TO COMMUNICATE METRICS AND RELATED INSIGHTS INFORMATION TO PROVIDE A ROBUST BASIS FOR STRATEGIC CHANGE AND IMPROVEMENT (EXTRAPOLATION) • Projection of data – forecasting (PREDICTIVE ANALYTICS) • To communicate HRM Analytics, tell a story (NARRATIVE) • “Data is abundant, but if you don’t give it context, it’s just a bunch of numbers.” • Internal benchmarks (to compare their business units to others in the organization) • Support comes after results are delivered, not before. “It really comes back to how credible you are. You get buy-in when you show up repeatedly with accurate numbers and you can relate the story to how the company’s performing.”
  • 105. STEP 5: EXTRAPOLATION - REPORTING • HR analytics reporting • How the information is communicated to the organization, particularly the C-suite, is critically important. • Companies simply produce spreadsheets that offer no easy and timely way to present what is happening in the business. • Like any good research report, it is vital to present meaningful information and identify actionable insight that can be used to make positive change. • Tactically, the best practice organizations, distribute multiple reports to multiple levels. Tailored reporting to address the specific needs, and ideally focuses on very specific business impacts. • If the metrics being shown convey business impact, quarterly reporting of 5-10 of the most critical, agreed-to KPIs is warranted.
  • 107. Historical metric  “Last year’s corporate turnover rate was 8%.” Predictive analytic  “As a result of a drop in the regional unemployment rate, there is an 86% chance that the turnover rate in this job family will dramatically increase from last year’s 8% up to 12% within the next six months, and up to 16% within 10 months.” Actionable Predictive Analytic  Adds a cost element - “We project that this 100% increase in turnover will reduce your group’s productivity over the next 10 months by 17% resulting in a reduced output value of R812,000.”  Also adds a ‘recommended action’ - “we should implement personalized retention plans for the top performing 20% in this job family; they cost R2,000 each to develop and have a 89% success rate. ACTIONABLE, PREDICTIVE ANALYTICS — THE NEXT BIG THING IN TALENT MANAGEMENT Dr. John Sullivan, Professor, Talent Management Speaker and Advisor
  • 108. HR METRICS REPORTING – 4 C’S • COSTS • CAUSES • CONSEQUENCES • CURE
  • 109. LEARNING ACTIVITY 6 • Group discussion: • Apply step 5: Extrapolation and Reporting of the HRM Analytics process to a defined organization.
  • 110.
  • 111. CASE STUDY • CASE STUDY 1: FOUR BEST PRACTICES AT WORK AT GOOGLE A retention algorithm Predictive modeling Improving diversity An effective hiring algorithm
  • 112. LEARNING ACTIVITY 7 • Group discussion: • By reviewing case study 1, identify what best practice principles, lessons and insights can be drawn.
  • 113. CASE STUDY • CASE STUDY 2: BIRMINGHAM CITY COUNCIL The context Metrics Acting on the information Informing decision-making Sharing knowledge
  • 114. LEARNING ACTIVITY 8 • Group discussion: • By reviewing case study 2, identify what best practice principles, lessons and insights can be drawn.
  • 115.
  • 116. READING ARTICLE 1 • The Top 10 Strategic HR and TA Metrics That CEOs Want to See (Dr. John Sullivan) • The Top 7 Strategic HR Metrics for Impressing Your CEO: Revenue per employee The improvement in the performance of new hires (quality of hire improvement) Performance turnover in key jobs Dollars of revenue lost due to position vacancy days Track a metric covering the highest impact current “hot” talent problem at your firm A contribution to productivity survey to identify which HR programs helped to increase productivity The percentage of HR strategic goals that were met
  • 117. READING ARTICLE 1 • Three (3) Additional Strategic Metrics for the Recruiting Function: New hire failure rate Applications per employee Diversity hires in customer-impact positions • Final Thoughts
  • 118. LEARNING ACTIVITY 9 • Group discussion: • By reviewing Reading Article 1, identify what best practice principles, lessons and insights can be drawn.
  • 119. READING ARTICLE 2 • READING ARTICLE 2: Here’s What HR Must Do to Have the Business Impact CEOs Want (Dr. John Sullivan) • The 8 action steps for becoming high impact: #1: Accept accountability for improving people-management results #2: Demand a shift to data-based decision-making #3: Measure and increase workforce productivity #4: Make managers accountable for great people management #5: Build a competitive advantage #6: Expect reporting on continuous improvement #7: Measure quality and error rates in people management programs #8: Calculate your ROI • Final thoughts
  • 120. LEARNING ACTIVITY 10 • Group discussion: • By reviewing Reading Article 2, identify what best practice principles, lessons and insights can be drawn.
  • 121. CONCLUSION • Key points • Summary • Questions
  • 122. CONTACT DETAILS • Charles Cotter • (+27) 84 562 9446 • charlescot@polka.co.za • LinkedIn • Twitter: @Charles_Cotter • http://www.slideshare.net/CharlesCotter