HR METRICES

HR METRICES - Transcript

HR METRICES
PRESENTED BY T ANANDA BABU V GOPALA KRISHNA HARDEEP ARORA





HR METRICS HR METRICS
A SET OF QUANTITATIVE PERFORMANCE MEASURES HR MANAGERS USE TO ASSESS THEIR OPERATIONS IT BECOME INCREASINGLY IMPORTANT AS MORE FUNCTION ATTEMPT TO JUSTIFY THEIR STATUS AS STRATEGIC BUSINESS PARTNERS RATHER THAN MERELY COST CENTRES

HR METRICS MEASUREMENT HR METRICS MEASUREMENT
MEDIAN HR EXPENSES AS A PORTION OF COMPANIES TOTAL OPERATING COSTS AVERAGED 1 TO 1 1 IN EARLY 1990 S 0 9 IN LATE 1990 S 0 8 IN LATE 2002

HR METRICS MEASUREMENT HR METRICS MEASUREMENT
ONE HR STAFF PERSON PER 100 EMPLOYEES BOTH MANUFACTURING AND NON MANUFACTURING FIRMS SPEND ABOUT 1000 PER EMPLOYEE FOR HR FIGURES LIKE THESE PROVIDE BENCH MARK METRICES MANAGERS CAN USE AS OVER ALL MEASURES OF THEIR HR UNITS

HR METRICS MEASUREMENT HR METRICS MEASUREMENT
HR PERFORMANCE REQUIRES MORE THAN CURRENTLY HR DEPARTMENT PERFORMANCE METRICES LIKE TOP MANAGEMENT NEEDS AND EXPECTS MORE FORWARD LOOKING INFORMATION

HR METRICS MEASUREMENT HR METRICS MEASUREMENT
EXAMPLE CEO MAY ASK THE HR MANAGER HOW WILL THIS NEW INCENTIVE COMPENSATION PLAN HELP US IMPROVE CUSTOMER SERVICE CUSTOMER SATISFACTION AND THE PROFITABILITY OF EACH OF OUR SALES

HR METRICS MEASUREMENT HR METRICS MEASUREMENT
QUALIFYING THE LINK BETWEEN THE NEW INCENTIVE PLAN AND CUSTOMER SATISFACTION IS MORE DIFFICULT GIVEN THE RELATIVE SUBJECTIVITY OF MEASURING CUSTOMER SATISFACTION SO HR MANAGER MUST WORK WITH OTHER EXECUTIVES TO FORMULATE SUCH MEASURABLE LINKS

TWO COMMON ERROS DURING TWO COMMON ERROS DURING HR METRICS MEASUREMENT
DEVELOPING AND IMPLEMENTING HR METRICS IN A VACUUM HR MANAGERS WILL DEVELOP LARGE NUMBER OF METRICS BOTH UNNECESSARY AND DIFFICULT TO MAINTAIN

METHODS TO OVER COME METHODS TO OVER COME ERROS DURING HR METRICS MEASUREMENT
COLLABORATIVE APPROACH TO OTHER EXECUTIVES TO LIST OF STRATEGIC HR METRICS 8 TO 12 REALLY IMPORTANT METRICS THAT DEMONSTRATE HR S IMPACT ON THE BUSINESS

HR METRICS MEASUREMENT HR METRICS MEASUREMENT
RECRUITMENT cost per hire Source cost per hire Interviewing cost

HR METRICS MEASUREMENT HR METRICS MEASUREMENT
SELECTION
Time to fill Time to start Job posting response rate Job posting response factor Job posting hire rate Quality of hire

HR METRICS MEASUREMENT HR METRICS MEASUREMENT
Compensation and benefits Job evaluation factor Cost per compensation action Ratio of human resources staff to employee population Cost to supervise Pay and benefits as a percent of total operating cost Job description factor

HR METRICS MEASUREMENT HR METRICS MEASUREMENT
RECORD KEEPING

TRANSACTION PROCESSING RATE TRANSACTION PROCESSING ERROR RATE COST PER TRANSACTION

HR METRICS MEASUREMENT HR METRICS MEASUREMENT
EMPLOYEE RELATIONS Work force stability and workforce instability factors Turnover performance relationship Turnover costs Incidence of complaints of grievances by group Orientation costs per employee Employee satisfaction Employee suggestions for improvement Employee recognition rate

HR METRICS MEASUREMENT HR METRICS MEASUREMENT
TRAINING AND DEVELOPMENT cost per trainee Training expenditures as a percentage of personal service expenditures Training and development plan factor Skill change resulting from training Impact and value evaluation of training

HR METRICS MEASUREMENT HR METRICS MEASUREMENT
COST PER HIRE CPH Ad Af ER T Relo RC H X 1 10 Ad advertising fee Af agency fees Er employee referrals T travel Relo Relocation RC Recruited costs H Number of Hires 10 All other over heads

HR METRICS MEASUREMENT HR METRICS MEASUREMENT
ABSENCE RATE
AR WDL E X WD

AR ABSENCE RATE MONTHLY WDL WORKER DAYS LOST THROUGH ABSENCE E AVERAGE EMPLOYEE POPULATION WD NUMBER OF WORK DAYS

HR METRICS MEASUREMENT HR METRICS MEASUREMENT
EMPLOYEES SUGGESTION FOR IMPROVEMENT ES Employee suggestion per 100 employee TS Total number of suggestions SS Savings per suggestion TSS Total savings from suggestion
ES TS E 100 SS TSS TS

HR EFFECTIVENESS METRICS HR EFFECTIVENESS METRICS
1 2 3 4 5 MOST PRODUCTIVE IN THE INDUSTRY RIGHT NUMBER OF PEOPLE OVERPAYING IMPROVE THE PEOPLE WE HAVE GREAT EMPLOYEES REALLY MAKE A DIFFERENCE 6 HIRE THE VERY BEST PEOPLE 7 RETAIN OUR MOST PRODUCTIVE PEOPLE 8 FORCAST AND PREVENT PROBLEMS 9 HR CONTINOUSLY IMPROVE 10 EMPLOYEES SATISFIED 11 RE DEPLOY 12 HR STRATEGY ALIGNED