HR Scorecard and Metrics

Practical exercise

Consider this…

The Art of the Start

Look out for

Making meaning“Mantra” ?Doing things much betterProfessional courage – pleasingReal prioritiesHiring better than yourselfHiring evangialistsPresentingBelieving in yourself

The BSC Map Logic

Cost Efficiency

Long-term Shareholder Value

Revenue Growth

Price Availability BrandServiceQuality

Operations Management

Processes

Human Capital

CustomerManagement

Processes

Innovation Processes

Regulatory and Social Processes

Organization Capital Information Capital

Financial

Customer

Internal Process

Learning & Growth

How can HR add financial value to the business

Process Question

Improve ROI of Strategic Interventions

Enhance Productivity

Optimize Cost Ratio

Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators

• Total labour• Industrial action• Absent etc

• ROI of HR Strategic Programs

• Profit per Employee• Revenue per

Employee

Answer Focus

Improve ROI of Strategic Interventions

Enhance Productivity

Optimize Cost Ratio

Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators

• Total labour• Industrial action• Absent etc

• ROI of HR Strategic Programs

• Profit per Employee• Revenue per

Employee

Answer Focus

How do we enable optimal customer/stakeholder servicing/interaction

Process Question

How does HR improve its standing/status in the

eyes of their customer/stakeholders`

Process Question

Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators

• Ranking in “Best Place to Work Annual Survey” (conducted by Fortune Magazine)

• Engagement Q12 etc

• Satisfaction surveys etc

Enable creation of right performance climate

Enhance internal HR customer/Stakeholder Satisfaction

Answer Focus

Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators

• Ranking in “Best Place to Work Annual Survey” (conducted by Fortune Magazine)

• Engagement Q12 etc

• Satisfaction surveys etc

Enable creation of right performance climate

Enhance internal HR customer/Stakeholder Satisfaction

Answer Focus

Which HR Systems Need to Excel to Ensure

Business Meet Their SVP

Process Question

Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators

Develop Strategic Competencies

Excellent Attraction And Retention Processes

• Average lead time to recruit employees

• Recruiting cost per employee

• Performance of New Recruits during the First Two Years of Employment

• Intention to leave

• Average Lead Time to Develop Strategic Competencies

• Average Lead Time to Close Strategic Competencies Gap

• % of Strategic Competencies Available within the Organization

Answer Focus

Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators

Develop Strategic Competencies

Excellent Attraction And Retention Processes

• Average lead time to recruit employees

• Recruiting cost per employee

• Performance of New Recruits during the First Two Years of Employment

• Intention to leave

• Average Lead Time to Develop Strategic Competencies

• Average Lead Time to Close Strategic Competencies Gap

• % of Strategic Competencies Available within the Organization

Answer Focus

Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators

Performance and ConsequenceManagement

Excellent Talent Management

• Number of Qualified Talents per

Strategic Positions

• Progress of Talent Development

Plan (actual vs. plan)

• % of Senior Managers who Have

Been Promoted Internally

• Average Competency Assessment

Scores

• Pure compliance metrics (variances)

Answer Focus

Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators

Performance and ConsequenceManagement

Excellent Talent Management

• Number of Qualified Talents per

Strategic Positions

• Progress of Talent Development

Plan (actual vs. plan)

• % of Senior Managers who Have

Been Promoted Internally

• Average Competency Assessment

Scores

• Pure compliance metrics (variances)

Answer Focus

Talent Management

•HIPOS•Scares category workers•Leaders

•HIPOS•Scares category workers•Leaders

DefinitionDefinitionCore learningRelationship based learningStretch learning (NB rigor cometency models; blocker positions; Affirmtation - EVP)Succcesion - readiness

Core learningRelationship based learningStretch learning (NB rigor cometency models; blocker positions; Affirmtation - EVP)Succcesion - readiness

Manage Pools of TalentManage Pools of Talent

•Good conceptual model• Accepted by line• Rigor in definition of constructs

•Good conceptual model• Accepted by line• Rigor in definition of constructs

What Would It Take ModelWhat Would It Take Model

•Branding•EVP’s•Branding•EVP’s

.Align Recruit and Selection.Align Recruit and Selection

• Based on WWIT Model identify instruments• Then go look for them - audit• Based on WWIT Model identify instruments• Then go look for them - audit

AuditAudit

•Rand D•Share best Practice•Rand D•Share best Practice

Shaping the Talent PoolShaping the Talent Pool

Personal Core•Courage and confidence•Drive for results•Willingness to learn•Emotional stability•Conceptual ability

Experience •Track record of achievement•People management•Project management•Other cultures/geogs

Business-mindedness•Business acumen•Broad scanning

Results

Execution•Delivery focus

Taking people along•Leadership•Developing Others•Influencing•Versatility

Know-how•Expertise•Best practice•Anglo businesses

Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators

Alignment – Remuneration

Answer Focus

• Total labour cost• Permanent vis temporary money•Etc

Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators

Alignment – Remuneration

Answer Focus

• Total labour cost• Permanent vis temporary money•Etc

Are HR performance and capabilities aligned

Process Question

Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators

Deploy HRIS

Develop Internal HR Capabilities

• % of HR Employees who

Develop Individual

Development Plan

• % of HR Employees who

Fully Execute Their Individual

Development Plan

• Progress of HR Portal

Implementation (actual vs.

plan)

• Accuracy Level of HR

Database

Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators

Deploy HRIS

Develop Internal HR Capabilities

• % of HR Employees who

Develop Individual

Development Plan

• % of HR Employees who

Fully Execute Their Individual

Development Plan

• Progress of HR Portal

Implementation (actual vs.

plan)

• Accuracy Level of HR

Database

Drive Long termShareholder Value

Enhance ROI of HR Strategic Initiatives

Develop Internal HR Capabilities

Develop Strategic Employee

Competencies

Deploy HRIS System

Financial

InternalCustomers

HR Internal Process

Learning

Create High Performance Climate

Enhance “Internal Customer” (Employee)

Satisfaction

Enhance Employee Productivity

Apply Excellent Recruitment

Process

Optimize Performance

Management System

Implement Best Talent Management

Practices

The HR Scorecard Map Logic

HR Scorecard and Metrics

Session 6- A Compendium of HR Metrics

HR Scorecard and Metrics

Staffing

HR Scorecard and Metrics

Staffing- General

Staffing effectiveness:TransferPromotionsDemotions

Employment Brand StrengthEmployment Brand Strength

External Hire RateExternal Hire Rate

Recruitment source BreakdownRecruitment source Breakdown

HR Scorecard and Metrics

Staffing- Movement

Cross-function MobilityCross-function Mobility

Promotion RatePromotion Rate

HR Scorecard and Metrics

Staffing- Effectiveness

Applicant Interview RateApplicant Interview Rate

Interviews per HireInterviews per Hire

Time to FillTime to Fill

On Time Talent DeliveryOn Time Talent Delivery

Cost Per HireCost Per Hire

HR Scorecard and Metrics

Retention

HR Scorecard and Metrics

Retention-Turnover

Retention RateRetention Rate

Terminations by Performance RatingTerminations by Performance Rating

Termination by ReasonTermination by Reason

Engagements IndexEngagements Index

Offer Fit IndexOffer Fit Index

Avg Termination ValueAvg Termination Value

HR Scorecard and Metrics

Workforce Capability

Turnaround RateTurnaround Rate

High Performer Growth RateHigh Performer Growth Rate

Staffing Rate HIPO’sStaffing Rate HIPO’s

Positions Without Ready CandidatePositions Without Ready Candidate

HR Scorecard and Metrics

Compensation and Benefits

Average Cost Rate of ContractorsAverage Cost Rate of Contractors

Direct Compensation to Operating Direct Compensation to Operating ExpenseExpense

Pay SatisfactionPay Satisfaction

HR Scorecard and Metrics

Environment

Compensation Value of Unscheduled Compensation Value of Unscheduled AbsencesAbsences

Grievance Time to ResolveGrievance Time to Resolve

Average Time Lost Per HS IncidentAverage Time Lost Per HS Incident

HR Scorecard and Metrics

HR Service Delivery

HR SatisfactionHR Satisfaction

HR ExpenseHR Expense

HR Scorecard and Metrics

Organizational Effectiveness

Human Capital ROIHuman Capital ROI

Five Minutes