Factors that control Impact of HR Initiatives

Zürich, 3. Januar 2014

Main factors, that control

Impact of HR

http://blog.strimgroup.com/?p=1000



2

Range of Services

Analyses & Workshops

Pers. Administration & Reporting

Strategy & Execution

Assessments & Exec. Coachings

Webinars & Conferences

Surveys & Publications

3

Focus Topics

4

Fundamentals Evidence-Based Management: Connect scientific coherences with company-specific procedures

Identification of general

causal relations (theories)

Identification of specific

practices (instruments)

Science Practice

Based on: Brodbeck, F.; Woschée, R.: Grundlagen und Möglichkeiten eines evidenzbasierten Personalmanagements, 2013

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ble

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ct re

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ips

inte

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, org

an

iza

tion-

specific

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based o

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lly c

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d d

ata

the interaction creates a collective intelligence

Meta-

analyses

Controlled

laboratory/field

experiments

Comprehensive

correlation studies

Systematic

reviews

Systematic

evaluation

Systematic

Follow-up

Expert

survey

Case

study

5

Fundamentals Continuum of Human Capital Analytics

Anecdotes Scorecards

& Dashboards

Benchmarks

Correlations

Causation

Predictive

Analysis

Optimization

Source: Human Capital Analytics. How to Harness the Potential of Your Organization´s Greatest Asset.

Gene Pease, Boyce Byerly, Jac Fitz-enz. P. 17

6

Fundamentals The LAMP Framework

HR Metrics and

Analytics That Are

A Force For

Strategic Change

„The Right Logic“

Rational Talent Strategy

(Competitive Advantage, Talent

Pivot Points)

L „The Right Measures“

Sufficient Data

(Timely, Reliable, Available)

M

„The Right Analytics“

Valid Questions and Results

(Information, Design, Statistics)

A

„The Right Process“

Effective Knowledge Management

(Values, Culture, Influence)

P

Source: Investing in People. Financial Impact of Human Resource Initiatives. Wayne Cascio and John Boudreau. P. 10.

7

Predictive HR Analytics Map of causalities – Managerial Leadership

Managerial

Leadership

Training Human

Capital

Relational

Capital

Structural

Capital

Human

Capital

Effectiven.

Retention

of Key

People

Business

Perfor-

mance

Knowledge

Generation

Employee

Engage-

ment

Employee

Satisfaction

Employee

Motivation

Value

Alignment

Strategy

Execution*

Knowledge

Integration

Knowledge

Sharing

Human

Capital

Depletion

Remark: Referring to Nick Bontis and Jac Fitz-Enz: Intellectual Capital ROI, 2010

* for further remarks: Mark A. Huselid, Brian E. Becker, Richard W. Beatty: The Workforce Scorecard, 2005

8

Predictive HR Analytics Map of causalities – Human Capital Effectiveness (RoHC)

Managerial

Leadership

Training Human

Capital

Relational

Capital

Structural

Capital

Human

Capital

Effectiven.

Retention

of Key

People

Business

Perfor-

mance

Knowledge

Generation

Employee

Engage-

ment

Employee

Satisfaction

Employee

Motivation

Value

Alignment

Strategy

Execution*

Knowledge

Integration

Knowledge

Sharing

Human

Capital

Depletion

0,442



Intellectual Capital

9

Predictive HR Analytics Map of causalities – Employee Attitudes and Engagement (1/2)

Managerial

Leadership

Training Human

Capital

Relational

Capital

Structural

Capital

Human

Capital

Effectiven.

Retention

of Key

People

Business

Perfor-

mance

Knowledge

Generation

Employee

Engage-

ment

Employee

Satis-

faction

Employee

Commit-

ment

Value

Alignment

Strategy

Execution*

Knowledge

Integration

Knowledge

Sharing

Human

Capital

Depletion


Source: Investing in People. Financial Impact of Human Resource Initiatives. Wayne Cascio and John Boudreau. P. 143 ff.

Employee Attitudes

Cognition

emotion

Action tendency

ele

ments

Effective Workplace Dimensions That

Significantly Predicted Work Outcomes

Source: Investing in People. Financial Impact of Human

Resource Initiatives. Wayne Cascio and John Boudreau. P. 146

Greater

Engagement

Greater Job

Satisfaction

Greater Proba-

bility of Retention

1. Job

challenge

and learning

2. Climate of

respect

3. Autonomy

4. Work-life fit

5. Economic

security

6. Supervisor

task support

1. Economic

security

2. Work-life fit

3. Climate of

respect

4. Autonomy

5. Supervisor

task support

6. Job

challenge

and learning

1. Economic

security

2. Work-life fit

3. Job

challenge

and learning

4. Supervisor

task support

5. Autonomy

6. Climate of

respect behaviour

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Predictive HR Analytics Map of causalities – Employee Attitudes and Engagement (2/2)

Managerial

Leadership

Training Human

Capital

Relational

Capital

Structural

Capital

Human

Capital

Effectiven.

Retention

of Key

People

Business

Perfor-

mance

Knowledge

Generation

Employee

Engage-

ment

Employee

Satis-

faction

Employee

Commit-

ment

Value

Alignment

Strategy

Execution*

Knowledge

Integration

Knowledge

Sharing

Human

Capital

Depletion



Employee Attitudes

Cognition

emotion

Action tendency

ele

ments

Logical relationships among employee

attitudes, behaviors, and financial outcomes



Employee

behaviours

Satisfaction, Commitment,

and Engagement

Applicant Quality,

Employee Turnover,

Absence, Service

Costs, Employee

Productivity, Customer

Satisfaction

Organizational and

Business Unit Performance

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Case Study : Employee Engagement - Business Performance The Discovery Process

Source: Human Capital Analytics. How to Harness the Potential of Your Organization´s Greatest Asset.

Gene Pease, Boyce Byerly, Jac Fitz-enz. P. 17: Lowe´s First Store Model Blueprint

Mgr.´s

Engage-

ment

Mgr.´s

360

Degree

Assess Ctr.

Rating of

Mgr.

Avg.

Employee

Engage-

ment

Store

Perfor-

mance

Customer

Focus

Shrinkage

Rate

Local

Economic

Conditions Compe-

tition

Weather Age of

Store

H5 H4 H6

H3 H2

(-)

H1

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Predictive HR Analytics Map of causalities – Knowledge Management

Managerial

Leadership

Training Human

Capital

Relational

Capital

Structural

Capital

Human

Capital

Effectiven.

Retention

of Key

People

Business

Perfor-

mance

Knowledge

Generation

Employee

Engage-

ment

Employee

Satisfaction

Employee

Motivation

Value

Alignment

Strategy

Execution*

Knowledge

Integration

Knowledge

Sharing

Human

Capital

Depletion



Knowledge

Management

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Predictive HR Analytics Map of causalities – Employee Absenteeism

Managerial

Leadership

Training Human

Capital

Structural

Capital

Retention

of Key

People

Employee

Engage-

ment

Employee

Satisfaction

Employee

Motivation

Value

Alignment



Employee

Absen-

teeism

Illness

Time off to deal with

home and family

responsibilities

Medical

appointments

Strategy

Execution*

cate

gories

morale

behaviour

Employee

Presen-

teeism

The logic of employee absenteeism:

how absenteeism creates costs



Business

Perfor-

mance

Does the job allow the employee

to set the times he/she works?

Yes No

Absenteeism

not relevant

Is job pivotal in importance?

(Do others have to cover? Must process be

stopped? Delays in important avtivities?)

Yes No

Incur actual and

opportunity costs

Incur costs that

are not significant

Cost of payments for non-work time of absentees

Cost of managing absenteeism problems

Cost of time of replacement workers

Cost of reduced work quantity or quality

Are costs acceptable?

Yes No

Absence-reduction programs

not likely to be cost-effective

What absence-reduction program

will address the significant causes?

What is its cost?

(-)

(-)

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Predictive HR Analytics Map of causalities – Employee Separations

Managerial

Leadership

Training Human

Capital

Relational

Capital

Structural

Capital

Human

Capital

Effectiven.

Retention

of Key

People

Business

Perfor-

mance

Knowledge

Generation

Employee

Engage-

ment

Employee

Satisfaction

Employee

Motivation

Value

Alignment

Strategy

Execution*

Knowledge

Integration

Knowledge

Sharing

Human

Capital

Depletion



= Workforce Value

The logic of employee turnover



Pay for

Perfor-

mance

(+)

(-)

One-on-

one-

coaching

voluntary vs. involuntary turnover

functional vs. dysfunctional

turnover

(+)

(-)

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Predictive HR Analytics Map of causalities – Health, Wellness, and Welfare

Managerial

Leadership

Training Human

Capital

Relational

Capital

Structural

Capital

Human

Capital

Effectiven.

Retention

of Key

People

Business

Perfor-

mance

Knowledge

Generation

Employee

Engage-

ment

Employee

Satisfaction

Employee

Motivation

Value

Alignment

Strategy

Execution*

Knowledge

Integration

Knowledge

Sharing

Human

Capital

Depletion



Retention

of Key

People

The logic of employee health and wellness



Employee

Health and

Wellness

Employee

Absen-

teeism

(-) (+) (-)

16

Predictive HR Analytics Map of causalities – Work-Life Programs

Managerial

Leadership

Training Human

Capital

Relational

Capital

Structural

Capital

Human

Capital

Effectiven.

Retention

of Key

People

Business

Perfor-

mance

Knowledge

Generation

Employee

Satisfaction

Employee

Motivation

Value

Alignment

Strategy

Execution*

Knowledge

Integration

Knowledge

Sharing

Human

Capital

Depletion



Retention

of Key

People

The logic of work-life fit



(-) (+) (-)

Work-Life

Programs

Employee

Engage-

ment

Employee

Absen-

teeism

17

Predictive HR Analytics Map of causalities – HR Development Programs

Managerial

Leadership

Employee

Training

Human

Capital

Relational

Capital

Structural

Capital

Human

Capital

Effectiven.

Retention

of Key

People

Business

Perfor-

mance

Knowledge

Generation

Employee

Engage-

ment

Employee

Satisfaction

Employee

Motivation

Value

Alignment

Strategy

Execution*

Knowledge

Integration

Knowledge

Sharing

Human

Capital

Depletion



The logic of talent-development effects



(-) (-)

Employee

Absen-

teeism

(+)

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Predictive HR Analytics Map of causalities – Business Performance (1/2)

Managerial

Leadership

Training Human

Capital

Structural

Capital

Human

Capital

Effectiven.

Retention

of Key

People

Business

Perfor-

mance

Employee

Engage-

ment

Employee

Satisfaction

Employee

Motivation

Value

Alignment

Knowledge

Sharing

Human

Capital

Depletion



Employee Sentiment

Employee

Absen-

teeism Strategy

Execution*

Knowledge

Integration

Employee

Health and

Wellness

Work-Life

Programs

Relational

Capital

Knowledge

Generation

19

Predictive HR Analytics Map of causalities - Business Performance (2/2)

Managerial

Leadership

Training Human

Capital

Relational

Capital

Structural

Capital

Human

Capital

Effectiven.

Retention

of Key

People

Business

Perfor-

mance

Knowledge

Generation

Employee

Engage-

ment

Employee

Satisfaction

Employee

Motivation

Value

Alignment

Strategy

Execution*

Knowledge

Integration

Knowledge

Sharing

Human

Capital

Depletion



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Predictive HR Analytics Map of causalities – Staffing Utility

Logic of staffing processes and talent flows



Strategy &

Planning

Corporate

Branding

Employer

Branding

Recruitm.

Marketing

Active

Sourcing

Selection

& Offering

Binding &

Closing

On-

boarding Screening

Potential

Labor Pool Labor Pool

General

Applicant

Pool

Dedicated

Applicant

Pool

Talent Flows

Staffing Processes

Final

Applicant

Pool

Applicants

on-hold

Candidates

for further

Evaluation

Offer

Candidates New Hires

Productive

Employees

Affinity for the

company and

the product

Corporate and

product brand,

corporate

culture

Perception of

the company as

an employer

Employer Brand

Consolidation of

the employer

Image

Cross-media

recruitment

marketing

Talent Pool

Management

Application

Recruiting

Experience of

the prospective

employer

Acquisition of

student knowledge

Acquisition of

corporate knowledge

create attract choose

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Would you like to know more? We invite you ... http://www.strimgroup.com/de/fachtagungen

Talent Relationship Management: May 22

Human Capital Analytics: September 19

Talent Relationship Management : June 6

Human Capital Analytics : October 16

Talent Relationship Management : June 26-27

Human Capital Analytics : October 30

http://www.strimgroup.com/de/fachtagungen

22

Your Personal Point of Contact

Chairman and CEO at

STRIMgroup AG, Zurich / CH

Senior Fellow at The

Conference Board in New York

Lecturer in the Master's

program in Human Capital

Management at Lake

Constance Business School /

Germany

845 Third Avenue

New York, NY 10022-6600

Telefon: +49 (0)172 7590 688

[email protected]

Gütschstrasse 22

CH-8122 Binz (Zürich)

Telefon: +41 (0)43 366 05 58

[email protected]




Factors that control Impact of HR Initiatives

Business

Transcript of Factors that control Impact of HR Initiatives