HR’s Role As An Information Analyst

Today’s Objectives What are Metrics? Why Measure? What to Measure? How to Measure? How to Analyze Data? How to Report Data?

What are HR Metrics? Relating to measures

Involving or proceeding by measurements

Method of tracking the effectiveness of HR

What you value about HR programs and the equivalent monetary value

Language of management

HR Excuses Against Metrics “You can’t measure what we do…” Lack of clear purpose for measuring Lack of cooperation between

departments Difficulty extracting data from multiple

systems Difficulty understanding and analyzing

metrics Numbers used to draw inaccurate

conclusions

Why Measure?

If you can’t measure it, you can’t understand it. If you can’t understand it, you can’t control it.If you can’t control it, you can’t improve it.

The Improvement Process

Understand

Measure

Control

Improve

Importance of HR Metrics

Quantify the value of HR Guide workforce strategies Maximize HR’s return on investments Provide measurement standards Show what HR contributes to business

results Make the business case for HR’s

objectives

Why Measure?

Communicate performance expectations

Discover gaps in strategies

Make better decisions

Address the trend toward value reporting

What to Measure?

Measure outcomes not activity Begin with efficiency measures Develop metrics geared towards your

organization’s goals and strategies Establish metrics to monitor key HR

practices proven to grow human capital Use metrics that will encourage

change and help us make better decisions about human capital

Creating a measurement team is recommended

Communicate importance of metrics to team

Team should select metrics together Determine how metrics will be defined Obtain leadership buy-in Disseminate the tasks

Collecting Data

Strategic Relationships

Process must be owned by Executives, Managers, HR, Finance, and IT

Takes time and will power May require an investment in

information technology support services to support human capital measurement and reporting opportunities

Requires the fostering of key strategic relationships to ensure favorable outcomes

Getting Started

Assess your data

Build your metrics

Create meaningful measures

What do you already track?

Where should you focus?

What metrics would be useful?

Assessing Your Data

Determine your measures

Select benchmarks for comparison similar services same size similar organizational structure similar budget

Compare your results

Building Your Measures

Compare your value to the percentiles used by benchmarks

Assess desirability of your position in relation to your organizational goals

Develop metrics that assess efficiency, strategic value, and effectiveness

Creating Meaningful Measures

Data Integrity

Quality of data is critical Garbage in….garbage out So…..

Check the math Watch out for zeros Compare results to each other Conduct a sanity test

Data Sources

HRIS (PeopleSoft, SAP, CostPoint, etc.) Surveys Interviews SHRM Watson-Wyatt WorldatWork Mercer Saratoga Institute IPMA

What Can Be Measured?

Staffing and Hiring Work ProcessesCompetent Employees

Turnover RatesReduced Time-to-Fill for Vacancies

Training Costs

Number of Employees

TrainedCost per Hire

Voluntary Separations

Who’s Measuring What?

Georgia Technology Authority New Hire Quality Internal Promotions Training Impact Voluntary Turnover Alternative Work Schedule Participation Employee Satisfaction Performance Plans Developed Development Plans Implemented

Formula: Total Voluntary Separations / Regular Headcount

Purpose: Voluntary Separation Rate looks at the

percentage of regular headcount that voluntarily left the organization.

This metric is an excellent indicator of problems within the organization, including but not limited to inadequate compensation and/or benefits, lack of opportunities for promotion, low employee morale, inadequate training, and/or improper assessment of employee's qualifications (over or under qualified).

Voluntary Separation Rate

Voluntary Separation Rate

Calculation:13,894 / 141,277

Total Voluntary Separations / Regular Headcount

=

9.8%

Formula: The number of business days to fill a vacantposition. This is counted from the day theposition becomes vacant to the date a newemployee starts in the job.

Purpose: Time to Hire shows length of time it takes to

fill vacant positions. This metric is an indicator of organization's

ability to recruit and hire new employees.

Time to Hire - Definition

Time to Hire - Calculation

11/1/2006 - 8/1/2006Date of Hire - Date of Vacancy

=

65 business days

Formula: Total Training Cost / Regular Headcount Trained

Purpose: Training Cost Factor - average dollars spent on

training for each regular employee receiving training

This metric is an indicator of the organization's investment in training and can also be used to monitor training costs and the organization's return on investment.

Training Cost Factor - Definition

Training Cost Factor - Calculation

$31,131,631 / 249,700Total Training Cost / Regular Headcount Trained

=

$124.68

Pulling it All Together

• Can you explain it in one sentence?

• Is the area it measures high priority for the organization?

• Can people in the organization remember and explain it?

• Is the number simple to get and understand?

• Does the source for the data have credibility?

Key Thoughts

Take “baby steps” by starting with a few key metrics.

You don’t have to change the whole organization at once.

Measurement and management go hand in hand.

Analyzing Data

Microsoft Excel Formulas

Sum Average & Median Time Calculations

Charts & Graphs Pie Bar Scatter

Reporting Data

Microsoft Word Reports

Tables Graphs Charts

Microsoft Access Database

Tables Queries Reports

PowerPointInserting graphs

Exit Salaries vs. Years Exp.

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