hr metrics - presentation
TRANSCRIPT
HR Metrics: Benchmarking Human
ResourcesWednesday, November 16, 2005
11:00 AM – 12:15 PM
Valerie [email protected].
Rachel [email protected]
The opinions of the contributors expressed herein do not necessarily state or reflect those of the National Association of Convenience Stores. Reference herein to any specific commercial products, process, or service by trade name, trademark manufacturer, or otherwise, shall not constitute or imply an endorsement, recommendation, or support by the National Association of Convenience Stores. The National Association of Convenience Stores makes no warranty, express or implied, nor does it assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, product, or process described in these materials.
Benchmarking Human Resources
Why Measure?
What to Measure?
How to Measure?
Where to get Data?
What Drives a Measure?
What’s Being Done Today?
Preparing to Measure
Know Your Organization
List Top 3 Business Goals over next 5 Years
Start With the Strategy
What is your company’s differentiating factor, your “niche”?
Build a Scorecard
List the critical objectives, linked to your niche that will ensure future success?
Measure for Success
Measure to identify and track success in achieving the strategy.
The Whole Picture
Vision
Mission
Strategy
Measures
Initiatives
Everyday Tasks
Scorecard Perspectives
Measure for Success
SMART
Putting It Into ActionInitiatives & Action Plans
Who is Accountable?
To do What?
By When?
SourcesAssociation Reports
NACSSHRM
ReportsSaratoga (Price Waterhouse Coopers)Staffing.orgWatson-Wyatt
BooksHR Metrics, the World Class Way, J. SullivanThe ROI of Human Capital, J. Fitz-EnzThe HR Scorecard, Becker, Huselid, UlrichThe Workforce Scorecard: Managing Human Capital to Execute Strategy, Mark A. Huselid
MoreHuman Capital Dashboard, CLC MetricsHuman Capital Source (Jack Fitz-Enz)
A Framework Model
Financial
Measures
Results
Achieved
HR Efficiency
Self Test for MetricsCan you explain it in one sentence?Is the area it measures top-of-mind in 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?
Sample Metrics from SHRM HR Metrics StudyEmploymentTime-to-Fill Cost-Per-Hire Number of Positions Filled
HR Departments and Expenses Total HR Staff HR-to-Employee Ratio HR Expense to Operating Expense Ratio HR Expense per FTE
Health CareHealth Care Expense per All Employees Health Care Expense per Covered Employees Percentage of Premium Organization Pays for Employee-Only Coverage Percentage of Premiums Organization Pays for Employee and Dependent Coverage Projected Increases in Health Care Expenses
Compensation Annual Salary Increases Annual Turnover Rate Salaries as a Percentage of Operating Expense
Organizational Data Revenue Revenue per FTE Net Income Net Income per FTE
How Does HR Measure Up?
%Non-base pay = all payments over and above base pay, such as commissions, incentives, bonuses. Do not include non-cash payments, auto allowances, or payments made in lieu of benefits
Total Non-Base Pay Paid to MangersTotal Compensation of Managers
At-Risk Payrollof Managers
Use position closest to “cashier” such as customer service rep, associate, etc.
Number of CashiersAverage Age of Front Line Staff
Use total tenure at the company, not just time as manager
Total Tenure of ManagersNumber of Managers
Average Length of Service of Store Managers
$Full time equivalent = 1 for each full time employee, ½ for each part time employeeIf support staff in the field or at the corporate office support other revenue areas, count those individuals as part time, unless that support is minimalConvenience Revenue is defined as sales of any product or service in the following categories; in-store sales and services, motor fuels, food service, car washesIn companies where other revenue exists, such as home heating fuels, do not include these revenues
Full-Time Equivalent
Revenue Per Employee
Your Company
NotesFormulaMeasure
How Does HR Measure Up?
Use Full Time Equivalents (FTE) as defined above
For HR FTE’s, count staff with HR titles or who report to a Human Resources
department. Also count staff who spend more than 60% of their time performing traditional
HR functions or conducting training activities or programs, even if these
individuals do no report to HR.Traditional HR Functions include:
•Compensation•Benefits•Training•Recruiting
•Staffing & Staff Planning•HR Information Systems•Employee Relations
•Employee Dispute Resolution•Employee Motivation/Rewards
•Worker’s Compensation•Unemployment Administration•Performance Management
•Policy Development/Documentation•Employee Recordkeeping
•Organization Design•Strategic HR Planning
If Human Resources staff or staff with HR responsibilities in the field or at the corporate office support other revenue areas, count those individuals as part time, unless that support is minimal.
Total FTETotal # of HR FTE’s
HR to Employee Ratio
%Use total dollars from all programs and activities that reward or recognize performance or milestones, including recognition meetings, service awards, performance recognition programs, birthday or anniversary recognition programs, etc…Use Convenience Revenues as defined above
Convenience Revenues
Recognition Program Spending
NACS Human Resources Forum
Please Plan to Join Us!
March 7-9, 2006Marriott Dallas/Addison Quorum by the Galleria in Dallas, Texas
The program will once again feature Valerie Paul of Catalyst Consulting as the program leader and will continue to examine the importance of HR metrics
as well as other HR issues.
Contact UsRachel AndreassonWallis Companies106 E. WashingtonCuba, MO 65453(573) [email protected]
Valerie PaulCatalyst Consulting33 Elm St.Uxbridge, MA 01569(508) [email protected]