HR Metrics That Matter

Ward ChristmanSenior Consultant

What is a Metric?

Noun

• A standard for measuring or evaluating something; basis for assessment

Adjective

• Of or relating to the meter or the metric system

Why HR Metrics?

HR Metrics is Evolving1990

Metrics

1995 2000 2010

Benchmarking Analytics Prediction

Goal: Use metrics to make HR a key asset of the business decision support system.

Top Talent Management Impacts on EBITA

• Money, Money, Money

“Top performing talent management organizations posted earnings before interest, taxes and depreciation, and amortization (EBITDA) that are 15% higher than peer companies.”

Gartner's Model for Types of Workforce Analytics Solutions

Which HR Metrics?

Goal: Find metrics that can align talent with business strategy.Example: Workforce Planning

Why is it HOT?• Increased Focus on Internal Mobility and Promotions• Introduction of Career Planning and Career Maps• Debut of Predictive Hiring

Workforce Planning

InternalMobility Recruiting

Tying HR to the business

Capital = Assets available for use in the production of further assets

Human CapitalHuman CapitalManagement value curveManagement value curve

EfficiencyService

Loyalty

Productivity

Performance

Retention

Who needs to be on the HR Metrics Team?

• CHRO – champion & caretaker• CFO – bottom line• CEO – business initiatives• CIO – technology ROI• CMO – brand influence• CSO – top line • HRIS and Talent Management team – data hounds

What data and what to do with it?

• Step 1– Gather metrics being used by C-Suite

• CFO – EBITA, Profitability, etc.• CEO – Customer retention, new market growth etc.• Etc.

• Step 2– Gather metric data from HR team & others

• Enlist HRIS and Talent Management team• Partner with operations and IT as needed

• Step 3– Correlate steps 1 and 2!– Create a dashboard to present & monitor

What data and what to do with it?

• Step 1 - Interviewing C-Suite– Ask what metrics they watch– Probe for leading indicators (vs. lagging)

• Employee engagement• Customer intent to renew or buy again• Employee alignment

– Ask what they would watch if they could– Ask how they think HR can help

Sample Collection Grid

CEO CFO CIO CHRO

Business Driver #1 New business Cost containment

ROI on technology

Employee performance

Business Driver #2 Speed to market

Shareholder value

Security of customer data

Retention

Business Driver #3 Client Retention

Business Driver #4 Shareholder value

Business Driver #5

Business Driver #6

Business Driver #7

What data and what to do with it?

• Step 2 - Gather data & metrics from HR etc.– HRIS and/or Payroll

• Headcount, turnover/retention, tenure• Comp package• Peer comparisons

– Talent Acquisition System (Recruiting)• Cost per hire, Time to Fill, etc.

– Talent Management System's)• Inventory skills, competencies• Performance history (HIPOs), work history• Career paths, preferences (relo, FT/PT, etc.)

– Other data points related to C-Suite list• Employee Satisfaction ratings

– Categorize above by job, division etc.

Sample Organization Grid

CEO CFO CIO CHRO

Talent Acquisition (Recruiting)

Hire top talent faster

Hire for less cost

ROI on ATS Hire top performers

Performance Management

Goal attainment

Career Development

Succession Planning

Learning & Development

Comp/Rewards & Recognition

Benefits

What to do with the data?

• Step 3 – Correlate Steps 1 & 2– How do I correlate?

• Use top 10 list as starting point• Focus on CEO• Look at industry benchmarks and demographics

– Make score cards– Make meaningful or don’t do it

• Enlist experts (inside and outside)• Leverage technology

– Create a dashboard to present & monitor• Use existing tools (Excel, TMS, HRMS, Cognos)• Enlist experts like DoubleStar, InfoHRM, etc.