1. Translate company news and information into language that's easily understood Find out what's relevant to your CEO and what challenges he or she currently faces, simply by asking Be willing to influence people beyond policy and rules by making the outcome relevant to their success Be the best at your craft, but be involved in the business of your company Don't be afraid to get out of your lane If HR professionals dont measure their functions effectiveness, someone else will To be effective, HR leaders must be an active part of the management decision-making process, not simply contributors to the expense of doing business Talent is capital and must be managed as rigorously as any other asset Human Capital decisions based on hard data is at the heart of fact based HR And always remember, Life is no dress rehearsal HRMATTs 9th Biennial Conference May 13th & 14th, 2013 1

2. Measuring Performance with HR Analytics Conrad Samuels, SPHR President & Chief Talent Strategist Talent Analytics, Inc. HRMATTs 9th Biennial Conference Hilton Trinidad & Conference Center 14th, May 2013 3. HRMATTs 9th Biennial Conference May 13th & 14th, 2013 3 4. Areas of Focus Why measure and track HRs effectiveness? Define and understand the purpose of an HR Scorecard Identify Key Performance Indicators (KPIs) based on your audience Leverage technology to create, build and maintain an HR Scorecard Communicate effectively Telling HRs Story HRMATTs 9th Biennial Conference May 13th & 14th, 2013 4 5. At the completion of this session, you will be able to: Confidently discuss HR performance management strategy and its components with business unit leaders Apply a strategic planning framework to developing HR analytics Avoid the common pitfalls that plague HR measurement efforts HRMATTs 9th Biennial Conference May 13th & 14th, 2013 5 6. How many people Have led HR performance measurement efforts? Have participated in the development of HR analytics and metrics? Are looking to use information from this workshop in your professional life? Wish they were limin by the pool, engaging in libations! HRMATTs 9th Biennial Conference May 13th & 14th, 2013 6 7. HRMATTs 9th Biennial Conference May 13th & 14th, 2013 7 Identify the importance of measuring HRs effectiveness Define and understand the purpose of an HR Dashboard/Scorecard Identify the Key Performance Indicators (KPIs) based on the audience Leverage technology to create and build the Dashboard Communicate Effectively Tell HRs Story 8. HRMATTs 9th Biennial Conference May 13th & 14th, 2013 8 9. Work measurement and workforce analysis is not new Measurement of employee productivity and effectiveness can be traced back to the days of Scientific Management (Taylor, 1911) Quantitative analysis and its use in decision making were developed during the 1940s Common HR metrics in existence today were first developed during the 1970s HRMATTs 9th Biennial Conference May 13th & 14th, 2013 9 10. Interest in HR performance and measurement has increased over the past twenty years Evidence-based management has produced a rapidly growing interest in HR metrics and workforce analytics Integrated Human Resource Information Systems (HRIS) have been a driver for workforce analytics Shift from labor intensive processes to electronic processes HRMATTs 9th Biennial Conference May 13th & 14th, 2013 10 11. Demonstrate linkage between business objectives and HR initiatives Improved organizational awareness Influence leadership behavior and managerial decision making Improved organizational performance HR ROI - Quantifying HRs Impact on the bottom line HRMATTs 9th Biennial Conference May 13th & 14th, 2013 11 12. When Scorecards Educate, Facilitate and Motivate, they help to: Focus the organization on, What we have in Common, not what we have in Conflict. Drive accountability into the conversations Establish a common business language that defines mutual success Equip leaders with a tool to make timely, informed decisions Create a shared format to recognize and reward exceptional performance HR HRMATTs 9th Biennial Conference May 13th & 14th, 2013 12 13. HRMATTs 9th Biennial Conference May 13th & 14th, 2013 13 Identify the importance of measuring HRs effectiveness Define and understand the purpose of an HR Scorecard Identify the Key Performance Indicators (KPIs) based on the audience Leverage technology to create and build the Dashboard Communicate Effectively Tell HRs Story 14. A simple and concise tracking tool designed to create a common business language throughout an organization Cost, Quality, Productivity, Customer Satisfaction, and People/Safety. ARE WE WINNING OR LOSING? HRMATTs 9th Biennial Conference May 13th & 14th, 2013 14 15. HR Scorecard. An enriched reporting tool which provides a customized and repeatable presentation of HR performance A visual display of key HR Metrics and Analytics Current snapshot of HR organizational performance Scorecards also contain business unit analyses Permits managers to drill down to examine metrics Helps business leaders to make informed decisions HRMATTs 9th Biennial Conference May 13th & 14th, 2013 15 16. Mastering human-capital metrics is a complex undertaking. Linking people measures to KPIs in a reliable way can require massive amounts of data, and most efforts are technology-heavy. They require a good bit of trial and error, and a heavy dose of patience. And more often than not, a human- capital metrics initiative requires a good partnership between HR and finance. Source: http://www.cfo.com/article.cfm/54910 43?f=related HRMATTs 9th Biennial Conference May 13th & 14th, 2013 16 17. HRMATTs 9th Biennial Conference May 13th & 14th, 2013 17 Identify Organization's Challenges & Opportunities Identify Appropriate Metrics Present Metrics in Context Interpret and Relate data to Manager's Decision(s)/Situation(s) Facilitate Business Decisions Calculate and Communicate Return on Investment 18. HRMATTs 9th Biennial Conference May 13th & 14th, 2013 18 Metric Categories Time Cost Quality Customer Satisfaction Volume Return on Investment Workforce Performance Management 19. Identify the importance of measuring HRs effectiveness Define and understand the purpose of an HR Dashboard/Scorecard Identify the Key Performance Indicators (KPIs) based on the audience Leverage technology to create and build the Dashboard Communicate Effectively Tell HRs Story HRMATTs 9th Biennial Conference May 13th & 14th, 2013 19 20. HRMATTs 9th Biennial Conference May 13th & 14th, 2013 20 21. HRMATTs 9th Biennial Conference May 13th & 14th, 2013 21 22. HRMATTs 9th Biennial Conference May 13th & 14th, 2013 22 23. HRMATTs 9th Biennial Conference May 13th & 14th, 2013 23 24. HRMATTs 9th Biennial Conference May 13th & 14th, 2013 24 ROI/Impact Cost Effectiveness Volume Revenue per Employee Benefit Cost as a Percentage of Revenue Time to Fill Jobs HR Headcount Ratio (HR Employees: Company Employees) Expense per Employee Benefit Cost as a Percentage of Expense Time to Start Jobs Absence Rate Compensation as a Percentage of Revenue Benefit Cost as a Percentage of Compensation Ratio of Offers Made to Acceptances Involuntary Separation Compensation as a Percentage of Expense Retiree Benefit Cost per Retiree Voluntary Separation HR Dept. Expense per Company Employee Retiree Benefit Cost as a Percentage of Expense Voluntary Separation by Length of Service Supervisory Compensation Percentage HR Dept. Expense as a Percentage of Company Expense Workers Compensation Cost as a Percentage of Expense Workers Compensation Cost per Employee Workers Compensation Cost per Claim 25. HRMATTs 9th Biennial Conference May 13th & 14th, 2013 25 26. Identify the importance of measuring HRs effectiveness Define and understand the purpose of an HR Scorecard Identify the Key Performance Indicators (KPIs) based on the audience Leverage technology to create and build a Scorecard Communicate Effectively Tell HRs Story HRMATTs 9th Biennial Conference May 13th & 14th, 2013 26 27. HRMATTs 9th Biennial Conference May 13th & 14th, 2013 27 28. HRMATTs 9th Biennial Conference May 13th & 14th, 2013 28 HR Dashboard 2,815,500$ 235,675$ 65,305$ 453,000$ 3,569,480$ 45 62,567$ 239 5.3 Name Corine M. Henderson Hire Date Overtime Location Commission Term. Date Total Comp. Empl. Type Department Year PTO Days Base Salary Sick Days Bonus Perform. Score Employee Information Employee total compensation Employee count, R&D Employee count, Los Angeles Total Compensations Employees by department, 2004 Average Sick Days per Emp. Total Sick Days Average Salary Total Employees Employee count by base salary brackets, 2004 Total employees Employees by location, 2004 Compensation distribution by department, 2004 Compensation distribution by location, 2004 Summary for year 2004 Total Commissions Total Overtimes Total Bonuses Total Salaries 0 20 40 60 80 100 2000 2001 2002 2003 2004 2005 2006 2007 2008 Accounting Administration Customer Support Finance Human Resources IT Marketing R&D Sales Boston Miami Los Angeles Chicago New York $0 $100,000$200,000$300,000$400,000$500,000$600,000$700,000$800,000$900,000 Accounting Administration Customer Support Finance Human Resources IT Marketing R&D Sales Salary Bonus Overtime Commission $0 $200,000$400,000$600,000$800,000$1,000,000$1,200,000$1,400,000$1,600,000$1,800,000 Boston Miami Los Angeles Chicago New York Commission Overtime Bonus Salary 0 2 4 6 8 10 12 $100,000 $- $50,000 $100,000 200020012002200320042005200620072008 0 5 10 15 2000 2001 2002 2003 2004 2005 2006 2007 2008 0 2 4 6 8 10 12 2000 2001 2002 2003 2004 2005 2006 2007 2008 29. Identify the importance of measuring HRs effectiveness Define and understand the purpose of an HR Dashboard/Scorecard Identify the Key Performance Indicators (KPIs) based on the audience Leverage technology to create and build the Dashboard Communicate Effectively Tell HRs Story HRMATTs 9th Biennial Conference May 13th & 14th, 2013 29 30. HRMATTs 9th Biennial Conference May 13th & 14th, 2013 30 Measuring HR Performance HR Initiatives HR Strategic Priorities HR Mission & Vision Strategic Priorities & Business Objectives Organizations Mission & Vision 31. Reporting who, what, when and how Benchmarking comparative analysis to gain insight Data Mining patterns and correlations Predictive analysis predict outcomes based on leading indicators Quantify how much was earned or saved HRMATTs 9th Biennial Conference May 13th & 14th, 2013 31 32. Data points become useful when the decision maker can attach some meaning to them Reporting trend information for metrics provides context Comparative analysis and benchmarking adds context to measurement data Industry specific comparison among peers HRMATTs 9th Biennial Conference May 13th & 14th, 2013 32 33. Interactive Exercise HRMATTs 9th Biennial Conference May 13th & 14th, 2013 33 34. A. 2007 B. 2009 C. 2010 HRMATTs 9th Biennial Conference May 13th & 14th, 2013 34 2007 2009 2010 33% 33%33% 35. A. Yes B. No C. Not Sure HRMATTs 9th Biennial Conference May 13th & 14th, 2013 35 Yes No NotSure 0% 0%0% 36. A. Yes B. No C. Not Sure HRMATTs 9th Biennial Conference May 13th & 14th, 2013 36 Yes No NotSure 0% 0%0% 37. A. ROI/Impact Metrics B. Effectiveness Metrics C. Customer Satisfaction Metrics D. Volume Metrics E. Cost Metrics HRMATTs 9th Biennial Conference May 13th & 14th, 2013 37 ROI/Im pactM etrics EffectivenessM etrics Custom erSatisfaction M e... Volum eM etricsCostM etrics 0% 0% 0%0%0% 38. A. ROI/Impact Metrics B. Effectiveness Metrics C. Customer Satisfaction Metrics D. Volume Metrics E. Cost Metrics HRMATTs 9th Biennial Conference May 13th & 14th, 2013 38 ROI/Im pactM etrics EffectivenessM etrics Custom erSatisfaction M e... Volum eM etricsCostM etrics 0% 0% 0%0%0% 39. A. ROI/Impact Metrics B. Effectiveness Metrics C. Customer Satisfaction Metrics D. Volume Metrics E. Cost Metrics HRMATTs 9th Biennial Conference May 13th & 14th, 2013 39 ROI/Im pactM etrics EffectivenessM etrics Custom erSatisfaction M e... Volum eM etricsCostM etrics 0% 0% 0%0%0% 40. HRMATTs 9th Biennial Conference May 13th & 14th, 2013 40 If youre not measuring, start tomorrow!! Identify organizational pinch points Maintain solid partnerships with your Finance and IT departments. Measuring is a journey-not a destination. 41. HRMATTs 9th Biennial Conference May 13th & 14th, 2013 41 42. HRMATTs 9th Biennial Conference May 13th & 14th, 2013 42 Conrad Samuels, SPHR President & Chief Talent Strategist E: conrad.samuels@talentanalyticsinc.com T: 240-460-5407 http://www.talentanalyticsinc.com 43. HRMATTs 9th Biennial Conference May 13th & 14th, 2013 43