Developing Metrics Around Workforce Planning - IQPC

Developing Metrics Around Workforce Planning:

Determining Appropriate Staff Levels Over the Next 5 Years

Lois Makoid, Ph.D. CCP

• Topics covered in this session include:

– Using low-cost and easy-to-use way to determine your organizations key drivers for headcount

– Understanding the approach that works best for your organization

– Identifying common current trends within your workforce

– How to start a more analytic approach to workforce planning

© 2013 INC Research, LLC 2

Metrics For Workforce Planning

Presenter

Presentation Notes

Consider multiple variables to accurately forecast of staffing levels Select variables most appropriate to your industry Most importantly, select variables appropriate to your business goals What does your business’ future capabilities demand for success? Topics covered in this session include: Using low-cost and easy-to-use way to determine your organizations key drivers for headcount Understanding the approach that works best for your organization Identifying common current trends within your workforce How to create a more analytic approach to workforce planning

• Businesses are competing in two marketplaces,

– one for their products & services

– one for the talent required to produce or perform them

• An organization’s success in its business markets is determined by its success in the talent market

• At the very time that business markets are expanding, globally, talent markets seem to be shrinking (at least for specific talent)

– How many of us face those “difficult to find talent” positions?

– What are the characteristics of your “hard-to-find” talent?


Consider Competing in Two Markets

Presenter

Presentation Notes

Organizations are competing in two markets, one for their products & services one for the talent required to produce or perform them An organization’s success in its business markets is determined by its success in the talent market At the very time that business markets are expanding, globally, talent markets seem to be shrinking or at least for specific talent How many of us face those “difficult to find talent” positions? Knowledge, skills and abilities Specific locations & competition for that talent Affordability of the key talent As the knowledge required to build products & deliver services increases, the retention of experienced employees becomes critical to improving productivity

Workforce Analytics Must Address The Right Questions

What are your business leaders looking for you to achieve?

• Finding the right people

• Connecting employee performance goals to organizational outcomes

• Motivating staff to meet or exceed performance goals

• Using training and development to close workforce skills gap

• Defining the jobs that will help the company to succeed in the future

• Cultivating a workforce that adapts easily to change

• Managing turnover; retaining talented employees

• Managing a global workforce

• Accessing data on demand making critical workforce decisions Source: Connecting Workforce Analytics to Better Business Results – Harvard Business School Publishing 2013


Business Results/HR Metrics

Revenue / Sales

Profit

Stock price

Profit margin

Customer satisfaction

Market share

Cost per hire

Offer acceptance rate

Time to fill

Interview to hire ratio

Candidate experience

We use social media

A “seat at the table”

Being a business partner

These are not business results Business results

5

Presenter

Presentation Notes

Make sure that you understand that business leaders focus on business results & predictors. How then do you convince leaders that HR Metrics have merit and deserve consideration?

Strategic Workforce Planning

Strategic Workforce planning is a systematic process for

• Identifying

• Acquiring

• Developing

• Retaining employees

. . . to meet the needs of the organization now & in the future as articulated in the strategic business plan

6 © 2013 INC Research, LLC

Presenter

Presentation Notes

Strategic Workforce planning enables you to: Have a strategy for the allocation of resources in a manner that will allow the organization to meet its goals Prepare for contingencies that could prevent the business from attaining goals Predictive in nature Strategic planning sets organizational direction & articulates measurable business goals. Strategic Workforce planning ensures the organization has the talent to accomplish the goals. Planning horizons are typically 1 to 3 years. Have a strategic basis for making business decisions Be proactive versus reactive in anticipating workforce needs Maximize organizational effectiveness by integrating the organization’s vision, mission, strategic plan, budget, technology, and human resource needs.



Workforce Planning Why is it so Important?

“Unless the right number of suitably qualified professionals

are available at the right time and the right place, the

achievement of organizational goals and objectives will simply

not occur.” INTERNATIONAL PERSONNEL MANAGEMENT ASSOCIATION NEWSLETTER


Workforce planning becoming more strategic . . .

• The strategy is to develop and champion analytical, forecasting and planning processes to...

– Provide accurate current workforce capability assessment and predict future workforce requirements based on the business strategy

– Optimize a workforce, global, if applicable

– Enable the business to execute its business strategies and improve its return on human capital investments

But how?


Presenter

Presentation Notes

Strategic workforce planning naturally complements and is a follow-up to the strategic business planning. You cannot have a strategic workforce plan without the foundation in the business planning process. A workforce plan lays out the specific tasks and actions needed to ensure the organization has the necessary human resources to accomplish its strategic business goals, now & in the future

• Organizations collect more HR & business data than ever, but are they using that data effectively to predict workforce trends, reduce risks and increase returns?

• Recent study at Cornell University cited that most executives who participated indicated that to be useful, HR analytics must extend beyond reporting what is (the present) or what was (the past) to predicting and analyzing what will be (the future)

• Workforce planning must includes elements of strategic planning, workload projections, legislative forecasts, turnover analyses, talent availability projections and budget projections


Workforce Planning & HR Data

Presenter

Presentation Notes

The plan forecasts: the numbers of people and type of skills needed to achieve success by comparing the available workforce/future available workforce with future needs to determine needs that may be unmet (gaps)

Appropriate Staff Levels over the next 5 years?


• What direction is your company going? Do you know? It is written down? Is there a 5 year plan? Do you have a business strategy?

– Think about changes that you have seen in the past 5 years?

• Most companies today cannot go beyond 3 years in their strategic plans. Why?

– Technological changes significant and frequent

– Global economic changes

– Market changes

– Social networking


Does your Strategic Plan provide direction and context?

Presenter

Presentation Notes

It’s not just recruiting and retention It is the agility in responding to continual change in technological and business conditions that is critical to success A critical component of agility is the availability of a workforce with the knowledge and skills to make rapid adjustments and the willingness to acquire new competencies

13

Organizational Changes & the Impact Why Agility Counts

Type:

Mergers and acquisitions

Implementing new enterprise software

Switching to better HR practices

Quality Improvement efforts

Business process reengineering

Layoffs

Launching a new product

Starting a new organization

Evidence of Success/Failure:

Mostly negative results, sell quickly

> 50% fail

Startups fail more often

Talk but not much walk

~30% achieve stated goals

Create lasting problems

Extremely high failure rates

Death rates for new ventures is high

How Mature is your Organization when it comes to People Data & Analytics?

• Most large organizations now have a wealth of people-related data residing with a multitude of systems:

– Interview & sourcing information

– Internal resumes (current capabilities)

– Measures of hiring quality/success in the 1st year

– HRMS (various indicative data/headcount/turnover)

– Performance management

– Learning (LMS)

– Compensation

– Employee engagement/satisfaction surveys

– Exit surveys/interviews


Presenter

Presentation Notes

These data are assets of the organization, as are the technologies that house them. How many have more than one system or access paths to get this data? How many spend time reconciling why HR and Finance can’t agree on the simplest of measurement like headcount? Unfortunately, few HR leaders perceive the data as valuable unless executives request the information

Workforce Intelligence Maturity Curve


Presenter

Presentation Notes

Organizations are increasingly looking to harness the power of workforce data — metrics, surveys, and predictive analytics — and asking the questions: Do we have the necessary workforce to achieve our goals successfully? Are we hiring quality talent and can we predict the best sources of hire? Are we developing our existing pipeline for future talent needs and engaging that talent? Is employee engagement driving financial and operational outcomes? Are we losing top performers? How do we better anticipate or predict turnover? What changes can we make to retain and engage top performers? Evolving capability and maturity frameworks a brief history: 50’s, 60’s Crosby--manufacturing process waste Deming—statistical process control Mid 80’s to mid 90’s DOD recognition of software development crisis SEI publishes the Capability Maturity Model for software (CMM) Late 90’s to early 2000’s PCMM V1, V2 CMMI V1 October 2007: Business Process Maturity Model

The Evolution of HR Measurement

Data

•Description reports •May lack clear/consistent definitions of data elements, e.g., turnover or headcount •Counting •Present and backward looking

Metrics

•Ratios •Clean data becomes more critical •Comparisons/benchmarking •Multiple data sources / dashboards

Analytics

•Mapping internal & external data •Elementary relationships statistically identified •Correlations/trends •Connecting the dots

Insight & Application

•Predictive / future views / forecasting •Multivariate regression/other predictive statistical analyses/modeling •Scenario planning / “What if” questions answered


• “HR leaders who are making investments in people-related data

are presiding over organizations that are making significant

headway in the talent battle in their industries and in the

geographies in which they operate.” Al Adamsen, contributor www.HumanResourcesIQ.com

• Using the data-driven insight to make better decisions in terms of:

– how to recruit

– who is hired

– how to onboard and train employees

– how to keep employees informed and engaged through their tenure with the organization

© 2013 INC Research, LLC

Winning the War for Talent

17

Presenter

Presentation Notes

Examples include well-known brands such as Google, Best Buy, Genentech and Aetna, yet smaller, lesser-known brands are also succeeding at aggregating HR and other formerly disparate data (e.g., customer satisfaction, financial)

http://www.humanresourcesiq.com/

• Well managed companies continuously define the number and types of people needed to implement business strategy

– Supply and flow of talent is a critical part of HR strategic workforce planning process

• Responding to changing needs in a context for defining required staffing actions

– Outcomes:

• Recruiting, developing and deploying the talent required to meet future capability requirements

• Retraining, redeploying or “de-recruiting” employees whose capabilities are not likely to fit future needs (appropriateness of talent mix to achieve business strategy)

• Enhancing the capacity of talent to perform higher value work



• Strategic Workforce Planning is an ongoing process – It is not a one-time event

– There is no clear beginning or end point

– Process steps may not be sequential

• Start small, begin with a single unit with: – The elements that are most practical

– The unit(s) with greatest need

• Each planning cycle builds on the previous plan and base of information

• The process typically becomes more rigorous and effective with each cycle (continuous improvement mentality)


Strategic Workforce Planning: Basic Process Parameters

Staffing Actions in a Strategic Context

Business Planning

Mission/Vision Goals/Objective

Strategies

Operating plans/ Budgets

Human Resource Planning

People and organization strategies aligned

Recruiting Performance management

Staff Movement Career planning Succession Plans

Development Training

LONG TERM

SHORT TERM


Developing a Workforce Planning Strategy

Business Plans/ Strategies

People and organization

Issues

People and Organization

Strategies

Staffing Actions

Effectiveness Efficiency

Gaps Mix (skills &

numbers)

Where you are

Where you need to be

Measures of removal of “gaps”

• 50 people with x skills needed • 50 positions filled with required skills

Measures of staffing actions

• Time • $$$ • Input/output • Cost/training days

Results

• Understand the business context

• Define requirements and availability (“demand” and “supply”)

• Define required workforce – Create workforce plans

• Define actions needed to close gaps and eliminate surpluses (the numbers)

– Define workforce actions • Identify the roles, the talent, the competencies, the

locations, etc. (what is the talent needed, where, by when and at what cost?)

• Review plans and progress


Key Process Components

Common Process Design - Wrong Model?


The Supply Side Current Supply

The Demand Side Future Requirements

GAPS

Reduce Deficits and Surpluses

Common Process Design – A Better Model

The Supply Side Supply “now” Supply “then”

The Demand Side Demand “then”

GAPS

Reduce Deficits and Surpluses

• Aging • Attrition • Transfers • De-recruitment


Define what the business will be like 1, 2, 3 or 5 years

• Review business plans/ strategies – Business unit/company financial, marketing, technology and functional

plans

• Examine planned capital investments

• Identify industry, competitive and other external factors affecting the future of the business

• Obtain inputs from key customers or perceptions of key managers regarding future customer requirements

• With a team of knowledgeable managers, develop one or more possible scenarios of the business situation in a given future year


Understand the Business Context

Define the impact on people and organizations

• Interpret from the business scenarios the future nature of work – Define, in broad terms, the primary activities that people will be involved in

– Define the major categories of work required, in terms useful for examining future staffing requirements

• Functions, processes or services - not organization, level, location, etc.

• Identify staffing drivers – Drivers are business and environment factors that impact staffing

requirements

• Skills, staffing levels

– Drivers include changing business activity, capital expenditures, new or changing projects, environmental demands, quality initiatives, manufacturing flexibility, cost containment, etc.


Understand the Business Context

Define a framework for planning, including:

• The population to be included

• Planning horizon

– Align staffing strategy with business plan

– Can be shorter but not longer that business plan

• Model/matrix structure


Define Requirements & Availability

1. Define the framework for planning – Who is included:

• Exempt positions and managers

– Segment the model by area of expertise • Database, network, applications, infrastructure • Work category not job title or department

– Forecast each for the coming 3 years – For managerial positions:

• Scope – Manage workers, manage supervisors, manage managers

• Roles – Types of services, technology groups, functions, processes, etc.

– For professional positions: • Scope

– Entry, advanced, technical team leader, project manager

• Roles – Types of services provided


Example I/T Workforce Planning

2. Investigate staffing implications when business strategies describe: – Changes in business focus/objectives (e.g. e-commerce)

– Expansion/contraction of business size, customer base, or market share

– Changes in technology – Changes in customers/countries served – Changes in product mix

• New products • New applications for existing products

– Cost reduction/productivity/efficiency improvements – Improving product or service quality – Changes in regulations (data protection/security)

– Organizational changes • Structure, acquisition, divestiture

– Length of time that the competencies will be required



2. Identify the staffing implications of the following:

– Rapid market growth of an existing product

– Intro of a new product to a new customer base

– Entering a new country with an established product

– Becoming or remaining the low cost producer

– Enhancing product quality

– Reducing an organization’s “reaction time”



3. Define required competencies for each category

– Part of “demand then”

– Determine the types of capabilities required:

• Think in new terms when planning for future competencies

• Define organizational competencies first (e.g., by job family)

• Identify the critical 10-20 competencies that are distinctive in each cell

– those that differentiate from others and are “make or break” for performance



4. Define required staffing levels – Part of “demand then” – Using the new framework, estimate the number of

positions (FTEs) for each cell of the framework • Statistical techniques • Staffing ratios • Staffing by project • Staffing profiles

– Alternatively, start by reallocating current staffing as a planning baseline, using the new framework • Obtain inputs and concurrence form a team of knowledgeable

managers

• Define staffing currently required in each cell of the matrix

• Define incremental changes in required staffing levels



5. Project future staffing availability – Define “supply now” by allocating actual staff to

framework “cells” – Define “supply then” by “aging” the workforce, analyzing

the anticipated effects of “uncontrollable” activities • Turnover • Movement • Recruiting

6. Define required staffing actions – Compare “supply then” to “demand then” to identify

staffing differences/calculate gaps and surpluses – Adjust controllable staffing actions to eliminate gaps and

surpluses – Rerun the model so that supply and demand are equal (or acceptable differences are obtained)



7. “Translate” model output into staffing plans (the numbers)

– Define required movement • Numbers, sources/paths, possible redeployment

– Define recruiting needs and develop recruiting strategies

• Numbers, types, sources, “lead times”

– Define de-recruitment • Early retirements, layoffs, terminations, reduced schedules

– Define the training and development needed to support planned movement/redeployment

– Define diversity initiatives




8. Define specific staffing actions – Evaluate current talent

• Skills, performance, potential

– Identify what will be done for whom, when, where & how • Target specific movement

– Promotions, transfers, etc. • Manage voluntary attrition

– Early retirement, separations • Improve staff utilization

– Redesign work and organization, redeploy & retain talent • Intensify focus on performance standards, evaluation & action

– Improvement, redeployment or termination • Use alternative staffing

– Part-time, temporary & contract talent • Move out employees who are not deployable

– Retain, separate, outplace

9. Repeat process for next period…


• Strategic workforce planning is a powerful tool that should be applied selectively

– May not be necessary to create a single, integrated strategy for each business unit/function

– May not be necessary to create strategies for every function/position

– May not be helpful to create strategies that cross unit or organization boundaries

• Common method does not mean common mechanics – Overall approach usually defines demand, analyzes supply, and

calculates/reconciles differences – “Supply side” usually varies little – “Demand side” varies greatly

• Common parameters facilitate data integration – Level of cell detail – Planning horizon


Implementation Concerns

• Managers sometimes have a short-term, results orientation that is not consistent with planning or the development of people

• Managers are sometimes unaware/ unconvinced of the benefits of people and organization strategies because it is difficult to measure the effects of the strategies

• HR staff may not take a sufficient long-term business perspective

• HR staff sometimes think within functional “silos” – Training, compensation, performance management, finance,

payroll, operations


Potential Obstacles

• When starting out on the measurement journey choose metrics with the following characteristics: 1. ** Important to the business **

• Issues the may prevent the achievement of business goals

2. Accessible • Visible and available to those who need them

3. Data Integrity/Auditable • Accurate data

• Common definitions/common date stamps

• Independently verifiable

4. Actionable • Vital to the organization and capable of influence by the actions of

management /employees


Choosing which Metrics to Measure

HR Metrics & Analytics at INC Research An example

• Data and Information a key foundation of our business strategy

We are a data-driven organization

– Starting with enhancing financial and project level tools to internal project teams and customers for operational transparency

• Analytical tools for project management

• Project analytics

• Resource analytics

– Providing business unit leaders and resource managers with graphical display of current and future resource requirements.

– Data must now integrate from Global Resourcing Modules and HRIS systems (PeopleSoft, Oracle EBS & Peoplefluent)

– Connect resourcing need & capacity against that supported by backlog (data-driven predictors)


HR Metrics & Analytics at INC Research An example

• Employee and Organization a key foundation of our business strategy

– Talent Review Process

– Executive assessment/education/coaching

– Talent pipeline

– Reward & recognition enhancements

– Enhanced competency models reflecting the culture requirements articulated in the strategy


• Candidate/applicant data (curricula vitae, references, education, certifications, clinical experience)

• Internal employee data (curricula vitae, references, education, certifications, clinical experience)

• Core HR data ( employee attributes, demographic data, compensation – all meeting data privacy requirements)

• Learning and talent data (LMS training curricula & achievements, performance data including competency assessments, succession/talent identification)

• Perceptual data (feedback from employee engagement surveys, exit interviews, exit surveys, customer surveys/feedback)

• Labor market data (internal & external total rewards surveys)

• Business operations data (project resourcing data, strategic planning, business and financial performance data, budgeting)


Data Source Types


HR Analytics at INC Research Getting started

Key Element Description

Business Goals List of corporate or departmental goals and objectives.

Business Questions List of the business questions asked by INC Research business leaders

HR Analytics Reports List of the HR Analytics reports which are deemed most critical by business leaders

Oracle BI metrics list A complete list of Oracle HR analytics metrics that are available out of the box/pilot with GRM & recruiting data

Create Analyses for predictive modeling

A complete list of SAS statistics analyses for regular reporting to business leaders

What are we currently measuring?

• The measurement challenge: the definitions/qualifiers/accuracy

– Headcount • The qualifiers:

– Actual headcount – FTE – Full time vs. part-time headcount – Contingent workers – Casual workers – Exempt vs. non-exempt – Active vs. on-leave – Salaried vs. hourly

– Turnover • Definition/annualize methodology

– Multiple approaches discussed


HR Metrics: The Basics Not So Easy

HR Metrics Inventory


HIRING/ RECRUTING

System Captured

RETENTION/ HEADCOUNT System Captured

OPERATIONAL/ COSTS System Captured

TERMINATIONS/ EXITS

System Captured

Time to hire (Approval of Req. to Applicant Acceptance)

PeopleFluent Headcount - regular, contingent, casual, net changes

PeopleSoft Headcount costs (HC/base salary/fully loaded salary

PeopleSoft Terminations by Dept., BU, Job, Region, Country

PeopleSoft

Volume of requisitions PeopleFluent FTEs PeopleSoft Demographics PeopleSoft

Termination types Voluntary vs. Involuntary

PeopleSoft

Volume of hires PeopleFluent Transfers by function PeopleSoft OFCCP reporting PeopleSoft

Exit surveys

Survey Monkey

Status of New Hires in 1st year PeopleSoft

Seniority/adjusted service, last hire, original hire dates

PeopleSoft Compliance: AAP/EEO reporting

PeopleSoft/ Peoplefluent

Looking at McLean, Inc.

Performance scores (goals, competencies, overall)

SuccessFactors (or substitute system)

FMLA tracking Excel spreadsheet

Base salary PeopleSoft Absence Management planning (some countries)

PeopleSoft

Bonus/commission payments Excel spreadsheet Time Oracle Time &

Labor

Star / Superstar awards Excel spreadsheet PTO (US/Canada except Early Phase

Oracle Time & Labor

Experience (CV database) GLM Employee Engagement Surveys

Survey Monkey

Leave of absences PeopleSoft

Potential HR Metrics to Add


HIRING/RECRUTING System Captured RETENTION/HEADCOUNT System Captured OPERATIONAL/

COSTS System Captured TERMINATIONS/ EXITS

System Captured

New Hire Yield –Offers Accepted / Offers Extended

PeopleFluent

Internal accession rate–Number of key positions filled by internal High Potentials

PeopleSoft/SuccessFactors (& e-Performance system)

Actual HC costs (base salary, OT, fringe)

PeopleSoft/ Peoplefluent/ Oracle

Right Fit/Quality of Hire–Terminations within 1st 90 days /Total New Hires within same time period


Number of High Potentials retention rate–Number of identified high potentials in 2013 remaining with the company in 2014

PeopleSoft/SuccessFactors (or substitute system) - Note: 9 block not captured in any system

Time to Start–Number of days from the opening of the Requisition until Employee’s First Day of Employment


Number of High Potentials retention rate– Number of identified high potentials promoted during 2013

PeopleSoft/ SuccessFactors (& e-Performance) - Note: 9 block not captured in any system

Number of positions filled by internal candidates–Number of positions filled by internal candidates/ total positions filled in 2013

Initial Business Leader Request Report Type Annualized?

Time Period

Frequency Region Population Formula

Turnover Yes Trailing 12 mos Monthly Entire BU All Job Titles (Terms + Out Transfers) / Average (Starting Headcount, Ending Headcount)

Turnover Yes Last Quarter Quarterly Entire BU All Job Titles (Terms + Out Transfers) / Average (Starting Headcount, Ending Headcount)

Turnover Yes Trailing 12 mos Monthly Each Region All Job Titles (Terms + Out Transfers) / Average (Starting Headcount, Ending Headcount)

Turnover Yes Last Quarter Quarterly Each Region All Job Titles (Terms + Out Transfers) / Average (Starting Headcount, Ending Headcount)

Retention No Trailing 12 mos Monthly Entire BU All Job Titles (Ending Headcount / (Starting Headcount + In Transfers + New Hires)

Retention No Last Quarter Quarterly Entire BU All Job Titles (Ending Headcount / (Starting Headcount + In Transfers + New Hires)

Retention No Trailing 12 mos Monthly Each Region All Job Titles (Ending Headcount / (Starting Headcount + In Transfers + New Hires)

Retention No Last Quarter Quarterly Each Region All Job Titles (Ending Headcount / (Starting Headcount + In Transfers + New Hires)

Employee Retention No Trailing 12 mos Monthly Entire BU All Job Titles Except Contractors

(Ending Headcount / (Starting Headcount + In Transfers + New Hires)

Employee Retention No Last Quarter Quarterly Entire BU All Job Titles Except Contractors


Employee Retention No Trailing 12 mos Monthly Each Region All Job Titles Except Contractors


Employee Retention No Last Quarter Quarterly Each Region All Job Titles Except Contractors


Headcount Growth Yes Trailing 12 mos Monthly Entire BU All Job Titles (Ending Headcount / Starting Headcount) - 1

Headcount Growth Yes Last Quarter Quarterly Entire BU All Job Titles (Ending Headcount / Starting Headcount) - 1

Headcount Growth Yes Trailing 12 mos Monthly Each Region All Job Titles (Ending Headcount / Starting Headcount) - 1

Headcount Growth Yes Last Quarter Quarterly Each Region All Job Titles (Ending Headcount / Starting Headcount) - 1

CRA Headcount Growth Yes Trailing 12 mos Monthly Entire BU All CRAs (Ending Headcount / Starting Headcount) - 1

CRA Headcount Growth Yes Last Quarter Quarterly Entire BU All CRAs (Ending Headcount / Starting Headcount) - 1

CRA Headcount Growth Yes Trailing 12 mos Monthly Each Region All CRAs (Ending Headcount / Starting Headcount) - 1

CRA Headcount Growth Yes Last Quarter Quarterly Each Region All CRAs (Ending Headcount / Starting Headcount) - 1

PM Headcount Growth Yes Trailing 12 mos Monthly Entire BU All PMs (Ending Headcount / Starting Headcount) - 1

PM Headcount Growth Yes Last Quarter Quarterly Entire BU All PMs (Ending Headcount / Starting Headcount) - 1

PM Headcount Growth Yes Trailing 12 mos Monthly Each Region All PMs (Ending Headcount / Starting Headcount) - 1

PM Headcount Growth Yes Last Quarter Quarterly Each Region All PMs (Ending Headcount / Starting Headcount) - 1

Expanding from Initial Request


Ability to provide info in response to Requests For Information by clients Compare to a standard industry response rate for Turnover data (benchmark)?

How many years back should we be prepared to provide to clients or to compliance agencies?

How can we pull data to report Turnover %, trends, job title statistics more easily? Employee Data - Census How many EE in organization/BU/Function/Country? How does that compare with budget? What movement has there been in organization/BU/Function/Country? How many hew Hires? How many terms? Salary - totals vs. budget? What trends in the organization/BU/Function/Country? Develop specific reports to be available by key role? Workforce Availability - how many in Pipeline plus current workforce? Pipeline (Recruiting) Current Workforce availability (removing those on Leave/Garden Leave) – Global Resourcing Module Talent availability per internal CV's – Create search capability to organization capability information How many hours of OT is not considered in FTE counts? How much OT is expected for a EE in organization/BU/Function/Country?

Expanding from Initial Request Predict Talent Acquisition/Pipeline Who is in the pipeline? Where is the candidate in the process? What are their capabilities? What is candidate availability? What is the time to fill a requisition? What is the time to fill a vacancy by role/country? Time to start by organization/BU/Function/Country? How many open requisitions are there, by manager, department, BU? What is the current status of the requisitions? Where are the best sources of talent? What is the acceptance rate by organization/BU/Function/Country? What is the cost to hire by organization/BU/Function/Country? What are the implications of the Business Strategy for changes in the key competencies of the workforce? What is the current status of critical roles and how will they change in the next 3 years? Where will the workforce of the future be located? Analysis of "ease of doing business", pharma trends, good clinical resources results? What are the cost implications of changes in the workforce over the next 3 years? More easily understand trends/merge history from various databases How do we merge data that is in different formats to convert/compare in various database? Minimize Turnover of Critical Resources Where is Turnover in organization/BU/Function/Country? By title, unit, location, supervisor? Who are we losing by BU, region, department, position, title, supervisor, demographic? How many critical resources/regrettable departures? How many EE/hires are we losing in a year? What are the key reasons for turnover by exit surveys by organization/BU/Function/Country? What are the key target to lower turnover rates? How can we compare historic turnover? What are the predictors of turnover? Employee Engagement results?


• HR Operating Costs – Compare to Benchmarks

• HR Expenditures per Employee – Compare to Benchmarks

• Total FTE Employees per HR Function FTE Employee – Compare to Benchmarks


HR Management Metrics

• Training and Development Metrics – Expenditure per FTE – Expenditure per employee – Expenditure as % of payroll w/o benefits – Outside payment as % of expenditure – Percentage of employees trained – Percentage of training via classroom – Percentage employees meeting required training/SOPs – Training hours per employee

• Training Cost-control Tactic – Perform training needs assessment – Use e-learning as primary deliver mechanism – Develop training business plan and budget – Insource most training functions or programs – Partner with line managers for training – Outsource certain training functions or programs for executive levels – Increase use of coaching and mentoring for high potentials


Training and Development Metrics

Building Strategic HR Metrics at INC Research

Strategic metrics are used to measure INC Research’s progress towards its strategic goals and, ideally, act as an input to speed goal attainment.

Factual information in a raw or unorganized form used as a basis for reasoning or calculation.

Data

Measurement used to transform data from two or more sources into information.

Metrics

A methodical application of logic to organizational data in order to discover underlying truths.

Analytics

e.g. the number of Directors who can occupy a VP positions in Oncology business unit in the next six months

e.g. the span of control of CTL’s in CNS versus their counterparts in Oncology

e.g. the impact of span of control for CTL’s on retention / voluntary turnover

So, what are strategic metrics?

Why? The nature of the goal the metric is measuring determines whether the metric is strategic or not


• Retention/turnover metrics • Recruitment metrics (see following slide)

• Talent Management metrics (see following slide)

• Engagement metrics • Demographics • Compensation metrics

– Labor costs per FTE – Benefits as a % of Total Compensation

• Productivity metrics – EBITDA per FTE – Revenue per FTE

• Learning & development metrics – Program completion rate per learning plan/job/role

• Billable workforce metrics – Billable time, CRA onsite visits, etc.


Types of INC Research HR Metrics

• Time to fill – Number of days from the opening of the Requisition until Offer

Acceptance

Pilot Metrics: • New Hire Yield

– Offers Accepted / Offers Extended

• Right Fit/Quality of Hire – Terminations within 1st 90 days /Total New Hires within same time

period

• Time to Start – Number of days from the opening of the Requisition until Employee’s

First Day of Employment

• Recruiting Costs – Average Cost per Hire • Staffing Expense - as a percent of HR Operating Expense


Recruiting – Metrics

• Internal accession rate – Number of key positions filled by internal High Potentials

• Number of High Potentials retention rate – Number of identified high potentials in 2013 remaining with the

company in 2014

– Number of identified high potentials promoted during 2013

• Number of positions filled by internal candidates – Number of positions filled by internal candidates/total

positions filled in 2013


Talent management - Metrics

• BENEFITS/COMPENSATION add to Base Salary – Direct deposit

– Payroll deductions (e.g., FSA, 401K) • Percent of participation / Total assets / Discrimination testing / Audits

– Defined contribution retirement plan 401(k) or global equivalence where appropriate

– Management incentive bonus plan

– Key role incentive bonus plan (CRA’s, Project Managers, Business & Alliance Development)

– Full flexible benefits plan

– Transit subsidy (where applicable)

– Company provided laptop computers/cellphone

– Reward & recognition programs • Increase use of program/recognition vehicles


Benefit/Compensation Metrics

• US Benefit metrics (competitive analysis/industry benchmarks) – Health insurance coverage

– Prescription drug coverage

– Life insurance

– Dental insurance

– Vision insurance

– Medical flexible spending account (FSA)

– Dependent Care flexible spending account (FSA)

– Employee Assistance Program (EAP)

– Employee wellness programs (Health fairs, free flu shots)

– Health Screening programs

– Well-baby programs

– Family leave above FMLA required leave

– Domestic partner benefits (same & opposite-sex)

– Employee online discount program


Benefit Metrics

• Global Benefit metrics (competitive analysis/industry benchmarks) – Paid Holidays – Paid Jury Duty – Paid bereavement leave – Floating holidays – Flextime – Part-time – Telecommuting

• Benefit Cost-Control Tactics – Monitor co-pays/deductibles – Monitor cost sharing by employees – Monitor worker compensation claims/prevention – Carve-out prescription drug program with a mail-order prescription drug program – Enhance voluntary benefit program – Self insure one or more benefit programs – Automate functions – online enrollment


Benefit Metrics

Remember: the purpose of measurement is to ultimately provide a solution to a real business issue. Measurement is not an end result.

• Define “success” in terms of clear business issues that you are trying to solve. Connect back to strategic business plan. – Reduce turnover of key positions, for example

• Benchmark against peers (obtain an external view of your analyses) – Salary surveys/other HR benchmarking surveys PWC-Saratoga Institute,

SHRM, IOMA, Towers-Watson, etc.)

• Get good clean data – Ensure that the HR data is current, accurate and well defined.

– Indicate date stamping when pulling the data to be able to compare with other functions pulling similar analyses, for example, Finance.


How to Measure Workforce Planning Success?



The Key question to be addressed:

Do we have the talent to meet our strategic goals?

Workforce Planning that is driven by actionable metrics can lead to a competitive advantage

rooted in a thorough knowledge of your business strategy,

where your workforce is & where it is headed.

Presenter

Presentation Notes

The integration of talent and business strategy #1 initiative in place among all of the 250 organizations survey in a recent Analytics in Action study by the Aberdeen Group

Documents

Developing Metrics Around Workforce Planning - IQPC