HR AnalyticsThe Key to Calculating ROI

Presented by:Diane Tuccito, SPHR, CCP, GRP

Director, HR SolutionsKinetix LLC

Session Agenda

HR Measurements

HR Metrics

HR Analytics

Benchmark Data

Calculating ROI

What is a HR Measurement?

Measurement Definition

The term measurement can also be used to refer to a specific result obtained from the measurement process.

Wikipedia

Measurement Pros and Cons

Pro’s

• Point of Reference

• Information• Identifies

Changes

Con’s

• Artificial Success• Distraction• Valueless without

alignment to goals

What is a HR Metric?

HR Metric Definition

A business metric is any type of measurement used to gauge some quantifiable component of a company's performance.

SearchCRM

HR Metric

Stakeholders Needs

Develop Measures

Set Success Targets

Measurement Inversion

Measure what’s easy•Even if low in value

Avoid what is hard to measures•Even if it adds greater value

What is a HR Analytic?

HR Analytic Definition

How an entity arrives at an optimal or realistic decision based on existing data.

Wikipedia

Applying HR Analytics

Trend Projections

Probability Modeling

Applying HR Analytics

Trend Projections

Probability Modeling

Decision

What is Benchmark Data?

Benchmark Data Definition

Standard, or a set of standards, used as a point of reference for evaluating performance or level of quality.

Business Dictionary

Benchmark Data Sources

External

• Industry• Profession

Internal

•Management• Shareholders

Legal

• Federal• Local

What is ROI?

ROI Definition

A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments.

Investopedia

ROI Formula

Gains - CostCost

ROI =

Calculating ROI

HR Measurements/

Metrics

HR Analytics

ROI

Training ROI Example

Reorganization ROI Example

Compliance ROI Example

Compliance ROI Example