HR Metrics – Influencing Business

Robin Hall, SPHR HR Manager, K&L Microwave

Purpose of Human Resources

Creating contributions to the overall success of the organization and the attainment of the organization’s most important goals. Reinforce HR’s role as a strategic partner with HR metrics and outcomes and Continuous Improvement Activities

Right Brain vs. Left Brain What are YOU?

 LEFT BRAIN FUNCTIONS  uses logic  detail oriented  facts rule  words and language  reality based math and science  can comprehend  practical  forms strategies  safe  RIGHT BRAIN FUNCTIONS  uses feeling  "big picture" oriented  imagination rules  believes  presents possibilities  symbols and images  fantasy based  Impetuous  risk taking

Left Brain HR Role…

• • • • • • • Recruitment Benefit Administration Compensation Policy & Procedure Recordkeeping Payroll Safety (OSHA/MOSH) All necessary to ensure compliance

Move from

Transactional

to

Transformational

HR – Cop Vs. Partner Power Base Objective Approach Result

Cops Partner

• • criteria.

Keeps control.

• • Offers expertise and competence.

Has the ability to make real business difference.

• • Maintain Control.

Provide consistency.

• provides management with a safety net.

• Pushes human resources work.

• Foster business growth and success.

• Lets management own proposals and be accountable.

• Lets management pull human resources work.

• Offers consultative persuasion.

• HR becomes an easy target.

• HR and management are partners and co-owners of important human resources work.

Human Resources the Caretaker …according to an executive at Yahoo, Sartain says, “we send a strong message to everyone at Yahoo that we can't do anything without HR." It also signals to HR staffers that they're responsible for more than shuffling papers and getting in the way. "We view human resources

as the caretaker of the largest investment of the company,

" Sartain says. "If you're not nurturing that investment and watching it grow, you're not doing your job."

Key Performance Indicators – Tied to Business Business Strategy Organizational Capabilities Human Resource Practice Shareholder Satisfaction Customer Satisfaction Employee Satisfaction

HR Influence

• Recruitment • Productivity • Training • Diversity • Conflict Resolution • Benefits • Safety • Human resources influence establishing productivity, recruiting employees, arranging and carrying out training, and preventing discrimination. HR management also face challenges such as resolving conflicts and keeping workers safe as well as establishing and distributing benefits, encouraging and maintaining diversity. How each business deals with its specific human resources issues depends on the HR department as well as company policy. No matter what approach a business takes, addressing these issues usually is an ongoing process

21 st Century HR Leader Focus on Effectiveness & Efficiency Strategy & Mgmt of HR work

20% 10%

Functional HR work

40% 50%

Administrative HR tasks

50% 30%

Are We There Yet? Strategic Partner

• • •

On-time Delivery

– Impact to Employees

Talent Development

– Skills for the future

Organizational Culture

– Wellness Initiatives – Turnover Rates

• • • • HR Programs Impact Rapid on-boarding – – – OTD Customer Satisfaction Employee Satisfaction – eUse of NPS (employee Net Promoter Score) Wellness Program – – Cost Reduction Strategy OTD Cross-training Leadership Development – – Succession Planning 6-block review

eNet Promoter Score (NPS)

• eNPS is a simple tool to gauge the loyalty and satisfaction of your employees to your company.

– – – Range: -100% to +100% 0%: Company is neutral: equal number of promoters and detractors > 50%: Company is “excellent” – Best in Class

Six Block Potential/Performance Matrix HIGH POTENTIAL

(10-15%) •Exceptionally strong performance •High confidence individual will grow/be promoted •Individual demonstrates significant leadership or functional expertise

STRONG PROFESSIONAL

(20-30%) •Very strong recognized contributor •Some movement possible, but essentially set in function or job type •Functional/subject matter expert •Critical/unique skill, difficult to replace, critical member of team

DEVELOPING

(20-30%) •Growing in current assignment •Needs experience and time to determine future potential •Very strong performer

VALUED CONTRIBUTOR

(20-30%) •Solid performer – does the job •Limited probability of promotion •Valuable member of the team, but not a standout

NEW/UNKNOWN

(0-10%) •New hire/transfer in •Not enough data to judge •Less than one year in position •Should not be in this category for more than one review cycle

CONCERN/ ACTION NEEDED

(3-5%) Performance: •Identified performance related issues •Is or will be placed on a performance plan Situation: •Job fit/Career issues

Human Resource Measures • • • • • Cycle Time (time to fill) PPM Defect Rate – Payroll errors Turn-over Rate (Spirit of the Squirrel) Reward/Recognition (Gift of the Goose) Single point of Failure – – Cross training matrices Retirement • • Average tenure Average Age

Understanding Business and YOUR People • • • The truth? Most human-resources managers aren't particularly interested in, or equipped for, doing business. And in a business, that's sort of a problem. Instead, "business acumen is the single biggest factor that HR professionals in the U.S. lack today," says Anthony J. Rucci, executive vice president at Cardinal Health Inc., a big health care supply distributor. As far as Rucci is concerned, there are three questions that any decent HR person in the world should be able to answer: Who is the company's core customer? • Have you talked to one lately? Do you know what challenges they face? Who is the competition? • What do they do well and not well? Who are we? • What is a realistic assessment of what we do well and not so well vis-à-vis the customer and the competition?"

Summary – Transactional vs. Transformational • • • Understand your business – – General flow Immerse yourself into the business – Know the Customer Walk the Talk – Time on the shop floor – Employee Focus Groups Tie HR Metrics to Corporate Objective – OTD – – PPM Employee/Customer Satisfaction

• Summary – Quick Tips How do we put the emphasis on the “Human” in Human Resources?

– – Wellness • • Lunch-n-Learns (American Cancer Society, Local Financial institutions, etc.) On-site Fitness centers • On-site health screenings Benefit offerings • Voluntary benefits such as: – – – – – Pet Insurance – PetPlan, VPI (typically offer 5% company discount) Supplemental Insurance (Aflac, Colonial, etc.) Long-term care Regal Movie Tickets (employee re-sale) Tuition Reimbursement vs. Educational Assistance

Recommended Reading and/or Resource • • • •

Gung Ho

–

Ken Blanchard & Sheldon Bowles

DiSC profile

The Five Dysfunctions of a Team

– Patrick Lencioni

Roadmap to Strategic HR

– Ralph Christensen