Hr metrics and analytics pj
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The document discusses the importance of HR metrics and analytics in measuring the effectiveness of human capital management. It highlights key metrics such as revenue per employee, turnover rates, and training efficiency, along with the implications of analytics on HR practices. The aim is to foster a data-driven mindset to improve decision-making and align HR functions with business outcomes.
Hr metrics and analytics pj
- 1. HR METRICS AND ANALYTICS What to Measure & Why? By John IBEBUNJO
- 2. We are a consulting outfit established for; Human Capital Management Solutions: Training & Capacity Building Solutions: Monitoring and Evaluation Solutions: Need-based Information Technology: ABOUT TRG & DEV INT’L ASSOCIATES LIMITED Business Development Program Planning Human Capital Management & OD initiatives. Agro-Allied Training Project Management Template Development. Change Management Programs. Situational Analysis/ Needs Analysis Research, Surveys and Data Gathering Strategic (Right-Fit) Recruitment Managing start-ups Strategic Management Retreats Executive coaching for top executives Job Readiness Program
- 3. • Lead Consultant/ Program Director; TRG & DEV Int’l Associates Ltd – a consultancy firm that exists to bridge the knowing - doing – gap in client organizations. • Professional: OD Consultant & Trainer/ Facilitator • SHRM (Certified member) • OD Network (member) • Consultant: HCD, ODP, Change Manager, Program Manager, Strategy & Planning Expert and Monitoring & Evaluation Consultant ABOUT JOHN IBEBUNJO B.TECH., MSC., MBA • Project Lead: Federal Govt. projects, State-wide audit and verification; monitoring & evaluation programs in Nigeria. • Passion: Helping ORG. & Individuals develop and implement STRATEGIC PLANS & Facilitating TRAINING. • Convener: Periodic Training Programs in Abuja. • Experience: 18+ years • Contact: +234-808-689-7719
- 4. INTRODUCTIONS • Your Name • Your Professional Background • Your Role in your org • Something personal about you • Something you did recently that you are proud of • Your Hopes and Aspirations
- 5. RULES OF ENGAGEMENT • Participate to the best of my ability • Be mindful of my use of air-time • Be authentic in my sharing • Be present in mind and body • Respect other views, even if I disagree • Silence all phones • ______________________________ • ______________________________
- 6. SESSION LEARNING GOALS • Introduction to HR Metrics and Analytics; Definitions • Understanding what to measure • Understanding where to focus • Defining People Analytics Mind Map • Using Data to measure various HR functions
- 7. INTRODUCTION • The role of HR – through the management of an organization’s human capital assets – is to impact four principal outcomes: • Generating Revenue, • Minimizing Expenses, • Mitigating risks, and • Executing Strategic Plans.
- 8. 7 HR ANALYTICS: DEFINITION HR Analytics: is a methodology for creating insights on how investments in human capital assets contribute to the success of those four outcomes. This is done by applying statistical methods to integrated HR, talent management, financial, and operational data.
- 9. 7 HR ANALYTICS: DEFINITION HR Analytics: Refers to the interpretation of data patterns by HR that aids decision- making and performance improvements in an organization.
- 10. 7 HR ANALYTICS: DEFINITION HR Analytics: Utilizing investigative techniques to understand the contribution that people make to business performance. To inform and enable data-driven decisions intended to maximize this contribution.
- 11. 7 HR METRICS: DEFINITION HR Metrics: They are different measurements that are used to show the value that the HR function provides to the organization. HR Metrics demonstrate how effective the efforts of the HR department are to the overall success of the organization.
- 12. 7 HR METRICS: DEFINITION HR Metrics. HR metrics are a vital method for quantifying the impact and cost of HR processes and employee programs. It is also a strategy for measuring the progress or collapse of HR actions. HR metrics uncovers a business’s strengths and vulnerabilities HR metrics facilitate an understanding of the areas requiring focus or improvement as well as those ready for capitalization.
- 13. 7 HR METRICS VS HR ANALYTICS: DIFFERENCE HR metrics are a vital way to quantify the cost and the impact of employee programs and HR processes and measure the success (or failure) of HR initiatives. It is also a strategy for measuring the progress or collapse of HR actions. HR metrics uncovers a business’s strengths and vulnerabilities HR metrics facilitate an understanding of the areas requiring focus or improvement as well as those ready for capitalization.
- 14. 8 Metrics Analytics Tangible Intangible Accounting Finance Past Future Data Insights Large Selective Transactional Strategic Information Transformation Low value Differentiator Gathering Asking questions Reporting Analysing HR Scorecard Business Scorecard HR ownership Management ownership Controlling Optimising Inside-in perspective Outside-in perspective
- 15. 9 STAGES OF MATURITY Operational Descriptive Diagnostics Predictive Prescriptive 1 2 3 4 5 People Analytics Adding Value through Insight Providing InformationWorkforce Reporting Project Focus Process Focus
- 16. 9 VALUE ADD HR ANALYTICS Insightful Relevance Actionable Telling your audience something they already did not know About something that matters Which will realistically trigger a meaningful intervention May not attach a significance to – we need to be prepared for the “so what response” Quantity is not our success measure Can they (we) mitigate the risk or maximize the opportunity
- 17. 9 BARRIERSTO HR ANALYTICS Data Quality Technology Metrics Capability Capacity Capacity Capability Technology Executive Support Reporting Foundations To Execute Reporting To Execute Analytics
- 18. 9 HR ANALYTICS: STARTING POINT HR Function & Processes Workforce Issues Business Strategy HR Analytics Strategy
- 19. 9 HR ANALYTICS: MIND MAP HR Function & Processes Workforce Issues Business Strategy HR Analytics Strategy Strategic Workforce Plan People Plan • Staffing • L&D • Performance Mgt + Rewards • Employee Benefits • Attraction • Diversity • Staff turnover (resignations) • Management Challenging Assumptions Workforce Stability v Profit
- 21. WHAT METRICS DOES HR ANALYTICS MEASURE?
- 22. WHAT METRICS DOES HR ANALYTICS MEASURE? Revenue per employee: Obtained by dividing a company’s revenue by the total number of employees in the company. This indicates the average revenue each employee generates. It is a measure of how efficient an organization is at enabling revenue generation through employees. Offer acceptance rate: The number of accepted formal job offers (not verbal) divided by the total number of job offers given in a certain period. A higher rate (above 85%) indicates a good ratio. If it is lower, this data can be used to redefine the company’s talent acquisition strategy. Training efficiency: Obtained from the analysis of multiple data points, such as performance improvement, test scores, and upward transition in employees’ roles in the organization after training.
- 23. WHAT METRICS DOES HR ANALYTICS MEASURE? Training expenses per employee: Revenue Obtained by dividing the total training expense by the total number of employees who received training. Voluntary turnover rate: Voluntary turnover occurs when employees voluntarily choose to leave their jobs. It is calculated by dividing the number of employees who left voluntarily by the total number of employees in the organization. Involuntary turnover rate : When an employee is terminated from their position, it is termed “involuntary.” The rate is calculated by dividing the number of employees who left involuntarily by the total number of employees in the organization.
- 24. WHAT METRICS DOES HR ANALYTICS MEASURE? Time to Fill: The number of days between advertising a job opening and hiring someone to fill that position. Time to Hire: The number of days between approaching a candidate and the candidate’s acceptance of the job offer. Absenteeism: Absenteeism is a productivity metric, which is measured by dividing the number of days missed by the total number of scheduled work days. Absenteeism can offer insights into overall employee health and can also serve as an indicator of employee happiness.
- 25. General Business specific Mission criticalIdiosyncratic Unique but not generally critical to the business Unique and critical to the business Critical to the business but fairly common Common and fairly replaceable to the business ‘Mapping Human Capital Architecture’ Source | Scott Snell HighLow High Uniqueness Types of Human Capital KEY EMPLOYEE SEGMENTS
- 26. IMPLICATIONS OF HR ANALYTICS FOR HR PROFESSION HR analytics will make the HR function more strategic Analytics requires a data-driven mindset for HR professionals The data going into the systems will become more important HR analytics will impact the tools we use People analytics changes HR by busting long-held beliefs
- 27. IMPLICATIONS OF HR ANALYTICS FOR HR PROFESSION 1. HR analytics will make the HR function more strategic: The goal of people analytics is to see how business outcomes can be improved by changing people management practices. People analytics is therefore inherently strategic and data-driven and will, therefore, impact how we attract, hire, evaluate, promote, and fire people.
- 28. IMPLICATIONS OF HR ANALYTICS FOR HR PROFESSION 2. Analytics requires a data-driven mindset for HR professionals: Access to data and analytics changes the role of the HR business partner.Traditionally, the business partner followed the manager’s input.This could involve very operational activities. For example, I’ve spoken to business partners who were asked to create a list of birth dates for the manager to keep track of. Instead of making birthdate lists, they can now proactively look at the data and identify the people problems that the manager is facing.This changes their role and also increases the demand for HR analytics courses and other tools to build analytics capability.
- 29. IMPLICATIONS OF HR ANALYTICS FOR HR PROFESSION 3. The data going into the systems will become more important: HR data is notorious for its data quality.The data going into the systems become increasingly important as it is now used for analysis and forms the basis of informed decision making and action.This requires system administrators to design better systems with a lower risk of errors and makes the administrative roles in the HR department more important. 4. HR analytics will impact the tools we use: This involves measuring how we attract, manage, and promote talent.This will change how we deploy our HR tools as they will have to aggregate data from each step in the talent management model.This will ultimately optimize talent management
- 30. IMPLICATIONS OF HR ANALYTICS FOR HR PROFESSION 5. People analytics changes HR by busting long-held beliefs: For example, a fast- food company that I worked with a few years ago was actively hiring people that had quit the company earlier.They were hiring them because they thought these people would require a shorter onboarding time and would stay longer because they already knew the work. However, after some analysis, the people analytics team discovered that the reason for termination was not checked and that people who were fired for fraudulent behavior were hired again – only to stay a much shorter time than the average hire. By sharing these insights, the recruitment team was able to make better hiring decisions.
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