The Power of HR Metrics & Analytics
- 1. MOHAMMED GHOUSUDDIN SENIOR HR GENERALIST HR METRICS & ANALYTICS PRESENTATION ON DECEMBER 10 2015 @ MAJESTIC AARJAN BY ROTANA - BAHRAIN.
- 2. HR METRICS & ANALYTICS How many of us have experienced this situation? We work on it day in and day out and many a times we run around to complete the reports on time don’t we? And many of us hate it I used to before. How do we overcome this am sure many of you have very smart and systematic process in place I would love to learn from you.
- 3. An introduction to HR METRICS AND ANALYTICS Human resources (HR) metrics and workforce analytics have become a hot topic in organizations of all sizes. Interest is rising, and organizations are reaching out to learn more about metrics and analytics and how they can use them to improve organizational effectiveness. What is HR Metrics & Analytics? Metrics are Informational Metrics focus on counting, tracking and presenting past data derived from (for example): web visits, volume of candidate applications, how many (and what kind of) recruitment campaigns were done in a year and other “low value” data gathering. HR metrics is like a cake for any HR person, everything starts and end with metrics, and this is the element which helps organization to take major decisions am I right? Analytics are Strategic Analytics is cream of the cake, without cream there is no value to the cake, same way without proper analytics and actions no value for metrics / reports. Many of us fail to analyze and action on our metrics/reports, it is very important we get the basics of analytics in place with an action plan to execute it.
- 4. The Main Objective (a) Ask them (i.e. Different Stake Holders) what information they need. The other important aspect we need to keep in mind is ask our stake holders what they want and what they think about our metrics, is there any room for improvement? Remember our employees are much smarter than us and we should listen to their inputs the best way to work together and improve gradually. (b) use the HR metrics information included in existing reports, or Any new requirements or update can be integrated with our existing metrics, here our IT department will be our supporting tool. We have to ensure we work with IT department and push them to help us, many manual things can avoided with their help. (c) even acknowledge receipt of the reports. These perceptions represent a fundamental problem in the approach organizations take toward the utilization of metrics and analytics. Have regular engagement with all stake holders and keep them always in the loop, create a culture of learning from each other which will change the way people look at HR and our metrics.
- 5. Data Discipline How to be more scientific and bring rigor to your data collection processes What are the proper methodologies for : Inputting, Checking, Approving, Auditing, and Visualizing data. It is very important we first make ourselves clear what is expected out of our Metrics / Reports and what we want to achieve out of it, do proper ground work and ensure above things are followed whole heartedly then automatically everything will fall in place. Source: HRMS World
- 6. 5 Phases of the HR Analytics Journey The journey to HR Analytics has been a long one for HR, with most companies just starting. Below are the phases of a typical analytics journey: After the above steps which is our base for any HR Metrics / Reports and once we finalize on the initial checks and scrutiny, need to give it a proper form, and follow it like a journey like the one given in next slide, to reach every destination there is journey and if it is done properly following the rules and norms we will reach the destination safely, and if we break the rules and norms still we reach the destination but with hurting ourselves, same thing goes here if we do not follow the rules and norms our metrics will also reach the destination in the same damaged condition and then the attention will be more on the gaps /loop holes of our metrics rather then what we want to show to our Management.
- 8. The logic is the same regardless of what HR metrics you will use like pay, training, hiring… metrics. Use the simple approach Again the logic is same and the route is simple do not complicate it, which we do many a times we complicate ourselves and forgot to do our ground work and jump to conclusions and expect big results, which will never happen. Please make the process as simple as you can.
- 9. What makes a Good HR Dashboard? 1. Narrow down what you measure. Have different categories what we measure and be specific this will allow us to get to the roots and meet the expectations 2. Only measure meaningful data. For E.g. We do exit interviews and majority of common reasons we come across are (Better Career Prospects, Growth, Personal Reasons, family etc.) How do we measure this ? it will not help us , ask employees to be specific. When we measure this it will have some meaning to it and help us to analyze the reports and take appropriate actions. 3. Dive deeper. Don’t show only rosy pictures of metrics /reports. Show your data/numbers and If something went wrong, get to the root cause, analyze it and dig out the details the only way to help ourselves and come up with action plan not overcome such concerns in future.
- 10. 0 20 40 60 80 100 120 2000 2001 2002 2003 2004 2005 2006 2007 2008 Number of Employees by Year 0 5 10 15 20 <$30,000 $30,000-$40,000 $40,000-$50,000 $50,000-$60,000 $60,000-$70,000 $70,000-$80,000 $80,000-$90,000 $90,000-… >$100,000 Number of Employees by Salary 0 5 10 15 Accounting Administration Customer… Finance Human… IT Marketing R&D Sales Headcount $0 $500,000 $1,000,000 $1,500,000 Accounting Administration Customer… Finance Human… IT Marketing R&D Sales Payroll Breakdown Salary Bonus Overtime A Sample of simple reports, do not complicate the reports and show rosy pictures. What matters is the data/numbers and analysis….
- 11. People fuel your company’s success. Is your tank full or empty ? HR leaders know that to be strategic partners within their organizations, they must be able to define, measure, and act upon the workforce factors that influence business results. The HR Dashboard, a survey tool and action planning process that measures Eleven Factors that drive our employees to work hard to help the company succeed. The HR Dashboard is based on the latest research about the relationship of employee attitudes and behaviors to business results. It provides a roadmap to increase the effectiveness of your workforce. Source : WFD Consulting
- 12. Company Leadership Manager Effectiveness Flexibility & Control Over Work Compensation & Benefit Career Advancement Work Life Support Teamwork & Quality Diversity Inclusion & Participation Communication Employee Commitment Employee Resilience Productivity Innovation Quality Products & Services Employee Retention Health Care Cost Absenteeism
- 13. Company Leadership: Very important we convey our message clearly to our management and again need to ensure they get it right. What we need is bring our leadership team under one umbrella and train them, they also needs training on regular basis as others. A person will not became leader just because of his/her designation and the title on Business Cards. A true Leader is a person with whom everyone enjoys working with and talk about him/her about the qualities he/she have and look at them as their Mentors / Leaders etc…. Manager Effectiveness: Another important factor, rather all these eleven factors are interrelated and goes hand in hand, if we miss anyone out it, then we as an HR are not doing our job. It is not easy but yes that’s why HR is for to ensure these tools work with each other for each other’s success. Very important we train managers too on the process/ policies/ systems, don’t we get to hear often from managers saying oh is there something like this in our policy I don’t know about it etc etc. Who will close these gaps we the HR,. Have regular engagements with department managers and this will show the effect on employee attitudes and behaviors. Flexibility & Control Over Work: Another point to keep in mind , need to ask ourselves are we aligning these two things properly, bring in different solutions work from home, flexible timing, sabbatical leaves for everyone, not only for women after maternity leaves but for men to take care of family, child education, child marriage etc etc and bring in the fare policies on control over work, it is often seen we overlook this, it’s time we need to think about it as this all connected to our employees attitude and behavior’s and directly effects on organization success and not to forget our HR metrics
- 14. Comp & Ben: How are we practicing this in our organization, very sensitive and it directly hits the organizations growth and can became a roadblock for the failure. How do we manage it? Bring in Fare Comp & Ben practices, equal distribution, no biasness, no egoism, no favourism and need to have the regular market updates and keep ourselves with the knowledge of latest trends and practices, Have you through analysis on Comp & Ben Metrics/Reports and have regular engagement with employees and department managers, which we restrict to yearly communication and this will be only one way communication, everything is decided and we just meet to inform the employee this is what you get this time and then excuses. Career Advancement: The reason why people leave, no growth no clear career roadmap, how do we ensure we get to the root cause of it? Remember we will be losing the best talent in the industry only for one reason that we do not have clear vision on our own employee’s growth. Work Life Support: This is again directly related to the above point on Flexibility and control over work, but here the importance is more towards sabbatical for example, and when employee needs his/her organization support to overcome personal issues how far we can go to support him/her. It’s more about bringing the culture, the culture of belongingness. Teamwork & Quality: One more point, we talk about it almost everywhere about team work, we as an HR need to ensure this culture of working together and working for each other should be the part of each team. Many times it happens, have we not faced it? Especially with teams who operates from different locations, we don’t gel together and end up messing things. Very important to work together and with passion for quality not quantity
- 15. Diversity & Inclusion & Participation: No need to talk about it, we know the reality, we as an HR need to ensure we respect this and keep ourselves free from any biasness, which we often see this across each and every department in every organization, which will also directly shows its effect on other people within the organization. Communication: I believe this is the most and very important tool, which will separate us from others. Communicate, communicate and communicate even if it is small information, many organization fails here because lack of proper communication and engagement. And as said before many of us communicate only at the time of appraisal and that too one way communication. We don’t want to hear what others want to communicate back to us. So please keep this tool alive always and then we will see its results too All these factors plays very important role for any HR and employees attitude and behavior which is directly connected to the organization success and it does effects our HR METRICS AND ANALYSIS, which many of us fail to do it, who are doing it they know how critical our METRICS & ANALYSIS are, and this is the only things where we get hit. We all work hard, sometimes or many a times restless work and if that is not reflected in our metrics and we won’t analyze properly it then there is no point of any such HR Metrics & Reports.
- 16. THE HR DASHBOARD – LINKING EMPLOYEE BEHAVIOURS TO BUSINESS RESULTS The HR Dashboard goes beyond measuring employee satisfaction to connect attitudes and behaviors to business results. Action Driver: Our instrument is constructed not just to collect data, but to drive an action plan to improve the behavioral outcomes that are tied to organizational success. Change Sensitive: The HR Dashboard- measures how changes in the business and in human resources strategy direct employee performance. Technologically Advanced: How are we utilizing the benefit of this tool to evaluate the links between the attitudes and behaviors of today’s diverse workforce and business results.
- 17. FEEDBACK Very Important and crucial to reach the success for any individual and organization. We HR people do this exercise through surveys and many of us don’t do anything after we receive the feedback another factor is very few people will reply to these surveys which we can’t deny the fact and who respond out of them very few provide honest feedback rest will complete it for the sake of completing or because it is mandate to participate which will be as per our compliance team message to the employees. Dear Friends does this surveys really helps and what we do about it we need to ask ourselves? Come out of this routine and talk to people, have town hall meetings just to listen what your employees has to say about the HR function. Ask for their suggestions, meet employees offline over lunch, coffee come with different ideas to reach employees and listen to them, this will change the perception of people towards HR. Then again go back to basics as shown below, which will surely help everyone to improve and work together to achieve he common goal.
- 19. Top 3 HR Analytics Trends for 2015 HR analytics have probably featured in the ‘top HR tech trends’ lists for the past few years. But this year, there’s a new perspective available on how organization's use their HR data; and let’s face it, analytics are all about the data Trend #1 – Direct Access by Managers. Trend #2 – More Data Sources. Trend #3 – More Categories of HR metrics. We need to ask ourselves, how are we following the latest trends and practices, if we are doing we are doing fare judgment to ourselves and our HR profession. If not we need to pull our sleeves and do this practice without any more delays. Else sooner or later we will loose our credibility and same time our organization brand image gets spoiled. My dear friends, this is the time we have to raise ourselves to the next level , we know many of us are seen as admin wing in ME region, because we are showing our admin activities to everyone out there in our organizations, we have to change the perception of people who look at as admin, am sure many of us follow the news, now everywhere in middle east rather in the entire world all eyes are on Middle East HR and their strategies, it’s time we get into the shoes of a strategic partner and work together with our organization to achieve the common goal of success. Remember we are the backbone for every organization weather to make it or break it Now it’s on our hands what we want to do …………
- 20. Feedback and Suggestion’s are Welcome, lets keep the learning curve alive and be the change….