Introducing HR Measurement and Reporting

1
Introducing HR Measurement and Reporting Ensuring
Executive Alignment and Understanding
2
Critical Question
Why would we want to measure human resourceswhat
value does it add?
3
Re-aligning the HR Contribution

• Enhance CEO/senior executive team understanding

• Demonstrate the opportunity available

• Re-align our thinking and contribution

Key performance indicators and detailed reporting
4
How CEOs and senior executives often view HR

• Business partners

• Change agents

• Administrative specialists

• Employee advocates

David Ulrich HR Champions The Next Agenda for
Adding Value Delivering Results, 1996
5
How HR wants to be viewed

• Business partners

• Change agents

• Administrative specialists

• Employee advocates

David Ulrich HR Champions The Next Agenda for
Adding Value Delivering Results, 1996
6
How HR wants to be viewed

• Business partners

• Change agents

Missed opportunity!

• Administrative specialists

• Employee advocates

David Ulrich HR Champions The Next Agenda for
Adding Value Delivering Results, 1996
7
Stages in Human Resources functional development
COMPETITIVE ADVANTAGE (Consolidation)

• Total line manager accountability
• Internal consultants
• Add value
• Integral to company success
• Long term vision and strategy

BUSINESS PARTNERS (Integrated)

• Integral contribution to business plan
• Strong influence on other departments
• Member of top team
• Quality systems and processes
• Service management
• Intellectual capital/knowledge management
• Workforce empowerment and teams
• Return on investment
• Cost/benefit analysis
• Comprehensive database

PROACTIVE (Rapid growth)

• Customer/needs focused
• Pro-active/improvement
• Management development
• Leadership training
• Succession planning
• Workforce planning
• Performance management
• Workforce productivity

INTERNAL POLICE (Emerging)

• Policies and manuals
• Controls headcount, hiring, restructuring,
  travel, relocation
• Reporting systems budgets
• Basic measures turnover, absenteeism
• Technical and skills training
• IR disputes, grievances
• OHS procedures

KIND HEARTS (Lending Support)

• Cafeteria
• Car park
• Security
• Gymnasium
• Social club
• Christmas party

BASIC NEEDS

• Recruitment
• Induction
• Payroll
• Admin/Records
• Leave

8
Human Resources transformation
individual employees
Service to
stockholders
regulatory authorities
Service to
CEO
workplace policies
Creation of
business performance tools
workplace stability
Guardian of
core competencies
workforce administrator
finance officer for human capital
Chief
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The global marketplace
Squeeze on margins
Emphasis on product innovation
Tighter cost control
Price sensitivity
Shorter lead times
Enhanced customer service
Workforce contribution?
10
Organisational critical success factors
Product quality
Staff capability
Competitive price
Product innovation
Cost of labour
Excellence in customer service
Workforce contribution?
11
CEO/senior executive team recognition...
To capitalise on workforce potential
12
The Human Resources contribution...
To optimise workforce performance
13
Search for the Holy Grail of HR management
?
14
Dilberts version of HRM!
15
HR perspective organisational contribution
Productivity
Capability
Satisfaction
Wellbeing
16
HR perspective organisational contribution
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HR perspective organisational contribution
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HR perspective organisational contribution
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HR perspective organisational contribution
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CEO/senior executive perspective ownership of
workforce issues
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HR perspective senior executive team
accountabilities
Senior executive team
Budget centres
Hiring and firing
Organisational charts
Pay and promotions
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HR perspective ownership of workforce issues
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Human Resources Key Performance Indicators
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HR Key performance indicators
Objectives and purpose

• To highlight to the senior executive team
• areas where the organisation is performing well
• areas where intervention is required

25
HR key performance indicators
Key principles

• One page, once per month
• Measuring organisational performance, not that of
  the HR Department
• Must be big ticket items (business-linked)
• Must be user friendly and easy to understand
• Supported by detailed tables and/or graphs

26
HR key performance indicators
Key principles (continued)

• Contain credible/reliable information (start off
  slowly...be willing to amend/change)
• Progressively introduce agreed targets (internal,
  then external)
• Must become institutionalised within the senior
  management team
• HR team must be fully conversant

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Example KPI report
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Example KPI report (continued)
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Example KPI report (continued)
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Example KPI report (continued)
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Example headcount report
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Example workforce utilisation report
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Example workforce turnover report
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Example workforce absenteeism report
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