1. HR Metrics That Matter Ward Christman Senior Consultant

2. What is a Metric? Noun A standard for measuring or evaluating something; basis for assessment Adjective Of or relating to the meter or the metric system

3. Why HR Metrics? HR Metrics is Evolving 1990 Metrics 199520002010 BenchmarkingAnalyticsPrediction Goal: Use metrics to make HR a key asset of the business decision support system.

4. Top Talent Management Impacts on EBITA Money, Money, Money “Top performing talent management organizations posted earnings before interest, taxes and depreciation, and amortization (EBITDA) that are 15% higher than peer companies.”

5. Gartner's Model for Types of Workforce Analytics Solutions

6. Which HR Metrics? Goal: Find metrics that can align talent with business strategy. Example: Workforce Planning Why is it HOT? Increased Focus on Internal Mobility and Promotions Introduction of Career Planning and Career Maps Debut of Predictive Hiring Workforce Planning Internal Mobility Recruiting

7. Tying HR to the business Capital = Assets available for use in the production of further assets Human Capital Management value curve Efficiency Service Loyalty Productivity Performance Retention

8. Who needs to be on the HR Metrics Team? CHRO – champion & caretaker CFO – bottom line CEO – business initiatives CIO – technology ROI CMO – brand influence CSO – top line HRIS and Talent Management team – data hounds

9. What data and what to do with it? Step 1 –Gather metrics being used by C-Suite CFO – EBITA, Profitability, etc. CEO – Customer retention, new market growth etc. Etc. Step 2 –Gather metric data from HR team & others Enlist HRIS and Talent Management team Partner with operations and IT as needed Step 3 –Correlate steps 1 and 2! –Create a dashboard to present & monitor

10. What data and what to do with it? Step 1 - Interviewing C-Suite –Ask what metrics they watch –Probe for leading indicators (vs. lagging) Employee engagement Customer intent to renew or buy again Employee alignment –Ask what they would watch if they could –Ask how they think HR can help

11. Sample Collection Grid CEOCFOCIOCHRO Business Driver #1New businessCost containment ROI on technology Employee performance Business Driver #2Speed to market Shareholder value Security of customer data Retention Business Driver #3Client Retention Business Driver #4Shareholder value Business Driver #5 Business Driver #6 Business Driver #7

12. What data and what to do with it? Step 2 - Gather data & metrics from HR etc. –HRIS and/or Payroll Headcount, turnover/retention, tenure Comp package Peer comparisons –Talent Acquisition System (Recruiting) Cost per hire, Time to Fill, etc. –Talent Management System's) Inventory skills, competencies Performance history (HIPOs), work history Career paths, preferences (relo, FT/PT, etc.) –Other data points related to C-Suite list Employee Satisfaction ratings –Categorize above by job, division etc.

13. Sample Organization Grid CEOCFOCIOCHRO Talent Acquisition (Recruiting) Hire top talent faster Hire for less cost ROI on ATSHire top performers Performance Management Goal attainment Career Development Succession Planning Learning & Development Comp/Rewards & Recognition Benefits

14. What to do with the data? Step 3 – Correlate Steps 1 & 2 –How do I correlate? Use top 10 list as starting point Focus on CEO Look at industry benchmarks and demographics –Make score cards –Make meaningful or don’t do it Enlist experts (inside and outside) Leverage technology –Create a dashboard to present & monitor Use existing tools (Excel, TMS, HRMS, Cognos) Enlist experts like DoubleStar, InfoHRM, etc.