hr technology tools - accordant company...•hr technology can drive business results. •leverage...
TRANSCRIPT
LeveragingHR Technology(For Competitive Advantage)
Objectives
1. Why is HR Tech a Business Imperative?
– Important Terminology
2. Learn How to Leverage HR Technology
– Six Steps
3. Examples
– Increased Efficiencies
– HR Metrics and Analytics
– Dashboards
Who Is This Guy?
HR Strategist
HR/Payroll Systems Expert
Trusted Advisor
Social Media Advocate
Self-Professed Geek
Early Adopter
Terminology – HR Technology• Acronym Soup
• SHRM
– Core Discipline
• David Ulrich, University of Michigan
– Primary HR Competency Domain
Terminology - Big Data
• Business Buzzword
– Voluminous amount of structured and unstructured data.
– Mined for information
• Big Data Analytics
– Uncover patterns
– Find trends
– Unknown correlations
Terms - Metrics vs. Analytics
• Metrics
– Measurements
– Track Activity
• Analytics
– Examine Effect of Metrics
– Look for Patterns, Similarities
– Become Predictive
HR Analytics
• Data Decisions
• Metrics
– Dashboards
• Analytics
Knowledge
Information
Data
Stages of Analytics
ReportingWhat happened?
Predictive AnalyticsWhat can happen?
Analysis/MonitoringWhy did it happen? What
is happening now?
Complexity
Bu
sin
ess V
alu
e
Why Is This Important?
• Labor Costs Increasing
• Multi-Generational Workforce
• Growing Contingent Workforce
• Time to Fill Longer
• Voluntary Turnover Higher
• Growing Impact of Intangible Assets
Why Is This Important?
• Voluntary Turnover Higher
– 80% of employees expect to stay with employer in the next year, however…
– 31% not satisfied with their jobs
– 65% actively or passively looking for new work
• Why?
– Lack of career progress
– Fair/poor training/development programs
– Lack of job challenges
Why Is This Important?
• Intangible Asset
– Asset that is not physical in nature
– Intellectual Property
• Copyrights
• Patents
– “Non-Ownable”
• Company Culture
• Knowledge
• People
Why Is This Important?
• Rising Importance
– Market Valuation
– Drive Competitive Advantage
• Impact organization’s effectiveness
• Impact costs, revenues
• Impact customer satisfaction
– Affect Bottom Line
– Maintain Strategy
Leveraging HR Technology
Six Steps to Leveraging HR Technology
Six Steps to Leverage HR Tech
ONE: Reduce ‘Social Work’ Activities
• Utilize Technology to Alleviate:
– Employee Self Service
– Automated Forms and Workflow
– Business Alerts
– Automated Reporting
• Use as Opportunity to Change HR
Employee Self Service
Self Service Workflow
Surveys/Reviews
Automated Alerts/Exports
Six Steps to Leverage HR Tech
TWO: Serve the Business
• Human Capital Management Plan
– Understand Mission, Vision, Goals, Objectives
• HR Goals Corporate Goals
• HR Metrics Business Decisions
• Correlate Human Capital to Business Performance
Six Steps to Leverage HR Tech
• Long-Term
• Big Picture Thinking
• Company Goals/Objectives
• Value/Outcome Focused
TWO: Serve the Business
HR Technology Efficiencies
Reduce Administrative Burden
Better Reports/Distribution
Better Compliance
Better Talent Management
Improved Labor Relations
Efficiency
Analytics – HR Opportunities
Organizational
Strategic Planning
Bottom Line Impact of
HR Best Practices
Empower Managers to
Make Better Decisions
HR & Corporate
Strategy Alignment
Be More Strategic!
Six Steps to Leverage HR Tech
• Speak the Language of Business
– What are CxO’s concerns?
– What are priorities?
• Understand Talent
– Its impact
– Its worth
• Integrate Data with Other Systems
Six Steps to Leverage HR TechCorporate Objective Aligned HR Goals
• Increase EE engagement• Provide training to employees• Speed up onboarding process
• Strategic compensation• Retention of top performers• Performance management
• Increase EE retention• Manage benefit costs
• Better Reporting• Assessment
• Increase Productivity
• Improve Competitiveness
• Reduce Costs
• Risk Mitigation
TWO: Serve the Business
Six Steps to Leverage HR Tech
THREE: Measure the Right Things
• Baby Steps
• K.I.S.S.
• Few, But Layered
– Limit and prioritize
• Start With the End in Mind
Six Steps to Leverage HR Tech
• Potential “Right Things”:
– Who are our top performers?
– Is our ratio of top performers vs. all others increasing or decreasing?
– What is the cost of employee turnover?
– Do we have sufficient bench strength in key skills and areas of the organization?
– Is employee engagement increasing?
– Are hiring, development, and retention strategies addressing skills gaps?
Six Steps to Leverage HR Tech
FOUR: Measure Value, Not Activity
• KPI’s
• Scorecards
• Analysis
Training Attendees/Month
Training Effectiveness
Six Steps to Leverage HR Tech
• “So That”…
– Insight on our employees
– Better quality hires
– Better retention
– Boost motivation
– Engagement is increased
– Turnover is reduced
FOUR: Measure Value, Not Activity
Six Steps to Leverage HR Tech
FIVE: Inquiry, Not Intuition
• Get Answers From Metrics
• Bust Myths
• Use Standardized, Accurate Data
• Measure Consistently“... when HR uses fact-based decision making – instead of intuition or best
guesses – the group becomes a more credible partner to the business it
serves. Fact-based decisions help HR improve HCM practices, recruit and
deploy the right talent, cut costs, contribute to business performance and
provide evidence of those contributions.”
- BusinessWeek Research Services
HR Analytics – ExamplesTurnover Ratio
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Turnover
Turnover
Six Steps to Leverage HR Tech
SIX: This is a Process, Not a Project
• Continuous Review
• Ongoing Correlations
• Incorporate Dashboards, etc.20%
Analyzing data
80%
Capturing, aggregating, manipulating data
80%
Analyzing data
20%
Capturing data
Measurements to Leverage
Recruitment
• External Hire Rate
• Rehire Rate
• Applicant Ratio
• Offer Rate
• Cost Per Hire
• Time to Fill
• Yield Ratio
Retention
• Turnover Ratio
• Termination Cost
• Top Performer Loss
• Retention Rate
• Termination by Performance
Performance
• Perf Rating by…
• Top Performer Growth Rate
• Manager Quality Index
• Succession Pool Growth Rate
• Training Quality
Measurements to Leverage
Compensation
• Human Capital Cost
• Profit per FTE
• OT per FTE
• Compensation Satisfaction
• Salary/Revenue Increase Ratio
Benefits
• Benefit Cost/EE
• Benefit Total Comp Rate
• Absence Rate
• Benefit Cost as % of Revenue
Workforce
• Staffing by Age
• Span of Control
• Average Tenure
• Intangible Asset Value per FTE
• Promotion Rate
• Retirement Eligibility %
HR Analytics – Examples
• Turnover Modeling
– Predicting future turnover
• Risk Management
– Candidates with higher risk of leaving
– Employees performing below standard
• Talent Forecasting
– Predict which new hires are likely to become top performers
Sample Dashboard
Sample Dashboard
Sample Dashboard
In Summary
• HR Technology can drive business results.
• Leverage HR technology, such as ESS and automated reporting, to increase efficiencies.
• Build metrics and strategies with the business in mind.
• Measure value.
• Leverage analytics to predict future trends.