strategic hr: practically speaking - nhrma conference - saba...•a scorecard is a measurement tool...
TRANSCRIPT
2
Strategic HR: Practically Speaking Scorecards and Dashboards
Meet today’s speaker
Vice President of Strategy, Ceridian HCM (@ceridian)
[email protected] @jaysonsaba
• Human capital management (HCM) analyst for Ceridian
• Previously, led HCM research at Aberdeen Group, and launched
employee benefit self-service tools and retirement management solutions
at Fidelity
• Expert on various HR functions, including workforce management,
benefits administration and recruitment
• Contributor to key industry publications such as The Economist, CIO,
Workforce Management, HR Executive, Talent Management, HRO Today,
and PayTech magazines
• Guest lecturer on HR and HR Technology – University of Massachusetts,
and NYU.
• MBA from the McCallum Graduate School at Bentley University
3
Definition
• A Scorecard is a measurement tool of how well an entity is doing. It comprises
several KPIs/metrics and it often includes more than one area. A Scorecard (as
we will see in today’s example) will have some targets. A Dashboard is a
monitoring tool that shows how a company is performing relative to a
KPI/metric at any given time.
• SHRM Foundation “Transforming HR Through Technology” (Johnson, Gueutal):
An HR dashboard provides high level, real-time data related to the most
critical measures of HR success. This is done in a visual fashion, similar to the
dashboard on a car. Dashboards allow managers to examine information in
greater levels of specificity, which can help to quickly identify and focus on
potential problem areas. By linking the data on the dashboard to the key
organizational metrics, managers can more effectively see the ties between HR
outcomes and corporate goals.
• However, in every HR organization from the CHRO level down, the terms
have been used interchangeably. And for today’s purposes we will do the
same.
4
What’s expected of you
5
Gro
wth
Effic
ien
cy
60% of a company’s dollars on average are people expenses
Are We Strategic Enough
6
55%
71%
Are We Strategic Enough
7
55% of us believe that HR has gotten more
Strategic since 2012
71% of companies state that the most
critical skill for HR is the ability to link HCM
efforts to business goals
~ Aberdeen Group, January 2013
The challenges HR faces
8
Burden of
everyday
administration
The challenges HR faces
9
Burden of
everyday
administration
Lack of buy-in
from
executives
The challenges HR faces
10
Burden of
everyday
administration
Lack of buy-in
from
executives
Lack of follow
through from
managers
Top HCM investment priorities
11 Source: Aberdeen Group, January2013
11
Top HCM investment priorities
12
BUT, more often than not, we have to:
- Prioritize these initiatives
- Fight to build the business case
- Show the value it brings to the
company
- Get employees and managers to
embrace them
12
Data Drives Objectivity
13
“Our main business is not to see what lies
dimly at a distance but to do what lies
clearly at hand.”
– Thomas Carlyle, Scottish author, essayist & historian (1795 – 1881)
14 14
Impact of workforce scorecards or dashboards
Organizations using scorecards are
2X
as likely to indicate that HCM strategy is
fully aligned with the business strategy
15 15
Let’s Get to Work
By keeping it SIMPLE!
16
Case study 1: Childhood education company
• Provider of Head Start/Early Head Start and other
comprehensive early child programs
• Serves almost 4,000 young children and families
around the country every day.
• Challenges
- Extreme growth: 10x in 4 years
- Manual workflows not scalable
- Disparate processes
17 17
Five Part Scorecard
1. Talent Acquisition
2. Talent Development
3. Performance Management
4. Culture
5. HR Service Delivery
18 18
1. Talent Acquisition
Objectives Baseline 1st
Year 3rd Year
1. Increase the percentage of active open
positions filled within a targeted deadline of
60 days.
XX 65% 85%
2. Maintain the employee retention rate (less
company-initiated transitions) above 75%. XX 75% 75%
3. Increase the percentage of managers with
active positions in the year who indicate
satisfaction or high satisfaction with the HR
hiring support provided, as measured by
survey.
XX 80% 90%
4. Cost per hire (Including advertising agency
fees, employee referrals, travel cost of
applicants and staff, relocation costs,
recruiter pay and benefits).
XX XX XX
5. Vacancy rate XX XX XX
19
2. Talent Development
Objectives Baseline 1st
Year
3rd
Year
1. Increase the percent of employees who
accomplish all of their development targets
annually.
XX 50% 75%
2. Increase the percent of employees who
indicate satisfaction or high satisfaction with
their development opportunities as
measured by annual employee survey.
XX 60% 80%
3. Staff training (% of staff completing new hire
training within 90 days of hire). XX 90% 100%
4. Internal promotions (% of open roles filled
internally). 30% 40% 50%
5. Professional development (% of staff
utilizing tuition reimbursement program). 12% 20% 25%
20
3. Performance Management
Objectives Baseline 1st Year 3rd Year
1. Increase the percentage of employees for
whom performance reviews have been
completed and documented by the target
date.
XX 90% 100%
2. Increase the percentage of employees
who achieve at least 80% of their annual
performance targets.
XX 70% 90%
3. Increase the percentage of managers who
indicate that our compensation and
performance management processes help
align and maximize our people’s
performance with the goals of the
organization.
XX 75% 90%
21
4. Culture
Objectives Baseline 1st
Year 3rd Year
1. Increase the percentage of employees who
indicate that we have a positive work
environment, as measured by staff survey.
XX 80% 90%
2. Increase the percentage of employees who
indicate that the majority of our employees
live the values of our organization, as
measured by staff survey.
XX 65% 75%
3. Absence rate (# of days absent in month). XX XX XX
22
5. HR Service Delivery
Objectives Baseline 1st Year 3rd Year
1. Increase the percent of HR annual
initiatives completed on time and
within budget.
60% 80% 95%
2. Achieve internal customer
satisfaction levels with HR
services at above 85% as
measured by annual survey.
50%
of services
above 85%
65%
of services
above 85%
85%
of services
above 85%
3. Overall revenue factor (revenue
divided by total # of FTE). XX XX XX
23
Case study 2: SC-based Bank
• Regional Bank with 2000 employees
• Serves customers in 190 retail locations
• Divided into 15 regions (“Markets”), each with a HR
Business Partner
• Challenges
- No way for HR to prove its value
- Didn’t have a single source of truth
- No fancy tools to do analytics
24 24
Excel
YAY!!
25
Second Exercise
ACTION PLAN
• Email me for the templates ([email protected])
• Depending on where you are, begin circulating internally
- Tactical – start with the XLS
- Strategic – Use the scorecard
• Use as is, or tweak. When tweaking (not to be confused with twerking)
- Involve senior HR
- Involve HR BPs
• Find the data
- Is it in payroll (most is for the XLS)?
- Do you need finance?
- Do you need HR system (talent, recruiting, etc.)
• Roll it out small: Track internally for a couple of months maybe a quarter
• Give the CEO a glimpse ahead of the next leadership meeting
• HR leader must attend the meeting
- Invite his/herself in not part of the conversation
• Make a big splash calling out the FINANCIAL piece
26
Use Cases
• What do those guys in HR do? I know HR does a lot, but how well are they doing
it?
• Let me show you why HR needs to be part of the leadership team.
• Is HR helping us get the most out of our people? Are they balancing people and
business?
• I need to show that HR is doing all the right things so..
- I can add headcount
- I can get budget for technology investments
• Which teams are doing better? Can others learn from them?
• Employer branding
- We measure our success as a company by how well we engage our people, retain them,
etc…
- We are part of the community – look how many we have hired, etc.
27
Takeaways
• Single source of TRUTH
• Start small and drill down later
• Even if we don’t have the numbers, we can leave blank
• Work with business leadership, the higher the better
• It doesn’t matter how / what we measure as long as:
- Business is bought it
- We measure it consistently
• Measure monthly, report quarterly
• Tie it to a business metric (revenue per employee)
28
29
Let’s
start
NOW!
Questions?
Find me on LinkedIn
Follow us: @Ceridian_us
@jaysonsaba
www.facebook.com/CeridianCorp
30
www.ceridian.com