Strategic HR: Practically Speaking Scorecards and Dashboards

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2 Strategic HR: Practically Speaking Scorecards and Dashboards 2

3 Meet today s speaker Vice President of Strategy, Ceridian HCM (@ceridian) 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

4 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

5 Growth What s expected of you 60% of a company s dollars on average are people expenses Efficiency 5

6 Are We Strategic Enough 55% 71% 6

7 Are We Strategic Enough 55% of us believe that HR has gotten more Strategic since % of companies state that the most critical skill for HR is the ability to link HCM efforts to business goals ~ Aberdeen Group, January

8 The challenges HR faces Burden of everyday administration 8

9 The challenges HR faces Lack of buy-in from executives Burden of everyday administration 9

10 The challenges HR faces Lack of buy-in from executives Burden of everyday administration Lack of follow through from managers 10

11 Top HCM investment priorities 11 Source: Aberdeen Group, January2013

12 Top HCM investment priorities 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

13 13 Data Drives Objectivity

14 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 ( ) 14 14

15 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

16 Let s Get to Work By keeping it SIMPLE! 16

17 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

18 Five Part Scorecard 1. Talent Acquisition 2. Talent Development 3. Performance Management 4. Culture 5. HR Service Delivery 18 18

19 1. Talent Acquisition Objectives 1. Increase the percentage of active open positions filled within a targeted deadline of 60 days. 2. Maintain the employee retention rate (less company-initiated transitions) above 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. 4. Cost per hire (Including advertising agency fees, employee referrals, travel cost of applicants and staff, relocation costs, recruiter pay and benefits). Baseline 1st Year 3rd Year XX 65% 85% XX 75% 75% XX 80% 90% XX XX XX 5. Vacancy rate XX XX XX 19

20 2. Talent Development Objectives 1. Increase the percent of employees who accomplish all of their development targets annually. 2. Increase the percent of employees who indicate satisfaction or high satisfaction with their development opportunities as measured by annual employee survey. 3. Staff training (% of staff completing new hire training within 90 days of hire). 4. Internal promotions (% of open roles filled internally). 5. Professional development (% of staff utilizing tuition reimbursement program). Baseline 1st Year 3rd Year XX 50% 75% XX 60% 80% XX 90% 100% 30% 40% 50% 12% 20% 25% 20

21 3. Performance Management Objectives 1. Increase the percentage of employees for whom performance reviews have been completed and documented by the target date. 2. Increase the percentage of employees who achieve at least 80% of their annual performance targets. 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. Baseline 1st Year 3rd Year XX 90% 100% XX 70% 90% XX 75% 90% 21

22 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. 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 80% 90% XX 65% 75% 3. Absence rate (# of days absent in month). XX XX XX 22

23 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

24 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

25 Second Exercise Excel YAY!! 25

26 ACTION PLAN me for the templates 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

27 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

28 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 29 Let s start NOW!

30 Questions? Find me on LinkedIn 30

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