REMEMBER 10/10/2018. Synopsis. Jim, Jack, Johnny, and Jose,
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3 Synopsis What to include in Jim, Jack, Johnny, and Jose, Attached is a copy of the HR CNR for October. Highlights: Turnover in location 2 is up to 14%; primarily due to 2 employees moving & 3 employees returning to ABC (they laid 50+ ees off last year) Location 6 recruiting costs are high due to headhunter fees. If we use headhunters for our next 5 hires, I am anticipating this # to be $85k+ by YE; we budgeted $50k. We were just granted a $18k training grant for location 1 REMEMBER 3
4 Benefits Compensation Diversity & Inclusion Employee Relations Labor Relations OD & Employee Development Risk Management Talent 4
5 Turnover This # is specific to roles that are meant to be Questions to ask yourself: When is the majority of your turnover occurring: first 90 days, 1 year? Voluntary or Involuntary? Is the majority of your turnover in a specific department or with one supervisor? Absenteeism Rate # of Workdays Lost to Absenteeism or unscheduled absences (# of Work Days x Average # of Employees) Does not include vacation, sick days, holidays Time spent away from work means lost and, which lead to. Ideally, your absenteeism rate should be between %. 5
6 Overtime Hours Worked Questions to ask yourself? Is this normal for our business? If deemed excessive OT: Which are impacted the most? Does it tie in with? Are there specific employees who work an excessive amount of OT? Do we need to fill positions faster? Do our current employees have a? Friends with Benefits Benefits Metrics Participation Rate = (# of employees participating in Plan # of employees eligible for Plan) x 100 Health Insurance Plan Supplemental Plans Retirement plan Average Retirement Plan Contribution Rate 6
7 Benefits Metrics Questions to ask? Do you work closely with your? How many benefits do employees receive? Are the employees benefits well? Overdue Performance Reviews # of performance reviews Present per entity, department, manager Average # of days performance reviews that are # of employees and amount who missed profit sharing contribution due to new year Cost to the company Example: 12 of the 27 employees who left in 2017 cited tardy reviews as a contributing factor to their frustrations with the company Back pay how much additional time does it take payroll to process back pay? Show the cost. 7
8 Revenue per Employee Total Revenue Total # of Employees A measure of how your company is utilizing its employees; typically, intensive companies will have lower revenue per employee ratios Can be especially important when evaluating the cost of a due to voluntary or involuntary turnover Recommend showcasing over several Training & Growth Training Costs # of Employees = Cost per Employee Questions to ask yourself What training opportunities are employees offered? What free trainings are available? over Find out the you use the most and ask if they will offer a training to your employees Are there any available? 8
9 Career Path Total Promotions (Total Transfers + Promotions) Questions to ask yourself How many employees have been transferred YTD? How many employees have been promoted YTD? What is the actual of an employee moving up in your company? What are in place to support growth? Safety & Workers Compensation How many hours has your company gone without a accident? How many hours has your company gone without a accident? What is your? Do your realize that you impact costs and your company s ability to land new? Do you celebrate the? 9
10 Cost per Hire Total Recruiting Costs # of New Employees = Cost per Hire Questions to ask What are your total recruiting costs? What are your sources? Are you thinking outside the box? What are your biggest recruiting challenges (or is )? Additional Metrics: Acceptance Rate = (# of people who reject a job offer # of offers made) x 100 Effectiveness of Recruitment Sources = (# of successful applicants from a source # of applicants from a source) x 100 Time-to-Fill 1. Time to Fill = Total # of Days Job is Available & Unfilled 2. Average Time to Fill = Total # of Days of Open Jobs Total # of Jobs Open Additional Metrics: Time to advertise an open position in all channels Time to identify an acceptable candidate Time to complete all interviews Time to create and extend an offer Time for candidate to accept offer 10
11 Time-to-Fill Questions to ask Are you providing your hiring managers with a realistic to fill their vacant positions? Increasing time to fill can result from ineffective practices to tightening ; what are your biggest struggles? How does your time compare to your of hire? per hire can be calculated, but it is a subjective formula How does your time-to-fill compare with your? HR-to Employee Ratio (# of HR FTEs Total of # Employees) x 100 This # is often calculated incorrectly. It should include HR professionals who work as and those in such areas as benefits, compensation, labor relations. It should not include and & employees 11
12 Other HR Professional Specific Metrics How much are you spending on external headhunters / recruiters? Evaluate your costs and determine if it would be more cost effective to bring someone inhouse? Cost of HR per Employee Per SHRM, the average for all organizations was $ Compa Ratio (Actual Salary Midpoint of the Salary Range) x 100 If compa ratio = 100%, then the individual is being paid what a competent performer would be 5 Compa Ratio Zones (source: Astron Solutions) - % new, inexperienced, or unsatisfactorily-performing incumbents. - % those gaining experience but not yet fully competent in the job. - % fully competent performers performing the job as defined. - % those consistently performing the job at a lever higher than what the job definition requires. - % those universally recognized as outstanding performers, both inside and outside the organization. 12
13 Other Compensation Metrics Average Base Salary Increases Average Bonus per level Employee Group Leader / Assistant Manager Manager Director VP Average increase of employees promoted Diversity & Inclusion Metrics Calculate pre-inclusion & post-inclusion Length of costs Employee Revenue Market 13
14 Metrics. Metrics. Metrics. Break-even Point Return on Investment Offer Acceptance Rate Exit Reasons Rate Required Training Completion Rate Training Participation Rate Billable Hours per Employee New Hire Justification Internal & External Complaints Your Next Steps 1. Understand your 2. Identify what your CEO cares about 3. Create your 4. Set reoccurring monthly notice 5. Be prepared to your metrics Practice safe text, use commas, and never miss a period. 14
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