hr technology tools - accordant company...•hr technology can drive business results. •leverage...

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.

Thank You!

hford@dresserassociates.com

http://www.linkedin.com/in/haroldgfordiii