Innovative HR Strategies for Maximizing Business Impact – HR Metrics

M/s Sneha Sankpal

Objectives of the Study

• to understand the meaning of HR Metrics• to highlight various HR measures need to be

considered.• to identify Centers of Excellence for HR Metrics• Case Studies• Future of HR Metrics

Current Scenario

• LPG : Liberalization, Privatization Globalization

• Aggressive Competition

• Technical advancement

• Workforce diversity

• Mergers and Acquisitions

Role of HR Leaders

• Lead the Change

• Find new effective ways to sustain competitive position.

• Design programs which must be aligned with the strategy

• Provide the link between strategy, people and results.

• Must operate as an integrated system.

HR Metrics

“What gets measured, gets managed; What gets managed, gets executed” - Peter Drucker

“ After 30 years studying HR Departments, I have found the largest single difference between a great HR department and an average one, is the extensive use of metrics.” Dr. John Sullivan , HR Metrics the World Class Way

The key indicators in every HR initiative that can be used to measure the impact in terms of ROI

Various Metrics and their descriptions

Metric Types Description

Rate Proportion of one or more parts to a whole of 100% Ratio One number relative to another, often expressed as a reduced fraction

Composition Breakdown of a whole into its parts, showing the number or percentage allocated to each

Index Weighted combination of disparate data into one number relative to a scale or anchor

Volume Number of people or units with a characteristic, or occurrences of an event

Cost Organizational expenses, revenues, profits, or value Time Process cycle time, volume of time invested, or timeliness of events

Quality Performance of people, processes, or systems Satisfaction Participants’ subjective perceptions of a process, program, or

experience

CIPD model of HR Metrics

Important HR Measures for the Development of Metrics

HRMeasures

HR Effectivenes

s

HR Efficiency

HR Impact

HR Centers of Excellence

• Critical Talent Management and Retention: Microsoft UK focuses attention on it’s A list, top 10 percent, performers, regardless of role and level.• Recruiting Effectiveness•  Productivity•  Performance management• Compensation and Pay Equity• Training and Development

Case Studies

• Microsoft started its Indian operations in the year 1990. The headcount at Microsoft India Development Center (MSIDC) at Hyderabad grew from 20 in 1998 to more than 1,500 by the end of 2008, making it the company's second biggest development center in the world. The company used HR metrics to build accountability of the HR function toward business success along with Talent management and employee retention in the Indian IT industry, Managing knowledge workers and their work-life balance and HR metrics and Return on Investment (RoI).

Contd…

• In 3 weeks Oracle was able to predict which top performers were predicted to leave the organization and why - this information is now driving global policy changes in retaining key performers

Proprietary Metrics is the next big thing in the world of Talent Management.

• The idea that you can create a template that will work forever doesn’t happen in any business … There’s some really, really bright people in this business. You can’t do the same thing the same way and be successful for a long period of time. — Billy Beane

• Corporate examples of these proprietary metrics include Google’s “retention metric” for predicting which employees are about to quit and its “hiring success algorithm” for predicting the characteristics that lead to new hire success on the job.

• In a Competitive World, Metrics Must Also Be Continually Improved 

Thank You

Questions????