measuring human resources by maya droeschler 2014
TRANSCRIPT
MEASURING HUMAN RESOURCES GUEST SPEECH BY MAYA DRØSCHLER
University of Southern Denmark
October 2014
INTRODUCTION
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
• There’s no future for HR without strategic & analytical capabilities
INTRODUCTION• Finding the missing link(s) between
• HR strategy and HR practices• Workforce response to HR practices• Overall organizational performance
• The ultimate competitive advantage
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
INTRODUCTION• We have to learn to:
• ask questions• form hypotheses
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
INTRODUCTION
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
INTRODUCTION
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
University of Copenhagen (not that impressive looking, I dare say)
HR experience from large and small organizations
INTRODUCTION• A seat at the table:• HRM is not about people…..
• It’s about business!
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
INTRODUCTION
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
Steen Wung-Sung, Head of HR Intelligence and Platforms, Tryg
‘The prerequisite for measuring HR activities is that HR understands the business. It doesn’t make sense to measure something which is not linked to business strategy & objectives.’
INTRODUCTION
Transformational HR
Analytical
CommercialStrategic
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
AGENDA• The basics – HR metrics• Business problems• Data and intuition• Going from transactional to transformational• Sociometric data and HR Analytics• Case: performance management• Am I the CFO now?
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
THE BASICS – HR METRICS
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
THE BASICS - HR METRICS• TURNOVER RATE• Number of seperations / average number of employees x 100
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
Compensationforce.com 2013
THE BASICS - HR METRICS• REVENUE PER EMPLOYEE• Company revenue / number of employees
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
Forbes.com 2013
THE BASICS – HR METRICS• HR TO STAFF RATIO• Number of employees / Human Resources employees
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
HR Daily Advisor 2013
THE BASICS – HR METRICS • Promotion ratio• Employee absence rate• Average employee age• Recruiting metrics• And so on….
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
BUSINESS PROBLEMS
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
BUSINESS PROBLEMS• Is our boldest ambition to:
• Prove our worth• Document our contribution• Go from cost center to profit center
• Or is it to build a successful business in collaboration with managers, employees, and other stakeholders?
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
INSIDE-OUT?
OUTSIDE-IN!
BUSINESS PROBLEMS• Bad marketing performance = business problem• Bad sales performance = business problem• Bad financial performance = business problem
• Bad HR performance = HR problem?
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
BUSINESS PROBLEMS• BUSINESS PROBLEM:
• Does your marketing campaign work?• Are you able to attract customers to your store?
• BUSINESS PROBLEM:• Do you get return on investment from your talent management
program?• Are you able to attract talent in the first place?
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
BUSINESS PROBLEMS• We can measure:
• The how• The what• The when• The who
• But the most important thing is:• The why
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
CORRELATION IS NOT CAUSALITY
BUSINESS PROBLEMS• If you don’t know the why
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
You suck!
DATA AND INTUITION
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
DATA AND INTUITION• We need data – not just semi-data, but REAL data• We need context data
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
DATA AND INTUITION
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
• Opinions (semi-data) are also important, becuase they tell us something about how people experience reality.
• Have crime rates really gone up?
DATA AND INTUITION
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
@david_green_uk (a most follow on Twitter, BTW)
‘HR is a culture of intuition’
FROM TRANSACTIONAL TO TRANSFORMATIONAL
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
FROM TRANSACTIONAL TO TRANSFORMATIONAL
• The police actually measure our speed – they don’t just feel that we are speeding (if we are)
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
Will speeding ticket profits go down when we all have driverless cars? Will the HR profit center close when robots take over the workforce?
FROM TRANSACTIONAL TO TRANSFORMATIONAL
• What is the most important outcome?• Where is the value?
• Someone gets caught speeding• The ticket is handed over• The financial transaction, the ticket is paid• The police prove their worth• The speeding person changes his or hers behavior and society
becomes a more safe place
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
FROM TRANSACTIONAL TO TRANSFORMATIONAL
• The value is in the answers to the questions:
• What is the value of a more safe society?• What is the value of a performance driven culture?• What is the value of great management practices?
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
FROM TRANSACTIONAL TO TRANSFORMATIONAL
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
Slide courtsey of Luk Smeyers, iNostix
SOCIOMETRIC DATA AND HR ANALYTICS
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
SOCIOMETRIC DATA AND HR ANALYTICS
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
SOCIOMETRIC DATA AND HR ANALYTICS
• Sandy Pentland to Harvard Business Review: We all have an intuition about it. But because we can measure it, social intuition is no longer magic; it’s now quantitative science.
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
The study: Sandy Pentland outfitted executives at a party with devices that recorded data on their social signals—tone of voice, gesticulation, proximity to others, and more. Five days later the same executives presented business plans to a panel of judges in a contest. Without reading or hearing the pitches, Pentland correctly forecast the winners, using only data collected at the party.
METRICS VS. ANALYTICS
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
HR Metrics Predictive HR Analytics
1. Tangible (hard data) 1. Intangible (likelihood)
2. Accounting (100 % correctness) 2. Probability (never 100%)
3. Backward-looking 3. Forward-looking
4. Data 4. Insights
5. Comprehensive 5. Selective
6. Transactional 6. Strategic
7. Information 7. Transformation
8. Low addition of value 8. Differentiator
9. Tracking 9. Asking questions
10. Reporting 10. Predicting
11. Silo HR 11. Business critical
12. HR ownership 12. Management ownership
13. Controlling 13. Optimization
14. Inside-in perspective 14. Outside-in perspective
15. Slicing-and-Dicing 15. Statistical Forecasting
16. Metrics 16. Patterns
17. Ratio’s (fraction) 17. Models (mathematical algorithm)
METRICS VS. ANALYTICS
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
From the iNostix blogwww.inostix.com
METRICS VS. ANALYTICS• Is Workforce Analytics the ultimate answer to the question
How does HR add value to the business?• - It is in any case part of the answer
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
CASE: PERFORMANCE MGT
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
CASE: PERFORMANCE MGT• Uniform and consistent data• Comparisons across teams• Identifying the most severe obstacles to business strategy
execution and success• Closing skills gaps
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
CASE: PERFORMANCE MGT
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
Information Analysis Interpretation Action
AM I THE CFO NOW?• Has the king of metrics found his queen?
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014
AM I THE CFO NOW?• You can meet me on:
• LinkedIn • Twitter (@MayaDroeschler)• Google+ (+MayaDrøschler)• http://hr-forretning.blogspot.dk/• http://hrcaseforum.dk/
MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014