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METRICS TO HELP IMPROVE YOUR WORKFORCE PRODUCTIVITYKEY RESULTS FROM MERCER 2013-2014 WORKFORCE METRICS DATABASE
Tom Jacob, PhiladelphiaBrian J. Kelly, PhiladelphiaDavid Elkjaer, Copenhagen
MERCER WEBCAST
MERCER WEBCAST
TODAY’S PRESENTERS
Tom JacobSenior Partner
Talent Information SolutionsPhiladelphia, United States
+1 215 982 4254
1
Brian J. KellyPartner
Global Practice Leader
Workforce Analytics & PlanningPhiladelphia, United States
+ 1 215 350 2641
David ElkjaerAssociate
Global Product Manager
Workforce Metrics Product LeadCopenhagen, Denmark
+ 45 45959624
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AGENDA
2
1 INTRODUCTIONS
2 WHAT’S DRIVING DEMAND FOR METRICS, ANALYTICS,AND WORKFORCE PLANNING
3 WORKFORCE METRICS BENCHMARK DATA REPORTS
4
5
HIGHLIGHTS OF KEY FINDINGS – ORGANIZATIONAL DESIGN
HIGHLIGHTS OF KEY FINDINGS – TURNOVER
Q&A6
7 RESOURCES
3July 1, 2014
WHAT’S DRIVING DEMAND FOR METRICS,ANALYTICS, AND WORKFORCE PLANNING
MERCER WEBCAST
LABOR SHORTAGES
WHAT EVERYONE IS TALKING ABOUT
WAR FOR TALENT
PRODUCTIVITYPREDICTIVE ANALYTICS
SUPPLYDEMAND
BIG DATA
OFFSHORING
OUTSOURCING
4
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THE ANALYTICS JOURNEYMERCER’S POINT OF VIEW
Anecdotes
Realitychecks
On-goingreports
WORKFORCEMETRICSBENCHMARKDATA
Correlations
Simulations &forecasting
Predictive &causalmodeling
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Source: Mercer’s Workforce Productivity Framework
MERCER PRODUCTIVITY DRIVERS FRAMEWORKORGANIZATIONS ARE INCREASINGLY FOCUSED ON WORKFORCEPRODUCTIVITY TO DRIVE ORGANIZATIONAL OUTCOMES
INPUTS PROCESSES OUTPUTS
ORGANISATION• Organisation design
• Spans/Layers• Job Design
• Roles and responsibilities
COST & CAPACITY• Headcount• Labour costs• Reward &
recognition
LEADERSHIP• Vision / mission• Strategy / objectives• Communication & connection• Style
PROCESS EFFICIENCY• Processes• Activities/ tasks• Time required• Agility• Reliability & rework
UTILISATION• Productive time• Total time• Lost time• Workflow
CONSISTENCY• Performance standards• Standardization• Variation
ENGAGEMENT & CULTURE• Motivation• Ownership• Pride• Challenge
PRODUCTION• Output / unit• Loss / unit e.g. shrinkage,
leakage• Delivered In Full On Time
(DIFOT)
SALES• Sales volume / unit• Sales revenue / unit• Market share• Cost of sales
SERVICE• Quality / unit• Satisfaction / unit• Customer satisfaction index• Customer retention rate• Customer turnover rate
PROFIT• Margin / unit• Profitability by customer• ROI• NPAT• Cost to income ratio
• Workforceprofile
• Supply /demand
• Available time
WORKFORCE STRUCTURE• Organization design• Span of control• Job design• Roles, responsibilities,
accountability
CAPABILITIES & SOURCING• Skills• Competencies• Behaviours• Training• Experience
• Build/ buy• Hire rate• Age/ tenure/
turnover
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Do less or the samewith more
CAPACITY
OUTPUT(volume, revenue, margin, etc.)
Do less or the samewith less Do more with less
Do more with more
DO MOREWITH THE
SAME
WORKFORCE METRICS AND BENCHMARKSDIFFERENT PRODUCTIVITY SITUATIONS / PROFILE
What are theimplications for ourorganization?
How do we compareto others?
More
Same
Less
Less Same More
8July 1, 2014
WORKFORCE METRICS BENCHMARK DATAREPORTS
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WORKFORCE METRICS BENCHMARK REPORTSOVERVIEW
WORKFORCE METRICSBENCHMARK REPORTS
• Helps you make fact-based HRdecisions
• Provides the data points on keyfinancial, workforce compositionand retention metrics
• Enable direct comparison toindustry and size cuts across theglobe
• Reports are available for purchaseonline: www.imercer.com/wmrs
9
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WORKFORCE METRICS BENCHMARK REPORTS66 COUNTRIES AND 6,358 PARTICIPANTS
37%
10%
Regional Year OverYear Increase
Expanded Coverage
66%
58%
10
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WORKFORCE METRICS BENCHMARK REPORTSPARTICIPANTS BY INDUSTRY AND REGION
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1,2771,232
686 674590
559
470
375
272
13191
Dur
able
Life
Scie
nces
Serv
ices
Hig
h-Te
ch
Insu
ranc
e
Ret
ail
Who
lesa
le
Ener
gy
Fina
nce
Bank
ing
Oth
er
Non
dura
ble
Con
sum
erG
oods
11MERCER WEBCAST
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LOW PRODUCTIVITY COMPANIESRevenue less than USD 400,000 per FTE
HIGH PRODUCTIVITY COMPANIESRevenue between USD 700,000 andUSD 1,000,000 per FTE
WORKFORCE METRICS BENCHMARK REPORTSPRODUCTIVITY PROFILE
• The workforce composition of high and low productivity companies are notsignificantly different when looking at industry, size, and geographical spread
• Productivity per Full-Time Employee (FTE) – known as the human capital revenuefactor – measures an organization’s top-line financial productivity by revenue andquantifies the value of the workforce as a revenue generator
vs.
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HIGHLIGHTS OF KEY FINDINGSORGANIZATIONAL DESIGN
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HIGHLIGHTS OF KEY FINDINGS – ORGANIZATIONAL DESIGNPRODUCTIVITY AND SPANS OF CONTROL
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LOW PRODUCTIVITY HIGH PRODUCTIVITY
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HIGHLIGHTS OF KEY FINDINGS – ORGANIZATIONAL DESIGNPRODUCTIVITY AND SUPPORT FUNCTIONS
5%8%
5%
4%
2%2%
6%
5%
3%3%
5% 6%
4%5%
2% 3%
2% 3%
5%8%
15
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HIGHLIGHTS OF KEY FINDINGS – ORGANIZATIONAL DESIGNPRODUCTIVITY AND CORE FUNCTIONS
25%37%
45%34%
8%
10%
25%
45%
10%4%
13%
8%
37%
34%
4%
12%
16
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HIGHLIGHTS OF KEY FINDINGS – ORGANIZATIONAL DESIGNPERCENT IN THE SALES AND MARKETING FUNCTION ACROSSINDUSTRIES
ConsumerGoods
High Tech
Non Durable
17
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HIGHLIGHTS OF KEY FINDINGSTURNOVER
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OVERVIEW OF FINDINGSGLOBAL VOLUNTARY TURNOVER
5% to 8%
2% to 5% 8% to 12%
12% to 15%
19
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OVERVIEW OF FINDINGSGLOBAL TURNOVER, ALL FUNCTIONS
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LOW PRODUCTIVITY HIGH PRODUCTIVITY
11%
8%
5%
4%
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OVERVIEW OF FINDINGSGLOBAL INVOLUNTARY TURNOVER
LOW PRODUCTIVITY HIGH PRODUCTIVITY
9%
7%
9%
10%
21
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OVERVIEW OF FINDINGSGLOBAL VOLUNTARY TURNOVER
LOW PRODUCTIVITY HIGH PRODUCTIVITY
14%
12%
14%
15%
22
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Data suggests a weak relationship between the percentage of theworkforce in support functions and productivity.
In some industries, companies with high productivity have a higherpercentage of the workforce in marketing and sales and less in operations.
Voluntary turnover is lower at more productive companies.
An inverse relationship exists between productivity and span of control.
SUMMARY OF KEY FINDINGS
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NEXT STEPS
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1
2
3
4
USE THE PRODUCTIVITY FRAMEWORK TO CLARIFYWHAT YOU WILL MEASURE
INDUSTRY MATTERS. WHEREVER POSSIBLE, LOOK ATIT FROM THIS PERSPECTIVE
UNDERSTAND WHAT THE MOST PRODUCTIVECOMPANIES ARE DOING
REMEMBER: BENCHMARKS ARE A SOURCE TOINFORM, NOT THE SOURCE TO DECIDE
MERCER WEBCAST 25July 1, 2014
Q&A
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Q&A
26
To ask a question, click on the Q&A button on the bottom right-hand side of your screen.
MERCER WEBCAST 27July 1, 2014
RESOURCES
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WHAT’S NEXTWORKFORCE ANALYTICS WEBCASTS, WORKSHOPS AND RESOURCES
www.mercer.com/mercer-workshopsSingapore – March 12Zurich – March 13 & 14New York – April 22 & 23Chicago – May 12 & 13
Webcast Serieswww.mercer.com/webcastseriesFeb 13 – Mercer Workforce MetricsFeb 20 – ExperianMarch 5 – John DeereMarch 20 – UMass Memorial Health CareApril 9 – Johnson ControlsJune 4 – Diversity & AnalyticsJune 25 – Mobility & Analytics
Mercer’s Workforce MetricsBenchmark Reportswww.imercer.com/wmrs• Workforce composition and
retention metrics• 66 countries• 6,000+ participants• Regional and custom editions
available
The Human Capital Reportwww.mercer.com/hcindex
www.mercer.com/talent-impact-technology-conference
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SPEAKER BIOGRAPHIESTOM JACOB
Tom JacobSenior Partner
• Tom is a Senior Partner in Mercer’s Talent business segment. He isthe Product Leader for Research & Intelligence products.
• He joined Mercer in 2003 and is based in Philadelphia. Tom hasserved in a number of roles at Mercer all having in common theinnovation and launch of new products and services.
• Prior to joining Mercer, Tom was associated with the Hay Group,Inc., DRI/McGraw Hill’s Energy Services Division and GPU ServiceCorporation. He has spoken on topics such as Pay forCompetencies, the ROI on Human Capital investments and the HRImplications of economic developments and forecasts.
• Tom holds a BA in Economics from LaSalle University and an MA inEconomics from Temple University.
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SPEAKER BIOGRAPHIESBRIAN J. KELLY
Brian J. KellyPartner
• Brian is a Partner at Mercer and is the global Commercial Leaderfor the human capital metrics & analytics solutions. Brian mostrecently served as the Co-Chair of the Institute of HumanResources Workforce Planning & Analytics Working Group andVice-Chair of the Society of Human Resource Professional's(SHRM) workforce metrics taskforce.
• Prior to Mercer, Brian was the President, North America of Infohrm,the recognized industry leader in workforce reporting, analytics andplanning solutions across the globe. Brian led Infohrm's NorthAmerican operations and was responsible for the firm's globalsales, marketing and partner strategy leading to the firm'sacquisition by SuccessFactors in July 2010. Prior to leadingInfohrm, Brian served in a variety of management and leadershippositions in the software, services and investment managementindustries with such firms as DoubleStar, Inc. and SEI Investments.
• Brian is a graduate of Boston College.
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SPEAKER BIOGRAPHIESDAVID ELKJAER
David ElkjaerManager
[email protected] 20 7178 5404
• David is the global workforce metrics product manager. He is responsible fordeveloping Mercer’s capabilities in providing relevant Human Capital (HC)metrics in order to provide clients with an external perspective within the areas ofworkforce composition, C&B, HR functional metrics, recruitment and retention.
• From a technology standpoint David is an expert in Mercer’s Workforce analyticstool, Mercer Analytics, which enables organizations to gain critical insight intotheir workforce and utilize Mercer’s expertise within the field. One of David’s keystrengths is to look past the complexity of data and numbers to reach businesscritical insight.
• His work at Mercer within workforce analytics and HC metrics also involves theoperational part of gathering workforce data from Mercer’s different surveys,performing analysis and placing the data within an organizational context to makeit actionable for clients.
• David has been with Mercer since 2008. He has previously been part of Mercer’sEuropean Compensation & Benefits Centre of Excellence, and has also held aconsultant role with a specialisation in executive rewards and broad-basedrewards.
• David studied Sociology at Copenhagen University. He specialized in quantitativeand qualitative data analysis and design of surveys. He also focused onorganizational and economic analysis.
