Introducing HR Measurement and Reporting Ensuring Executive Alignment and Understanding

1. Introducing HR Measurement and Reporting Ensuring Executive Alignment and Understanding

2. Critical Question Why would we want to measure human resources…what value does it add?

3. Re-aligning the HR Contribution • Enhance CEO/senior executive team understanding • Demonstrate the opportunity available • Re-align our thinking and contribution Key performance indicators and detailed reporting

4. How CEOs and senior executives often view HR Administrative specialists Employee advocates Business partners Change agents David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996

5. How HR wants to be viewed Business partners Change agents Administrative specialists Employee advocates David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996

6. How HR wants to be viewed Business partners Change agents Administrative specialists Employee advocates = Missed opportunity! David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996

7. Stages in Human Resources functional development COMPETITIVE ADVANTAGE (Consolidation) • Total line manager accountability • Internal consultants • Add value • Integral to company success • Long term vision and strategy BUSINESS PARTNERS (Integrated) • Integral contribution to business plan • Strong influence on other departments • Member of top team • Quality systems and processes • Service management • Intellectual capital/knowledge management • Workforce empowerment and teams • Return on investment • Cost/benefit analysis • Comprehensive database PROACTIVE (Rapid growth) • Customer/needs focused • Pro-active/improvement • Management development • Leadership training • Succession planning • Workforce planning • Performance management • Workforce productivity INTERNAL POLICE (Emerging) • Policies and manuals • Controls — headcount, hiring, restructuring, travel, relocation • Reporting systems & budgets • Basic measures — turnover, absenteeism • Technical and skills training • IR disputes, grievances • OH&S procedures KIND HEARTS (Lending Support) • Cafeteria • Car park • Security • Gymnasium • Social club • Christmas party BASIC NEEDS • Recruitment • Induction • Payroll • Admin/Records • Leave

8. From industrial enterprise To knowledge-based enterprise Human Resources transformation Service to individual employees stockholders regulatory authorities Service to CEO workplace policies Creation of business performance tools workplace stability Guardian of core competencies Chief workforce administrator finance officer for human capital

9. The global marketplace Squeeze on margins Emphasis on product innovation Tighter cost control Price sensitivity Shorter lead times Enhanced customer service Workforce contribution?

10. Organisational critical success factors Product quality Staff capability Competitive price Product innovation Cost of labour Excellence in customer service Workforce contribution?

11. CEO/senior executive team recognition... To capitalise on workforce potential

12. The Human Resources contribution... To optimise workforce performance

13. Theory X & Y Hygiene and Motivators Emotional Intelligence Management by Objectives Matrix Empowerment Kaizen Management Science MBWA EVA Customer Service Work Simplification Self-Directed Teams Hierarchy of Needs Benchmarking Excellence Delayering Plan-Organize-Direct-Control Corporate Culture 7 Habits Managerial Grid Intrapreneuring Diversification Balanced Scorecard Downsizing Human Relations Organization Renewal TQM Work-life Balance Quality Circles Portfolio Management Continuous Improvement Relationship Marketing Value Chain Rightsizing Change Management Reengineering Decision Tree One Minute Managing Now 1970s 2000s 1950s 1980s 1960s 1990s 1940s Search for the ‘Holy Grail’ of HR management ?

14. Dilbert’s version of HRM!

15. Workforce HR perspective: organisational contribution Productivity Capability Satisfaction Wellbeing

16. Productivity Labour costs Labour mix and utilisation Staff rostering and utilisation New technology application Cross-functional project teams Employee participation/teams Workforce forecasting Workforce HR perspective: organisational contribution

17. Capability Performance feedback Induction programs Technical and skills training Learning centres Tertiary assistance/MBAs Recruitment program Role clarity Workforce HR perspective: organisational contribution

18. Workforce Wellbeing Leadership training Non-discriminatory workplace Fair treatment process Safe work practices Equipment and physical factors Work–life balance programs HR perspective: organisational contribution

19. Workforce Satisfaction Career path options Internal communication plan Remuneration and incentives Recognition and reward programs Effective payroll Human resources policy manual HR perspective: organisational contribution

20. Employees Senior executive team HR department CEO/senior executive perspective: ownership of workforce issues

21. HR perspective: senior executive team accountabilities Senior executive team Budget centres Hiring and firing Organisational charts Pay and promotions

22. Employees Senior executive team HR department HR perspective: ownership of workforce issues

23. Human Resources Key Performance Indicators

24. HR Key performance indicators Objectives and purpose • To highlight to the senior executive team: • areas where the organisation is performing well • areas where intervention is required

25. HR key performance indicators Key principles • One page, once per month • Measuring organisational performance, not that of the HR Department • Must be ‘big ticket items’ (business-linked) • Must be user friendly and easy to understand • Supported by detailed tables and/or graphs

26. HR key performance indicators Key principles (continued) • Contain credible/reliable information (start off slowly...be willing to amend/change) • Progressively introduce agreed targets (internal, then external) • Must become institutionalised within the senior management team • HR team must be fully conversant

27. Example KPI report

28. Example KPI report (continued)

29. Example KPI report (continued)

30. Example KPI report (continued)

31. Example headcount report

32. Example workforce utilisation report

33. Example workforce turnover report

34. Example workforce absenteeism report

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