Focus on Measuring HR

1. Focus on Measuring HR • Focus on measuring HR is growing in importance • Recognition that traditional accountancy measures are inadequate • Measures needed which demonstrate how people are assets that add value • There is resistance by the HR function to measurement

2. HR Measures • Staffing costs of HR function • Recruitment speed • Training delivery • Management satisfaction with HR services • Absence levels • Employee turnover

3. Hard and Soft Measures Hard: • Training days • Employee relations indicators • Costs to fill vacancies Soft: • Employee satisfaction • Line manager satisfaction • Employee satisfaction

4. Absence Analysis & Costing • Absence rate – number of days of absence • Absence percentage rate – absence rate divided by the total amount of actual working days for employers over the year • Absence frequency rate – number of spells of absence over the period

5. Purpose of Absence Analysis & Costing • Understand causes and extent of absence in order to manage it effectively • Information provides a base for further monitoring • Provide benchmarks of high, medium, and low absence levels • Set improvement targets

6. Costing of absence • Requires a wider focus than just pay of the absent individual Other costs include: • Line manager costs in finding replacement • Actual costs of any temporary replacement • Costs of showing replacement what to do • Costs of contracts not completed on time

7. Equal Opportunities Analysis • Provides an organisational profile of different groups – ethnic groups, gender, age, disability • Organisation can compare its profiles with national and local figures • Question extent and spread of any disadvantaged groups in organisation • Identify specific barriers • Formulate appropriate strategies & action plans • Set targets to be achieved

8. Contribution of the Workforce • Turnover per employee • Profit per employee Can be used to: • Monitor performance • Demonstrate to employees the importance of cost consciousness

9. HR Balanced Scorecards • Links people, strategy and performance • Utilise a range of HR measures that are viewed as critical to business strategy success • Measures can include – financial measures, customer measures, internal business measures, learning and growth measures

10. Seven Step Process for Measuring HR’s Strategic Influence (1 of 2) • Clearly define business strategy • Develop a business case for HR as a strategic asset • Create a strategy map • Identify HR deliverables from the strategy map

11. Seven Step Process for Measuring HR’s Strategic Influence (2 of 2) • Align HR architecture with the deliverables in step 4 • Design a strategic HR measurement system • Implement management by measurement (Becker et al, 2001)

12. Human Capital Monitor • Framework for monitoring, measuring and managing human capital • Designed to connect the intrinsic value of the human capital in the organisation with the working environment • Includes processes and systems which impact on employee’s behaviour with value created by people (Mayo, 2001)

13. Mayo’s Human Capital Monitor (1 of 4) Figure 33.2  Mayo’s human capital monitor (Source: Adapted from A. Mayo (2001) The human value of the enterprise: Valuing people as assets – monitoring, measuring and managing. London: Nicholas Brealey, p. 65.)

14. Mayo’s Human Capital Monitor (2 of 4) Figure 33.2  Mayo’s human capital monitor (Source: Adapted from A. Mayo (2001) The human value of the enterprise: Valuing people as assets – monitoring, measuring and managing. London: Nicholas Brealey, p. 65.)

15. Mayo’s Human Capital Monitor (3 of 4) Figure 33.2  Mayo’s human capital monitor (Source: Adapted from A. Mayo (2001) The human value of the enterprise: Valuing people as assets – monitoring, measuring and managing. London: Nicholas Brealey, p. 65.)

16. Mayo’s Human Capital Monitor (4 of 4) Figure 33.2  Mayo’s human capital monitor (Source: Adapted from A. Mayo (2001) The human value of the enterprise: Valuing people as assets – monitoring, measuring and managing. London: Nicholas Brealey, p. 65.)

17. Emerging Approaches in Effective & Efficient HR Provision • Outsourcing • HR services centres • e-HR

18. Outsourcing • HR administration typically is outsourced • Drivers for outsourcing include cost reduction, improving service delivery, implementing difficult change • Can encourage measurement of and value of HR • Allows internal HR to concentrate on driving the direction of HR

19. HR Service Centres • Partnership centres or insourcing • IDS (2003) suggests that HR service centre can be linchpin in drive to achieve efficient HR delivery • Service centre is usually the primary point of reference for line manager with HR queries • Can produce savings from lower transaction costs • Metrics can be derived to assess their performance

20. Structure of HR Service Centres • Can be a shared centre with other functions • Staff based in back office dealing with admin and transactions • Different staff for the front office dealing with enquiries from line managers • Alternatively staff may be organised by specialist function or client group

21. E-HR • Incorporating HR with corporate intranets • Impetus from need to liberate personnel function from its administrative tasks to allow focus on more strategic matters • Often introduced alongside HR service centres

22. Use of E-HR • More sophisticated applications are not very common • Empowering employees one reason for introducing e-HR • Improvements in communication cited most frequently as specific reason for introduction • Are likely to contain HR policies, rules and regs, training courses, standard forms, etc.

23. Summary (1 of 2) • Measuring HR involve direct measurements of HR function’s contribution • There are wider measures of aspects of HR capital which are influenced by all managers • Ad hoc measures can include absence and turnover analysis

24. Summary (2 of 2) • Balanced scorecard, HR scorecard, and human capital monitor are all frameworks for measuring effectiveness and efficiency of HR • Outsourcing, service centres and e-HR are used today to improve added value of HR

25. Focus on Skills VIIChairing Meetings • Meetings are an inescapable part of management process • Meetings are often less successful than they should be • Leading or chairing meetings is a challenging skill • Chairing meetings is associated with authority

26. Examples of Types of Meetings • Selection panels • With union representatives • Job evaluation groups • Health and safety meetings

27. Basic Necessities • Clear format • Purpose and presentation • Leader being in control • Correct involvement of those attending

28. Preparation • Who should attend? • What is the meeting brief or reference of the meeting? • What should the agenda be? • What about the physical location and arrangements? • What is the meeting for?

29. Attendance • Large groups will ensure wide range of interested are represented • Large numbers are appropriate when pressing matters need to be discussed with a lot of people and disseminated quickly • More people can mean that useful discussion will be less likely • Small groups make discussion easier and more productive

30. Agenda • What do we need to consider? • What order do we need to consider it?

31. Purpose of Meeting • Convey information • Share information • Make a decision

32. Role of Chair • Convey information – passing on information • Share information – co-ordinator • Make a decision – decide when consensus for vote reached

33. Stages in Conducting the Meeting • How can contributions be stimulated and controlled? • Bringing people in • Keeping it going • Own input • Winding it up

34. Stimulating & Controlling Contributions • Who has something to say? • How can you get them to say it? • How can you keep the long winded brief? • When should you nudge the meeting towards a decision or the next item?

35. Strategies in Closing People Down • Use eye contact with the speaker to encourage or discourage • Look anxiously at watch • Use focus questions

36. Keeping it Going • Summarise sparingly but summarise well • Summarise where the discussion has reached • Do not summarise in search of a conclusion • Try getting a series of partial solutions

37. The Chair’s Input • Leading contribution • People will want to hear what chair has to say • People will look to you for a lead

38. Winding it Up • Sum up by reiterating the points where agreements have been made on • Sum up remaining points of disagreement • Ensure clarity

39. Meeting Minutes • Formal meetings have minutes • Less formal meetings have notes • Informal meetings may not have any agreed records • Formal minutes recorded and written by secretary or by chair • Detail to produce a stimulus to appropriate action

40. Summary • Chairing meetings is an aspect of management • Chairing meetings is crucial to making & implementing management decisions • Process of conducting the meeting should be carefully considered • Keeping the meeting progressing as planned should be carefully considered