Engineering Business 2 help The Building Blocks for Workforce Reporting Agenda Review of Last week’s learning The “Data Pyramid” The different kinds of m

help

The Building Blocks for Workforce Reporting

Agenda

Review of Last week’s learning

The “Data Pyramid”

The different kinds of measures we use in HR

Frequency of measurement

Combining Measures to give Metrics

Key Performance Indicators

Target Setting and Benchmarking

Building a Metrics Table

9/02/2022

1

Review of Last Week’s Learning (Lecture)

Who are the five groups of stakeholders who should benefit from the work of an HR Analytics Unit?

Can you give me five really important skills areas for HR Analytics experts?

What are some of the ethical questions that have to be considered in doing HR Analytics?

9/02/2022

2

09/02/2022

Slide 3

THE DATA PYRAMID

KNOWLEDGE

WISDOM

INFORMATION

DATA

How does it relate to other things we know?

What should we do in the future?

What do we have?

What do we learn from it?

What does it mean?

The Building Blocks for Workforce Reporting

Data and Measurements

Targets and Key Performance

Indicators (KPI’s)

This will be hard data or quantified soft data and is our starting point.

However most such data has little value standing on its own, which is why we need to CONNECT it in some way

A calculation which links two (or more) measures/pieces of data

OR it is a percentage or a ratio, or divided by a time period

We may set TARGETS for some of our metrics to monitor against.

If they are STRATEGICALLY IMPORTANT they may be designated as a “KPI” for monitoring performance of the organisation

9/02/2022

4

Metrics

The Many Different Types of Measure

we can use

“Workforce Analytics” – from HRI System based on the employee records we hold –

numbers and ratios FACTUAL =HARD

Financial – eg cost savings. In most HR/L&D initiatives direct measures of

financial benefits are rare CALCULATED OR ESTIMATES = SEMI HARD

Perceptions and feelings – surveys, questionnaires, 360 assessment, votes ,

league tables – SUBJECTIVE JUDGEMENT/OPINION = SOFT

Scales – for assessments, competencies etc – SUBJECTIVE = SOFT

Profile “ fit” – comparing a “desired state” against an “actual state” SEMI-HARD

“Tick boxes” – it exists or it does not exist; we/they have this or we/they do not

FACTUAL = HARD

More in Week 11

More next term

Asking for Opinions (1)

when we ask someone’s opinion or feelings we should ALSO consider

asking “how important is this to you?

For example I can ask you how good you feel a particular policy is and you may say “very poor” but if I ask you how important it is to you, you may say “not at all”. So I might take action on that policy unnecessarily

Beware of yes/no questions unless we are asking about facts. So never ask “do you feel positive or negative” – opinions and feelings are rarely black or white.

Use a scale and the format

“to what extent do you feel….

Asking for Opinions (2)

Remember people often complete questionnaires very quickly – so:

– make questions clear and unambiguous;

– keep the number as low as possible;

– minimise “open” questions which require a lot of thinking/writing

Avoid “leading “questions which direct the

participant to certain answers

Results have to be analysed carefully

and objectively – (we will cover in a later lecture)

Where might we use “Profile Fits”?

9/02/2022

8

Matching a candidate against a person specification

Assessing existing culture against an ideal culture

Assessing personal competencies against a “framework “

Assessing team effectiveness against an ideal

Methodology:

Create a set of statements of the “ideal”

Score the “actual” of the person, team or organisation

Have multiple assessments

Quantify the resulting scores

9/02/2022

9

How often should we create data?

DAILY:

WEEKLY:

MONTHLY:

QUARTERLY:

HALF YEARLY:

ANNUALLY:

9/02/2022

10

Factual Data on its own does not tell us very much.

To get anything from it we need to compare it with something

From Measures to Metrics

A period of TIME

Per Employee/ Department/ Location etc

Against a TARGET or BENCHMARK

Simple Ratios – percentages of a bigger number

More Complex Ratios – correlating two or more metrics

The Time Dimension

a) per interval ie per hour, day, week,

month, year

Examples?

b) Describing a trend – the “moving average”

 JANFEBMARAPRMAYJUNJLYAUGSEPTOCTNOVDEC
DAYS LOST7.5
 
 
14.210.58.46.27.76.84.56.48.27.36.9
3MMA 
 
 
 10.711.08.47.46.96.35.95.87.37.5
6MMA
 
 
     7.87.77.46.76.66.86.7

11

12

We will use a lot of metrics which are “per employee”

BUT Employees may be full time, part time, job shares PLUS

our contributing “human resource” may also include contractors,

temporary staff, agency staff, consultants, volunteers

So we must think about whether we want to look at:

What is an Employee?

Per unit of employee time

Per employed person

Per unit of human resource

paid for

– Divide by hours worked or FTE’s

– Divide by no of employees

– Divide by total cost of all relevant

contributors

Which is the bigger? FTE’s or # employees?

The term FTE = Full Time Equivalent, which is based on

the weekly hours for a standard employee (eg 35 hours)

Example: The commonly used “Metric” of
Labour Turnover

9/02/2022

13

The calculation of Labour turnover itself is a simple example of a metric.

We start with counting people who leave – and decide a specific period,

such as a month, to group them together. We then divide by the total headcount,

to give us a percentage. SO:

Labour turnover (sometimes called “attrition”) and expressed as a percentage:

# left the organisation during a period of time

Average number of people in the organisation during the period

Typically we calculate this using the period of per month – we may then “annualise it” by multiplying by 12 and calling it “the annual running rate”.

Note: this is an example of when we combine two HARD measures – the result is HARD

X 100

Creating an “INDEX”

9/02/2022

14

An INDEX may be a) a combination of two pieces of raw data that we have found to be correlated

E.G We may create an Index called Team Turnover-Engagement which is the ratio of Annualised Labour Turnover divided by Average Engagement score for a specific team/group.

(If positively correlated we multiply; if negatively we divide)

Or b) a formula using several different pieces of raw data. For example we may want to create a “Leadership Effectiveness Index”. What do you think we might put into that?

Combining 2 or more Measures
to give a Metric

9/02/2022

15

When we combine two SOFT measures the result is SOFT – VERY SOFT!

E.G Employer brand score/ engagement score

When we combine a HARD measure with a SOFT the result is SOFT

E.G Labour turnover over Employee Satisfaction score

SOFT IS NOT “BAD”. We just need to check validity and reliability more carefully (see next week’s lecture)

TARGET SETTING

When we have a metric how do we know

whether it is good or bad?

Example: The % of people satisfied with the company policies is 66%

We have to compare that measure against something

Maintaining a previous good result – keep up the good work

Looking for an improvement on previous results – we are not good enough

Working towards an ideal goal – a vision of what CAN be achieved

Meeting a target that has been externally given to us – we have to show achievement

Benchmarking against comparable organisations – how good are we?

Slide 16

16

Page 16

Defining Benchmarking

A Basis for Improvement

“Benchmarking is the process of understanding your performance, comparing it against the learning how they perform better, and using that information to improve.” The Baldridge Quality System, Stephen George

A Source of Innovation

“Benchmarking is a management practice that facilitates the continuous input of new information to an organisation.” Kaplan & Norton

17

Benchmarking

Internal Benchmarking

Segmenting organisational data to provide comparisons between divisions, departments or teams

Data will be truly comparable if controlled by the HR Analytics department

External Benchmarking – shared

Sharing specific metrics by agreement between organisations in the same sector – “Benchmark Clubs”. Normally using previously agreed metrics definitions/calculations

In the private sector commercial confidentiality can be an issue. Note that sharing is most likely to be at the “high” consolidated level

18

Benchmarking

External Benchmarking – seeking “best practice”

This can be done by belonging to a general benchmarking service for which you pay. Normally your organisational identity is not revealed to others in the service. Many metrics have limited comparability in this mode due to calculation methodologies.

However exact comparability may not be as important as looking at who has the best results in a metrics area and then examining why that is so.

See the Saratoga Institute, owned by PWC

https://www.pwc.com/us/en/products/saratoga.html

The Gallup Q12 Organisation (engagement)

https://q12.gallup.com/public/en-us/Features

SHRM (US equivalent of CIPD)

https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/benchmarkinghumancapitalmetrics.aspx

19

9/02/2022

20

We have to be very careful making comparisons that we are using the

same base measures/data

Key Performance Indicators (KPI’s)

Its important because we need it to support a Corporate Strategic Objective

9/02/2022

21

When is a Measure or (usually) a Metric important enough

to be a KPI for one or more Managers?

(This may mean that achievement means a bonus)

WHAT REALLY WILL

MAKE A DIFFERENCE

TO OUR PERFORMANCE ?

Its important because we need it to support an HR Strategic Objective

Its important because we need it to help solve a major workforce issue

Its important because we need it to show to an external body/stakeholder that we are managing it well

9/02/2022

22

BUILDING A METRICS TABLE

We are going to build up a full set of possible Metrics in different

areas of HR as we go through the module

For each Metric we will:

Give it a name

Clearly define the calculation of the metric

Show the source of the data

Define the frequency of calculating the metric

Make notes on its use; its reliability and relation to other metrics

We will start this in the next class

9/02/2022

23

Thank you

Looking for this or a Similar Assignment? Click below to Place your Order