Avoid Analysis Paralysis
(And Make Sense of Your HR Metrics)
THEHRA
January 26 – 28, 2014
San Antonio, TX
Agenda
Context from a historical perspective
Introduction to HR metrics
Linking metrics to analytics
Discussion
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2
HR Metrics
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3
DRAFT
Context from a Historical Perspective
4
The Evolution of HR
Aligning HR with Business Strategy
FROM COLLECTIVE BARGAINING TO STRATEGIC BUSINESS PARTNER
Rapid
technology
growth
Changing
workforce
demographics
Growth of
unions
Taylorism
Lack of
regulations
Sweatshops
Employee
protections
Standards: OSHA,
FCRA
HR managers
Emerge
Equality: Equal
Pay Act, Civil
Rights Act, Age
Discrimination Act
Hawthorne
Studies
Mass
production
Unionized
workforce
Worker
protections: ADEA,
ADA, FMLA, sexual
harassment
Documentation for
immigrant workers
Introduction of
COBRA and WARN
in response to
mass layoffs
Employment
at-will
Labor
Unrest
1900-1920
Productivity
1920-1950
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Employee
Protections
1950-1970
Aging
Workforce
1980-2013
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The Evolution of HR
HR IN TODAY’S BUSINESS STRATEGY
Social, political, technology, and economic factors have
influenced the work of HR professionals. Metrics are a driving
force in today’s HR strategies.
Political
Social
Metrics
Economic
Technology
“HR must give value or give notice.” (Dave Ulrich)
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DRAFT
Introduction to HR Metrics
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HR Metrics
WHAT ARE METRICS?
Metrics are measurable factors that can be used to demonstrate
the contributions of HR strategies to an organization.
Absence
rate
Turnover
rate
Cost per
hire
Time to
fill
Headcount
Revenue
per FTE
Health
cost per
employee
The items that can be measures within an organization seemingly are limitless.
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HR Metrics
WHY ARE METRICS IMPORTANT?
HR metrics provide evidence for the importance of aligning
investments in human capital to business outcomes.
Evidence of Employee Engagement
Impacting Revenue
Evidence of Discretionary Effort on
Profitability
Business leaders that demonstrate a high
ability to engage employees can have 6%
higher impact on revenue and profits when
compared to leaders who have a lesser
ability to engage employees
At a retail store chain, higher levels of
discretionary effort drove a 10%
improvement in store profitability
“Without data we have only opinions.” (Jac Fitz-enz)
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Accountability & Measurement
Not only should metrics be developed to measure performance/engagement,
but also to hold distributed personnel accountable.
HR Strategy Metrics
Metrics tied to the
workforce’s efficiency and
ability to meet university’s
strategic objective(s)
HR Program Metrics
Metrics tied to effectiveness of HR
Programs
HR Operating Metrics
Metrics tied to the efficiency of the HR
Operating Model
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• Turnover
•
• Headcount
•
• Employment costs per
student
• Employment costs per grant •
• Employment costs per
revenue
•
• Employment costs relative to
budget
• Performance review
•
completion rates
•
• Comp actions taken (in and out •
of guideline
•
• Open jobs to position
•
management plan
• Target jobs to market
• Service Center questions
answered
• Internal SLAs met
• Vendor SLAs met
• HR operating costs
•
•
•
•
Workforce health and wellness
Workforce competency as per
performance management
process
Workforce total rewards
position to market
Etc.
High value employee tracking
ER complaints
Benefit participation
Health/Wellness participation
Etc.
Time to fill
Costs/hire
Staffing efficiency
Etc
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HR Metrics
SHRM: 2012 Employee Job Satisfaction and Engagement
Overall employee satisfaction has decreased since 2009.
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HR Metrics
SHRM: 2012 Employee Job Satisfaction and Engagement
Respondents continuously have indicated opportunities to use skills/abilities and relationship with
supervisor are most important to them.
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DRAFT
Linking Metrics to Analytics
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Moving from Metrics to Analytics
UNDERSTANDING THE DIFFERENCE
Many HR organizations track metrics but fail to provide
analytics.
Metrics
Analytics
Data that reflect some descriptive detail
about given processes or outcomes
Strategies for combining data elements
into metrics and for examining
relationships or changes in metrics
Analytics
Metrics
Reporting
Reporting
Metrics provide information
Analytics informs decisions
The disconnect between metrics and analytics has resulted in organizations not using data to their
advantage.
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Moving from Metrics to Analytics
UNDERSTANDING THE DIFFERENCE
The era of big data has enabled organizations to store, access,
and analyze more data than ever before, thereby complicating
organizational decision making.
Quotes from Executives*
60%
27%
The rate at
which the
volume of data
will continue to
grow per year
The proportion
of business
professionals
who rate HR
staff as
competent to
analyze data
 “We track metrics such as
employee engagement, but we
don’t really know what to do with
them.
 “We collect data on everything, and
spend more time analyzing them
than doing anything about them.”
 “Employee data can be related to
business outcomes?”
Due to the lack of understanding for how to effectively use data, the belief has developed that gathering
more data will address business challenges.
*Source: Bloomberg Businessweek
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Moving from Metrics to Analytics
THREE STEP SOLUTION
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Transform
data into
usable
information
Step Three
Collect the
‘right’ data
Step Two
Step One
Adopt a strategy aimed at gathering specific data needed to
address specific business objectives.
Develop
actionoriented
reports
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Moving from Metrics to Analytics
CHALLENGES AND SOLUTIONS
Three Challenges to Improving HR’s Role in Linking Metrics to Analytics
 “Criticality” – only 17% of business leaders agree that HR focuses on the right questions
 “Capability” – 80% of HR leaders agree that HR lacks the capability to improve HR analytics
 “Credibility” – only 18% of business leaders agree that HR can be trusted when it comes to human capital
analytics
Solutions
 Work with stakeholders to identify key HR priorities
 What types of data do they need to make informed business decisions?
 Consider developing a “workforce analytics” team within HR
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DRAFT
Discussion
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DRAFT
Concluding Thoughts
Without analytics, metrics lack a clear objective and/-or a
connection to business performance.
Topic
Discussion Questions
Metrics
 How can HR professionals manage metrics and how should action be taken to address areas of
deficiency identified by the metrics?
Moving
from
Metrics to
Analytics
 How can HR professionals equip decision makers with useful metrics—including metrics that
make sense, are of interest to the audience to which they’re being delivered, and can be tied
directly to the strategy and vision of the organization?
Linking
Analytics
to
 How can your organization link metrics to business outcomes?
Business
Outcomes
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19
DRAFT
Appendix: About Huron Higher Education
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Huron’s Higher Education Practice
DRAFT
Huron understands the culture of higher education and we understand the
need for customized solutions that account for unique university
environments.
Huron Education is dedicated to serving higher education and academic medical center
institutions. We have a large team of professionals with extensive knowledge and direct
experience in your industry to deliver the most comprehensive services to improve
business performance across the enterprise.
Our Professionals have worked with preeminent higher education institutions. We have
helped more than 96 of the top 100 U.S. and 50 of the top 100 global institutions maintain
standards of quality and improve performance. Our experience working across
educational systems gives us a unique perspective in designing and implementing
innovative solutions for forward-thinking, mission-driven institutions.
Huron possess the full spectrum of attributes needed to supplement its client’s efforts – including
unmatched experience in higher education budgeting, operational improvement and technology.
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