Measuring Human Resources by Maya Droeschler 2014

transcript

MEASURING HUMAN RESOURCES GUEST SPEECH BY MAYA DRØSCHLER

University of Southern Denmark

October 2014

INTRODUCTION

MEASURING HUMAN RESOURCES - MAYA DRØSCHLER 2014

• There’s no future for HR without strategic & analytical capabilities

INTRODUCTION• Finding the missing link(s) between

• HR strategy and HR practices• Workforce response to HR practices• Overall organizational performance

• The ultimate competitive advantage

INTRODUCTION• We have to learn to:

• ask questions• form hypotheses

INTRODUCTION

University of Copenhagen (not that impressive looking, I dare say)

HR experience from large and small organizations

INTRODUCTION• A seat at the table:• HRM is not about people…..

• It’s about business!

INTRODUCTION

Steen Wung-Sung, Head of HR Intelligence and Platforms, Tryg

‘The prerequisite for measuring HR activities is that HR understands the business. It doesn’t make sense to measure something which is not linked to business strategy & objectives.’

INTRODUCTION

Transformational HR

Analytical

CommercialStrategic

AGENDA• The basics – HR metrics• Business problems• Data and intuition• Going from transactional to transformational• Sociometric data and HR Analytics• Case: performance management• Am I the CFO now?

THE BASICS – HR METRICS

THE BASICS - HR METRICS• TURNOVER RATE• Number of seperations / average number of employees x 100

Compensationforce.com 2013

THE BASICS - HR METRICS• REVENUE PER EMPLOYEE• Company revenue / number of employees

Forbes.com 2013

THE BASICS – HR METRICS• HR TO STAFF RATIO• Number of employees / Human Resources employees

HR Daily Advisor 2013

THE BASICS – HR METRICS • Promotion ratio• Employee absence rate• Average employee age• Recruiting metrics• And so on….

BUSINESS PROBLEMS

BUSINESS PROBLEMS• Is our boldest ambition to:

• Prove our worth• Document our contribution• Go from cost center to profit center

• Or is it to build a successful business in collaboration with managers, employees, and other stakeholders?

INSIDE-OUT?

OUTSIDE-IN!

BUSINESS PROBLEMS• Bad marketing performance = business problem• Bad sales performance = business problem• Bad financial performance = business problem

• Bad HR performance = HR problem?

BUSINESS PROBLEMS• BUSINESS PROBLEM:

• Does your marketing campaign work?• Are you able to attract customers to your store?

• BUSINESS PROBLEM:• Do you get return on investment from your talent management

program?• Are you able to attract talent in the first place?

BUSINESS PROBLEMS• We can measure:

• The how• The what• The when• The who

• But the most important thing is:• The why

CORRELATION IS NOT CAUSALITY

BUSINESS PROBLEMS• If you don’t know the why

You suck!

DATA AND INTUITION

DATA AND INTUITION• We need data – not just semi-data, but REAL data• We need context data

DATA AND INTUITION

• Opinions (semi-data) are also important, becuase they tell us something about how people experience reality.

• Have crime rates really gone up?

DATA AND INTUITION

@david_green_uk (a most follow on Twitter, BTW)

‘HR is a culture of intuition’

FROM TRANSACTIONAL TO TRANSFORMATIONAL

• The police actually measure our speed – they don’t just feel that we are speeding (if we are)

Will speeding ticket profits go down when we all have driverless cars? Will the HR profit center close when robots take over the workforce?

• What is the most important outcome?• Where is the value?

• Someone gets caught speeding• The ticket is handed over• The financial transaction, the ticket is paid• The police prove their worth• The speeding person changes his or hers behavior and society

becomes a more safe place

• The value is in the answers to the questions:

• What is the value of a more safe society?• What is the value of a performance driven culture?• What is the value of great management practices?

Slide courtsey of Luk Smeyers, iNostix

SOCIOMETRIC DATA AND HR ANALYTICS

• Sandy Pentland to Harvard Business Review: We all have an intuition about it. But because we can measure it, social intuition is no longer magic; it’s now quantitative science.

The study: Sandy Pentland outfitted executives at a party with devices that recorded data on their social signals—tone of voice, gesticulation, proximity to others, and more. Five days later the same executives presented business plans to a panel of judges in a contest. Without reading or hearing the pitches, Pentland correctly forecast the winners, using only data collected at the party.

METRICS VS. ANALYTICS

HR Metrics Predictive HR Analytics

1. Tangible (hard data) 1. Intangible (likelihood)

2. Accounting (100 % correctness) 2. Probability (never 100%)

3. Backward-looking 3. Forward-looking

4. Data 4. Insights

5. Comprehensive 5. Selective

6. Transactional 6. Strategic

7. Information 7. Transformation

8. Low addition of value 8. Differentiator

9. Tracking 9. Asking questions

10. Reporting 10. Predicting

11. Silo HR 11. Business critical

12. HR ownership 12. Management ownership

13. Controlling 13. Optimization

14. Inside-in perspective 14. Outside-in perspective

15. Slicing-and-Dicing 15. Statistical Forecasting

16. Metrics 16. Patterns

17. Ratio’s (fraction) 17. Models (mathematical algorithm)

METRICS VS. ANALYTICS

From the iNostix blogwww.inostix.com

METRICS VS. ANALYTICS• Is Workforce Analytics the ultimate answer to the question

How does HR add value to the business?• - It is in any case part of the answer

CASE: PERFORMANCE MGT

CASE: PERFORMANCE MGT• Uniform and consistent data• Comparisons across teams• Identifying the most severe obstacles to business strategy

execution and success• Closing skills gaps

CASE: PERFORMANCE MGT

Information Analysis Interpretation Action

AM I THE CFO NOW?• Has the king of metrics found his queen?

AM I THE CFO NOW?• You can meet me on:

• LinkedIn • Twitter (@MayaDroeschler)• Google+ (+MayaDrøschler)• http://hr-forretning.blogspot.dk/• http://hrcaseforum.dk/

Measuring Human Resources by Maya Droeschler 2014

Recruiting & HR