hc source ® 1 staffing effectiveness dr. jac fitz-enz ceo human capital source
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STAFFING EFFECTIVENESS
Dr. Jac Fitz-enzCEO
Human Capital Source
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WHAT TO MEASURE?
The Choice of Metrics Depends on Business Initiatives
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THE BASIC PRINCIPLE OFPLANNING AND EVALUATING
“ceterus paribus”
All things being equal……
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CAUSES AND EFFECTS
What Happened?: Activity: Cost, Time, QuantityWho – What – Where – When – How Much
What Was the Intermediate Effect?: ImprovementQuality – Innovation – Productivity – Service
GoalProfitability – Market Share (Mission Accomplishment)
GoalProfitability – Market Share (Mission Accomplishment)
What Was the Market Effect?:
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QualityHire
BetterCustomer
ServiceCustomerRetention& Spend
MarketingSpends on
New Prospects
ProfitIncrease
SAMPLE: CETERUS PARIBUSFROM CAUSE TO EFFECT
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TIPS, TRICKS & SYSTEMS
The One-Minute Recruiter
Benchmarking
Systems
>
>
>
>
>Scan
Plan
ProcessIntegrate
Evaluate
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STAFFING: A COMPLEX FUNCTION
Strategy
Structure
Processes
Skills
Evaluation
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CORPORATE INITIATIVES DRIVE STAFFING DECISIONS
Reduce Operating Expenses
Shorten Time to Market
Improve Customer Service
Increase Gross Margins
STRATEGIC LEVEL
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STRUCTURESOURCING vs. RECRUITING / SELECTION
Division of Labor and Motivation
Communication
Accountability
Reward and Recognition
?
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MEASUREMENT INVERSION
Future Values
Process Efficiency
Employee Productivity
Pay & Benefits Costs
Initial Cost to HireLeast Value
MostValue
Most Measured
Least Measured
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EFFICIENCY OR EFFECTIVENESS?
Cost Time
Quantity Quality
Reaction
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SAMPLE METRICS
QUANTITYNumber hired / Recruiter Add RateReplacement RateHire to Requisition RatioReferral RateInternal Fill Rate
COSTCost per HireSign on Bonuses
TIMEResponse TimeTime to FillTime to Start
QUALITYFit RatingOffer to Acceptance Rate
REACTIONManager Satisfaction
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ACCOUNTABILITY
SOURCING RECRUITMENT
Select (Cull)InterviewReferConfer/AdviseProcess: Quality Timeliness Satisfaction
Produce Leads: Quantity Quality Timeliness
COST
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ACTIVITY DATE ET
Requisition . . . 2/1Recruitment Plan . . 2/7 + 6Begin Sourcing . . 2/10 + 9First List . . . 2/22 +21Referral . . . 2/25 +24Selection . . . 4/15 +64Offer Made . . . 4/25 +74Accept / Reject . . 4/28 +77
Onboarding . . . 5/8 +87Arrival . . . 5/20 +99
TIME TRACKING POINTS
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Value
Time
Ad hoc HR Measures
Benchmarks
ScorecardsDashboards
Correlations Leading Indicators Intangibles Predictability Causation
Source: Boudreau & Ramstad, & HCS
LEAPING THE DATA WALL
1980s 1990s 2000s
Measurement Era Analytics Era
(ACTIVITY) (VALUE)
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PROCESS EFFECTIVENESS
N= Newspaper, M= Prof Mag, S= Search, E=Referral, J= Job Board, W= Walk InI= Personal Interview, G= Group Interview, T= Test, A= Assessment, O= OnboardingB= Performance, C= Pay Increases, P= Potential Rating, T= Tenure
Which Combination Yields the Best Talent?
NAME SOURCES METHODS RESULTSN M S E J W I G T A O B C P T
Al M I T 2 2 1 1Bea J I G T O 3 2 2 2CeeCee E I G O 3 2 3 2Didi N I T O 2 2 2 2Earl J I O 1 1 1 2Frank J I T 2 1 1 1Gina W I G A O 2 2 1 2Hal M T O 3 3 3 2Isaac S I G A O 3 3 2 2Jon E I G T O 3 3 2 2Ken N I G T 1 2 2 1Leo N I 2 1 1 1
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LINKED MEASURES
INITIATIVES
Cost Reduction >
Time to Market >
Customer Service >
Gross Margins >
EFFECTIVENESS
Cost of Staffing
Process Timing
Fit (Quality)
HR Productivity
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STATEGIC CAPACITY SCANExternal and Internal
forces affecting structuralrelational and human capital
CAPABILITY PLANNINGWorkforce and
Succession Planning
PROCESS OPTIMIZATIONRedesign Human Capital
ProcessesInput – Throughput – Output
SERVICE INTEGRATIONIntegrated Delivery of
Human Capital Productsand Services
EVALUATION METRICSLeading Indicators and
Intangible Measures for Predictability
THE BIG PICTURE
sourcing
recruiting
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OUR PROBLEM
HumanResources
Production
Sales & Marketing
CustomerService
SC&B
PM
L&D
R
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INTEGRATION
“The first thing we've got to do is not to have silos.
We had to design our culture and systems to focus on the customer, not on the product line.
We reward the behavior we want, which is getting all of our customers' business.”
Dick Kovacevich CEO
Wells Fargo Bank
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HCM
Hire
Pay
Support
Develop
Inform
INTEGRATED DELIVERY
Plan
R&D - Production Sales - Service IT - Finance
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Readiness Leadership K Worker Churn (Succession (Survey) (QIPS Levels) Planning)
Engagement Culture Manager Effectiveness (Survey) (BPTW) (Tenure: Shrink-CS-T)
Commitment Brand Awareness L&D Spend (Productivity (Employee Survey) (ROI Metrics) & Turnover)
LEADING INDICATORS AND INTANGIBLES
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Vision
Brand Culture
Leadership Engagement
Readiness
Knowledge Management
FORECASTERS
&
PREDICTORS
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WHAT & HOW TO DO IT
1. Adopt a new vision (Capability)
2. Connect to the Initiatives (Importance)
3. Find Competitive Advantages (Change)
4. Integrate Planning & Delivery (Synchronize)
5. Measure Predictors (Future Focus)
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THANK YOU
Dr. Jac Fitz-enz
Human Capital [email protected]
408.223.77508321 Pinotage Court – San Jose, CA
95135