measurement in hrm alignment & hiring
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8/2/2019 Measurement in HRM Alignment & Hiring
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Measurement inHRM
- Neha Agrawal
1Amity Global Business School, Pune
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Measuring
HR Alignment
2Amity Global Business School, Pune
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Organizations and employees fundamentally
exist within a holistic and symbiotic
"eco-system" that needs to bealigned to be effective.
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What is Alignment
• Human resources alignment means integrating
decisions about people with decisions about the
results an organization is trying to obtain.
• Alignment with vision, mission, organizational
goals and objectives
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Vertical & Horizontal Alignment
• Vertical Alignment: the degree to which the content of an HRM practicefocuses on, embeds, andcommunicates the desiredperformance competencies
• Horizontal Alignment: the degree to
which HRM practices are mutually supportive and reinforcing
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Why Alignment?
• Biggest Asset-Human Capital
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HR Link to Organizational Performance
• Example-
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Requisites
• A clear understanding of the value chain: What kind of value theorganization generates and exactly how that value is created.
• Describe how ultimate financial goals are linked to key successfactors at the levels of customers, operations, people, and IT systems.
• Shared understanding of the value-creation process-through which theorganization can design a strategy implementation model that specifiesneeded competencies and employee behaviors.
• The HR system can be geared toward the generation of thesecompetencies and behaviors.
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+
Results
̶
̶ Behaviors +
HR Alignment
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Methods of Measuring HR
Alignment
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1. Objectives & Measures
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2.Integrating HR into Value Creation
• HR deliverables : Outcomes of the HR architecturethat serve to execute the firm’s strategy.
• HR doables: HR efficiency & activity counts.
• HR performance drivers: core people-relatedcapabilities or assets.
• HR enablers reinforce performance drivers(moderators whose presence activates the HRperformance drivers).
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3. Benchmarking
• It is a systematic process of measuring anorganization’s products, services, and practices againstthose of a like organization that is a recognized leader in the studied area.
• The study helps to gauge HR alignment throughdecision support categories such as:
•
resource planning• organizational planning, and
• strategic HR planning
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4. The Balanced Scorecard
• Framework used to translate strategy into
operational terms by measuring a full range of
perspectives:
• Financial
• customer
•
internal• learning and growth.
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5. Activity Based Costing (ABC)
• is a method of cost management that determines the truecost, including overhead, for a service or product.
• Finding the true cost allows
agencies to discover cost improvement opportunities prepare and actualize strategic and operational plans
improve strategic decision-making.
• It involves identifying activities, determining activity costs,determining cost drivers, collecting activity data, andcalculating the service cost.
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6. Job Analysis and Competency Modeling
• Identifies job responsibilities, tasks, and employee
attributes needed on different jobs to assure
mission-critical goals.
• Competencies are used as a firm and consistent
foundation for organization/job design, staffing,
placement, appraisal, development, performance
management, succession and compensation.
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7. Talent Audits and Bench Strength
Analysis
• Identifies and prioritize talent gaps for different jobs.
•
Goals often include:1) identification of mission-critical positions and other
workforce areas with talent gaps; and
2) developing clear and measurable action plans for closing them.
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8. HR Alignment Process
Assessing HR Alignment
• Individual results w/business goals
•Talent levels w/ businessobjectives
• Individual w/ career goals
•Team & unit w/ businessobjectives
•Culture w/ businessobjectives
•Process w/ businessobjectives
Architecting HR Process
Alignment
•Talent Management
•Performance Management
•Employee Selection &
Placement
•Succession Planning
•Rewards & Recognition
Building HR Alignment
•Assuring person job fit•Optimizing humanperformance
•Assuring bench strength
• Intentional culture shaping
•Organization and job design
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Measuring
Hiring &Staffing
20Amity Global Business School, Pune
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Hiring & Staffing
Recruitment and staffing provide the overall
framework for the process of planning, recruiting,
selecting, and hiring employees.
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Why is it important?
• The goal of recruitment and staffing is to identify thesmartest, most versatile employees you can find.
• Retention of your best employees starts with your effective recruitment and staffing process,strategies, policies and procedures.
Whom you choose to give entry to, will define how should he/she be managed…
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The Virtuous Triangle
• Speed of hiring and costcontainment areimportant andmeasurable drivers
• In contrast, quality of hire presents a morenebulous metric to
define and measure, butis the critical measure totake into account.
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Methods of Measuring
Hiring & Staffing
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QoH- Quality of Hire (Lou Adler)• How well a new person meets the performance needs of the job using the
following 1-5 yardstick:
• Level 1.0: Underperforms on all core performance requirements of the job.
• Level 2.0: Reasonable match on most job needs, but needs extramanagement, direction, or coaching to meet the basic performancestandards.
•
Level 2.5: Average performance. Meets basic requirements of the job witha normal degree of management coaching and direction.
• Level 3.0: Solid performance. Meets significant performance requirementsof the job on a consistent basis with minimal management direction andsupport.
• Level 4.0: Consistently exceeds significant performance requirements of
the job on measures of quality and/or quantity.• Level 5.0: Far exceeds significant performance requirements of the job on a
consistent basis.
• While typical interview and assessment tools can differentiate betweenabove and below average performance, they don’t do too well indetermining if someone is a Level 3, 4 or 5 ---- Use Talent Score Card
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Talent Score Card
• 10 Factors rates on a scale of 1-5
• Technical Skills & Abilities
• Motivated
• Team Skills (EQ)
• Problem Solving• Managerial Fit
• Achieved Comparable Results
• Planning & Executing Comparable Work
•Environment & Cultural fit
• Trend of growth over time
• Potential
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Return on Workforce (Taleo)
• It is the ratio of outcome – measured in operatingincome – to input, measured as the total laborcost (full time and contingent).
Operating incomeROW = ---------------------------
Labor costs
The ROW ratio brings a better depiction of today’sworkforce reality and consequently translates into betterfinancial performance for the organization using it.
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Cost per Hire (CPH)
• It is a common recruiting effectiveness measuringtool.
• A valuable tool but does not take into account the
length of time it takes to fill the position andquality of the hire.
• In addition cost per hires will drastically differfrom position to position.
• For example, a cost per hire for a senior executiveposition will be drastically different from a non-exempt position.
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Calculating Cost per Hire (CPH)
• Eg-
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Time
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"Time to Fill"
is a calculation thattracks the number daysfrom the created dateof the job, up until the
hired date of theapplicant.
shows how many days it
took to hire a candidatein a job
.
"Time to Hire"
is a calculation thattracks the number of
days from the createddate of the applicant, up
until they’re hired
shows how many days
the candidate was in
your system before they got hired
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Supply Chain Measurement: Yield
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References
• http://hralignment.net/HR-Metrics.htm• http://www.hr.com/en/communities/organizational_development/alignment_eacxs746.html
• http://www.smhc-cpre.org
• http://www.slideshare.net/cheerupitsanewday/measuring-hr-strategic-alignment-through-the-hr-scorecard-presentation
• http://www.opm.gov/studies/alignnet.pdf
• http://www.maverickec.com/index_files/Aligning%20HR%20Strategy%20epulse.pdf
• http://59.67.71.238:8080/004/wenxian/pdf/17.pdf • http://www.ere.net/2011/09/16/measuring-and-maximizing-quality-of-hire/
• http://www.adlerconcepts.com/index.php/article-topics/quality-of-hire/729-how-should-you-measure-quality-of-hire
• http://www.taleo.com/researcharticle/staffing-focus-quality-hire-how-measure-it
• http://www.investopedia.com/terms/r/revenueperemployee.asp#axzz1pxJRzfb4
• http://www.esrcheck.com/articles/Safehiringaudit.php
•
http://www.recruitersnetwork.com/resources/costperhire.htm• http://www.teksystems.com/Services/Staffing-Services/Hire-Model.aspx
• http://cs.icims.com/public/w/faqs/what-is-quot-time-to-fill-quot-versus-quot-time-to-hire-quot.aspx
• http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1078&context=cahrswp
• http://www.hrmreport.com/article/Recruiting-Metrics--the-Rules-Have-Changed/
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Thank You…
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