measuring hr part 3 of 3
DESCRIPTION
the presentation is the third part of 3 part series, on my lecture at KIAMS - 2011TRANSCRIPT
MEASURING HROctober – December 2011Kirloskar Institute of Advanced Management Studies, HARIHAR,PUNEArchita Panda Part – 3/3.
COVERAGE OF THIS COURSE Evolution of HR as a function and
Future/Present of HR Integrated HR functions and HR Scorecard ROI for HR Services Approach to Measure HR HR Metrics and Cost estimation of HR
function HR Cost and Budgeting HR Accounting HR Audit
Covered in Part 1 of 3 part series(http://www.slideshare.net/ArchitaVytla/measuring-human-resources-part1-of-3))
Covered in Part 2 of 3 part series (http://www.slideshare.net/ArchitaVytla/measuring-hr-part23)
Being Covered in Part 3 of 3 part series (current one)
HR Cost : Overall operating cost of the HR Processes/Function.
Type of Cost :
1. Direct Cost 2. Other Direct Cost 3. Indirect Cost (Recharges /Recoveries)
HR COST
1. Direct Cost :
Direct costs refer to fixed, variable and sunk costs related to
a. Employment Cost b. Staff Cost
These costs are essential for the recruitment and retention of employees. But not limited to these.
HR COST
a. Employment Cost Salary, wages and allowances Bonus /variable pay Pension Cost Direct Cash / Benefit Expatriate Cost/ Benefit Govt. and State Taxes Other employment Cost
HR COST
b. HR Staff Cost Recruitment Cost Attrition/Termination Cost Other Staff Cost
HR COST
2. Other Direct Cost for HR : Course of Training and Orientation Communication and Stationary Travel and entertainment Outsourced Cost Professional / Consultancy Fees IT Cost
HR COST
3. Indirect Cost :
IT Recharges Service Recharges Property Recharges Recoveries
HR COST
RESOURCING METRICS Cost per Hire : (Advertising + Agency Fees + Employee Referrals +
Travel cost of applicants and staff + Relocation costs + Recruiter pay and benefits) /Number of Hires
Ratio of new hire to Total Head count Average relocation package Resource requisition per recruiter Recruitment cost per hire Average sign – on bonus Hiring cycle time ( Time to Start & Time to fill ) Open positions vs. Offer made Source distribution Skill distribution % of Diverse hire Interview to offer ratio Offer to acceptance ratio Abort ratio
TRAINING METRICS
Training spend Training hour per employee Training money spent per employee Percentage employee trained per year Training staff available per employee
OTHER HR METRICS Variance of HR Operating Cost ( Budget vs Spent ) HR Staff cost as % of Total HR Operating cost Formula : HR staff cost / total HR Operating cost * 100 HR Cost per Business Employee Formula : Cost of HR / No of Business Employee (excl HR) No of Employee per HR PersonFormula: No of Employee/ no of HR Employee No of Employee for Performance Review Formula : No of associates completed review / No of eligible associates *100
OTHER HR METRICS Voluntary turnover : No of employee exited due voluntary reasons/
Average no of employee * 100 Rating wise turnover : No of voluntary leavers for each performance
rating/ No of employee rated * 100 Improved performer : No of employee rated low in last performance
review and have higher rating in year 2/ all low rated employee last year
Rating Distribution: Rated employee for each performance rating/ total employee rated in the performance management cycle * 100
OTHER HR METRICS Employee Engagement Index: No of favorable response/ total no
of resources * 100 % Employee assessed against capabilities: Total no of employee
assessed / no of eligible employee * 100 No of employee with Assignment in Development plan: no of employees with international assignment plan/ no of employees * 100 International mobile employee ratio: No of employee in
international assignment/ total no of employees
OTHER HR METRICS PBT per employee: Profit Before Tax/ No of employee Total employee cost / Total Operating Cost Average employee cost :Total employee cost / No of employee Return on Investment in Human Capital : Revenue after loan
impairment – Non staff cost / Staff Cost Internal Promotion Rate : No of promotion/ average headcount *
100 Female associates in talent program : No of female associates in
talent program/ total no of female associates * 100
OTHER HR METRICS No of female employee at each level : No of female associates in
particular grade / total no of employee * 100 Compensation Cost Distribution at Each Level : Fixed compensation at
each level / Total fixed compensation * 100 Variable compensation : Variable compensation at each level/ total
compensation * 100 Compensation cost vs. Revenue : Total Compensation Cost/ Revenue *
100
HR Budget : A 12-month operating budget ending on the
last day of the calendar year
Forecast : At certain period of time during the FY
( Actual Spent + Budget for the rest of the year )
Monitor : Set frequency for report/Check Variance/Control
HR BUDGET
How to make a Budget ?
1. Defining Expense Areas
2. Historical Data
3. Assumptions
4. Projections ( Reference Business Strategies )
5. Consolidate
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HR BUDGET
Archita Panda
Email: [email protected]
Mobile: 9850094074
Linkedin Profile: http://in.linkedin.com/pub/archita-panda/6/177/823
End of Part – 3/3.
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