navigating workforce analytics in a world without standards

7/27/2019 Navigating Workforce Analytics in a World Without Standards

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July 27, 2011

Presents:

Navigating Workforce Analytics in a

World without Standards

Human Capital Management Institute


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About Human Capital Management Institute

HCMI Background:

Specialized in HR analysis &measurement

Deep expertise in Workforce Analytics &

Planning

Board made up of CFOs and HR heads

Over 40 years of experience

What We Do:

Measure the immeasurable in humancapital

Transform workforce data into business

intelligence

Provide Tools and Training so HR can

Partner with Finance

2

Workforce Assessment w Strategic Consulting w Training

Best Practices w Workforce Analytics and Planning w Benchmarking

The Human Capital Management Institute (HCMI) was founded on the belief that organizations can and

must, find better ways of measuring their investments in human capital. Our vision of the future is one in

which human capital measurement and information is as integral to business decision making as

financial information is today.

We Bring Financial Discipline, Standards and Rigor to the HR Function



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HCMI Products & Services

3 Human Capital Management Institute

Scenario: High Growth Scenario: ControlledGrowth Scenario: Cost Savings

C ur r en t 5 Y r Pr oj e ct e d F o r ec a st C u rr e nt 5 Y r Pr oj e ct e d F o r ec a st C u rr e nt 5 Y r Pr oj e ct e d F o re c as t Headcount 6 0 ,0 0 0 9 6 , 63 1 10% Headcount 6 0 , 0 0 0 6 9 , 5 5 6 3% Headcount 6 0 , 0 0 0 4 6 , 4 2 7 - 5%

Revenue $9,000,000,000 $15,861,075,149 12% Revenue $9,000,000,000 $11,486,534,063 5% Revenue $9,000,000,000 $9,000,000,000 0%

EBITDA $ 3 0 0 , 0 0 0 ,0 0 0 $ 5 7 7 , 6 24 , 3 7 5 14% EBITDA $ 3 0 0 , 0 0 0, 0 0 0 $ 3 6 4 , 9 9 5, 8 7 1 4% EBITDA $ 3 0 0 ,0 0 0 , 0 0 0 $ 3 0 0 , 0 0 0, 0 0 0 0%

Total Expenses $8,700,000,000 $13,386,028,408 9% Total Expenses $8,700,000,000 $10,085,684,446 3% Total Expenses $8,700,000,000 $6,052,488,813 - 7%

TCOW $ 4 , 7 1 3 ,0 0 0 , 0 0 0 $ 6 , 9 2 4 ,943,226 8% TCOW $4,713,000,000 $5,463,658,712 3% TCOW $4,713,000,000 $3,458,889,658 - 6%

SelectedScenario: ControlledGrowth

-8%-6%

-4%

-2%

0%

2%

4%

6%

8%10%12%14%

16%

18%

20%

Workforce

DemandGrowthRate

-8%-6%

-4%

-2%

0%

2%

4%

6%

8%10%12%14%

16%

18%

20%

WorkforceSupplyGrowthRate

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%10%12%14%

16%

18%

20%

WorkforceDemandGrowthRate

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%10%12%14%

16%

18%

20%


-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%10%12%14%

16%

18%

20%


-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%10%12%14%

16%

18%

20%


$9,000$9,450

$9,923$10,419 $10,940 $11,487

$8,700 $9,135$9,592

$10,071 $10,575$11,104

$4,591 $4,865 $5,203$5,565 $5,953

$6,369

$ 3 0 0 $ 3 1 2 $ 3 2 4 $ 3 3 7 $ 3 5 1 $365

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

B as e Yr Y r1 Y r2 Y r3 Y r4 Y r5

Project edRevenue Project edTot alExpenses

C alculat edTC OW Project edEBITDA

Millions

4 . 0% 4 . 0% 4 .0 % 4 . 0 % 4 .0%

2.6%1.7%

0.8%

-0.1% -1.0%

- 3%

0%

3%

6%

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5

Project edEBITDA C alculat edEDITDA

6.0%

6 . 9 % 7 . 0 % 7 . 0 % 7 . 0 %

3 % 3 % 3 % 3 % 3 %

0%

3%

6%

9%

Y r1 Y r2 Y r3 Y r4 Y r5

C alculat edTC OW Project edTC OW

Overall Scenario Forecast EBITDA GrowthRate TCOW GrowthRate

Human Capital Financial Statements Human Capital Impact Statement

Human Capital Asset Statement

Human Capital Flow StatementPriorYear N ew Current Year

Workforce Primary Category Headcount Hires1

%Chg Turnover2%Chg Retirement

3%Chg Subtotal %Chg Promotions

4%Chg Transfers

5%Chg Headcount %Chg

E mpl oye es 13 ,300 1 ,745 13.1% -510 -3.8% -140 -1.1% 14,395 8.2% 50 0.4% 5 0.0% 14,450 8.6%

-Management & SeniorLeadership 1,250 50 4.0% -10 -0.8% -15 -1.2% 1,275 2.0% 20 1.6% 5 0.4% 1,300 4.0%

- Pr of es si on al S ta ff 2 ,3 00 292 12.7% -70 -3.0% -50 -2.2% 2,472 7.5% 30 1.3% -2 -0.1% 2,500 8.7%

- Sa le s S ta ff 3 ,000 560 18.7% -150 -5.0% 0 0.0% 3,410 13.7% -25 -0.8% 15 0.5% 3,400 13.3%

- S p e cia lis ts a n d T e ch n icia n s 9 0 0 100 11.1% -25 -2.8% -30 -3.3% 945 5.0% 68 7.6% -13 -1.4% 1,000 11.1%

- Sk il le d Tr ad e St af f 2 50 25 10.0% -10 -4.0% 0 0.0% 265 6.0% -25 -10.0% 10 4.0% 250 0.0%

- Op er at io ns St af f 1 ,4 50 225 15.5% -80 -5.5% -20 -1.4% 1,575 8.6% 20 1.4% 5 0.3% 1,600 10.3%

- Se rv ic e S ta ff 2 ,7 50 308 11.2% -120 -4.4% -25 -0.9% 2,913 5.9% -8 -0.3% -5 -0.2% 2,900 5.5%

- A d min is tr a t iv e S u p p or t S t a ff 9 5 0 110 11.6% -20 -2.1% 0 0.0% 1,040 9.5% -40 -4.2% 0 0.0% 1,000 5.3%

- L ab o re rs a nd He l pe rs 4 5 0 75 16.7% -25 -5.6% 0 0.0% 500 11.1% 10 2.2% -10 -2.2% 500 11.1%

C on ti ng en t S ta ff 1 ,7 00 4 55 26.8% -150 -8.8% 0 0.0% 2,005 17.9% -50 -2.9% -5 -0.3% 1,950 ####

- Te mpora ry 1 ,100 235 21.4% -100 -9.1% 0 0.0% 1,235 12.3% -30 -2.7% -5 -0.5% 1,200 9.1%

- Contractors 600 220 36.7% -50 -8.3% 0 0.0% 770 28.3% -20 -3.3% 0 0.0% 750 25.0%

T ot alor A v er a g e Wor kfor ce 1 5 , 00 0 2 , 2 00 14.7% -660 -4.4% -140 -0.9% 16,400 9.3% 0 0.0% 0 0.0% 16,400 9.3%

Workforce Quantifier ROI Calculator

Quantify ROI of Workforce Decisions

Cost of Turnover, Workforce Cost , Cost per Hire

Shows Business Case for HR Interventions

Integrated Data Blueprint Modular Talent Management Components

Detailed Data Dictionary + Metric Formulas

Key Analysis Segments and Dimensions

Human Capital Metrics Handbook Nearly 500 Metrics and Detailed Definitions

Over 100 KPI Best in Class Metrics

Unique Metrics that Monetize Human Capital

Workforce Planning Templates Link Workforce and Financial Metrics

Advanced Retirement Calculator

Forecast Skills, Costs, Talent and Productivity

Multi-DimensionalWorkforceAssessment

Identify AreasofOpportunity

SpotlightStrengths&Weaknesses

MinetheData for

Driversof CriticalBusinessOutcomes

HCMIAssessment Framework

Focus&

Resources(Centerof

Excellence)

BusinessComplexity &

Structure

Measurement& AnalyticCapability

Speed, SystemsIntegration &

Automation

Standards,

Processes& DataQuality

Reporting,

Scorecards&Accountability

Workforce Costand

Productivity

WorkforceKnowledge

Business,Workforce &

HR StrategyLinkage

CreatePerceptualWorkforceMaps

EnableData-DrivenDecision Making

SettheStageforAdvanced Analytics

Beginning Foundation

Career PathROI ToolModel of an AppreciatingAssetEmployeesasAssetsversusExpenses

StaffAccountant

Mgr.,Accounting

Dir.,Accounting

Accountant

Sr.Accountant

CAGR:Compound AnnualGrowth Rate

Accounting Job FamilyCareer SalaryProgression

$46,400

$49,600

$59,800

$67,000

$79,100

$94,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

0 1 2 3 4 5 6 7 8 9 10 10+

Years of Experience

BaseSalary

Staff Accountant

Accountant

Sr. Accountant

Mgr., Accounting

Dir., Accounting

Ave Annual ate

Market Rates(50%-75%ile)

CAGR = 10.0%$130,000

CAGR = 6.6%

Entrylevel Staff Accountanthired at 50%ile needs annual

salarygrowth of 10.0% to staywith market

(Assumes mkt growth of 3% annuallywprogressi on to . Directorin 10

years.)

50th%ile

Theten-year costsavingsisthea reabetween

thecostof ExternalHirescompared to the

career path of an InternalStaff Accountant

Cost Savingsfrom Internal

Development

InternalHiring Cost

Over Time

C

orrelationCoefficient(0-1)

FactorsLeading toIncreased Turnover

JobTitleorPosition

Dissatisfaction With Compensation

High vs.Low TurnoverManager

CommuteDistance

Driver#3

Driver#2

Driver#1

.50

.33

.27

.02

LowTurnoverImpact

HighTurnoverImpact

SomeTurnover

Impact

.11

WorkLocation

Numberof Jobsin Last3Years .70

H i re d T hr o u gh E m pl o ye e R ef e rr a l . 1 9

Job Framework Mapping Tool Integrated Taxonomy of 15,000+ jobs

Find and Map Critical Job Roles

Workforce Capability Assessment Data and Systems Capability + Risk Analysis

Human Capital Measurement Standards

Span of Control Optimizer Tool

Benchmark and Optimize Manager Spans

Optimize Management Spans and Layers

Career Path ROI Tool Quantify ROI of Internal Career Path Growth

Build(Train), Buy(Hire) or Lease(Contract)

Analysis

Analytic Engagement Projects High Performer Profiles

Engagement ROI and Sales Impact

Turnover and Retention Driver Analysis

Analytic Storytelling with ROI

Initial Reports&Analysis

Data Gathering

First Good

Metrics

HR Data Warehouse

Drill-down,standardreportsScenario Analysis

ExternalBenchmarking

Contextfordecisions

Data

Driven Decision

Making!

Turnover,Headcount,Hiring

HRISsystem data

COEFormation

Data Errors

HR Analytic

sMandate

HR StandardsEstablishedLostHR

Credibility

HR data/systems

Assessed

HR Data Cleansedhistoricaldatascrubbed

Bus.UnitsReject

Analysis

Data Errors

Historicaldatastillbad

1st

AnalyticsStudy

AdvancedAnalytic

Studies

HR Analysis

Validated

Integrated HRDatabases

COELaunches

TrainingCourses

Bus. Units

Demandmore

Analyticsjourneysteps

Setbacksalongthe way

Journeypath and goal

Roadmap Design Step by Step Deliverables

Analytics and Workforce Planning

Training and Advisory Support

Expert Guided Standard and Customized Ongoing Advisory Support Services

Beginning and Advanced Training


4/25

Driving in the Early Days of Rural Highways

Highways were owned by private auto clubs

Each highway had its own signage

In 1935, American Association of State Highway Officials (AASHO)

published the MUTCD to provide signage standards

Congress passed the Highway Safety Act in 1966


1920s1930s 1940s

Early

1950s

1960s

Today

Source: Gene Hawkins, Texas A&M Civil Engineering Department


5/25

Driving Today



6/25

Accounting/Finance have Standards (IFRS, GAAP financial reporting requirements

by country and standard setting bodies such as FASB)

HR does not(Lack of recognized standards and governance)

The Need for Standards

Increasing HR Focus -Early attempts atstandards

Evolution into HRThe Search for HR

respect

Early ApproachPersonnel

1960 1970 1980 1990 2000 2010

ROI of HR

ERP Systems, HR Self Service

HR Profit Center - Failed

HR Benchmarking

HR Business Partnering

HR Outsourcing

Advent of HR Metrics

The War for Talent

HR Talent Mgmt

HR Automation

Strategic HR EmergingStill no standards o r truevalue-add too l

Strategic HRStandards +

A seat at the tabl

e

HR Auditing

HR Case Studies

Employee Attitude Surveys

MBA in Personnel

HR as Risk Managers

History of Accounting - Luca Pacioli wrote thefirst accounting "textbook" in 1494. It could be said that

accounting standards have enabled many aspects of the

information revolution and 21st century accounting.

Luca Pacioli, Father of Accounting

Human Capital Management Institute 6


7/25

If it was easy organizations would already be advanced (and few are)

1. Lack of standards in HR for workforce data

2. Cannot agree on what is important

3. HR systems do not talk to each other well (yet)

4. Too many cooks in the kitchen IT, HR, Finance, others

5. Lack of workforce data management + analytic skill-set

6. NO ownership of workforce data

We Have Systems and DataWhy is this so Difficult?



8/25

The Challenge of Measuring Human Capital

Compensation

Transfers

New HireTurnover

SuccessionData

Turnover

Training

Recruiting

EmployeeDat

a

Benefits

Span

of Control

Workforce

Planning

SuccessAdvanced

Analytic

Insights

Complexity of Workforce Data

Employee/Full-Time-Equivalent (FTE)

Jobs/Roles/Skills

Time - Tenure

Absenteeism

Frequency of Change

Promotions, Transfers, Hires,

Terminations

Jobs/Roles/Skills

Measuring the Intangible

Lack of Standards

Lack of Analytic Skills



9/25

Leveraging Standards for Process Improvement

Current State Future State

Improved Data Quality

Standard Measures& Metrics

Workforce AnalyticTools

Workforce PlanningFoundation

Tools andTemplates

Critical Job Roles

Workforce Standards

Marginal DataQuality

NoConsistency

SkillGaps

NoFoundation

Lack ofInsights

NotPredictive

Lack ofIntegration

NoStandards

Lack of WorkforcePlanning Capability

No AnalyticCapability

$ ROI Opportunities

Manpower AnalyticSkills


DataIntegration

Transaction &Timing Standards

Measures&

Metrics

9

Standards


10/25

Framework + Standards: Building the House

LinkedBusiness and Workforce Strategy

(HR Value Creation & Workforce Optimization Model)

Workforce Planning Workforce Analytics

80% Standard , 20% Ad-Hoc Reports Standard Metric Definitions

One Foundationfor Analytics& Planning

Predictive WorkforceManagement

Tools

Demand

&

Supply

Management&Workforce

Practices Critical

Roles

&Skills

Predictive

Modeling

Data

Driven

Decisions

Metrics to

Recruit,

Train &

Retain

Measuring & Reporting

Cost

Modeling

Root

Cause

Analysis

TalentManagement,Skills,

Knowledgemgmt

Integrated DataEnables

Reports & Measures

Analytics &

Workforce PlanningCapabilities

Analytic Framework Foundation to Roof

Workforce Planningand Analytics 2 PATHS,1 HOUSE

Foundation

Awareness

Excellence


Standards Data


11/25

3 Steps to Better Standards

1. Identify your measures and metrics

2. Implement transaction and timing standards

3. Create a data framework for analysis



12/25


Base Data - No Metrics

Calculated Metrics(e.g. Turnover rate)

Simple Metrics( e.g. Headcount, Terminations )

Combined Source Metrics(e.g. Internal vs. External Hire Cost Differential)

Insightful Metrics(e.g. Revenue per FTE)

Advanced Metrics(e.g. Career path ratio)

Index Metrics(e.g. New hire success rate)

Complex Index Metrics(e.g. Quality of Hire)

WorkforceMeasurement

Requires TieredMetrics

HCMI Metrics Hierarchy

Step 1: Identify Your Measures and Metrics


13/25



Standard calculations and definitions

are imperative


14/25

A Guide to the World of Workforce Metrics

A comprehensive guide ofover 450 human capital

metrics

100 best in class and

critical metrics to quantifyand manage the workforce

Definitions and

descriptions showing most

common and best use

Detailed formulas and

explanations




15/25

ProcessDocumentation

Process Flows

Data Transfers

Workforce Data Elements

Governance andSecurity

Data Ownership

Data Usage

Data Access

Accuracy and Consistency

Timing and CutoffStandards

Eliminate Bad DataBehavior (e.g.backdating)

Standardize DataTransfers

Standardize Updates andMaintenance

TransactionProcessingGuidelines

Control Manual DataEntry

Scheduled Data Reviewsand Audits

Role Based Security


Step 2: Implement Transaction Standards


16/25

Cut-Off Standards are important as they ensure the accuracy and

quality of data and month end reports. Communication of deadlines to

HR departments is necessary to ensure paperwork/forms are

submitted in time for data entry.

Step 2: Implement Transaction Standards



17/25

Position Profiles

Redefine Best/Worst _sources

New Recruiting Standards

Performancedata

Step 3: A Data Framework for Analysis

&

Retention Data

Compensationdata

Recruiting data

Turnover Metrics Reports

Turnover Drivers

Turnover demographics

Retention Drivers

Recruiting Metrics

Best/worst hire sources

Targeted recruiting

Compensation Metrics

Internal/external Pay Equity

Fixed vs. Variable pay

Performance Metrics

Ratings Dist. Curve

Identify Hi Potentials

Ratings demographics

Pay for Performance

Areas of Excellence

Targeted Training

17

Turnover



18/25

Step 3: Data Integration Framework

Data

Model

Validate

and Analyze

Integrate Data

Data Quality

and Gap Testing

Workforce and Data StandardsFoundation

Transaction and Timing Standards

Metric Definitions and Calculations

Job Framework

Flag Data Gaps and Inconsistencies

Add Data Elements and Analytic Capabilities

Combine Data from HR Systems Integrate Workforce and Business Data

Validate Data and Analysis, Issue Reports

Analyze Across Talent Management Lifecycle

Data Driven Decision Making

Workforce Impact Linked to Business Outcomes

Quantify Workforce Issues

Value



19/25

Components of a Job Classification Framework

High Level Job Group

Detailed Job Dimension

Workforce Category: Professional Staff

Job Family: Analyst

Job Title: Senior Analyst

Job Code: HANA34NXO

High Level Analysis Category

Detailed Analysis Dimension

Revenue Generating: No

Job Function: Human Resources

Job Band: 3

Job Grade: 34

Industry: Financial ServicesEEO Category: Professionals

Job Sub Function: Compensation

Customer Facing: No

Step 3: Create Frameworks for Data Structure



20/25

Steps 1 3: Standards in Action

20 Human Capital Management InstituteSource Systems

1. Governance

2. Standards

3. Best Practices

Data IntegrationBlueprint

Dashboards

Human Capital Reports

Metrics

Analytics

HRTransactions

Standards

CorrelationCoefficient(0-1)

Factors Leading toIncreased Turnover

JobTitleorPosition

Dissatisfaction With Compensation

High vs.Low TurnoverManager

CommuteDistance

Driver#3

Driver#2

Driver#1

.50

.33

.27

.02

Low

TurnoverImpact

HighTurnoverImpact

SomeTurnoverImpact

.11

WorkLocation

Numberof Jobsin Last3Years .70

H i re d Th r ou g h Empl o ye e R ef e rr al . 19

Scenario: High Growth Scenario: ControlledGrowth Scenario: Cost Savings

C ur re nt 5 Y rP ro je ct ed F or ec as t C ur re nt 5 Y rP ro je ct ed F or ec as t C ur re nt 5 Y rP ro je ct ed F or ec as t

Headcount 6 0 ,0 0 0 9 6 , 63 1 10% Headcount 6 0 ,0 0 0 6 9 , 55 6 3% Headcount 6 0 ,0 0 0 4 6 ,4 2 7 -5%

Revenue $9,000,000,000 $15,861,075,149 12% Revenue $9,000,000,000 $11,486,534,063 5% Revenue $9,000,000,000 $9,000,000,000 0%

EBITDA $ 3 0 0 ,00 0 ,0 0 0 $ 5 7 7 ,62 4 ,3 7 5 14% EBITDA $300,000,000 $364,995,871 4% EBITDA $300,000,000 $300,000,000 0%

Total Expenses $8,700,000,000 $13,386,028,408 9% Total Expenses $8,700,000,000 $10,085,684,446 3% Total Expenses $8,700,000,000 $6,052,488,813 -7%

TCOW $4,713,000,000 $6,924,943,226 8% TCOW $4,713,000,000 $5,463,658,712 3% TCOW $4,713,000,000 $3,458,889,658 -6%

SelectedScenario: ControlledGrowth

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%10%12%14%

16%

18%

20%


-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%10%12%14%

16%

18%

20%


-8%-6%

-4%

-2%

0%

2%

4%

6%

8%10%12%14%

16%

18%

20%


-8%-6%

-4%

-2%

0%

2%

4%

6%

8%10%12%14%

16%

18%

20%


-8%-6%

-4%

-2%

0%

2%

4%

6%

8%10%12%14%

16%

18%

20%


-8%-6%

-4%

-2%

0%

2%

4%

6%

8%10%12%14%

16%

18%

20%


$9,000 $9,450$9,923

$10,419 $10,940 $11,487

$8,700 $9,135$9,592 $10,071

$10,575 $11,104

$4,591 $4,865 $5,203$5,565 $5,953

$6,369

$300 $312 $324 $ 3 3 7 $ 3 5 1 $ 3 6 5$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000$14,000

B as eYr Yr 1 Y r2 Yr 3 Yr 4 Yr 5

P r o j ec t e dR e ve nue P r o j ec t e dT o ta l E x pe ns e s

C a l cul a t e dTC O W P r o j ec t e dE B IT D A

Millions

4 . 0% 4 .0 % 4 .0 % 4 . 0% 4 .0 %

2.6%1.7%

0.8%

-0.1% -1.0%

-3%

0%

3%

6%


P r o j ec t e dE BI T D A C a l c ul a t e dE DI T D A

6.0%

6 . 9% 7 . 0% 7 . 0% 7 . 0%

3% 3 % 3 % 3 % 3 %

0%

3%

6%

9%


C a l cul a t e dT CO W P r o j ec t e dT CO W

Overall Scenario Forecast EBITDA GrowthRate TCOW GrowthRate

Advanced Tools

SampleProductivity Scorecard

R e su l t P a yo ut R e su l t P a yo u t R e su lt P a yo ut R e su l t P a yo u t R e su l t P a yo u t R e su l t P a yo u t R e su l t P a y o ut R e su l t P a yo u t R e su l t P a y o ut R e su l t P a yo ut

-5% 0% -20% 0% 0% 0% -5% 0% 15% 0% 30% 0% 30% 0% 0% 0% 0% 0% -10% 0%

0% 0% -5% 0% 5% 0% 0% 0% 10% 0% 30% 0% 30% 0% 5% 0% 5% 0% 0% 0%

5% 20% 0% 0% 10% 40% 1% 25% 8% 20% 25% 0% 25% 0% 10% 10% 10% 20% 2% 20%

10% 40% 1% 15% 15% 60% 2% 80% 5% 30% 20% 0% 20% 0% 15% 15% 15% 30% 3% 30%

15% 80% 3% 40% 25% 100% 3% 100% 3% 50% 13% 40% 10% 40% 25% 25% 25% 50% 5% 70%

20% 100% 5% 50% 30% 110% 5% 110% 0% 60% 10.0% 50% 7.5% 50% 30% 70% 30% 70% 8% 90%

25% 120% 10% 60% 35% 120% 10% 120% -1% 80% 7.5% 70% 5.0% 70% 40% 90% 40% 90% 10% 100%

40% 140% 15% 80% 40% 130% 12% 130% -5% 100% 5% 80% 8% 80% 60% 100% 60% 100% 20% 110%

50% 150% 20% 90% 45% 140% 15% 140% -10% 120% 3.0% 90% 10.0% 90% 80% 100% 80% 100% 30% 120%

60% 200% 25% 100% 50% 150% 25% 150% -12% 150% 2.0% 100% 15% 100% 100% 100% 100% 100% 50% 150%

Performance%'s roundedtonearest2digitpercentage

Talent Sourcing

High

Performer

TurnoverRate

10%

70%

Total Cost of

Workforce

RevenuePer

FTE

Talent Loss

30%20% 50%40% 60%

High

Performer

Promotion

Rate

30%

Quality ofHire

Gain

AverageTime

toProductivity

&Profitability

20%30%

Training

Performance

Differential

30%

40%

Talent ExecutionTalent Management

20%

Pay for

Performance

Salary

Differental

Profit PerFTE

50%

Open Position

Lost Revenue

or

Productivity


21/25

1stUS Standard Cost per Hire Nearcompletion. Future ISO Intl standard as well

New SHRM Technical Advisory Group (TAG) +

special Taskforces (4 Currently)

HR disagrees on basic things (i.e. what to includein voluntary turnover, what is a promotion)

SHRM TAG Taskforce formed on Human

Capital Disclosure Requirements

Standards are coming to HR!

Standards: Accounting vs. HR

Generally Accepted Accounting Practices(GAAP) + (IFRS*)

Standard Setting Boards (i.e. PCAOB**)

Standards for widely used metrics and terms

Standard Disclosures and Financial

Statements (Income Stmt, Balance Sheet,

Cash Flow Stmt)

Advanced Analysis + Strategic Insight

Limited Industry Practices and Benchmarks(limited Government reporting requirements)

SHRM*** but currently no Board ?

HR disagrees on basic things (i.e. what toinclude in voluntary turnover, what is a promotion)

Companies disclose only headcount , no

standard reports

Best Practice Companies using Internally


Accounting HR

*IFRS = International Financial Reporting Standards

** PCAOB = Public Company Accounting Over-site Board

*** SHRM = Society for Human Resource Management


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SHRM Standards Committee (TAG)


TAG = Technical Advisory Group


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HCMI has developed three unique statements collectively known as Human CapitalFinancial Statements for organizations to disclose human capital information:

Human Capital Impact Statement

Workforce Productivity Impact Summary

Total Cost of Workforce Sub-Schedule

Talent Management Impact Schedule

Human Capital Asset Statement

Human Capital Headcount Summary

Human Capital Asset Cost Schedule

Human Capital Training Value-add Schedule

Return on Human Capital Investment Schedule

Total Human Capital Value Schedule

Human Capital Flow Statement Talent and Headcount Flow Summary

Human Capital Job Value Schedule

The Human Capital Financial Statements (HCF$)


Prior Year New Current Year

W or kfo r ce P r im ary C ateg or y H eadcoun t Hires1

%Chg Turnover2%Chg Retirement

3%Chg Subtotal %Chg Promotions

4%Chg Transfers

5%Chg Headcount %Chg

Employees 13,300 1,745 13.1% -510 -3.8% -140 -1.1% 14,395 8.2% 50 0.4% 5 0.0% 14,450 8.6%

-Management & SeniorLeadership 1,250 50 4.0% -10 -0.8% -15 -1.2% 1,275 2.0% 20 1.6% 5 0.4% 1,300 4.0%

- Professional Staff 2,300 292 12.7% -70 -3.0% -50 -2.2% 2,472 7.5% 30 1.3% -2 -0.1% 2,500 8.7%

- Sales Staff 3,000 560 18.7% -150 -5.0% 0 0.0% 3,410 13.7% -25 -0.8% 15 0.5% 3,400 13.3%

- S pe ci a li st s a nd T ec h ni ci a ns 9 0 0 100 11.1% -25 -2.8% -30 -3.3% 945 5.0% 68 7.6% -13 -1.4% 1,000 11.1%

- Skilled Trade Staff 250 25 10.0% -10 -4.0% 0 0.0% 265 6.0% -25 -10.0% 10 4.0% 250 0.0%

- Operations Staff 1,450 225 15.5% -80 -5.5% -20 -1.4% 1,575 8.6% 20 1.4% 5 0.3% 1,600 10.3%

- Service Staff 2,750 308 11.2% -120 -4.4% -25 -0.9% 2,913 5.9% -8 -0.3% -5 -0.2% 2,900 5.5%

- A dm in is t ra ti v e S u pp or t S t af f 9 5 0 110 11.6% -20 -2.1% 0 0.0% 1,040 9.5% -40 -4.2% 0 0.0% 1,000 5.3%

- Laborers and Helpers 450 75 16.7% -25 -5.6% 0 0.0% 500 11.1% 10 2.2% -10 -2.2% 500 11.1%

Contingent Staff 1,700 455 26.8% -150 -8.8% 0 0.0% 2,005 17.9% -50 -2.9% -5 -0.3% 1,950 ####

- Temporary 1,100 235 21.4% -100 -9.1% 0 0.0% 1,235 12.3% -30 -2.7% -5 -0.5% 1,200 9.1%

- Contractors 600 220 36.7% -50 -8.3% 0 0.0% 770 28.3% -20 -3.3% 0 0.0% 750 25.0%

Tot al or Av er ag e W or kfor ce 1 5, 00 0 2 ,2 00 14.7% -660 -4.4% -140 -0.9% 16,400 9.3% 0 0.0% 0 0.0% 16,400 9.3%


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Questions?



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Next Steps:


For more information about HCMI and the Human Capital

Metrics HandbookTM, visithttp://www.hcminst.com/hcmi.html

For inquiries about the Workforce Intelligence Consortium,

contact Cheryl Farley, Program Director [email protected]

Presenter information:

Jeff Higgins, CEO HCMI [email protected]

Workforce Intelligence Consortium

Group@HCMI
http://www.hcminst.com/hcmi.htmlmailto:[email protected]:[email protected]:[email protected]:[email protected]://www.hcminst.com/hcmi.html

navigating workforce analytics in a world without standards

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