the people management story

The People Management Story

Developing an Appropriate HR Scorecard

1. Newton asked a different question…

2. Create a story framework – cause and effect

3. Underlying it is the value chain for HR

ASK QUESTIONS

1. Objectives need to answer the question for your organization

2. It takes into account the maturity and peculiarities of your function

3. Benchmark it to see where you are and want to be

SET OBJECTIVES

1. The metrics must be able to help you to create the desired “story” for people management

2. It however, if used correctly, tell you the current “story” of HR in your organization

DEVELOP METRICS

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People Management– The Story

FINANCIALS Do we all contribute effectively to profit generation?

Do we generate profit in a safe, healthy and constructive environment?

Do we invest intelligently in our people?

Is there a Return on our people investment?

STAKEHOLDERS Are we happy we have enough? And don’t loose Opportunities?

Are our support systems for people working well?

Does our performance climate contribute to optimal goal achievement?

Are we bound by a common code and does it show?

INTERNAL BUSINESS SYSTEMS

How many at what Level do we need?

How do we attract and source them?

How do we manage and reward them?

How do we provide for the future (people wise)?

PEOPLE AND INNOVATION

Who is our talent? What is their character?

What competence do they have? In what climate do they perform optimally?

The People Management Story – Key Strategic Questions

FINANCIALS 14. Does the cost equation reflect optimal people management ?

15. Does the human cost reflect a caring, safe and healthy work climate?

16. Is there Economic Value Add for the way we manage people?

17. Do we optimize risk mitigation and opportunity utilization in the way we manage people?

STAKEHOLDERS 10. Are the internal customers satisfied that they have the right people, at the right time to deliver on business goals?

11. Are internal customers satisfied that they receive the right advice, support and administrative efficiency to deal with people issues.

12. Do employees have an acceptable level of emotional and rational commitment to deliver optimally?

13. As a collective do we act and advocate the values and ethos of the business?

INTERNAL BUSINESS PROCESSES &SYSTEMS

6. How many people do we need, at what level, and which competency threshold?

7. How will we attract, select, induct and retain them?

8. What is the reciprocal value proposition :

a. Performance mgt.b. Recognition and

rewardc. Learning and

growth

9. How do we manage succession risk for the future?


1. Who are our talent?

2. What do they look like in terms of core characteristics?

3. Which critical business processes / areas do they service?

4. What are the core competencies of the critical talent pools we have ?

5. What is the leadership and performance climate we need to sustain to optimise people (talented) contribution?

The People Management Story – The Generic Objectives

FINANCIALS 16. Benchmark and improve cost equation of cost per hire operating profit and expense per FTE

17. Benchmark and improve cost equation of:

a. H&S Expense per FTEb. Industrial Dispute

Absence Days per FTE

18. Benchmark and improve cost equation of Human Investment Ratio

19. Benchmark and improve Return on Human Investment Ratio

STAKEHOLDERS 12. Target Customer satisfaction with quality of the workforce and availability of right competencies – set targets for improvement

13. Target Customer satisfaction with quality of HR support, advice and efficiency - set targets for improvement

14. Stretch Target Employee engagement and correlate with retention and productivity measures – set targets to improve

15. Align priorities in action with the espoused values of the business – implement interventions for change – include corp citizenship and BEE


6. Institute/Review/Update the Workforce Planning System, based on:

a. Clear job profiles (incl competencies)

b. Supply and demandc. Link to succession and

talent management

7. Develop/review employment brand strategy, recruitment and selection system and processes and train all role players in this

8. Develop and implement retention strategy

9. Develop/review and implement performance management & learning and development system – create structure and process to support

10. Implement EVP

11. Develop/review and implement succession management that:

a. Identifies succession risks and bench strengths

b. Readiness thresholdsc. Development pathsd. EVP per position

PEOPLE AND INNOVATION 1. Define talent populations – answers the question who is our talent

2. Define What Would It Take To Succeed Here Model – answers the question of what characteristics talent have

3. & 4. Review the organization design, and structure and define:a. Talent pipelineb. The competencies (competency models) for the pipelinec. The assessment instruments to identify and develop

people in the pipeline

5. Define the desired leadership and performance climate - answers the question related to optimizing performance and contribution

The People Management Story – The Metrics

FINANCIALS 16. Consider:a. Cost per hireb. Operating profit per FTE

17. Consider:a. H&S Expense per FTEb. Industrial Dispute

Absence Days per FTE

18. Consider:Human Investment Ratio

19. Consider:Return on Human Investment Ratio

STAKEHOLDERS 12 & 15. Survey and set targets to improve:

a. Internal Customer Satisfactionb. Employee Engagementc. Values Alignment


6. % Completion (new); Level (%) of satisfaction with relevance (int customers)

7. & 8. % Completion (new); Level (%) of satisfaction with relevance (int customers) - also consider: Employment Brand Strength; Time to Fill & Cost Per HireTermination RateAvg. Termination Value

9. & 10 % Completion (new); Level (%) of satisfaction with relevance (int customers) – Also consider:High Performer Growth Rate; Personal Development Plan Implementation and Offer Acceptance Rate


Also consider:Bench strengthAvg. Termination Value – Potential SuccessorsPersonal Development Plan ProgressReadiness Ratio

PEOPLE AND INNOVATION 1. % Completion (new); Level (%) of satisfaction with relevance (int customers)


3.& $.% Completion (new); Level (%) of satisfaction with relevance (int customers)% Completion (new); Level (%) of satisfaction with relevance (int customers)Also consider:a. DISTRIBUTION OF TALENT POOL IDENTIFICATIONb. DEMOGRAPHIC MIRRORING OF TALENT POOL(S)c. BENCH STRENGHT

5. % Completion (new); Level (%) of satisfaction with relevance (int customers)Also consider:ENGAGEMENT INDEX

Perspective Metric Explanation Formula/Example


% Completion Self explanatoryLook at schedule performance for intervention/Project

Level (%) of satisfaction with relevance (int customers

Survey driven Based on the scale used in the survey

Distribution of talent pool identification

Numeric, Qualification, performance distribution of employees per talent pool

% of specific variable in relation to other variables

Demographic mirroring of talent pool(s)

Representation of groups, in relation to total talent pool – consider gender, BEE, disability etc.

% of specific variable in relation to other variables

Bench strengthMetric used to gauge the number of successors are possible for any given position(s)

Example: there are 14 qualified successors for level 1 executives

Engagement IndexRelative measure of employees’ engagement in their work.

Survey Results



% Completion Self explanatory Look at schedule performance for intervention/Project

Level (%) of satisfaction with relevance (int customers Survey driven Based on the scale used in the

survey

Employment brand strengthRelative measure of the attractiveness of the organization’s employment value proposition.

Survey Results

Average Time To FillAverage number of days elapsed between requisition date and offer acceptance forinternal and external hires.

Total Days to Fill / Offers Accepted

Recruitment Cost Per HireRecruitment expense per hire, including internal and external hires.

Recruitment Expense / Hires

Termination RateVoluntary/Involuntary terminations as a percentage of average headcount.

Voluntary/Involuntary Terminations / Average Headcount * 100

Avg. Termination ValueThe average value of each termination during the reporting period.

Total Termination Value / Terminations

High Performer Growth Rate

Percentage of performance appraisal participants whose rating improved to a “high”rating from a previous rating that was less than “high.”

Performance Appraisal Participants Rating High / Performance AppraisalParticipants Previous Rating Non-High * 100

Personal Development Plan Progress

Overall Progress With Implementation of PDP’s

Number of PDP’s up to Date/Headcount*100

Offer Accept Rate Offer acceptance reflect the relevance of your EVP

Offers Accepted/Offers Made * 100



Bench strengthMetric used to gauge the number of successors are possible for any given position(s)

Example: there are 14 qualified successors for level 1 executives

Avg. Termination Value – Potential Successors

The average value of each termination during the reporting period.

Total Termination Value / Terminations

Personal Development Plan Progress

Overall Progress With Implementation of PDP’s

Number of PDP’s up to Date/Headcount*100

Readiness RatioNumber of Potential Successors who are ready for earmarked positions in relation to total positions that require successors

Potential Successors/Total Succession Positions *100


STAKEHOLDERS

Internal Customer Satisfaction

1. Survey internal customer satisfaction with quality of the workforce and availability of right competencies set targets for improvement

2. Survey internal customer satisfaction with quality of HR support, advice and efficiency - set targets for improvement

Survey Results

Employee Engagement

Survey levels of employee engagement and correlate with retention and productivity measures – set targets to improve

Survey Results

Values AlignmentSurvey values alignment behaviour – set targets to improve

Survey Results

Perspective222 Metric Explanation Formula/Example

FINANCIALS

Cost Per HireRecruitment expense per hire, including internal and external hires.

Recruitment Expense / Hires

Operating profit per FTE Average profit generated by employees

Operating Profit t / Number of FTE’s

H&S Expense per FTE Total Health and Safety H&S Expense / FTE

Human Investment Ratio Investment in employees as a contribution to profit

(Operating Profit + Total Compensation Expense) / Total Compensation Expense

Return on Human Investment Ratio Return on investment in terms

of human resourceOperating Profit t / Total Compensation Expense

the people management story

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