[MUSIC] Welcome to HR metrics and analytics I'm so

excited you're taking this course, metrics has evolved from a buzzword and
morphed into a required word. Businesses grow, evolve or flop around the
business's ability to outline key metrics impacting the bottom line. The same is
true for the HR function. Our function is when equal to that
of finance, operation or sales, we are equally accountable to
the success of the business and we should require metrics to
be part of our success story. The reality is, we must include metrics
in our story, because now more than ever, HR has a seat at the table, and
that table demands a spreadsheet. The single difference between what makes
a great HR team versus an average team is the extent to which we use
metrics to drive decisions. Second two metrics is the business's
ability to differentiate rewards and performance. Without numbers or data. It's
just an opinion. Metrics alone have little value
unless you put them into use. They need to solve a problem or
backup a need. We collect a lot of data in HR,
but what do we do with it? HR impacts the business,
its products and profitability. When you think of HR, we need to move
away from being an HR VP to being a true HR business leader,
a strategic thinker. We work for a business unit called the HR
department, just like some of my work for the business unit finance we are critical
to the success of our organisations. Our function is responsible for the strategies
that attract retain
the talent that drives business results. It is critical that we as leaders build
HR functions that thrive on agility. Agile HR teams must be purposeful
on the way they tell a story. We must use data and
metrics to backup our observations. And those observations have critical
business impact to the success of the bottom line. And agile HR department must be
able to move resources people rapidly throughout the business
to higher impact business areas. We need to be able to move a resource
away from lower return areas. What does that mean? We need to be able to predict
the future. We need to know how to focus our
resources and how to focus them well. As we think about the dynamic
role that we play, let's first look at the six key areas
of the employee lifecycle to build a framework on which our
metrics should sit on. More and more we hear the importance of
the employee experience how the experience equates to an increase or
decline in the business outcome. The experiences impacted directly during
each stage of the employee lifecycle. The lifecycle or journey is the stages of
which an employee will experience your company through their tenure ship. In
general, the life cycle begins with
the company attracting a new hire and ends with the employee
departing from the company. Think of these six stages is our
strategic roadmap for metrics success. Each stage has a story and need a metric
in which the success can be measured. Each stage impacts the bottom line of
the company's profitability, attracting. It's a recruiting and Courtship of the
talent that you're
going to have join your company. Think of things like how do you show up? What's
your employee value proposition? How do you know that you
are an employer of choice? Hiring. How do you select the best candidate for
your open roles? Are you diverse enough? Are you representing your customers or
partners in the right way? Onboarding? How do you integrate that new
employee into your company? What does that experience look like? How are they
learning? How are they meeting new people? How do they know what
the culture is at your company? And how are you melding
them together developing? How are you building a career path and
coaching for growth. Do you know your succession plans? What are the experience and
projects
that you're going to put people on? What is the development
roadmap to keep someone? For number five engaging
retained in the organization. Are you fostering a purposeful company? One that's
building
the strengths of the employees. Do you have fair expectations? Are your rewards and
recognition
designed to drive high performance? And last departing? How do you craft a positive
exit experience? How do you make sure you mitigate
losses to your competitors? How do you ensure that it doesn't
go back to impacting number one? How you attract people each of these
stages of the life cycle correlate with an HR function from recruiting teams
to benefit and compensation teams moving into our employee relations
teams and HR business partners. They impact our L and
D teams and so forth. Some of us may have organizations that
have centers of excellence in HR that are very vast, while other of us might
be a center of excellence of one, regardless of how big or small your team
is, what is consistent is the need and the use of metrics to build your business
case to solve your business problem. To predict your future
business needs to ensure that you have a strategic
successful HR career. So now let's explore what
makes a really good metric. Metrics can and should be used to
change behavior and influence outcomes. Metrics are numbers that
help us tell a story. They are the linchpins to our success
that gives our argument credibility. While our words can make
the argument persuasive, the facts, the metrics are what make
the argument powerful. A great metric will tell
a five-point story. The five attributes of an successful
metric are quantity, quality, time, cost and money and finally,
customer service or satisfaction. So what does this mean? It means when looking to
solve
a problem predict a change or when building a business case, the more
you can pull the metrics that have five attributes as these the more solid the
foundation, your case will be built on. Let's look at a few examples of
how to use these attributes and building a metric story. If we only use words,
we hired amazingly well. That doesn't tell us a lot. If we add in a number,
we hired 15 people, a little bit better. But if we added a metric,
we hired 15 people this month and 75% of them are achieving at or
above their sales target already. That new onboarding tool
is providing success. That sounds a lot better. But we can even make it superior.
Let's look at it this way. The organization hired 15 people
between January 1st and January 30th. For our top five key roles. Of those 15
people,
75% have completed their onboarding resulting in a $15,000 over
delivery of a swift sales quota. Additionally, all associates
rated their first month, a four or better on a five point scale. Look at what
happened when we
put in all five attributes. See how much better that presents? So let's pretend
we're trying to validate
if that onboarding program worked, or if our recruiting efforts are effective.
These types of metrics stories make
all the difference in the outcome and the delivery of our findings when we
can pull all five metrics together. While we might not always be able
to incorporate all five attributes, your goal is to think through what
are we attempting to solve prove or predict, and outline what type
of metric in each of these categories would help us to prove or
disprove our hypothesis. So let's dig a little bit more into
each of these metric attributes. Traditionally, HR has used what
is called a soft metric for things like employee impulse surveys,
interviews and discussion points, where the rest of the business
typically uses hard metrics or things like outputs, error rates and
ROI both types of metrics are important. However, in an agile world of business
hrms focus on investing in the use of hard metrics to impact decision making. Let's
dissect hard metrics for the five metric attributes we discussed
earlier are known as what is. As hard metrics, hard metrics generally
measure visible in tangible things. So let's start with quality,
quality measures and error rate or the quality output of a process or
programme. A good example of this could be
something like quality of recording. And we're focusing on a new
recruiting avenue sources and processes we could measure the question
quality of the hires versus the old process and the new process. Working with our
business owners, we could
identify what quality metrics the business would deem appropriate and
measuring the quality of a new hire. Quantity metrics. They measure the metric or
numerical output of a process or a programme over
a specific period of time. A few examples of this metric are best
seen in validating the effectiveness of a training program. We could evaluate the
number
of training hours or courses we gave over a period of time,
and the increase or decrease or no impact at all those
trainings had on a specific outcome. Think sales training or
reduction in time to complete a specific process that leads
us into the time metric. This measures the speed or elapsed time
period in which a specific action or process is completed. The difference of this
metric versus quantity or quality as it measures the speed
of which something is completed. Not the quality or
quantity to which something was completed. Most of the time the time metric
is used with quantity and quality. The most common use in HR is time to fill.
However, beware of this metric gotcha,
while a group may say wow, I had a really quick time to fill, what if the
quality of those hires were not so great? Another example of the time metric is
sometimes found in healthcare costs. Many organizations will measure
core mobidities, the costs between a specific period of time of
diabetes last year versus this year. You might also notice
that we were measuring. Our last hard metric of cost and
money in that example. So as I said, cost and money is
the last of the four hard metrics. Let's go back to that comorbidity example. We
could be measuring diabetes
between last year and this year, but also looking at the cost
between last year and this year. A common metric also used in the time or money
metric is around the cost
of a program or process. You see this used a lot in our lives. Many organizations
will measure
the cost of a training program or the cost of new hires. You also see the cost of,
as I talked about, healthcare. Things like that. Now that we understand our hard
metrics, let's look at the fifth metric
attribute which is our soft metric. Typically seen in employee surveys,
interviews and discussions. Soft metrics measure of feelings,
something that's intangible. They're typically not things like cost or
time, quantity or quality. What you see most used frequently and soft metrics are
the attribute of
customer service or satisfaction surveys. You're measuring a degree to
an outcome of a process did it meet the expectations of the customer. So here's an
example. An employee engagement survey. A 360 interview question. These are things
that have
more emotion in them. They've been highly used by HR. They are effective with
words, but it's super important that we use
the four hard metric attributes. When we create a metric story.