Kuidas mõõta personalijuhtimise

tulemuslikkust?

Viljar Moorits
Echo OÜ juhtimiskonsultant
31.05.2010

Echo OÜ on alates 01.10.2009 20 võtme metoodika ametlik esindada Eestis

Project Goals
The project goal is to define HR Scorecard for Hansapank
Group (in all three countries) and benchmark selected HR
indicators with the best practise:

• Review key HR goals and priorities, i.e. those that support the
fulfilment of strategic goals;
• Defining key HR indicators (KPIs) which would enable monitoring the
fulfilment of basic HR goals.
• Defining HR indicators for individual HR processes, which would
enable monitoring efficiency, quality and productivity thereof.
• Calculating and benchmarking HR indicators’ values with Deloitte
best practices and determining their desirable/optimum level.
Saratoga
http://www.pwc.com/us/en/hr-saratoga/index.jhtml
For project implementation, the Saratoga database will be used. This database
contains HR matrices compiled from the information provided by over 6,500 European
organisations. These matrices can be sorted by sector, size of the company, and staff
number.

HR Matrix Industry Revenue

Country Growth
Sector
Banking Austria/ Switzerland
High: (>20% growth)
Organisational Impacts Insurance Belgium
Med: (5 – 20% growth)
• Financial C&E Europe
Life & Pensions Low: (<5% growth)
• Productivity & Value Added Slovakia
Compensation and Benefits Other Finance Negative Growth
Chemicals Czech Republic
Organisational Behaviours
Eng/ Mfg Netherlands
Resourcing
Learning and Development HQ France
Organisational Structure IT & Electronics Germany FTE Sizeband
• HR Function Public Sector Iberia
• Processes Retail & Leisure Ireland
0 – 499 FTEs
• Other Support Services Italy
500 – 999 FTEs
Functions Telecoms Scandinavia
1,000 – 1,999 FTEs
Qualitative Measurement & UK
Utilities 2,000 – 4,999 FTEs
Benchmarking Multinational 5,000 – 9,999 FTEs
10,000+ FTEs
HR Process – Strategic Planning

Project / task
Short term
Resource Office / branch rotation
Establish
requirements Match
employee Manage
and needs resource to
scheduling / deployment
identification area of Long term Functional/Department
matching administration
(quantitative and requirement transfers
mechanisms
qualitative) Conduct Permanent geographic /office
feasibility/ transfers
cost analysis
International assignments

Example of HR indicators/KPIs

Indicator Unit of measurement

FTEs per HR department FTE number of employees
Revenue per FTE EUR per FTE
HR department cost per FTE EUR per FTE
Outsourced costs/Total costs %
HR Process – Recruitment and Selection

Identify Internal candidate sourcing

Conduct annual
specific Conduct
resource Evaluate and Offer and
positions to be induction and
requirements/ select contract
filled (created Outsourced to orientation
budgeting External candidates negotiation
or made agency training
exercise candidate
vacant)
sourcing HR-owned

Example of HR indicators/KPIs
Indicator Unit of measurement
New employees from external resources per year to total FTEs % of new employees
Cost per hire (per employee, per manager) EUR per employee, manager
Average cost per hire of one employee with/without personal agency EUR per employee
Number of fulfilled free positions: from internal to external resources %
Percentage of employees who utilised the possibility of moving into another
position % of employees
Average time needed for fulfillment of open position (employee, manager) % of job positions
Total adaptation cost per one employee EUR per one employee
Percentage of employees assigned to the adaptation program % of employees
Reliability of hire (measured after 6 month) %
HR Process – Performance Management

Relate appraisal results to

annual remuneration
Align competency Develop performance Perform review / bonus payouts
model with measures and/or performance review/
business needs targets appraisals Relate performance results
to additional development
areas

Example of HR indicators/KPIs
Indicator Unit of measurement
Number of employees with quantitative performance targets number of employees (or %)
Percentage of employees evaluated according to a competency
% of employees
profile
Number of improvements from appraisal result number of improvements
Promotion ratio %
Bad and high performers ratio (bad to good assessment) %
Variability of variable part of salary in connection with real
%
performance
Percentage of realised development activity to all development
%
activity in career plan
HR Process – Training and Development

Development Development of
of Internal Internal
Courses Trainers
Training Feedback/
Training Training
Needs Assessment of
Implementation Administration
Analysis Training Impact
Training Vendor Evaluation and
Selection

Example of HR indicators/KPIs

Indicator Unit of measurement

Average training cost per year (per level) EUR per employee (per level)
Average training hours per employee per year (per level) Hours per employee
Average evaluation of training programmes % satisfaction per course
Cost of internal training to cost of external training %
Percentage of managers who joined a company-wide development
% of managers
programme
Total training cost to company revenue %
Total training cost to total remuneration %
HR Process – Compensation and Benefits

Conduct annual
Conduct internal equity Conduct Design remuneration structures
Establish company- review of individual Administer
and external financial cost for job families, job grades and
wide reward strategy compensation reward policies
competitiveness studies projections performance levels
packages

Example of HR indicators/KPIs

Indicator Unit of measurement

Compensation/total costs %
Average compensation amount per level EUR per level
Performance-driven pay to total compensation %
Percentage of tariff employees whose wages do not correspond
with tariff range % of tariff employees
Actual salary increases %
Volatility of variable pay (actual/target) %
Payroll ratio X/Payroll FTE
HR Process – Employee Communication

Establish Transmit
Identify Prepare
communication information Manage
communication communication
policies and through feedback
needs plan
guidelines channels

Elements
• Messages
• Audience/Sender
• Channels/Format
• Frequency

Example of HR indicators/KPIs
Indicator Unit of measurement
Satisfaction with communication quality % of satisfied employees
Effectiveness of communication channels % of satisfied employees
Complaint Rate (number of recorded employees' complaints %
multiplied by 1,000 divided by headcount)
Average time of complaint settlement Number of days
Percentage of employees complaining about mistakes in their % of employees
salary or a portion of their salary
Employee satisfaction index
Absence rate %
HR Process – Employment Termination

Manage administration of voluntary

termination

Manage administration of retirement Design exit Conduct exit

cases plans interviews
Offer out-
Resource placement and
requirement requalification
Manage redundancy process
analysis services

Example of HR indicators/KPIs

Indicator Unit of measurement

Termination Rate (total number of employees who left the
organisation, divided by headcount) %
Voluntary / involuntary termination rate %
Percentage of supervisors (or all employees) who utilise services of
outplacement program % of supervisors
Index of satisfaction with services offered to employees within
outplacement programme %