HR Metrics and Analytics

Session 1 to 4

© Santhanam P
HR Analytics 3

Business intelligence has been around for almost 50 years, so really this isn’t a
new concept. It’s about applying the same principles to different areas.
Instead of using big data to look at how customers are behaving, let’s shift
the lens to our employees.

And instead of only looking at a certain subset of employees, let’s track the
entire employee life cycle from beginning to end.

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Decisions? 4

• What good performance is and who is exhibiting it

• Who we should be hiring, who should we promote
• What kind of career paths make sense in the organization
• What are the collaboration patterns
• Who are critical communicators
• What can we do to improve communication
• How to manage overall programs
• Is our training working, what is the ROI
• Fast track promotions is it a good or bad idea
• Incentives – How to put data behind and decide
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 5

Fundamentally, analytics is about:

• Asking better questions

• Putting together disparate pieces of data to produce

actionable insight

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Why HR Analytics? 6

© Santhanam P
Analytics divided in to four levels 7

▪ Descriptive
▪ Diagnostic
▪ Predictive
▪ Prescriptive

© Santhanam P
 Personnel Manager to a Business Partner
In order for HR to command the same respect as finance and marketing when it comes to data-driven insights, HR
should aim to advance from simply describing talent problems to actually prescribing solutions for them. HR 8
analytics is the enabler

Descriptive Diagnostic Predictive Prescriptive

analytics analytics analytics analytics

• Representation of • Getting into the root • What If analysis / • Prescribes what

Facts cause Event probability needs to be done
Personnel Manager Human resource Manager HR Business Partner

Reports Manpower Analyses productivity Prescribes an effective Org

Predicts productivity
Structure

Reports Attrition Makes a predictive Prescribes initiatives with

Analyses root cause
numbers model impact

Does recruitment Analyses how new Predicts what kind of Designs tools to get the right
recruits are performing hires will perform well people

Informs cost Analyses root cause of Predicts cost impact of Prescribes cost effective
increase each decision solutions

© Santhanam P Understand where we are currently on the talent analytics learning curve strive to move ahead one step at a time
Roadmap for HR analytics 9

1,Determine
critical outcomes

6.Measure & 2.Create the

Adjust data team

5.Build program 3.Assess outcome

& execute measures

4.Analyze Data

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Linking HR to strategic drivers 10

Value Disciplines

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 11

HR Measurement Maturity

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Lag outcomes and Lead indicators 12

Lag outcomes track progress towards desired outcomes whilst

lead indicators track the activities that are expected to lead
these outcomes

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Lag outcomes 13

▪ Lagging indicators are outcome measures that help you gauge your HR process by
examining the final outcomes or outcomes of your collective efforts.
▪ Use of the “lagging” term reflects delay or gap between your actions and change in
the final end result
▪ Lagging indicators have a direct bearing on a company's bottom line. There is a
business interest in and a direct financial benefit from improvement in these areas.
▪ Broadly used Lag indicators
▪ Performance
▪ Human capital readiness
▪ Competency development
▪ Alignment with cultural aspects
© Santhanam P
Performance 14

Performance measures can be described as quantifiable standards used to evaluate

and communicate performance against expected results. Measures can be looked at in

different ways

▪ Subjective Vs Objective measures

▪ Lead measures Vs Lag measures Vs Diagnostic measures

▪ Efficiency measures Vs Effective measures

▪ Internal measures Vs Bench marked measures Vs Customer focused measures

© Santhanam P
Human capital readiness 15

We need measures that evaluate if the organization has the people with right
competencies to achieve organizational strategy and goals. One such measure is
Human capital readiness index.

This measure represents the availability of employees skills, talent, know-how to perform
the internal processes critical to the strategy’s success.

HCRI acts an indicator to modify the strategies used to achieve organizational objectives

HCRI = Current competencies of employees in the function / Competencies required by

the function
© Santhanam P
Lead Indicators 16

▪ Lead indicators are process measures that help you gauge incremental progress you
are making toward key HR outcome (lagging) measures
▪ Since leading indicators measure the results from your processes, there is less of a
delay between your actions and change in system. They are performance drivers –
the key factors that enable the overall end result (outcome) you want to achieve.
▪ Broadly used Lead indicators
▪ Compensation
▪ Recruitment
▪ Learning & Development
▪ Customer retention
▪ Employee retention
▪ Employee
© Santhanam P motivation
Metrics - Manpower planning 17

▪ Head count variance – Overall and ▪ Tenure distribution (average tenure of

function wise (Planned vs Actual head workforce)
count) ▪ Compliance to legal / customer
▪ Talent readiness rate requirements
▪ Age, race and gender diversity ratio ▪ % of technically qualified staff in
▪ Flexi vs Non flexi ratio organization

▪ Ideal organization structure ▪ Internal mobility rate

adherence % ▪ Contingent representation rate
▪ Span of control ▪ Customer facing workforce %
▪ % of Outsourced positions compared
to benchmark
▪ Age mix ratio / Average age of
workforce
© Santhanam P
Metrics-Recruitment 18

▪ Lead time to Hire and Fill ▪ Candidate net promoter score / feedback /
experience score
▪ Cost of hiring
▪ Touchpoint management scores
▪ Vacancy rate / Occupancy rate
▪ Hiring manager satisfaction score
▪ Cost of getting to optimum
productivity levels (OPL) ▪ Offer acceptance rate / decline rate
▪ Time to productivity / Ramp rate ▪ Hiring source distribution (Portals, Consultants,
employee referrals)
▪ Quality of Hire (1st performance)
▪ Applicants per opening
▪ Failed hire (% of failed hires
annually-infancy attrition) ▪ Hit rate of CVs
▪ Backfill savings ▪ Selection ratio
▪ Employee referral savings ▪ No shows / Candidate Ghosting
▪ Bench strength ▪ Recruitment funnel effectiveness
▪ Internal hire rate
© Santhanam P
▪ Recruiter effectiveness
Metrics-Compensation & Benefits 19

▪ Total Employee cost (TEC) % to sales ▪ Market competitiveness as %tile

positioning
▪ Revenue per employee
▪ Top talent compensation % tile
▪ Profit per employee
▪ Pay Equity
▪ Compensation costs in comparison
to competition ▪ Employee satisfaction with
compensation
▪ Variable pay as % of compensation
▪ Legal compliance – Equal
▪ Benefits cost per employee
remuneration
▪ Benefits utilization rate
▪ % of employees below or above
▪ Green circle rate salary band
▪ Red circle rate ▪ Pay range spread
▪ Market Index ▪ Compa ratio by segment
© Santhanam P ▪ Wage gap
Metrics-Learning & Development 20

▪ Competency / Skill Index ▪ Training effectiveness – 4 levels

▪ Training man days per employee ▪ Training experience satisfaction
▪ Assessment score post training
▪ TNI completion rate
▪ Feedback score from superior
▪ Critical programs completion rate
▪ Results / Projects completed
▪ Number of new strategic skills
mastered ▪ Return on Investment
▪ Training cost per employee ▪ Number / % of internal trainers
▪ Training cost as % of operating ▪ Internal Trainer utilization rate
expense / revenue ▪ Effectiveness of internal trainers
▪ Ratio of technical vs behavioural ▪ Learner engagement
training
▪ Couse enrollment rate
▪ Number of knowledge sharing
© Santhanam P ▪ Course completion rate
sessions
Metrics-Engagement 21
▪ Employee satisfaction score ▪ Employee recognition rate
▪ eNPS ▪ ROI on employee engagement
▪ Culture assessment score ▪ Employee feedback rate
▪ Happiness index ▪ Voluntary participation in buddy’s
▪ Participation rate of employees in program
surveys ▪ Employees effort score (EES)
▪ Employee wellbeing rate ▪ Employees participation in CSR
▪ Absenteeism rate (Authorized / activities
Unauthorized) ▪ % of annual leave taken
▪ Innovation rate ▪ Cost saving ideas generated
▪ Voluntary participation of ▪ Employee referrals rate
employees in events / programs
© Santhanam P
Metrics-Talent Management 22

▪ Turnover rate ▪ Ratio of external hires to internal

▪ Top talent turnover rate promotion

▪ Talent Mobility index ▪ Time to competency

▪ Top talent % (High potential & High ▪ Net talent exporter

performance) ▪ Number of Mentors / Mentoring
▪ Employee bench strength sessions conducted

▪ Position ready replacement rate ▪ Social impact score

▪ Time until promotion (Average)

▪ Succession fill rate
▪ Succession breadth
▪ % of workforce with defined career
path
© Santhanam P
Metrics-Performance Management 23

▪ Goal setting completion on time ▪ Number of grievances /

disagreements raised in
▪ Review completion % on time performance rating
▪ Feedback sessions held per employee ▪ Promotion rate
▪ Overall KRA achievement rate ▪ Number of exit’s after appraisal
▪ % of individuals achieving annual goals ▪ Average performance rate
▪ 360 degree feedback score
▪ PMS feedback score (survey)
▪ Employee productivity index
▪ Overtime per employee
▪ Appraiser effectiveness score
▪ Conformance to bell curve
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Metrics-Industrial / Employee relations 24

▪ Manhours lost due to unrest ▪ Union staff training hours

▪ Number of misconducts reported ▪ Communication meeting
▪ Unauthorized absenteeism ▪ Employee turnover rate
▪ Number of grievances reported ▪ Workplace safety incident rate
▪ % of grievances resolved ▪ Union membership rate
▪ Average lead time of grievance ▪ Conflict resolution rate
resolution ▪ Disciplinary action compliance
▪ Adherence to agreement norms rate
▪ % of unionized employees ▪ Family members participation in
participation in events events
▪ Suggestion rate ▪ Benefits utilization rate (family
members)
© Santhanam P
 25

Dash boards

© Santhanam P
 Simple Operational Reporting 26

Insights-

• % hiring through low

cost Channels: 56.81%

• % hiring through high

cost channels: 43.18%

• Overall hiring from

referrals: 31.81%

© Santhanam P HR Metrics (April 2014- June 2014)

 HR Dashboard
Summary for year 2007 Total employees Compensation distribution by department, 2007

27
Total Salaries $ 47,86,571
Total Bonuses $ 4,06,049 100 Salary Bonus Overtime Commission
Total Overtimes $ 1,07,507
80
Total Commissions $ 7,79,200
Sales
Total Compensations $ 60,79,327 60
Total Employees 72 R&D
Average Salary $ 66,480 40 Marketing
Total Sick Days 437 IT
20
Average Sick Days per Emp. 6.1
Human Resources
0
Finance
2000 2001 2002 2003 2004 2005 2006 2007 2008
Customer Support
Employee count, Human Resources Employee count, Boston Administration

10 50 Accounting

8 40 $0 $5,00,000 $10,00,000 $15,00,000 $20,00,000

6 30 Compensation distribution by location, 2007

4 20
New York
2 10
0 0 Chicago
2000 2001 2002 2003 2004 2005 2006 2007 2008 2000 2001 2002 2003 2004 2005 2006 2007 2008
Los Angeles
Employees by department, 2007 Employees by location, 2007
Miami
Accounting
Boston
Administration
Boston
Customer Support $0 $5,00,000 $10,00,000 $15,00,000 $20,00,000 $25,00,000 $30,00,000
Finance Miami
Commission Overtime Bonus Salary
Human Resources Los Angeles
IT Employee count by base salary brackets, 2007
Chicago
Marketing
R&D New York >$100,000

Sales $90,000-$100,000
$80,000-$90,000
Employee Information Employee total compensation $70,000-$80,000
Name Joshua Daniel $60,000-$70,000
Hire Date 3-22-03 Overtime $ 388 $60,000
$50,000-$60,000
Location Miami Commission $ - $40,000
Term. Date Total Comp. $ 42,711 $40,000-$50,000
Empl. Type Full-Time Department Administration $20,000 $30,000-$40,000
Year 2007 PTO Days 14 <$30,000
$-
Base Salary $ 38,828 Sick Days 7
© Santhanam P
200020012002200320042005200620072008
Bonus $ 3,495 Perform. Score 2 0 2 4 6 8 10 12 14 16
Interactive Dash board 28

© Santhanam P
Data Visualization 29

Data visualization is the graphical representation of information and data. With

visual elements like charts, graphs, and maps, data visualization tools provide an
accessible way to see and understand trends, outliers, and patterns in data.

In the world of big data, data visualization tools and technologies are essential to
analyze massive amounts of information and make data-driven decisions. Our
culture is visual, including everything from art and advertisements to TV and
movies, and our eyes are drawn to colors and patterns. Our interaction with data
should reflect this reality.

https://www.tableau.com/trial/visualize-your-data#size-great
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Contact 30

Phone : 9600066166

Web : www.transbizconsulting.com

Email : [email protected] /
[email protected]

Twitter : Transbiz1

Linked in : linkedin.com/company/transbizconsulting

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Facebook : facebook.com/transbizconsulting
Thank You