how to make your metrics matter

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Speakers: Wendy Lowe Segment Marketing Manager Halogen Software

Cathy Missildine, SPHR Co-Founder, Chief Performance Officer Intellectual Capital Consulting

Moderator: Kellye Whitney

Associate Editorial Director

Talent Management Magazine

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© 2013 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

Talent Management: How to Make Your Metrics Matter

Cathy Missildine, SPHR

Co-Founder, Chief Performance Officer

Intellectual Capital Consulting

Wendy Lowe, Certified Human Capital Strategist

Segment Marketing Manager

Halogen Software

Presenters:


Agenda

• Discuss the framework that determines which talent management metrics should be included in your overall human capital measurement

• Which metrics are most important to your C-Suite and can be tied to your business objectives

• Importance of company wide buy-in so that the data and process is relevant and meaningful

ICC Copyright 2011. All rights reserved.

8 8/23/2013

Facilitators

Processes

Products

Technology

Financial

Others

Revenue

Profitability

Market Share

Budget Cost Savings

Others

Business Results Enablers

Vision and Mission

The path to desired business results

ICC Copyright 2011. All rights reserved.

9 8/23/2013

Business strategy map: example

Business

Results

Performance

Objectives

Performance

Metrics

Performance

Outcomes

Actions

Increase sales from new customers

by 20%

Reduce prices of top 3 products

by 4%

Increase new sales from web

store by 15%

Increase new sales from

sales force by 15%

Increase new sales from call center by 10%

Strategic

Goals

Increase

Market

Share

Improve new customer satis.

ratings from call center

interactions by 30%

Increase call center engage-

ment from 73.4% to 80%

Increase hit ratio from 10%

to 20%

Reduce call center turnover

by 20% Improve call center sales

skills

Improve call center product

knowledge

Improve call center

productivity

Increase number of

appointments

Increase percentage of

closings

Create new call center sales

training course

Upgrade CRM system

Hire four phone appointment

setters

Implement rewards & recognition

program in call ctr


Question to consider

Think about what are you currently measuring in regards to talent

management…

• Are the metrics linked to business outcomes?

• Do you have metrics that measure both efficiency and effectiveness?


Performance is done by PEOPLE


4 critical high performing metrics focus areas

• Goal alignment

• Employee performance

• Quality of hire

• Succession planning

These 4 areas are critical to strategic execution and impact to bottom

line…


An average organization snapshot:

7% decrease in

productivity

• Talent loss

• Under-managed

recruiting pipelines

25% of HiPerfs at risk

of leaving

• Combination of

overstretched and

under rewarded

• Compared to only

10% of non-HiPerfs

46% delta in

employee

commitment

• Between those who

have clearly defined

job goals/objectives

and those who don’t

And the above must be addressed with:

No budget

Increased demand from Board and C-Suite

Greater reliance on key talent in order to reach goals

Darren Shearer via Source: Confronting Six Enemies of Post Recession Performance Corporate Executive Board Webinar


Goal alignment

• Single most cited reason for failure of strategy: execution

• Goals must be cascaded up and down so that all employees

understand expectations


Goal alignment: are we all pulling in the same direction?

Culture and goal setting

• Strong culture creates a common

mindset

• Goal setting ensures that the specifics

are laid out

• Clear set of competencies ensures

that you have the skill set to reach

your goals


Goal alignment - metric examples

• % of employees tracking goals

• % of goals obtained

• % of sales quota exceeded

• % of bonuses paid on goal attainment

• % of goals exceeded


Goal alignment in Halogen Software: Uses the best-practice organization-centric model to align

employee goals to the overall organizational strategy.

Individual employee

goals are linked to

organizational goals

directly from the

performance

appraisal.


Goal status report

See how employee

performance is tied to

corporate success.


Goals report – high risk goals

Goal alignment metrics give your

managers the ability to intervene when

things go off track…


Goals report – at risk goals

…or to right the ship before it goes off course.


Employee performance

• Being a high performing organization doesn't mean that all

employees are high performing

• Make sure managers are trained-bias

• Give high performers the recognition they deserve

• Make sure system is utilized and the data is relied upon


Employee performance metrics examples

• High performer average engagement score vs. all others

• High performer growth rate

• Employee performance rate increase

• High to low performer ratio

• Performance appraisal participation rate

• Critical competency scores

• Sustained high performer rate


Employee performance: nurturing organizational competencies

See year over year progress

on key competencies.

Are we closing gaps? Where

do we need to improve?


Employee performance metrics

Determine departmental, team or

individual strengths and weaknesses

on all or specific competencies.

Identify high performers

Identify low performers


Quality of hire

• A relatively new measure used to assess quality of recruits

• Presently we use measures that relate to efficiency (speed and cost) of the process not quality

• By profiling current HiPos, organizations can become more predictive in hiring thus saving on the front end and adding to bottom line


Quality of hire metrics example

• Voluntary turnover rate, HiPos, non-HiPos

• Retention rate, HiPos, non-HiPos

• New hire failure rate

• ROI of Human Capital Investment

• Time to fill

• Cost per hire

• Promotion rate

• Employee engagement rate, HiPos, non-HiPos

• Average new hire performance rating

• Time to productivity new hire


Succession/workforce planning

• Uncover how your key talent performs on key business drivers (performance goals, competencies, skills, attitudes, personality)

• Metrics should focus on:

• Talent pool effectiveness on the key drivers

• Overall talent bench strength—based on performance on the key business drivers

• Time-to-fill on key leadership roles

• % of internal hires for leadership roles

• % of key roles with ready now replacements


Talent inventory: evaluate retention risks, potential for promotion

Retention Risk Potential for Promotion Talent Pool Score


Succession planning: identifying Hi-Pos

3. Add to

talent pool

1. Identify high potentials

2. Filter on retention risk


Infrastructure necessary for delivering on the metrics that matter

Three components necessary for success:

① An executive and organizational mindset that supports talent’s role in business strategy execution.

② Talent processes and tools are designed and mapped to enable the business to effectively manage talent effectively.

③ Talent systems or software that support the talent processes and tools.


Metrics need data

The best talent management systems in the world won’t help you make informed decisions if the tools aren’t used!


Making metrics matter

• The best laid plans will fail if not executed properly.

• You’ve aggregated your data/automated your

processes – now what?

• Executives need to know their organizational

strengths and weaknesses.

• Manager and employees are accountable for

performance.

• They need to answer the question “Do we have the

right people with the right skills doing the right things

for meeting today’s and tomorrow’s business

strategy?”


Data…insight…ACTION!

• KISS-reporting, Killer slide

• Tie manager performance to metrics

• Brainstorm ways to improve and sustain results

• Make action plans part of performance process

• Progress is tracked and communicated loudly in the organization

• Management meetings have dedicated time to metrics and progress

• HR acts as coach, consultant and change agent


Contact us at Intellectual Capital Consulting

Cathy Missildine

(770)843-8284

@cathymissildine

intellectualcapitalconsulting.blogspot

intellectual-capital.net

[email protected]


Q&A

• Visit our Center of Excellence on HR Metrics

Includes articles, webinars, white papers, case studies and a free talent management strategy

template

http://www.halogensoftware.com/resources/centers-of-excellence/HR-metrics.php

• For additional Halogen Software inquiries or to request a personalized

demonstration, contact:

Wendy Lowe – [email protected]

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