human_capital_measuring&reporting pres050707njhvaluentis

1 GHCRS2006

Nicholas J HigginsDrHCMI MSc Fin (LBS) MBA (OBS) MCMI DipMan

Dean, International School of Human Capital Management & CEO, VaLUENTiS

HUMAN CAPITAL MEASUREMENT

CBI Conference Centre

5th July 2007

People

Science®

2 GHCRS2006

Subtitled:

‘How I stopped worrying and

learned to love Human Capital

Reporting’

3 GHCRS2006

“People as we know, for many organisations are a prime operating cost/investment and thus contribution to organisation performance.

Organisations spend considerable sums each year carrying out financial audits; but spend very, very little on people management effectiveness HC/HCM audits/ reviews............

Why?”

Consider this.....

4 GHCRS2006

HIGH

Org

an

isati

on

un

ders

tan

din

g a

nd

ap

plicati

on

of

perf

orm

an

ce a

naly

tics (

evalu

ati

on

)

LOW HIGHOrganisation (engagement) focus on people

Sub-optimal organisation performance

HR as ‘Mr/Ms Fix-it’


HR as relational

glue

People as Human Resource

HR as compliance

only

People as Human Capital(High performance work organisations)

HR as proactive driver

5 GHCRS2006

HCM Expanded Definition

• HCM is about the management of human capital • It’s philosophy is that people are central to

organisational performance• It is a more technical and proactive approach than

‘traditional HR’ that derives from the organisation performance perspective.

• It marries traditional HR disciplines with measurement, performance, financial, economic and risk disciplines amongst others.

6 GHCRS2006

So if that’s HCM, what’s HCMe?

• Human Capital Measurement (HCMe) is to do with all things measurement related to people, teams, organisations etc.

• It is a discipline in itself that involves analytical and statistical methodologies with metrics frameworks being but one output.

• A number in HR are already familiar with certain aspects, i.e. psychologists/employee researchers

• However HCMe also brings in the organisation performance measurement dimension completing the whole.

• It is important to remember that some organisations have been doing pieces of work in this area so it is not new-new, so as to speak. What is new is the framing and structuring of these activities and methodologies into a coherent whole that constitutes this area of expertise. Intelligence and predictive analytics are just two of the latest terms to enter into the 'HR' lexicon. Armed with this, HR functions have a far greater value proposition to organisations and 'HR' professionals have an expansive world with fairly unlimited opportunities.......and central to the organisation; not on the periphery.......

7 GHCRS2006

• 1997• Employee champion• HR shared services• Competencies• Business partner• Benchmarking• Diversity• Knowledge

management

• 2007• Employee engagement• Talent management• Employer brand• Human capital• Human capital

reporting• Reward strategy• Workforce intelligence

...The difference is CEOs/CFOs are taking far more interest in the terms on the right!

So why now?HR lexicon – new common terms

8 GHCRS2006

Core to organisation performance

Employee engagement

Management engagement

Organisational engagement

Strategic HCM

9 GHCRS2006

1. Measurement is as

Measurement does

10 GHCRS2006

Everyday examples of measurement

• Psychometrics• Competency assessment• Survey response design (e.g. Likert)• Recruitment interviewing• Learning/coaching evaluation• Modelling analytics/analyses• Benchmarking• More sophisticated things like employee

engagement, organisation engagement, VB-HR™ Rating etc

11 GHCRS2006

“…Human capital measurement is a very misunderstood subject...(it) is really about the soul of HR professionals and their functions. Why? Because it is so much more than just metrics.

It is about technical people management understanding; definition, learning, debate, clarity, performance, expertise and ultimately value contribution.

For example, it is impossible to define concepts such as employee engagement, talent management, workforce intelligence, training impact or indeed the contribution of human capital management without measurement...”

HR Profession: To Be or not to Be?Personnel Today June 2007

12 GHCRS2006

Let’s take an example.......

When is an employee survey not an employee survey?

When it is a workforce intelligence instrument.

13 GHCRS2006

And the difference is.........

• Employee survey (instrument)

• Organisations do it on an ad hoc basis or as ‘one-off’ intervention they can tick the box with

• Not treated as a core part of people performance,

• No underlying model – essentially random selection of pick’n’mix questions

• Measure ‘satisfaction’ or similar, rather than engagement (no definition)

• No real discerning choice of HCM specialists (as no value seen)

• Seen as peripheral to operations• Organisation unaware of opportunities to

integrate• HR not seen as technically skilled

• Workforce intelligence instrument

• Done on annual basis (with interim pulse surveys)

• Seen as core to management of people on ongoing basis

• Uses robust construct such as employee engagement (defined)

• Use complimentary organisation engagement and other forms of HC intelligence

• Has link to measurable HR strategy targets/execution

• Viewed as core input to the various contributing forms of organisation performance

• HR seen as technically skilled

14 GHCRS2006

2. Measurement methods and outputs

Client examples

15 GHCRS2006

Human Capital Measurement

Some baseline metrics

Wouldn’t it be better if.....

And what about...

Or even...

Measuring people related stuff.....going on a journey......

A scorecard... with differing layers depending on importance and/or audience

Employee engagement....

related to organisational

performance

I could get a fix on stuff like talent management, resourcing, diversity,

leadership, org comms etc so I could report on them and I could relate our HR

strategy to it

I could do some detailed ‘modelling’ tying things like engagement to turnover, or

performance issues, competence etc

Or maybe......

The HR function’s performance in terms of delivery, capability, value and risk

What if I could benchmark the organisation in a more meaningful way rather than just one-dimensional metrics?

And what if I had a template so I

could report them in a standardised

way for communicating and learning?

Yeh ok or perhaps....

Plus....And what if I could

get an in-depth routemap using all of these to provide improvement? Which I

could repeat over time?

YES PLEASE!

......Sure

16 GHCRS2006

HC Measurement

•Absenteeism•Turnover (voluntary)•Turnover (involuntary)•Recruitment cost per FTE•Time to fill•Training days per FTE•Training spend per FTE•Revenue per FTE•Profit per FTE•HR FTE: FTE•Employee costs per FTE•HR costs per FTE•% females in senior management roles

5.2%

8.6%

1.8%

£12,569

38 days

3.5

£871

£365,121

£67,119

1:112

£27,469

£1356

23%

•HCI (used with revenue per FTE to calculate HCIR per FTE)•HR budget (adjusted using standard template) •MD spend•Internal/external management position fill ratio•No of industrial tribunals•% union membership•HR service delivery (IT mix)Plus portfolio of tertiary indicators which are more context/organisation specific

•HR spend per FTE (adjusted using standard template)•Formal job offer successPlus portfolio of tertiary indicators which are more context/organisation specific

•HC leverage•HCIR per FTE

•HC Investment ratio•Employee engagement

•Voluntary turnover1

•Absenteeism1

•Accident/injury rate

•VB-HR™ Rating

•HC Performance






•Absenteeism1


•VB-HR™ Rating

•HC Performance

Business objectives awareness

Role ‘fit’

Performance management

Feedback

Capability

Line-of-Sight

Cultural elements

Leadership

Communication

Resources

Local management

Physical environment

Work Environment

The VB-HR™ Employee Engagement Framework

Base salary

Bonus/incentives

Benefits

Shares

Recognition

Promotional aspects

Reward (equity) Development

Career progression

Competencies

Succession planning

J ob/ Role architecture

Training/ Learning

Coaching/ Mentoring

OrganisationalArchitectureOrganisation design

Performance management system

Rewards systemDecision rightsWork values

16.1

12.8

14.6

14.2

14.5

14.3

13.1

13.0

13.7

12.9


Role ‘fit’


Feedback

Capability

Line-of-Sight

Cultural elements

Leadership

Communication

Resources

Local management


Work Environment


Base salary

Bonus/incentives

Benefits

Shares

Recognition

Promotional aspects


Career progression

Competencies

Succession planning


Training/ Learning

Coaching/ Mentoring




16.1

12.8

14.6

14.2

14.5

14.3

13.1

13.0

13.7

12.9

DIVERSITY

EMPLOYEECENTRICITY

EMPLOYERBRAND

HRGOVERNANCE

HR OPERATIONALEXCELLENCE

LEADERSHIP

ORGANISATIONCLIMATE ORGANISATION

COMMUNICATIONS

ORGANISATIONDESIGN

PERFORMANCEORIENTATION

RESOURCING

RETENTION

REWARD

TALENTMANAGEMENT

TRAINING &DEVELOPMENT

79.6+

81.3+

74.2

67.4+

61.5

43.1 +

48.7

64.2

62.859.460.3

+

68.4

65.759.9 41.6

DIVERSITY

EMPLOYEECENTRICITY

EMPLOYERBRAND

HRGOVERNANCE


LEADERSHIP


COMMUNICATIONS

ORGANISATIONDESIGN


RESOURCING

RETENTION

REWARD

TALENTMANAGEMENT


79.6+

81.3+

74.2

67.4+

61.5

43.1 +

48.7

64.2

62.859.460.3

+

68.4

65.759.9 41.6

Human Capital

Practices

Human Capital

Practices

External Value

Proposition

External Value

Proposition

Customer Satisfaction


Customer Loyalty

Customer Loyalty

Revenue Growth

Revenue Growth

ProfitabilityProfitability

Employee Retention

Employee Retention

Individual/ team

Productivity

Individual/ team

Productivity

‘Local’ Management


Cost controlCost control

ComplianceCompliance

Portfolio mixPortfolio mix

X-sellingX-selling

ServiceService

Work valuesWork values

Line-of-sightLine-of-sight

DevelopmentDevelopment

RewardReward

Work environmentWork environment

Employee Engagement

Employee Engagement

Leadership &

governance

Leadership &

governance

Shareholder value

Shareholder valueEmployer

brand

Employer brand

Human Capital

Practices

Human Capital

Practices

External Value

Proposition

External Value

Proposition



Customer Loyalty

Customer Loyalty

Revenue Growth

Revenue Growth


Employee Retention

Employee Retention

Individual/ team

Productivity

Individual/ team

Productivity






X-sellingX-selling

ServiceService




RewardReward


Employee Engagement

Employee Engagement

Leadership &

governance

Leadership &

governance

Shareholder value


brand

Employer brand

VB-HR™ Rating

Workforce Intelligence

HR Strategy

OrganisationalHCM

Capital

B B R

BBRCCCCCC

BBRCCCB

HCMArchitecture

BBRBB

Management Employees

BBRCCCB

BBRCCCCCC

HR Customer-agency

BB

HR Capability

BB

HumanCapital

HR Functional Capital

Human Capital Management

Overallranking

AAAAAABBBBBBCCCCCC

R

rmin

r

RR

RRRB RB

HR Procurement

RBB

RBBBB

BB

R

EFFECTIVENESS

MAINTENANCE

RISK

VB-HR™ Rating


HR Strategy

OrganisationalHCM

Capital

B B R

BBRCCCCCC

BBRCCCB

HCMArchitecture

BBRBB


BBRCCCB

BBRCCCCCC

HR Customer-agency

BB

HR Capability

BB

HumanCapital



Overallranking

AAAAAABBBBBBCCCCCC

R

rmin

r

RR

RRRB RB

HR Procurement

RBB

RBBBB

BB

R

EFFECTIVENESS

MAINTENANCE

RISK

BB

BB

R

EFFECTIVENESS

MAINTENANCE

RISK

3.11Managing

ASP/software/ Outsource Providers

4.11Managing

ASP/ERP/software/Outsource Providers

1.6HR Policy

2.5Organisation Restructure/

Change/ Development

3.1Workforce Planning

1.7HR

Performance/ Strategy

Review/ Audit

1.1Employer

brand

4.1Needs

Assessment

6.1Total Reward Programme

7.1Employee

Communications

8.2Risk

Assessment

1.2HR Value

Proposition

1.3HR Delivery

Structure

1.4HC Reporting

1.5HR Capability

10.9Reporting/ Interfaces

2.6Acquisition/ Divestiture/ Start-up Due

Diligence/ Support

2.1Organisationa

l Design/ Capability Planning –

Business Unit Level

2.2Organisationa


Multi-country Level

2.3Organisationa


Global Level

2.4Job

Classification/ Evaluation

3.2Candidate

Identification Services

3.3Job Profile Services/

Requisition Processing

3.4Candidate Selection

3.5Temporary

and Contractor

Staffing

3.6General

Employment Services

3.7Relocation

3.8Outplacement

Services

3.9Employment Law Services

3.10Consulting

Line Managers On

Staffing Issues

4.2General Training Design,

Development and Delivery

4.3Training &

Development Management

4.4Technical/ Functional/

Policy & Procedure Training

4.5Employee Induction/ Orientation

4.6Competencies/ Skills Model Development

And Assessment

4.7Leadership/ Management Development

4.8Executive

Development

4.9Career

Development

4.10Consulting On

Managerial Issues

5.1Performance

(Talent) Management Assessment

5.2Performance

(Talent) Management Development

5.3Performance

Reviews

5.4Succession

(Talent) Management

6.2Wage And

Salary Management

6.3Bonus/Incenti

ve/ Stock Options

Compensation

6.4Senior/

Executive Compensatio

n

7.2Benefits

7.3Attendance/

Leave Of Absence/ Exit

Interviews

7.4Return-To-

Work and Job Accommodati

on

8.1Risk

Management/ Regulatory

Compliance/ Security

9.1HRIS Strategy

9.2HRIS

Planning

10.1Payroll

10.2Employee/ Manager

Interaction/ Problem

Resolution

10.3Time

Reporting

10.6Tax

Reporting/ Audit

10.7Employee

Reimbursement

10.8Statutory Benefits/

Miscellaneous Admin

10.10Managing Outsource Providers

1.8Managing External

Consultants/ Outsource Providers



5.5Attendance

Management

6.5Expatriate

Compensation

7.5Company

Policies And Procedures

8.3Accident

Prevention and Training Programmes

8.4Health/Medical Programmes

9.3HRIS Support

9.4Employee

Research & Modelling

5.6Employee Coaching

6.6Compensatio

n Analysis/Pay

review

6.7Healthcare/

Welfare/ Statutory/

Other Benefit Programmes

7.6Collective

Bargaining/ Negotiating/ Consultative Processes

7.7Work

Practices For Represented Employees

8.5Incident

Tracking and Reporting



9.5Benchmarkin

g

9.6Measurement and Reporting

10.4Special Pay, Adjustments

And Deductions

10.5Payroll

Accounting/ Recon/ Manual

Calculations &

Disbursement

5.7Employee

Counselling/ Case

management

5.8PM

Compliance Support

6.8Pension

Management

6.9Retirement Planning/

Counselling And

Administration

7.8Conflict and

Issue Resolution

7.9Corporate/ Community

Social Responsibility

9.7Employee

Records/Case management/

Data Maintenance


9.9Managing


5.10Managing ASP/ERP/ Software Providers

5.9Consulting To

Line Managers On Performance

Issues



7.10Government/ Legislative

Issues


Consultants

HR GOVERNANCE

ORGANISATION DESIGN

RESOURCING TRAINING & DEVELOPMENT

PERFORMANCE (TALENT)

MANAGEMENTREWARD

EMPLOYEE RELATIONS

& COMMS

EMPLOYEE HEALTH &

SAFETY

HRIS & MEASURE-

MENTPAYROLL

3.11Managing


4.11Managing


1.6HR Policy


Change/ Development


1.7HR


Review/ Audit

1.1Employer

brand

4.1Needs

Assessment


7.1Employee

Communications

8.2Risk

Assessment

1.2HR Value

Proposition

1.3HR Delivery

Structure

1.4HC Reporting

1.5HR Capability



Diligence/ Support

2.1Organisationa


Business Unit Level

2.2Organisationa


Multi-country Level

2.3Organisationa


Global Level

2.4Job


3.2Candidate





3.5Temporary

and Contractor

Staffing

3.6General

Employment Services

3.7Relocation

3.8Outplacement

Services


3.10Consulting

Line Managers On

Staffing Issues



4.3Training &






And Assessment


4.8Executive

Development

4.9Career

Development

4.10Consulting On

Managerial Issues

5.1Performance


5.2Performance


5.3Performance

Reviews

5.4Succession

(Talent) Management

6.2Wage And

Salary Management

6.3Bonus/Incenti

ve/ Stock Options

Compensation

6.4Senior/


n

7.2Benefits

7.3Attendance/


Interviews

7.4Return-To-


on

8.1Risk



9.1HRIS Strategy

9.2HRIS

Planning

10.1Payroll



Resolution

10.3Time

Reporting

10.6Tax

Reporting/ Audit

10.7Employee

Reimbursement


Miscellaneous Admin






5.5Attendance

Management

6.5Expatriate

Compensation

7.5Company


8.3Accident



9.3HRIS Support

9.4Employee



6.6Compensatio

n Analysis/Pay

review

6.7Healthcare/

Welfare/ Statutory/


7.6Collective


7.7Work


8.5Incident




9.5Benchmarkin

g



And Deductions

10.5Payroll


Calculations &

Disbursement

5.7Employee

Counselling/ Case

management

5.8PM

Compliance Support

6.8Pension

Management


Counselling And

Administration

7.8Conflict and

Issue Resolution



9.7Employee


Data Maintenance


9.9Managing



5.9Consulting To


Issues




Issues


Consultants

HR GOVERNANCE

ORGANISATION DESIGN



MANAGEMENTREWARD

EMPLOYEE RELATIONS

& COMMS

EMPLOYEE HEALTH &

SAFETY

HRIS & MEASURE-

MENTPAYROLL

HC Productivity Statement

CONTRACTED RESOURCE ye 31st Dec 2005 ye 31st Dec 2004

Total number of FTE days contracted in year 3,530,340 3,401,289

Total number of FTE vacation days taken in year

336,987 333,144

TOTAL NUMBER OF CONTRACTED FTE DAYS AVAILABLE

3,193,353 3,068,145

WORK RESOURCE ADJUSTMENT

FTE days gained through recorded overtime work (+)

61,932 65,371

FTE days lost to illness (-) 18,431 19,016

FTE days lost to work-related illness/injury (- ) 2,773 2,816

FTE days lost to industrial action (-) 249 167

FTE days recorded as lost under miscellaneous (-)

763 1,075

ACTUAL NUMBER OF CONTRACTED FTE DAYS WORKED

3,233,069 3,110,442

PRODUCTIVI TY

HCI *Revenue per FTE day (optimal) £192.96 £185.42

HCI *Revenue per FTE day (actual) £190.59 £182.90

HCI *Revenue per FTE day differential £2.37 £2.52

EMPLOYER-EMPLOYEE RELATED INDI CES

Employee engagement index 69.2 68.5

Employer brand index 71.3 71.0

HUMAN CAPI TAL MANAGEMENT I NDEX

VB-HR Rating BB-BB-R BB-B-R

HC Performance Sustaining + Sustaining +





336,987 333,144


3,193,353 3,068,145



61,932 65,371





763 1,075


3,233,069 3,110,442

PRODUCTIVI TY










Human Capital Operating Statement

ye 31st Dec 2005 ye 31st Dec 2004

OPERATING I NCOME %

Revenue (£000s) 1,057,016 1,015,020

FTEs 16,352 16,047

Revenue per FTE 64,641 63,253

OPERATING COSTS

Total operating costs (£000s) 904,371 815,094

People costs (£000s) 532,181 464,317

Human Capital Intensity (HCI ) 58.85 56.96

OPERATING I NCOME ATTRIBUTABLE TO HC (HCI R per FTE)

38,041

36,029

£ % £ %

ANCILLARY PEOPLE COSTS (APC)

Training & Development costs (£000s) 8,176 7,342

Recruitment costs (£000s) 2,314 2,954

Health & Safety costs (£000s) 740 691

HR functional and related costs (£000s) 6,254 6,879

Outplacement costs (£000s) 256 53

Total 17,740 17,919

HC LEVERAGE (HCI R/ APC per FTE) 35.06 32.26



OPERATING I NCOME %

Revenue (£000s) 1,057,016 1,015,020

FTEs 16,352 16,047


OPERATING COSTS


People costs (£000s) 532,181 464,317



38,041

36,029

£ % £ %







Total 17,740 17,919


PeopleFlow® Statement

STAFFI NG ye 31st Dec 2005 ye 31st Dec 2004

%

No of full- time staff at start of year 14,011 13,865

Number of part-time staff at start of year (FTE eqv)

1,932 1,491

Number of other at start of year (FTE eqv) 104 175

Full time equivalents (FTEs) at start of year

16,047 15,531

STAFFI NG MOVEMENT % £ %

Number of FTEs recruited in period (+) 1,427 1,874

Number of acquisitioned FTEs during period (+) - -

1,427 1,874

Number of voluntary leavers (FTE) in period (-) 996 1,065

Number of FTEs made redundant or outplaced in period (-)

35 217

Number of FTE retirements in period (-) 91 76

Number of FTEs outsourced in period (- ) -

Full time equivalents (FTEs) at end of year 16,352 16,047

STAFFI NG MI SCELLANEOUS

Mean tenure (years) 5.2 5.3

Mean age of workforce 34 34

Retirement population 5,391 5,304



%



1,932 1,491



16,047 15,531




1,427 1,874



35 217








People Science

HCIntel®

Actually they’re already here...

Organisation engagement

(OE indicators) ‘RADAR’

Employee engagement

Basic metrics

Measurement pyramid

Modelling analytics linking performance to human capital

(management)

HR delivery and

operational risk

Human capital reporting

Well...

17 GHCRS2006

From this...[Base metric scorecard for example]

• Absenteeism• Turnover (voluntary)• Turnover (involuntary)• Recruitment cost per FTE• Time to fill• Training days per FTE• Training spend per FTE• Revenue per FTE• Profit per FTE• HR FTE: FTE• Employee costs per FTE• HR costs per FTE• % females in senior management roles

5.2%

8.6%

1.8%

£12,569

38 days

3.5

£871

£365,121

£67,119

1:112

£27,469

£1356

23%

18 GHCRS2006






•Absenteeism1


•VB-HR™ Rating

•HC Performance

HCM Outcome Measures

Organisational Performance Related

Operational HCM/HR metrics

HC/HR Analytics

1 there is more than one indicator per metric category

Quantitative and qualitative (converted to quantitative) to provide x-industry comparison

To this...Scorecard pyramid

19 GHCRS2006

VB-HR is a registered trademark of VaLUENTiS Ltd 2003© VaLUENTiS Ltd 2003-7

Plus this.....[Employee Engagement]


Role ‘fit’


Feedback

Capability

Line-of-Sight

Cultural elements

Leadership

Communication

Resources

Local management


Work Environment


Base salary

Bonus/incentives

Benefits

Shares

Recognition

Promotional aspects


Career progression

Competencies

Succession planning

Job/ Role architecture

Training/ Learning

Coaching/ Mentoring



Rewards systemDecision rights

Work values

16.1

12.8

14.6

14.2

14.5

M

M

M

M

M

14.3

13.1

13.0

13.7

12.9

E

E

E

E

E

20 GHCRS2006

DIVERSITY

EMPLOYEECENTRICITY

EMPLOYERBRAND

HRGOVERNANCE


LEADERSHIP


COMMUNICATIONS

ORGANISATIONDESIGN

PERFORMANCE ORIENTATION

RESOURCING

RETENTION

REWARD

TALENTMANAGEMENT


79.6+

81.3+

74.2

67.4+

61.5

43.1 +

48.7

64.2

62.859.460.3

+

68.4

65.759.9 41.6

‘Out-performing’ (world class)

‘Out-performing’ (peer)

‘Comparable’ (peer)

‘Under-performing’ (peer)

Expanding with this...[Organisational Engagement (radar)]

21 GHCRS2006

Range and targeting for HR strategy and evaluation purposes

DIVERSITY

EMPLOYEECENTRICITY

EMPLOYERBRAND

HRGOVERNANCE


LEADERSHIP

ORGANISATIONCLIMATE

ORGANISATIONCOMMUNICATIONS

ORGANISATIONDESIGN

PERFORMANCE ORIENTATION

RESOURCING

RETENTION

REWARD

TALENTMANAGEMENT


584 627

724

686

613640

736

683

703

795

393

633

479597

650

686

492

558

660

621

582

751

561

401481

405

398

594 392

544

22 GHCRS2006To this...[Modelling performance analytics]

The VB-HR™ HC Analytics methodology: Bank retail operations model example

Human Capital

Practices

Human Capital

Practices

External Value

Proposition

External Value

Proposition



Customer Loyalty

Customer Loyalty

Revenue Growth

Revenue Growth


Employee Retention

Employee Retention

Individual/ team

Productivity

Individual/ team

Productivity






X-sellingX-selling

ServiceService




RewardReward


Employee Engagement

Employee Engagement

Leadership &

governance

Leadership &

governance

Shareholder value


brand

Employer brand

23 GHCRS2006

© VaLUENTiS 2006Tog

eth

er

wit

h t

his

...

HR

DELIV

ER

Y-R

ISK

SC

OR

EC

AR

DTH

E H

R P

RO

FIL

ER

™

3.11Managing


4.11Managing


1.6HR Policy


Change/ Development


1.7HR Performance/ Strategy Review/

Audit

1.1Employer brand

4.1Needs

Assessment


7.1Employee

Communications

8.2Risk Assessment

1.2HR Value

Proposition

1.3HR Delivery Structure

1.4HC Reporting

1.5HR Capability


2.6Acquisition/ Divestiture/

Start-up Due Diligence/ Support

2.1Organisational

Design/ Capability Planning –

Business Unit Level

2.2Organisational

Design/ Capability Planning –

Multi-country Level

2.3Organisational

Design/ Capability

Planning – Global Level

2.4Job


3.2Candidate





3.5Temporary and

Contractor Staffing

3.6General

Employment Services

3.7Relocation

3.8Outplacement

Services

3.9Employment Law

Services

3.10Consulting Line

Managers On Staffing Issues

4.2General Training

Design, Development and Delivery

4.3Training &




4.5Employee Induction/

Orientation

4.6Competencies/

Skills Model Development

And Assessment


4.8Executive

Development

4.9Career

Development

4.10Consulting On

Managerial Issues

5.1Performance


5.2Performance


5.3Performance

Reviews

5.4Succession

(Talent) Management

6.2Wage And Salary

Management

6.3Bonus/Incentive/

Stock Options Compensation

6.4Senior/

Executive Compensation

7.2Benefits

7.3Attendance/


Interviews

7.4Return-To-Work

and Job Accommodation

8.1Risk



9.1HRIS Strategy

9.2HRIS Planning

10.1Payroll



Resolution

10.3Time Reporting

10.6Tax Reporting/

Audit

10.7Employee

Reimbursement


Miscellaneous Admin






5.5Attendance

Management

6.5Expatriate

Compensation

7.5Company


8.3Accident

Prevention and Training

Programmes


9.3HRIS Support

9.4Employee



6.6Compensation Analysis/Pay

review

6.7Healthcare/

Welfare/ Statutory/ Other

Benefit Programmes

7.6Collective


7.7Work Practices

For Represented Employees

8.5Incident




9.5Benchmarking

9.6Measurement

and Reporting


And Deductions

10.5Payroll

Accounting/ Recon/ Manual Calculations & Disbursement

5.7Employee

Counselling/ Case

management

5.8PM Compliance

Support

6.8Pension

Management


Counselling And Administration

7.8Conflict and

Issue Resolution



9.7Employee

Records/Case management/Data Maintenance


9.9Managing


5.10Managing ASP/ERP/ Software

Providers

5.9Consulting To Line Managers

On Performance Issues




Issues


Consultants

HR GOVERNANCE

ORGANISATION DESIGN



MANAGEMENT

REWARDEMPLOYEE RELATIONS

& COMMS

EMPLOYEE HEALTH &

SAFETY

HRIS & MEASURE-

MENT

PAYROLL

24 GHCRS2006

Plus this... The real ‘HR Value Curve’

Value contribution

(per unit)

HR ‘Activity’ (The ’93’ as defined by VB-HR™ Profiler)

25 GHCRS2006

HR perspective on value proposition

Value contribution

(per unit)


26 GHCRS2006

Line perspective on value proposition

Value contribution

(per unit)


27 GHCRS2006

HR and Line value proposition map

Value contribution

(per unit)


28 GHCRS2006

HR and Line ‘value dissonance’

‘Value dissonance’

Value contribution

(per unit)


29 GHCRS2006

VB-HR™ Rating

Workforce I ntelligence

HR Strategy

OrganisationalHCMCapital

B B R

BBRCCCCCC

BBRCCCB

HCMArchitecture

BBRBB


BBRCCCB

BBRCCCCCC

HR Customer-agency

BB

HR Capability

BB

HumanCapital



Overallranking

AAAAAABBBBBBCCCCCC

R

rmin

r

RR

RRRB RB

HR Procurement

RBB

RBBBB

BB

R

EFFECTIVENESS

MAINTENANCE

RISK

And this...[The VB-HR™ Rating (graphic)]

30 GHCRS2006





336,987 333,144

TOTAL NUMBER OF CONTRACTED FTE DAYS AVAI LABLE

3,193,353 3,068,145



61,932 65,371


FTE days lost to work-related illness/ injury (-) 2,773 2,816



763 1,075


3,233,069 3,110,442

PRODUCTI VI TY














336,987 333,144

TOTAL NUMBER OF CONTRACTED FTE DAYS AVAI LABLE

3,193,353 3,068,145



61,932 65,371


FTE days lost to work-related illness/ injury (-) 2,773 2,816



763 1,075


3,233,069 3,110,442

PRODUCTI VI TY










GHCRS2006

And finally this...The HCR Standards

1st Edition2007

A Guide to the Human Capital Reporting Standards (GHCRS2006)



OPERATING I NCOME %

Revenue (£000s) 1,057,016 1,015,020

FTEs 16,352 16,047


OPERATING COSTS


People costs (£000s) 532,181 464,317



38,041

36,029

£ % £ %







Total 17,740 17,919

HC LEVERAGE (HCIR/ APC per FTE) 35.06 32.26



OPERATING I NCOME %

Revenue (£000s) 1,057,016 1,015,020

FTEs 16,352 16,047


OPERATING COSTS


People costs (£000s) 532,181 464,317



38,041

36,029

£ % £ %







Total 17,740 17,919

HC LEVERAGE (HCIR/ APC per FTE) 35.06 32.26



%



1,932 1,491



16,047 15,531




1,427 1,874



35 217

Number of FTE retirements in period ( -) 91 76

Number of FTEs outsourced in period (-) -








%



1,932 1,491



16,047 15,531




1,427 1,874



35 217

Number of FTE retirements in period ( -) 91 76

Number of FTEs outsourced in period (-) -






31 GHCRS2006

HC Measurement


5.2%

8.6%

1.8%

£12,569

38 days

3.5

£871

£365,121

£67,119

1:112

£27,469

£1356

23%






•Absenteeism1


•VB-HR™ Rating

•HC Performance






•Absenteeism1


•VB-HR™ Rating

•HC Performance


Role ‘fit’


Feedback

Capability

Line-of-Sight

Cultural elements

Leadership

Communication

Resources

Local management


Work Environment


Base salary

Bonus/incentives

Benefits

Shares

Recognition

Promotional aspects


Career progression

Competencies

Succession planning


Training/ Learning

Coaching/ Mentoring




16.1

12.8

14.6

14.2

14.5

14.3

13.1

13.0

13.7

12.9


Role ‘fit’


Feedback

Capability

Line-of-Sight

Cultural elements

Leadership

Communication

Resources

Local management


Work Environment


Base salary

Bonus/incentives

Benefits

Shares

Recognition

Promotional aspects


Career progression

Competencies

Succession planning


Training/ Learning

Coaching/ Mentoring




16.1

12.8

14.6

14.2

14.5

14.3

13.1

13.0

13.7

12.9

DIVERSITY

EMPLOYEECENTRICITY

EMPLOYERBRAND

HRGOVERNANCE


LEADERSHIP


COMMUNICATIONS

ORGANISATIONDESIGN


RESOURCING

RETENTION

REWARD

TALENTMANAGEMENT


79.6+

81.3+

74.2

67.4+

61.5

43.1 +

48.7

64.2

62.859.460.3

+

68.4

65.759.9 41.6

DIVERSITY

EMPLOYEECENTRICITY

EMPLOYERBRAND

HRGOVERNANCE


LEADERSHIP


COMMUNICATIONS

ORGANISATIONDESIGN


RESOURCING

RETENTION

REWARD

TALENTMANAGEMENT


79.6+

81.3+

74.2

67.4+

61.5

43.1 +

48.7

64.2

62.859.460.3

+

68.4

65.759.9 41.6

Human Capital

Practices

Human Capital

Practices

External Value

Proposition

External Value

Proposition



Customer Loyalty

Customer Loyalty

Revenue Growth

Revenue Growth


Employee Retention

Employee Retention

Individual/ team

Productivity

Individual/ team

Productivity






X-sellingX-selling

ServiceService




RewardReward


Employee Engagement

Employee Engagement

Leadership &

governance

Leadership &

governance

Shareholder value


brand

Employer brand

Human Capital

Practices

Human Capital

Practices

External Value

Proposition

External Value

Proposition



Customer Loyalty

Customer Loyalty

Revenue Growth

Revenue Growth


Employee Retention

Employee Retention

Individual/ team

Productivity

Individual/ team

Productivity






X-sellingX-selling

ServiceService




RewardReward


Employee Engagement

Employee Engagement

Leadership &

governance

Leadership &

governance

Shareholder value


brand

Employer brand

VB-HR™ Rating


HR Strategy

OrganisationalHCM

Capital

B B R

BBRCCCCCC

BBRCCCB

HCMArchitecture

BBRBB


BBRCCCB

BBRCCCCCC

HR Customer-agency

BB

HR Capability

BB

HumanCapital



Overallranking

AAAAAABBBBBBCCCCCC

R

rmin

r

RR

RRRB RB

HR Procurement

RBB

RBBBB

BB

R

EFFECTIVENESS

MAINTENANCE

RISK

VB-HR™ Rating


HR Strategy

OrganisationalHCM

Capital

B B R

BBRCCCCCC

BBRCCCB

HCMArchitecture

BBRBB


BBRCCCB

BBRCCCCCC

HR Customer-agency

BB

HR Capability

BB

HumanCapital



Overallranking

AAAAAABBBBBBCCCCCC

R

rmin

r

RR

RRRB RB

HR Procurement

RBB

RBBBB

BB

R

EFFECTIVENESS

MAINTENANCE

RISK

BB

BB

R

EFFECTIVENESS

MAINTENANCE

RISK

3.11Managing


4.11Managing


1.6HR Policy


Change/ Development


1.7HR


Review/ Audit

1.1Employer

brand

4.1Needs

Assessment


7.1Employee

Communications

8.2Risk

Assessment

1.2HR Value

Proposition

1.3HR Delivery

Structure

1.4HC Reporting

1.5HR Capability



Diligence/ Support

2.1Organisationa


Business Unit Level

2.2Organisationa


Multi-country Level

2.3Organisationa


Global Level

2.4Job


3.2Candidate





3.5Temporary

and Contractor

Staffing

3.6General

Employment Services

3.7Relocation

3.8Outplacement

Services


3.10Consulting

Line Managers On

Staffing Issues



4.3Training &






And Assessment


4.8Executive

Development

4.9Career

Development

4.10Consulting On

Managerial Issues

5.1Performance


5.2Performance


5.3Performance

Reviews

5.4Succession

(Talent) Management

6.2Wage And

Salary Management

6.3Bonus/Incenti

ve/ Stock Options

Compensation

6.4Senior/


n

7.2Benefits

7.3Attendance/


Interviews

7.4Return-To-


on

8.1Risk



9.1HRIS Strategy

9.2HRIS

Planning

10.1Payroll



Resolution

10.3Time

Reporting

10.6Tax

Reporting/ Audit

10.7Employee

Reimbursement


Miscellaneous Admin






5.5Attendance

Management

6.5Expatriate

Compensation

7.5Company


8.3Accident



9.3HRIS Support

9.4Employee



6.6Compensatio

n Analysis/Pay

review

6.7Healthcare/

Welfare/ Statutory/


7.6Collective


7.7Work


8.5Incident




9.5Benchmarkin

g



And Deductions

10.5Payroll


Calculations &

Disbursement

5.7Employee

Counselling/ Case

management

5.8PM

Compliance Support

6.8Pension

Management


Counselling And

Administration

7.8Conflict and

Issue Resolution



9.7Employee


Data Maintenance


9.9Managing



5.9Consulting To


Issues




Issues


Consultants

HR GOVERNANCE

ORGANISATION DESIGN



MANAGEMENTREWARD

EMPLOYEE RELATIONS

& COMMS

EMPLOYEE HEALTH &

SAFETY

HRIS & MEASURE-

MENTPAYROLL

3.11Managing


4.11Managing


1.6HR Policy


Change/ Development


1.7HR


Review/ Audit

1.1Employer

brand

4.1Needs

Assessment


7.1Employee

Communications

8.2Risk

Assessment

1.2HR Value

Proposition

1.3HR Delivery

Structure

1.4HC Reporting

1.5HR Capability



Diligence/ Support

2.1Organisationa


Business Unit Level

2.2Organisationa


Multi-country Level

2.3Organisationa


Global Level

2.4Job


3.2Candidate





3.5Temporary

and Contractor

Staffing

3.6General

Employment Services

3.7Relocation

3.8Outplacement

Services


3.10Consulting

Line Managers On

Staffing Issues



4.3Training &






And Assessment


4.8Executive

Development

4.9Career

Development

4.10Consulting On

Managerial Issues

5.1Performance


5.2Performance


5.3Performance

Reviews

5.4Succession

(Talent) Management

6.2Wage And

Salary Management

6.3Bonus/Incenti

ve/ Stock Options

Compensation

6.4Senior/


n

7.2Benefits

7.3Attendance/


Interviews

7.4Return-To-


on

8.1Risk



9.1HRIS Strategy

9.2HRIS

Planning

10.1Payroll



Resolution

10.3Time

Reporting

10.6Tax

Reporting/ Audit

10.7Employee

Reimbursement


Miscellaneous Admin






5.5Attendance

Management

6.5Expatriate

Compensation

7.5Company


8.3Accident



9.3HRIS Support

9.4Employee



6.6Compensatio

n Analysis/Pay

review

6.7Healthcare/

Welfare/ Statutory/


7.6Collective


7.7Work


8.5Incident




9.5Benchmarkin

g



And Deductions

10.5Payroll


Calculations &

Disbursement

5.7Employee

Counselling/ Case

management

5.8PM

Compliance Support

6.8Pension

Management


Counselling And

Administration

7.8Conflict and

Issue Resolution



9.7Employee


Data Maintenance


9.9Managing



5.9Consulting To


Issues




Issues


Consultants

HR GOVERNANCE

ORGANISATION DESIGN



MANAGEMENTREWARD

EMPLOYEE RELATIONS

& COMMS

EMPLOYEE HEALTH &

SAFETY

HRIS & MEASURE-

MENTPAYROLL





336,987 333,144


3,193,353 3,068,145



61,932 65,371





763 1,075


3,233,069 3,110,442

PRODUCTIVI TY














336,987 333,144


3,193,353 3,068,145



61,932 65,371





763 1,075


3,233,069 3,110,442

PRODUCTIVI TY












OPERATING I NCOME %

Revenue (£000s) 1,057,016 1,015,020

FTEs 16,352 16,047


OPERATING COSTS


People costs (£000s) 532,181 464,317



38,041

36,029

£ % £ %







Total 17,740 17,919




OPERATING I NCOME %

Revenue (£000s) 1,057,016 1,015,020

FTEs 16,352 16,047


OPERATING COSTS


People costs (£000s) 532,181 464,317



38,041

36,029

£ % £ %







Total 17,740 17,919




%



1,932 1,491



16,047 15,531




1,427 1,874



35 217










%



1,932 1,491



16,047 15,531




1,427 1,874



35 217








People Science

HCIntel®


Organisation engagement

(OE indicators) ‘RADAR’

Employee engagement

Basic metrics

Measurement pyramid


(management)

HR delivery and

operational risk


Well...

32 GHCRS2006

3. Human Capital Measurement

- a potential Damocles sword for the HR function

33 GHCRS2006

rating

• Why are you trying to measure?

• What are you trying to measure?

• How are you going to measure it?

Measurement - multiple channels with potential information overload

34 GHCRS2006

Measuring things like.......

• Talent management (effectiveness)• Employee engagement (effectiveness)• Leadership (effectiveness)• Rewards optimisation• HR functional value (ROI)• Learning &Development ROI• Employer brand (effectiveness)• Recruitment/resourcing (effectiveness/efficiency)• Diversity (effectiveness) • Operational risk (related to HR components)• Human capital value (red herring)

And linking with...• Impact upon or aspects of organisational performance

(e.g. financial/customer/client/innovation/cost control etc)

35 GHCRS2006

With regard to HR themselves, the impacts are.......

Positives...• Can assist in educating managers

• Clarifies the vagueness in people management terminology (thus easier to communicate concepts etc)

• Provides greater transparency and operating impact

• Reality check for the organisation

• Enhances HR’s strategic and analytic capabilities

• Other professionals can get quicker frames of reference and thus their buy-in

Negatives...• HR may have positioned themselves in a tricky position (i.e. if we’ve been

talking up a good game....)

• Other professionals can get quicker frames of reference and thus get involved

.....

• If HR doesn’t own it, somebody eventually will (e.g. finance/marketing)

36 GHCRS2006

HR Function versus HCM Function:two sides of the same coin.....

HR function(as supply chain)

HR function(as HCM function)

• Sees measurement as a necessary evil to provide benchmark data of little or limited value

• Process and cost data are prevalent even though they ultimately tell you nothing more than you are operationally efficient (which should be a given) or not

• Function ends up knowing more and more about less and less

• Function has peripheral influence (in the main)

• Prone to large-scale outsourcing

• Uses measurement in its many guises to inform in value appraisal/decision-making

• These include business case design, evaluation of people interventions, setting people strategy, communicating to and educating line managers etc.

• Provides the function with definable and measurable progress intelligence

• Function ends up expanding its influence and remit and seen ultimately as key influencer

• Measured use of outsourcing

37 GHCRS2006

4. Strategic Human Capital management

38 GHCRS2006

HC Operational strategies

• Diversity• Employee centricity• Employee engagement• Employer brand• HR governance• HR operational

excellence• Leadership• Organisation climate

• Organisation communications

• Organisation design• Performance orientation• Resourcing• Retention• Reward• Talent management• Training & Development

39 GHCRS2006

Strategic HCM – Key operational strategies

Human capital

Market/ stakeholder

recognition of HC value

HC Replacement propensity

Leveraged organisation architecture

Key strategies:•Resourcing•Employer Brand

Supporting strategies:•Diversity•Employee Centricity•HR Governance•Retention•Talent Management•Training & Development

Talent ‘rivalry’, ‘org’ performance

and competitive advantage amongst existing

firms

Key strategies: •Organisation design•HR operational excellence Supporting strategies: •HR governance•Performance orientation

Supporting strategies:•Organisation Design•Resourcing•Retention•Training & Development

Key strategies:•HR Governance•Performance Orientation Supporting strategies:•Employer Brand•HR operational excellence•Leadership

Key strategies:•Employee Engagement•Leadership•Retention•Talent Management

Supporting strategies:•Employee Centricity•Employer Brand•HR Governance•Organisation Climate•Organisation Communications•Organisation design•Performance Orientation•Resourcing•Reward•Training & Development

40 GHCRS2006

HC Measurement


5.2%

8.6%

1.8%

£12,569

38 days

3.5

£871

£365,121

£67,119

1:112

£27,469

£1356

23%






•Absenteeism1


•VB-HR™ Rating

•HC Performance






•Absenteeism1


•VB-HR™ Rating

•HC Performance


Role ‘fit’


Feedback

Capability

Line-of-Sight

Cultural elements

Leadership

Communication

Resources

Local management


Work Environment


Base salary

Bonus/incentives

Benefits

Shares

Recognition

Promotional aspects


Career progression

Competencies

Succession planning


Training/ Learning

Coaching/ Mentoring




16.1

12.8

14.6

14.2

14.5

14.3

13.1

13.0

13.7

12.9


Role ‘fit’


Feedback

Capability

Line-of-Sight

Cultural elements

Leadership

Communication

Resources

Local management


Work Environment


Base salary

Bonus/incentives

Benefits

Shares

Recognition

Promotional aspects


Career progression

Competencies

Succession planning


Training/ Learning

Coaching/ Mentoring




16.1

12.8

14.6

14.2

14.5

14.3

13.1

13.0

13.7

12.9

DIVERSITY

EMPLOYEECENTRICITY

EMPLOYERBRAND

HRGOVERNANCE


LEADERSHIP


COMMUNICATIONS

ORGANISATIONDESIGN


RESOURCING

RETENTION

REWARD

TALENTMANAGEMENT


79.6+

81.3+

74.2

67.4+

61.5

43.1 +

48.7

64.2

62.859.460.3

+

68.4

65.759.9 41.6

DIVERSITY

EMPLOYEECENTRICITY

EMPLOYERBRAND

HRGOVERNANCE


LEADERSHIP


COMMUNICATIONS

ORGANISATIONDESIGN


RESOURCING

RETENTION

REWARD

TALENTMANAGEMENT


79.6+

81.3+

74.2

67.4+

61.5

43.1 +

48.7

64.2

62.859.460.3

+

68.4

65.759.9 41.6

Human Capital

Practices

Human Capital

Practices

External Value

Proposition

External Value

Proposition



Customer Loyalty

Customer Loyalty

Revenue Growth

Revenue Growth


Employee Retention

Employee Retention

Individual/ team

Productivity

Individual/ team

Productivity






X-sellingX-selling

ServiceService




RewardReward


Employee Engagement

Employee Engagement

Leadership &

governance

Leadership &

governance

Shareholder value


brand

Employer brand

Human Capital

Practices

Human Capital

Practices

External Value

Proposition

External Value

Proposition



Customer Loyalty

Customer Loyalty

Revenue Growth

Revenue Growth


Employee Retention

Employee Retention

Individual/ team

Productivity

Individual/ team

Productivity






X-sellingX-selling

ServiceService




RewardReward


Employee Engagement

Employee Engagement

Leadership &

governance

Leadership &

governance

Shareholder value


brand

Employer brand

VB-HR™ Rating


HR Strategy

OrganisationalHCM

Capital

B B R

BBRCCCCCC

BBRCCCB

HCMArchitecture

BBRBB


BBRCCCB

BBRCCCCCC

HR Customer-agency

BB

HR Capability

BB

HumanCapital



Overallranking

AAAAAABBBBBBCCCCCC

R

rmin

r

RR

RRRB RB

HR Procurement

RBB

RBBBB

BB

R

EFFECTIVENESS

MAINTENANCE

RISK

VB-HR™ Rating


HR Strategy

OrganisationalHCM

Capital

B B R

BBRCCCCCC

BBRCCCB

HCMArchitecture

BBRBB


BBRCCCB

BBRCCCCCC

HR Customer-agency

BB

HR Capability

BB

HumanCapital



Overallranking

AAAAAABBBBBBCCCCCC

R

rmin

r

RR

RRRB RB

HR Procurement

RBB

RBBBB

BB

R

EFFECTIVENESS

MAINTENANCE

RISK

BB

BB

R

EFFECTIVENESS

MAINTENANCE

RISK

3.11Managing


4.11Managing


1.6HR Policy


Change/ Development


1.7HR


Review/ Audit

1.1Employer

brand

4.1Needs

Assessment


7.1Employee

Communications

8.2Risk

Assessment

1.2HR Value

Proposition

1.3HR Delivery

Structure

1.4HC Reporting

1.5HR Capability



Diligence/ Support

2.1Organisationa


Business Unit Level

2.2Organisationa


Multi-country Level

2.3Organisationa


Global Level

2.4Job


3.2Candidate





3.5Temporary

and Contractor

Staffing

3.6General

Employment Services

3.7Relocation

3.8Outplacement

Services


3.10Consulting

Line Managers On

Staffing Issues



4.3Training &






And Assessment


4.8Executive

Development

4.9Career

Development

4.10Consulting On

Managerial Issues

5.1Performance


5.2Performance


5.3Performance

Reviews

5.4Succession

(Talent) Management

6.2Wage And

Salary Management

6.3Bonus/Incenti

ve/ Stock Options

Compensation

6.4Senior/


n

7.2Benefits

7.3Attendance/


Interviews

7.4Return-To-


on

8.1Risk



9.1HRIS Strategy

9.2HRIS

Planning

10.1Payroll



Resolution

10.3Time

Reporting

10.6Tax

Reporting/ Audit

10.7Employee

Reimbursement


Miscellaneous Admin






5.5Attendance

Management

6.5Expatriate

Compensation

7.5Company


8.3Accident



9.3HRIS Support

9.4Employee



6.6Compensatio

n Analysis/Pay

review

6.7Healthcare/

Welfare/ Statutory/


7.6Collective


7.7Work


8.5Incident




9.5Benchmarkin

g



And Deductions

10.5Payroll


Calculations &

Disbursement

5.7Employee

Counselling/ Case

management

5.8PM

Compliance Support

6.8Pension

Management


Counselling And

Administration

7.8Conflict and

Issue Resolution



9.7Employee


Data Maintenance


9.9Managing



5.9Consulting To


Issues




Issues


Consultants

HR GOVERNANCE

ORGANISATION DESIGN



MANAGEMENTREWARD

EMPLOYEE RELATIONS

& COMMS

EMPLOYEE HEALTH &

SAFETY

HRIS & MEASURE-

MENTPAYROLL

3.11Managing


4.11Managing


1.6HR Policy


Change/ Development


1.7HR


Review/ Audit

1.1Employer

brand

4.1Needs

Assessment


7.1Employee

Communications

8.2Risk

Assessment

1.2HR Value

Proposition

1.3HR Delivery

Structure

1.4HC Reporting

1.5HR Capability



Diligence/ Support

2.1Organisationa


Business Unit Level

2.2Organisationa


Multi-country Level

2.3Organisationa


Global Level

2.4Job


3.2Candidate





3.5Temporary

and Contractor

Staffing

3.6General

Employment Services

3.7Relocation

3.8Outplacement

Services


3.10Consulting

Line Managers On

Staffing Issues



4.3Training &






And Assessment


4.8Executive

Development

4.9Career

Development

4.10Consulting On

Managerial Issues

5.1Performance


5.2Performance


5.3Performance

Reviews

5.4Succession

(Talent) Management

6.2Wage And

Salary Management

6.3Bonus/Incenti

ve/ Stock Options

Compensation

6.4Senior/


n

7.2Benefits

7.3Attendance/


Interviews

7.4Return-To-


on

8.1Risk



9.1HRIS Strategy

9.2HRIS

Planning

10.1Payroll



Resolution

10.3Time

Reporting

10.6Tax

Reporting/ Audit

10.7Employee

Reimbursement


Miscellaneous Admin






5.5Attendance

Management

6.5Expatriate

Compensation

7.5Company


8.3Accident



9.3HRIS Support

9.4Employee



6.6Compensatio

n Analysis/Pay

review

6.7Healthcare/

Welfare/ Statutory/


7.6Collective


7.7Work


8.5Incident




9.5Benchmarkin

g



And Deductions

10.5Payroll


Calculations &

Disbursement

5.7Employee

Counselling/ Case

management

5.8PM

Compliance Support

6.8Pension

Management


Counselling And

Administration

7.8Conflict and

Issue Resolution



9.7Employee


Data Maintenance


9.9Managing



5.9Consulting To


Issues




Issues


Consultants

HR GOVERNANCE

ORGANISATION DESIGN



MANAGEMENTREWARD

EMPLOYEE RELATIONS

& COMMS

EMPLOYEE HEALTH &

SAFETY

HRIS & MEASURE-

MENTPAYROLL





336,987 333,144


3,193,353 3,068,145



61,932 65,371





763 1,075


3,233,069 3,110,442

PRODUCTIVI TY














336,987 333,144


3,193,353 3,068,145



61,932 65,371





763 1,075


3,233,069 3,110,442

PRODUCTIVI TY












OPERATING I NCOME %

Revenue (£000s) 1,057,016 1,015,020

FTEs 16,352 16,047


OPERATING COSTS


People costs (£000s) 532,181 464,317



38,041

36,029

£ % £ %







Total 17,740 17,919




OPERATING I NCOME %

Revenue (£000s) 1,057,016 1,015,020

FTEs 16,352 16,047


OPERATING COSTS


People costs (£000s) 532,181 464,317



38,041

36,029

£ % £ %







Total 17,740 17,919




%



1,932 1,491



16,047 15,531




1,427 1,874



35 217










%



1,932 1,491



16,047 15,531




1,427 1,874



35 217








People Science

HCIntel®


Organisation engagement ‘RADAR’

Employee engagement

Basic metrics

Measurement pyramid


(management)

HR delivery and

operational risk


Human capital intelligence......

41 GHCRS2006

5. Time for HR to take the lead

42 GHCRS2006

HIGH

Org

an

isati

on

un

ders

tan

din

g a

nd

ap

plicati

on

of

perf

orm

an

ce a

naly

tics (

evalu

ati

on

)

LOW HIGHOrganisation (engagement) focus on people


HR as ‘Mr/Ms Fix-it’


HR as relational

glue

People as Human Resource

HR as compliance

only

People as Human Capital(High performance work organisations)

HR as proactive driver

43 GHCRS2006

Overall message

• See the ‘bigness’ and potential of measurement (its not about metrics – they’re a small part)

• HC management technically views people as talented assets/resources and rightfully views them as core to organisational performance

• HC measurement provides a framework to derive the necessary intelligence, i.e. from the individual to organisation performance (and everything in between)

• HR functions can embrace measurement and move towards being properly acknowledged as a value-contributing function or they risk being seen as just a ‘supply chain’ of activity (with its limitations of opportunity)

44 GHCRS2006

Final note

Einstein once said that......

“The definition of insanity is doing the same thing over and over again and expecting different results”

Surely its time organisations and the HR function heed Einstein and embrace new ways of evaluating and measuring.

45 GHCRS2006

human_capital_measuring&reporting pres050707njhvaluentis

Business

management of human

human capital measurement

driverghcrs2006 people

soul of hr professionals

high organisation

withall things measurement

hr lexicon new common

definition hcm