How can you manage what you do not or cannot measure? This course attempts to inspire Human Resources (HR) professionals to stop just "doing" and start "delivering". This cannot be done unless they take the necessary steps to measure the effectiveness and efficiency of their HR functions, benchmark the results internally and externally, and consequently design initiatives for continuous improvement. In this course, you will learn what Key Performance Indicators (KPIs) are, their characteristics and how they should be used and reported. This course will also present and discuss over 50 HR KPIs that can be easily used in your job. Furthermore, the course will demonstrate that by measuring your HR results, benchmarking them and taking action to improve them, you will be playing the four fundamental roles of an HR business partner: strategic partner, administrative expert, employee champion, and change agent. The ultimate "take away" of this course is the design of an HR balanced scorecard that will allow the HR department to contribute to the achievement of company strategic goals.
Course Methodology
<p>The course uses a mix of interactive techniques such as: lecturettes, group activities, numerical exercises, and simulations.</p>
Course Objectives
By the end of the course, participants will be able to:
Defend the metrics, measures and KPIs applied to HR and show the role they play in measuring the effectiveness of the HR function
List the KPIs that should be used in measuring HR as a function
Define and calculate the main KPIs that should be used to measure the efficiency of the critical processes in HR
Design and calculate the main formulas for evaluating the financial contribution of HR to the organization
Generate and calculate the employee satisfaction index and use it to measure employee morale
Explain employee turnover, its types and the various formulas used to calculate it
Create and implement the HR scorecard
Target Audience
This course is targeted at human resources professionals who have been working in any HR function for at least three years. HR professionals need to evaluate and report on the effectiveness of human resources to senior management. This course will help them to do that in addition to market their image as business partners. The course is also suitable for human resources managers and senior executives who are accountable for the overall contribution of the HR function.
Target Competencies
The targeted competencies in this course are:
Leading and supervising
Deciding and initiating action
Persuading and influencing
Presenting and communicating
Analytical thinking
Formulating concepts and strategies
Planning and organizing
Achieving goals and objectives
Course Outline
Key Result Areas (KRAs), KPIs and targets
Goals, objectives and targets
The link between strategy and performance
From KRAs to KPIs, targets and balanced scorecard
The cascading of objectives
SMART objectives
Measures and KPIs
The importance of measuring
Measures, metrics and KPIs: the main differences
Characteristics of SMART KPIs
Types of KPIs
Common mistakes when using KPIs
Organizational KPIs
Organizational appeal and reputation
Salary competitiveness
Human value added
Career growth
Absenteeism rates and absenteeism cost
Employee morale
Financial KPIs
Return on human capital
Labor cost
Cost per hire
Cost per trainee
Opportunity cost
Supervisory ratios
Cost to supervise
Compensation and benefits
Process KPIs
Measuring efficiency of recruitment and selection
Measuring effectiveness of hiring
Using Hurdles Per Hire (HPH) to reduce the use of 'wasta' in selection
Using aggregate yield ratios and selection rates
Measuring effectiveness of appraisal systems
Employee turnover
Voluntary versus involuntary turnover
Turnover versus attrition (gross and net turnover)
Identifying turnover metrics
Identifying turnover costs
Analyzing and interpreting turnover data
Healthy versus unhealthy turnover: when is turnover good for the organization?
Creating and implementing the HR scorecard
The balanced scorecard as a strategic tool: linking people, strategy, and performance