HR Metrics, Reporting & Financial Management Flashcards
Compensation Costs
Labour cost per full time employee (FTE) = labour cost / FTE
Labour cost revenue percent = labour cost / revenue
Cost of benefits as a percentage of total labour costs = benefit cost / labour cost
Types of HR Management Systems
1) Enterprise Resource Planning (ERP) - support standardized data and processes and support org-wide integration of business processes in cross-functional areas
2) Stand alone HRIS - used by the HR dept and various stakeholders for various HR purposes
3) Speciality Products - focus on particular HR functions (applicant tracking, workplace scheduling system, etc.)
Information and Legal Compliance
Federal and provincial legislation regulate:
1) What is collected - material collected must be related to a specific business need
2) How it is stored - info must always be stored in a manner that secures its privacy, can only be used for the purpose it was collected (employment)
3) Who has access - info cannot be shared with outside individuals such as potential employers seeking a reference unless the employee has authorized the sharing of the info
4) How long it is retained
5C Model of HRM Impact
Compliance - ensuring the org’s people and practices are legally compliant
Client satisfaction - includes employees, managers, customers, shareholders, etc.
Culture management - creating a culture that supports the org’s strategic and operational priorities and attracting employees that fit with that
Cost control - control costs but support the notion that employees are investments, not expenses
Contribution - to the org’s overall effectiveness and to the level of employee engagement/performance
Metrics are used to
Establish base lines - to compare current practice with past practice (e.g. employee surveys)
Conduct benchmarking - to compare current practice with best practices or practices outside of the org
Track trends - including economic, demographic or workforce trends
Justify strategic decisions regarding talent management
Measure the impact of HR on the org’s bottom line
Productivity Metrics
Absenteeism metrics
The # of workdays missed due to illness per full time equivalent employee = sick days / FTE
-Can be tracked by type of absence - info can be used to design wellness programs, EFAP, training programs, OHS initiatives
Overtime metrics
Average # of overtime hours worked by each individual contributor = overtime / individual contributor headcount
-Gives managers an idea of whether work is being efficiently scheduled among employees
Human Capital Return on Investment
Rate of return for each dollar invested in employee pay and benefits = (revenue - operating costs) / total FTE
Compensation Metrics
Compa-ratio for an individual = individual’s salary / mid-point of salary band
Tells an org whether employees are being paid at the upper or lower levels of their salary bands
Recruitment Metrics
Vacancy rate (the % of positions being actively recruited for) = # of vacant positions / headcount
External hire rate = # of external hires / # of all positions filled
Average time to fill a position externally = sum of all external days to fill / # of external recruits
Cost of external hires = total external hiring costs / # of external recruits
Quality of external hires by source = average performance ratings of new recruits after 3 months from each hiring
Retention Metrics
Turnover = (resignations + retirements + involuntary terminations) / headcount
Executive voluntary turnover rate = (executive resignations + executive retirements) / executive headcount
Succession planning rate = # of succession planning candidates / executive level headcount
Labour Relations Metrics
Grievance incidence = # of open grievances / unionized headcount
% of grievances closed = # of grievances closed / # of open grievances
Arbitrated grievance rate = # of grievances gone to arbitration / # of open grievances
Learning and Development Metrics
Cost Metrics:
Cost per FTE = learning & development costs / FTE
Cost as a % of revenue = learning & development cost / revenue
Cost as a % of payroll = learning & development cost / labour costs
Incidence = # of learning & development events / FTE
Duration = # of learning & development hours / FTE
Participation = # of employees attending learning & development events / # of all employees
The Research Process
1) Identify the problem or area for improvement
2) Review the situation and gather info about best practices
3) Formulate a hypothesis or identify an action that might address the situation
4) Design a program or initiative
5) Implement the program
6) Evaluate the results
4 Common Research Designs
1) Surveys - used to assess change or create change, good way to gather employee perceptions
2) Experimental - purpose is to find relationships between one or more variables
3) Qualitative Mainly involves observation (e.g. observing work behaviours/performance and making records) and interviews
4) Existing research - provides a wealth of knowledge and information for developing HR strategies based on past practice and best practices
Research Measurement Concepts
Criterion measures - ensure we are measuring what is important (e.g., the competencies related to a job when conducting interview assessments)
Criterion relevance - ensures the criteria are relevant to what we are trying to predict (e.g., all the right competencies are assessed)
Criterion deficiency - occurs when we haven’t assessed all the necessary criteria (e.g., an important competency is missing from our assessment)
Criterion contamination - occurs when we measure things that are irrelevant
4 Types of Measurement Scales
1) Nominal scales - a list of variables that have no “value”, simply names things (e.g., asks an employee to identify their department’s name from a list)
2) Ordinal scales - a list of variables that have an order (e.g., what employees like best or least, or what they want the most, etc.)
3) Interval scales - a scale that tells us the mathematical difference between two responses (e.g. Likert scale)
4) Ratio scales - show the relationship between two variables (e.g., sales per employee)
