Measurement in HRM Alignment & Hiring

8/2/2019 Measurement in HRM Alignment & Hiring

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Measurement inHRM

- Neha Agrawal

1Amity Global Business School, Pune

Measuring

HR Alignment

Organizations and employees fundamentally

exist within a holistic and symbiotic

"eco-system" that needs to bealigned to be effective.

Amity Global Business School, Pune 3

What is Alignment

• Human resources alignment means integrating

decisions about people with decisions about the

results an organization is trying to obtain.

• Alignment with vision, mission, organizational

goals and objectives

Vertical & Horizontal Alignment

• Vertical Alignment: the degree to which the content of an HRM practicefocuses on, embeds, andcommunicates the desiredperformance competencies

• Horizontal Alignment: the degree to

which HRM practices are mutually supportive and reinforcing

Why Alignment?

• Biggest Asset-Human Capital

HR Link to Organizational Performance

• Example-

Requisites

• A clear understanding of the value chain: What kind of value theorganization generates and exactly how that value is created.

• Describe how ultimate financial goals are linked to key successfactors at the levels of customers, operations, people, and IT systems.

• Shared understanding of the value-creation process-through which theorganization can design a strategy implementation model that specifiesneeded competencies and employee behaviors.

• The HR system can be geared toward the generation of thesecompetencies and behaviors.

Results

̶ Behaviors +

HR Alignment

Methods of Measuring HR

Alignment

1. Objectives & Measures

2.Integrating HR into Value Creation

• HR deliverables : Outcomes of the HR architecturethat serve to execute the firm’s strategy.

• HR doables: HR efficiency & activity counts.

• HR performance drivers: core people-relatedcapabilities or assets.

• HR enablers reinforce performance drivers(moderators whose presence activates the HRperformance drivers).

3. Benchmarking

• It is a systematic process of measuring anorganization’s products, services, and practices againstthose of a like organization that is a recognized leader in the studied area.

• The study helps to gauge HR alignment throughdecision support categories such as:

resource planning• organizational planning, and

• strategic HR planning

4. The Balanced Scorecard

• Framework used to translate strategy into

operational terms by measuring a full range of

perspectives:

• Financial

• customer

internal• learning and growth.

5. Activity Based Costing (ABC)

• is a method of cost management that determines the truecost, including overhead, for a service or product.

• Finding the true cost allows

agencies to discover cost improvement opportunities prepare and actualize strategic and operational plans

improve strategic decision-making.

• It involves identifying activities, determining activity costs,determining cost drivers, collecting activity data, andcalculating the service cost.

6. Job Analysis and Competency Modeling

• Identifies job responsibilities, tasks, and employee

attributes needed on different jobs to assure

mission-critical goals.

• Competencies are used as a firm and consistent

foundation for organization/job design, staffing,

placement, appraisal, development, performance

management, succession and compensation.

7. Talent Audits and Bench Strength

Analysis

• Identifies and prioritize talent gaps for different jobs.

Goals often include:1) identification of mission-critical positions and other

workforce areas with talent gaps; and

2) developing clear and measurable action plans for closing them.

8. HR Alignment Process

Assessing HR Alignment

• Individual results w/business goals

•Talent levels w/ businessobjectives

• Individual w/ career goals

•Team & unit w/ businessobjectives

•Culture w/ businessobjectives

•Process w/ businessobjectives

Architecting HR Process

Alignment

•Talent Management

•Performance Management

•Employee Selection &

Placement

•Succession Planning

•Rewards & Recognition

Building HR Alignment

•Assuring person job fit•Optimizing humanperformance

•Assuring bench strength

• Intentional culture shaping

•Organization and job design

Measuring

Hiring &Staffing

Hiring & Staffing

Recruitment and staffing provide the overall

framework for the process of planning, recruiting,

selecting, and hiring employees.

Why is it important?

• The goal of recruitment and staffing is to identify thesmartest, most versatile employees you can find.

• Retention of your best employees starts with your effective recruitment and staffing process,strategies, policies and procedures.

Whom you choose to give entry to, will define how should he/she be managed…

The Virtuous Triangle

• Speed of hiring and costcontainment areimportant andmeasurable drivers

• In contrast, quality of hire presents a morenebulous metric to

define and measure, butis the critical measure totake into account.

Methods of Measuring

Hiring & Staffing

QoH- Quality of Hire (Lou Adler)• How well a new person meets the performance needs of the job using the

following 1-5 yardstick:

• Level 1.0: Underperforms on all core performance requirements of the job.

• Level 2.0: Reasonable match on most job needs, but needs extramanagement, direction, or coaching to meet the basic performancestandards.

Level 2.5: Average performance. Meets basic requirements of the job witha normal degree of management coaching and direction.

• Level 3.0: Solid performance. Meets significant performance requirementsof the job on a consistent basis with minimal management direction andsupport.

• Level 4.0: Consistently exceeds significant performance requirements of

the job on measures of quality and/or quantity.• Level 5.0: Far exceeds significant performance requirements of the job on a

consistent basis.

• While typical interview and assessment tools can differentiate betweenabove and below average performance, they don’t do too well indetermining if someone is a Level 3, 4 or 5 ---- Use Talent Score Card

Talent Score Card

• 10 Factors rates on a scale of 1-5

• Technical Skills & Abilities

• Motivated

• Team Skills (EQ)

• Problem Solving• Managerial Fit

• Achieved Comparable Results

• Planning & Executing Comparable Work

•Environment & Cultural fit

• Trend of growth over time

• Potential

Return on Workforce (Taleo)

• It is the ratio of outcome – measured in operatingincome – to input, measured as the total laborcost (full time and contingent).

Operating incomeROW = ---------------------------

Labor costs

The ROW ratio brings a better depiction of today’sworkforce reality and consequently translates into betterfinancial performance for the organization using it.

Cost per Hire (CPH)

• It is a common recruiting effectiveness measuringtool.

• A valuable tool but does not take into account the

length of time it takes to fill the position andquality of the hire.

• In addition cost per hires will drastically differfrom position to position.

• For example, a cost per hire for a senior executiveposition will be drastically different from a non-exempt position.

Calculating Cost per Hire (CPH)

• Eg-

"Time to Fill"

is a calculation thattracks the number daysfrom the created dateof the job, up until the

hired date of theapplicant.

shows how many days it

took to hire a candidatein a job

"Time to Hire"

is a calculation thattracks the number of

days from the createddate of the applicant, up

until they’re hired

shows how many days

the candidate was in

your system before they got hired

Supply Chain Measurement: Yield

References

• http://hralignment.net/HR-Metrics.htm• http://www.hr.com/en/communities/organizational_development/alignment_eacxs746.html

• http://www.smhc-cpre.org

• http://www.slideshare.net/cheerupitsanewday/measuring-hr-strategic-alignment-through-the-hr-scorecard-presentation

• http://www.opm.gov/studies/alignnet.pdf

• http://www.maverickec.com/index_files/Aligning%20HR%20Strategy%20epulse.pdf

• http://59.67.71.238:8080/004/wenxian/pdf/17.pdf • http://www.ere.net/2011/09/16/measuring-and-maximizing-quality-of-hire/

• http://www.adlerconcepts.com/index.php/article-topics/quality-of-hire/729-how-should-you-measure-quality-of-hire

• http://www.taleo.com/researcharticle/staffing-focus-quality-hire-how-measure-it

• http://www.investopedia.com/terms/r/revenueperemployee.asp#axzz1pxJRzfb4

• http://www.esrcheck.com/articles/Safehiringaudit.php

http://www.recruitersnetwork.com/resources/costperhire.htm• http://www.teksystems.com/Services/Staffing-Services/Hire-Model.aspx

• http://cs.icims.com/public/w/faqs/what-is-quot-time-to-fill-quot-versus-quot-time-to-hire-quot.aspx

• http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1078&context=cahrswp

• http://www.hrmreport.com/article/Recruiting-Metrics--the-Rules-Have-Changed/

Thank You…

Amity Global Business School Pune 33

Measurement in HRM Alignment & Hiring

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