Navigating Workforce Analytics in a World Without Standards
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Transcript of Navigating Workforce Analytics in a World Without Standards
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7/27/2019 Navigating Workforce Analytics in a World Without Standards
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July 27, 2011
Presents:
Navigating Workforce Analytics in a
World without Standards
Human Capital Management Institute
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About Human Capital Management Institute
HCMI Background:
Specialized in HR analysis &measurement
Deep expertise in Workforce Analytics &
Planning
Board made up of CFOs and HR heads
Over 40 years of experience
What We Do:
Measure the immeasurable in humancapital
Transform workforce data into business
intelligence
Provide Tools and Training so HR can
Partner with Finance
2
Workforce Assessment w Strategic Consulting w Training
Best Practices w Workforce Analytics and Planning w Benchmarking
The Human Capital Management Institute (HCMI) was founded on the belief that organizations can and
must, find better ways of measuring their investments in human capital. Our vision of the future is one in
which human capital measurement and information is as integral to business decision making as
financial information is today.
We Bring Financial Discipline, Standards and Rigor to the HR Function
Human Capital Management Institute
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HCMI Products & Services
3 Human Capital Management Institute
Scenario: High Growth Scenario: ControlledGrowth Scenario: Cost Savings
C ur r en t 5 Y r Pr oj e ct e d F o r ec a st C u rr e nt 5 Y r Pr oj e ct e d F o r ec a st C u rr e nt 5 Y r Pr oj e ct e d F o re c as t Headcount 6 0 ,0 0 0 9 6 , 63 1 10% Headcount 6 0 , 0 0 0 6 9 , 5 5 6 3% Headcount 6 0 , 0 0 0 4 6 , 4 2 7 - 5%
Revenue $9,000,000,000 $15,861,075,149 12% Revenue $9,000,000,000 $11,486,534,063 5% Revenue $9,000,000,000 $9,000,000,000 0%
EBITDA $ 3 0 0 , 0 0 0 ,0 0 0 $ 5 7 7 , 6 24 , 3 7 5 14% EBITDA $ 3 0 0 , 0 0 0, 0 0 0 $ 3 6 4 , 9 9 5, 8 7 1 4% EBITDA $ 3 0 0 ,0 0 0 , 0 0 0 $ 3 0 0 , 0 0 0, 0 0 0 0%
Total Expenses $8,700,000,000 $13,386,028,408 9% Total Expenses $8,700,000,000 $10,085,684,446 3% Total Expenses $8,700,000,000 $6,052,488,813 - 7%
TCOW $ 4 , 7 1 3 ,0 0 0 , 0 0 0 $ 6 , 9 2 4 ,943,226 8% TCOW $4,713,000,000 $5,463,658,712 3% TCOW $4,713,000,000 $3,458,889,658 - 6%
SelectedScenario: ControlledGrowth
-8%-6%
-4%
-2%
0%
2%
4%
6%
8%10%12%14%
16%
18%
20%
Workforce
DemandGrowthRate
-8%-6%
-4%
-2%
0%
2%
4%
6%
8%10%12%14%
16%
18%
20%
WorkforceSupplyGrowthRate
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%10%12%14%
16%
18%
20%
WorkforceDemandGrowthRate
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%10%12%14%
16%
18%
20%
WorkforceSupplyGrowthRate
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%10%12%14%
16%
18%
20%
WorkforceDemandGrowthRate
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%10%12%14%
16%
18%
20%
WorkforceSupplyGrowthRate
$9,000$9,450
$9,923$10,419 $10,940 $11,487
$8,700 $9,135$9,592
$10,071 $10,575$11,104
$4,591 $4,865 $5,203$5,565 $5,953
$6,369
$ 3 0 0 $ 3 1 2 $ 3 2 4 $ 3 3 7 $ 3 5 1 $365
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
B as e Yr Y r1 Y r2 Y r3 Y r4 Y r5
Project edRevenue Project edTot alExpenses
C alculat edTC OW Project edEBITDA
Millions
4 . 0% 4 . 0% 4 .0 % 4 . 0 % 4 .0%
2.6%1.7%
0.8%
-0.1% -1.0%
- 3%
0%
3%
6%
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Project edEBITDA C alculat edEDITDA
6.0%
6 . 9 % 7 . 0 % 7 . 0 % 7 . 0 %
3 % 3 % 3 % 3 % 3 %
0%
3%
6%
9%
Y r1 Y r2 Y r3 Y r4 Y r5
C alculat edTC OW Project edTC OW
Overall Scenario Forecast EBITDA GrowthRate TCOW GrowthRate
Human Capital Financial Statements Human Capital Impact Statement
Human Capital Asset Statement
Human Capital Flow StatementPriorYear N ew Current Year
Workforce Primary Category Headcount Hires1
%Chg Turnover2%Chg Retirement
3%Chg Subtotal %Chg Promotions
4%Chg Transfers
5%Chg Headcount %Chg
E mpl oye es 13 ,300 1 ,745 13.1% -510 -3.8% -140 -1.1% 14,395 8.2% 50 0.4% 5 0.0% 14,450 8.6%
-Management & SeniorLeadership 1,250 50 4.0% -10 -0.8% -15 -1.2% 1,275 2.0% 20 1.6% 5 0.4% 1,300 4.0%
- Pr of es si on al S ta ff 2 ,3 00 292 12.7% -70 -3.0% -50 -2.2% 2,472 7.5% 30 1.3% -2 -0.1% 2,500 8.7%
- Sa le s S ta ff 3 ,000 560 18.7% -150 -5.0% 0 0.0% 3,410 13.7% -25 -0.8% 15 0.5% 3,400 13.3%
- S p e cia lis ts a n d T e ch n icia n s 9 0 0 100 11.1% -25 -2.8% -30 -3.3% 945 5.0% 68 7.6% -13 -1.4% 1,000 11.1%
- Sk il le d Tr ad e St af f 2 50 25 10.0% -10 -4.0% 0 0.0% 265 6.0% -25 -10.0% 10 4.0% 250 0.0%
- Op er at io ns St af f 1 ,4 50 225 15.5% -80 -5.5% -20 -1.4% 1,575 8.6% 20 1.4% 5 0.3% 1,600 10.3%
- Se rv ic e S ta ff 2 ,7 50 308 11.2% -120 -4.4% -25 -0.9% 2,913 5.9% -8 -0.3% -5 -0.2% 2,900 5.5%
- A d min is tr a t iv e S u p p or t S t a ff 9 5 0 110 11.6% -20 -2.1% 0 0.0% 1,040 9.5% -40 -4.2% 0 0.0% 1,000 5.3%
- L ab o re rs a nd He l pe rs 4 5 0 75 16.7% -25 -5.6% 0 0.0% 500 11.1% 10 2.2% -10 -2.2% 500 11.1%
C on ti ng en t S ta ff 1 ,7 00 4 55 26.8% -150 -8.8% 0 0.0% 2,005 17.9% -50 -2.9% -5 -0.3% 1,950 ####
- Te mpora ry 1 ,100 235 21.4% -100 -9.1% 0 0.0% 1,235 12.3% -30 -2.7% -5 -0.5% 1,200 9.1%
- Contractors 600 220 36.7% -50 -8.3% 0 0.0% 770 28.3% -20 -3.3% 0 0.0% 750 25.0%
T ot alor A v er a g e Wor kfor ce 1 5 , 00 0 2 , 2 00 14.7% -660 -4.4% -140 -0.9% 16,400 9.3% 0 0.0% 0 0.0% 16,400 9.3%
Workforce Quantifier ROI Calculator
Quantify ROI of Workforce Decisions
Cost of Turnover, Workforce Cost , Cost per Hire
Shows Business Case for HR Interventions
Integrated Data Blueprint Modular Talent Management Components
Detailed Data Dictionary + Metric Formulas
Key Analysis Segments and Dimensions
Human Capital Metrics Handbook Nearly 500 Metrics and Detailed Definitions
Over 100 KPI Best in Class Metrics
Unique Metrics that Monetize Human Capital
Workforce Planning Templates Link Workforce and Financial Metrics
Advanced Retirement Calculator
Forecast Skills, Costs, Talent and Productivity
Multi-DimensionalWorkforceAssessment
Identify AreasofOpportunity
SpotlightStrengths&Weaknesses
MinetheData for
Driversof CriticalBusinessOutcomes
HCMIAssessment Framework
Focus&
Resources(Centerof
Excellence)
BusinessComplexity &
Structure
Measurement& AnalyticCapability
Speed, SystemsIntegration &
Automation
Standards,
Processes& DataQuality
Reporting,
Scorecards&Accountability
Workforce Costand
Productivity
WorkforceKnowledge
Business,Workforce &
HR StrategyLinkage
CreatePerceptualWorkforceMaps
EnableData-DrivenDecision Making
SettheStageforAdvanced Analytics
Beginning Foundation
Career PathROI ToolModel of an AppreciatingAssetEmployeesasAssetsversusExpenses
StaffAccountant
Mgr.,Accounting
Dir.,Accounting
Accountant
Sr.Accountant
CAGR:Compound AnnualGrowth Rate
Accounting Job FamilyCareer SalaryProgression
$46,400
$49,600
$59,800
$67,000
$79,100
$94,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
0 1 2 3 4 5 6 7 8 9 10 10+
Years of Experience
BaseSalary
Staff Accountant
Accountant
Sr. Accountant
Mgr., Accounting
Dir., Accounting
Ave Annual ate
Market Rates(50%-75%ile)
CAGR = 10.0%$130,000
CAGR = 6.6%
Entrylevel Staff Accountanthired at 50%ile needs annual
salarygrowth of 10.0% to staywith market
(Assumes mkt growth of 3% annuallywprogressi on to . Directorin 10
years.)
50th%ile
Theten-year costsavingsisthea reabetween
thecostof ExternalHirescompared to the
career path of an InternalStaff Accountant
Cost Savingsfrom Internal
Development
InternalHiring Cost
Over Time
C
orrelationCoefficient(0-1)
FactorsLeading toIncreased Turnover
JobTitleorPosition
Dissatisfaction With Compensation
High vs.Low TurnoverManager
CommuteDistance
Driver#3
Driver#2
Driver#1
.50
.33
.27
.02
LowTurnoverImpact
HighTurnoverImpact
SomeTurnover
Impact
.11
WorkLocation
Numberof Jobsin Last3Years .70
H i re d T hr o u gh E m pl o ye e R ef e rr a l . 1 9
Job Framework Mapping Tool Integrated Taxonomy of 15,000+ jobs
Find and Map Critical Job Roles
Workforce Capability Assessment Data and Systems Capability + Risk Analysis
Human Capital Measurement Standards
Span of Control Optimizer Tool
Benchmark and Optimize Manager Spans
Optimize Management Spans and Layers
Career Path ROI Tool Quantify ROI of Internal Career Path Growth
Build(Train), Buy(Hire) or Lease(Contract)
Analysis
Analytic Engagement Projects High Performer Profiles
Engagement ROI and Sales Impact
Turnover and Retention Driver Analysis
Analytic Storytelling with ROI
Initial Reports&Analysis
Data Gathering
First Good
Metrics
HR Data Warehouse
Drill-down,standardreportsScenario Analysis
ExternalBenchmarking
Contextfordecisions
Data
Driven Decision
Making!
Turnover,Headcount,Hiring
HRISsystem data
COEFormation
Data Errors
HR Analytic
sMandate
HR StandardsEstablishedLostHR
Credibility
HR data/systems
Assessed
HR Data Cleansedhistoricaldatascrubbed
Bus.UnitsReject
Analysis
Data Errors
Historicaldatastillbad
1st
AnalyticsStudy
AdvancedAnalytic
Studies
HR Analysis
Validated
Integrated HRDatabases
COELaunches
TrainingCourses
Bus. Units
Demandmore
Analyticsjourneysteps
Setbacksalongthe way
Journeypath and goal
Roadmap Design Step by Step Deliverables
Analytics and Workforce Planning
Training and Advisory Support
Expert Guided Standard and Customized Ongoing Advisory Support Services
Beginning and Advanced Training
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Driving in the Early Days of Rural Highways
Highways were owned by private auto clubs
Each highway had its own signage
In 1935, American Association of State Highway Officials (AASHO)
published the MUTCD to provide signage standards
Congress passed the Highway Safety Act in 1966
4 Human Capital Management Institute
1920s1930s 1940s
Early
1950s
1960s
Today
Source: Gene Hawkins, Texas A&M Civil Engineering Department
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Driving Today
5 Human Capital Management Institute
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Accounting/Finance have Standards (IFRS, GAAP financial reporting requirements
by country and standard setting bodies such as FASB)
HR does not(Lack of recognized standards and governance)
The Need for Standards
Increasing HR Focus -Early attempts atstandards
Evolution into HRThe Search for HR
respect
Early ApproachPersonnel
1960 1970 1980 1990 2000 2010
ROI of HR
ERP Systems, HR Self Service
HR Profit Center - Failed
HR Benchmarking
HR Business Partnering
HR Outsourcing
Advent of HR Metrics
The War for Talent
HR Talent Mgmt
HR Automation
Strategic HR EmergingStill no standards o r truevalue-add too l
Strategic HRStandards +
A seat at the tabl
e
HR Auditing
HR Case Studies
Employee Attitude Surveys
MBA in Personnel
HR as Risk Managers
History of Accounting - Luca Pacioli wrote thefirst accounting "textbook" in 1494. It could be said that
accounting standards have enabled many aspects of the
information revolution and 21st century accounting.
Luca Pacioli, Father of Accounting
Human Capital Management Institute 6
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If it was easy organizations would already be advanced (and few are)
1. Lack of standards in HR for workforce data
2. Cannot agree on what is important
3. HR systems do not talk to each other well (yet)
4. Too many cooks in the kitchen IT, HR, Finance, others
5. Lack of workforce data management + analytic skill-set
6. NO ownership of workforce data
We Have Systems and DataWhy is this so Difficult?
77 Human Capital Management Institute
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The Challenge of Measuring Human Capital
Compensation
Transfers
New HireTurnover
SuccessionData
Turnover
Training
Recruiting
EmployeeDat
a
Benefits
Span
of Control
Workforce
Planning
SuccessAdvanced
Analytic
Insights
Complexity of Workforce Data
Employee/Full-Time-Equivalent (FTE)
Jobs/Roles/Skills
Time - Tenure
Absenteeism
Frequency of Change
Promotions, Transfers, Hires,
Terminations
Jobs/Roles/Skills
Measuring the Intangible
Lack of Standards
Lack of Analytic Skills
Human Capital Management Institute 8
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Leveraging Standards for Process Improvement
Current State Future State
Improved Data Quality
Standard Measures& Metrics
Workforce AnalyticTools
Workforce PlanningFoundation
Tools andTemplates
Critical Job Roles
Workforce Standards
Marginal DataQuality
NoConsistency
SkillGaps
NoFoundation
Lack ofInsights
NotPredictive
Lack ofIntegration
NoStandards
Lack of WorkforcePlanning Capability
No AnalyticCapability
$ ROI Opportunities
Manpower AnalyticSkills
Human Capital Management Institute
DataIntegration
Transaction &Timing Standards
Measures&
Metrics
9
Standards
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Framework + Standards: Building the House
LinkedBusiness and Workforce Strategy
(HR Value Creation & Workforce Optimization Model)
Workforce Planning Workforce Analytics
80% Standard , 20% Ad-Hoc Reports Standard Metric Definitions
One Foundationfor Analytics& Planning
Predictive WorkforceManagement
Tools
Demand
&
Supply
Management&Workforce
Practices Critical
Roles
&Skills
Predictive
Modeling
Data
Driven
Decisions
Metrics to
Recruit,
Train &
Retain
Measuring & Reporting
Cost
Modeling
Root
Cause
Analysis
TalentManagement,Skills,
Knowledgemgmt
Integrated DataEnables
Reports & Measures
Analytics &
Workforce PlanningCapabilities
Analytic Framework Foundation to Roof
Workforce Planningand Analytics 2 PATHS,1 HOUSE
Foundation
Awareness
Excellence
10 Human Capital Management Institute
Standards Data
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3 Steps to Better Standards
1. Identify your measures and metrics
2. Implement transaction and timing standards
3. Create a data framework for analysis
11 Human Capital Management Institute
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12 Human Capital Management Institute
Base Data - No Metrics
Calculated Metrics(e.g. Turnover rate)
Simple Metrics( e.g. Headcount, Terminations )
Combined Source Metrics(e.g. Internal vs. External Hire Cost Differential)
Insightful Metrics(e.g. Revenue per FTE)
Advanced Metrics(e.g. Career path ratio)
Index Metrics(e.g. New hire success rate)
Complex Index Metrics(e.g. Quality of Hire)
WorkforceMeasurement
Requires TieredMetrics
HCMI Metrics Hierarchy
Step 1: Identify Your Measures and Metrics
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13 Human Capital Management Institute
Step 1: Identify Your Measures and Metrics
Standard calculations and definitions
are imperative
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A Guide to the World of Workforce Metrics
A comprehensive guide ofover 450 human capital
metrics
100 best in class and
critical metrics to quantifyand manage the workforce
Definitions and
descriptions showing most
common and best use
Detailed formulas and
explanations
Human Capital Management Institute 14
Step 1: Identify Your Measures and Metrics
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ProcessDocumentation
Process Flows
Data Transfers
Workforce Data Elements
Governance andSecurity
Data Ownership
Data Usage
Data Access
Accuracy and Consistency
Timing and CutoffStandards
Eliminate Bad DataBehavior (e.g.backdating)
Standardize DataTransfers
Standardize Updates andMaintenance
TransactionProcessingGuidelines
Control Manual DataEntry
Scheduled Data Reviewsand Audits
Role Based Security
15 Human Capital Management Institute
Step 2: Implement Transaction Standards
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Cut-Off Standards are important as they ensure the accuracy and
quality of data and month end reports. Communication of deadlines to
HR departments is necessary to ensure paperwork/forms are
submitted in time for data entry.
Step 2: Implement Transaction Standards
Human Capital Management Institute 16
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Position Profiles
Redefine Best/Worst _sources
New Recruiting Standards
Performancedata
Step 3: A Data Framework for Analysis
&
Retention Data
Compensationdata
Recruiting data
Turnover Metrics Reports
Turnover Drivers
Turnover demographics
Retention Drivers
Recruiting Metrics
Best/worst hire sources
Targeted recruiting
Compensation Metrics
Internal/external Pay Equity
Fixed vs. Variable pay
Performance Metrics
Ratings Dist. Curve
Identify Hi Potentials
Ratings demographics
Pay for Performance
Areas of Excellence
Targeted Training
17
Turnover
Human Capital Management Institute
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Step 3: Data Integration Framework
Data
Model
Validate
and Analyze
Integrate Data
Data Quality
and Gap Testing
Workforce and Data StandardsFoundation
Transaction and Timing Standards
Metric Definitions and Calculations
Job Framework
Flag Data Gaps and Inconsistencies
Add Data Elements and Analytic Capabilities
Combine Data from HR Systems Integrate Workforce and Business Data
Validate Data and Analysis, Issue Reports
Analyze Across Talent Management Lifecycle
Data Driven Decision Making
Workforce Impact Linked to Business Outcomes
Quantify Workforce Issues
Value
Human Capital Management Institute 18
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Components of a Job Classification Framework
High Level Job Group
Detailed Job Dimension
Workforce Category: Professional Staff
Job Family: Analyst
Job Title: Senior Analyst
Job Code: HANA34NXO
High Level Analysis Category
Detailed Analysis Dimension
Revenue Generating: No
Job Function: Human Resources
Job Band: 3
Job Grade: 34
Industry: Financial ServicesEEO Category: Professionals
Job Sub Function: Compensation
Customer Facing: No
Step 3: Create Frameworks for Data Structure
Human Capital Management Institute 19
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Steps 1 3: Standards in Action
20 Human Capital Management InstituteSource Systems
1. Governance
2. Standards
3. Best Practices
Data IntegrationBlueprint
Dashboards
Human Capital Reports
Metrics
Analytics
HRTransactions
Standards
CorrelationCoefficient(0-1)
Factors Leading toIncreased Turnover
JobTitleorPosition
Dissatisfaction With Compensation
High vs.Low TurnoverManager
CommuteDistance
Driver#3
Driver#2
Driver#1
.50
.33
.27
.02
Low
TurnoverImpact
HighTurnoverImpact
SomeTurnoverImpact
.11
WorkLocation
Numberof Jobsin Last3Years .70
H i re d Th r ou g h Empl o ye e R ef e rr al . 19
Scenario: High Growth Scenario: ControlledGrowth Scenario: Cost Savings
C ur re nt 5 Y rP ro je ct ed F or ec as t C ur re nt 5 Y rP ro je ct ed F or ec as t C ur re nt 5 Y rP ro je ct ed F or ec as t
Headcount 6 0 ,0 0 0 9 6 , 63 1 10% Headcount 6 0 ,0 0 0 6 9 , 55 6 3% Headcount 6 0 ,0 0 0 4 6 ,4 2 7 -5%
Revenue $9,000,000,000 $15,861,075,149 12% Revenue $9,000,000,000 $11,486,534,063 5% Revenue $9,000,000,000 $9,000,000,000 0%
EBITDA $ 3 0 0 ,00 0 ,0 0 0 $ 5 7 7 ,62 4 ,3 7 5 14% EBITDA $300,000,000 $364,995,871 4% EBITDA $300,000,000 $300,000,000 0%
Total Expenses $8,700,000,000 $13,386,028,408 9% Total Expenses $8,700,000,000 $10,085,684,446 3% Total Expenses $8,700,000,000 $6,052,488,813 -7%
TCOW $4,713,000,000 $6,924,943,226 8% TCOW $4,713,000,000 $5,463,658,712 3% TCOW $4,713,000,000 $3,458,889,658 -6%
SelectedScenario: ControlledGrowth
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%10%12%14%
16%
18%
20%
WorkforceDemandGrowthRate
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%10%12%14%
16%
18%
20%
WorkforceSupplyGrowthRate
-8%-6%
-4%
-2%
0%
2%
4%
6%
8%10%12%14%
16%
18%
20%
WorkforceDemandGrowthRate
-8%-6%
-4%
-2%
0%
2%
4%
6%
8%10%12%14%
16%
18%
20%
WorkforceSupplyGrowthRate
-8%-6%
-4%
-2%
0%
2%
4%
6%
8%10%12%14%
16%
18%
20%
WorkforceDemandGrowthRate
-8%-6%
-4%
-2%
0%
2%
4%
6%
8%10%12%14%
16%
18%
20%
WorkforceSupplyGrowthRate
$9,000 $9,450$9,923
$10,419 $10,940 $11,487
$8,700 $9,135$9,592 $10,071
$10,575 $11,104
$4,591 $4,865 $5,203$5,565 $5,953
$6,369
$300 $312 $324 $ 3 3 7 $ 3 5 1 $ 3 6 5$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000$14,000
B as eYr Yr 1 Y r2 Yr 3 Yr 4 Yr 5
P r o j ec t e dR e ve nue P r o j ec t e dT o ta l E x pe ns e s
C a l cul a t e dTC O W P r o j ec t e dE B IT D A
Millions
4 . 0% 4 .0 % 4 .0 % 4 . 0% 4 .0 %
2.6%1.7%
0.8%
-0.1% -1.0%
-3%
0%
3%
6%
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
P r o j ec t e dE BI T D A C a l c ul a t e dE DI T D A
6.0%
6 . 9% 7 . 0% 7 . 0% 7 . 0%
3% 3 % 3 % 3 % 3 %
0%
3%
6%
9%
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
C a l cul a t e dT CO W P r o j ec t e dT CO W
Overall Scenario Forecast EBITDA GrowthRate TCOW GrowthRate
Advanced Tools
SampleProductivity Scorecard
R e su l t P a yo ut R e su l t P a yo u t R e su lt P a yo ut R e su l t P a yo u t R e su l t P a yo u t R e su l t P a yo u t R e su l t P a y o ut R e su l t P a yo u t R e su l t P a y o ut R e su l t P a yo ut
-5% 0% -20% 0% 0% 0% -5% 0% 15% 0% 30% 0% 30% 0% 0% 0% 0% 0% -10% 0%
0% 0% -5% 0% 5% 0% 0% 0% 10% 0% 30% 0% 30% 0% 5% 0% 5% 0% 0% 0%
5% 20% 0% 0% 10% 40% 1% 25% 8% 20% 25% 0% 25% 0% 10% 10% 10% 20% 2% 20%
10% 40% 1% 15% 15% 60% 2% 80% 5% 30% 20% 0% 20% 0% 15% 15% 15% 30% 3% 30%
15% 80% 3% 40% 25% 100% 3% 100% 3% 50% 13% 40% 10% 40% 25% 25% 25% 50% 5% 70%
20% 100% 5% 50% 30% 110% 5% 110% 0% 60% 10.0% 50% 7.5% 50% 30% 70% 30% 70% 8% 90%
25% 120% 10% 60% 35% 120% 10% 120% -1% 80% 7.5% 70% 5.0% 70% 40% 90% 40% 90% 10% 100%
40% 140% 15% 80% 40% 130% 12% 130% -5% 100% 5% 80% 8% 80% 60% 100% 60% 100% 20% 110%
50% 150% 20% 90% 45% 140% 15% 140% -10% 120% 3.0% 90% 10.0% 90% 80% 100% 80% 100% 30% 120%
60% 200% 25% 100% 50% 150% 25% 150% -12% 150% 2.0% 100% 15% 100% 100% 100% 100% 100% 50% 150%
Performance%'s roundedtonearest2digitpercentage
Talent Sourcing
High
Performer
TurnoverRate
10%
70%
Total Cost of
Workforce
RevenuePer
FTE
Talent Loss
30%20% 50%40% 60%
High
Performer
Promotion
Rate
30%
Quality ofHire
Gain
AverageTime
toProductivity
&Profitability
20%30%
Training
Performance
Differential
30%
40%
Talent ExecutionTalent Management
20%
Pay for
Performance
Salary
Differental
Profit PerFTE
50%
Open Position
Lost Revenue
or
Productivity
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1stUS Standard Cost per Hire Nearcompletion. Future ISO Intl standard as well
New SHRM Technical Advisory Group (TAG) +
special Taskforces (4 Currently)
HR disagrees on basic things (i.e. what to includein voluntary turnover, what is a promotion)
SHRM TAG Taskforce formed on Human
Capital Disclosure Requirements
Standards are coming to HR!
Standards: Accounting vs. HR
Generally Accepted Accounting Practices(GAAP) + (IFRS*)
Standard Setting Boards (i.e. PCAOB**)
Standards for widely used metrics and terms
Standard Disclosures and Financial
Statements (Income Stmt, Balance Sheet,
Cash Flow Stmt)
Advanced Analysis + Strategic Insight
Limited Industry Practices and Benchmarks(limited Government reporting requirements)
SHRM*** but currently no Board ?
HR disagrees on basic things (i.e. what toinclude in voluntary turnover, what is a promotion)
Companies disclose only headcount , no
standard reports
Best Practice Companies using Internally
21 Human Capital Management Institute
Accounting HR
*IFRS = International Financial Reporting Standards
** PCAOB = Public Company Accounting Over-site Board
*** SHRM = Society for Human Resource Management
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SHRM Standards Committee (TAG)
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TAG = Technical Advisory Group
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HCMI has developed three unique statements collectively known as Human CapitalFinancial Statements for organizations to disclose human capital information:
Human Capital Impact Statement
Workforce Productivity Impact Summary
Total Cost of Workforce Sub-Schedule
Talent Management Impact Schedule
Human Capital Asset Statement
Human Capital Headcount Summary
Human Capital Asset Cost Schedule
Human Capital Training Value-add Schedule
Return on Human Capital Investment Schedule
Total Human Capital Value Schedule
Human Capital Flow Statement Talent and Headcount Flow Summary
Human Capital Job Value Schedule
The Human Capital Financial Statements (HCF$)
23 Human Capital Management Institute
Prior Year New Current Year
W or kfo r ce P r im ary C ateg or y H eadcoun t Hires1
%Chg Turnover2%Chg Retirement
3%Chg Subtotal %Chg Promotions
4%Chg Transfers
5%Chg Headcount %Chg
Employees 13,300 1,745 13.1% -510 -3.8% -140 -1.1% 14,395 8.2% 50 0.4% 5 0.0% 14,450 8.6%
-Management & SeniorLeadership 1,250 50 4.0% -10 -0.8% -15 -1.2% 1,275 2.0% 20 1.6% 5 0.4% 1,300 4.0%
- Professional Staff 2,300 292 12.7% -70 -3.0% -50 -2.2% 2,472 7.5% 30 1.3% -2 -0.1% 2,500 8.7%
- Sales Staff 3,000 560 18.7% -150 -5.0% 0 0.0% 3,410 13.7% -25 -0.8% 15 0.5% 3,400 13.3%
- S pe ci a li st s a nd T ec h ni ci a ns 9 0 0 100 11.1% -25 -2.8% -30 -3.3% 945 5.0% 68 7.6% -13 -1.4% 1,000 11.1%
- Skilled Trade Staff 250 25 10.0% -10 -4.0% 0 0.0% 265 6.0% -25 -10.0% 10 4.0% 250 0.0%
- Operations Staff 1,450 225 15.5% -80 -5.5% -20 -1.4% 1,575 8.6% 20 1.4% 5 0.3% 1,600 10.3%
- Service Staff 2,750 308 11.2% -120 -4.4% -25 -0.9% 2,913 5.9% -8 -0.3% -5 -0.2% 2,900 5.5%
- A dm in is t ra ti v e S u pp or t S t af f 9 5 0 110 11.6% -20 -2.1% 0 0.0% 1,040 9.5% -40 -4.2% 0 0.0% 1,000 5.3%
- Laborers and Helpers 450 75 16.7% -25 -5.6% 0 0.0% 500 11.1% 10 2.2% -10 -2.2% 500 11.1%
Contingent Staff 1,700 455 26.8% -150 -8.8% 0 0.0% 2,005 17.9% -50 -2.9% -5 -0.3% 1,950 ####
- Temporary 1,100 235 21.4% -100 -9.1% 0 0.0% 1,235 12.3% -30 -2.7% -5 -0.5% 1,200 9.1%
- Contractors 600 220 36.7% -50 -8.3% 0 0.0% 770 28.3% -20 -3.3% 0 0.0% 750 25.0%
Tot al or Av er ag e W or kfor ce 1 5, 00 0 2 ,2 00 14.7% -660 -4.4% -140 -0.9% 16,400 9.3% 0 0.0% 0 0.0% 16,400 9.3%
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Questions?
24 Human Capital Management Institute
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Next Steps:
Human Capital Management Institute 25
For more information about HCMI and the Human Capital
Metrics HandbookTM, visithttp://www.hcminst.com/hcmi.html
For inquiries about the Workforce Intelligence Consortium,
contact Cheryl Farley, Program Director [email protected]
Presenter information:
Jeff Higgins, CEO HCMI [email protected]
Workforce Intelligence Consortium
Group@HCMI
http://www.hcminst.com/hcmi.htmlmailto:[email protected]:[email protected]:[email protected]:[email protected]://www.hcminst.com/hcmi.html