Raising productivity

by Toronto Training and HR

May 2012

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Contents3-4 Introduction to Toronto Training and HR5-6 Definition7-8 Benefits of raising productivity9-11 Calculating productivity12-13 How to minimize distractions14-15 Techniques to increase productivity16-18 Economic growth19-20 Labour productivity21-22 Impact of a smooth career transition23-26 Automating HR27-42 HR measures43-48 Points to consider with HR measures49-50 Conclusion and questions

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Introduction

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Introduction to Toronto Training and HR

• Toronto Training and HR is a specialist training and human resources consultancy headed by Timothy Holden

• 10 years in banking• 10 years in training and human resources• Freelance practitioner since 2006• The core services provided by Toronto Training and HR

are:- Training event design- Training event delivery- Reducing costs- Saving time- Improving employee engagement &

morale- Services for job seekers

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Definition

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DefinitionProductivity

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Benefits of raising productivity

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Benefits of raising productivity

It leads to reduced attritionIt leads to less infightingIt leads to proper hiring

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Calculating productivity

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Calculating productivity 1 of 2

Q = F (K,L,T)whereQ = OutputL =LabourK = CapitalT = Technological change (or productivity)

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Calculating productivity 2 of 2

Growth in output is representedbyq = a k + b l + tt = q - a k - b lwhereq = increase in l = Increase in output labourk = increase in t = increase in capital technologya, b = shares of capital and labour in output

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How to minimize distractions

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How to minimize distractions

Start with prioritizationSet a schedule for your workRemove distractions from your environmentPlan for time away from your deskDelegate and collaborate where you canDisconnect when you’re done

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Techniques to increase productivity

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Techniques to increase productivity

Constant communication Crucial confrontation Focus on feedback Create collaboration Remember to reward and recognize

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Economic growth

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Economic growth 1 of 2

Increases in the factors of productionEfficiency gains

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Economic growth 2 of 2

OutputEconomic growthGDP per capita

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Labour productivity

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Labour productivity

CHANGESA change in capital intensityA change in labour qualityA change in multifactor productivityA cyclical change of the aggregate economic activity

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Impact of a smooth career transition

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Impact of a smooth career transition

Cost of recruitmentCost of trainingCost of compensation and benefitsCost of workplace integrationBreak-even point

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Automating HR

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Automating HR 1 of 3

RECRUITMENT STATISTICSDon’t run reports in your applicant tracking system, do display them on a dashboardRESPONSE TIME AS A KPIDon’t browse through requisitions, do build a ‘candidate alarm’VISBILITYDon’t use a Whiteboard, do create your Wallboard

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Automating HR 2 of 3

ONBOARDINGDon’t send ad hoc emails, do trigger automated emailsORGANIZATION CHARTS AND HEADCOUNTSDon’t update manually, do auto-sync with your HRISSTAFF RECOGNITIONDon’t use a manual system, do keep the process online and without restrictions

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Automating HR 3 of 3

PERFORMANCE REVIEWSDon’t update your performance management system, do make systems talk to each otherINDUCTIONDon’t use an online induction tool, do use a Wiki

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HR measures

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HR measures 1 of 15

HR COSTHR cost per employee HR cost v revenue

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HR measures 2 of 15

HR RESPONSIVENESSAverage response time (ticket open with HR)

Average resolution time (ticket open with HR)

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HR measures 3 of 15

ISSUE MANAGEMENTHR complaints by category Average complaint resolution time Legal costs Settlement costs and penalties

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HR measures 4 of 15RECRUITMENTCost per hire Hiring cycle time Hiring fill rate Offer acceptance rate Interview no-show rateAverage performance of new hires Voluntary termination rate in first year Involuntary termination rate in first year First year turnover cost rate

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HR measures 5 of 15RECRUITMENTManager satisfaction with new hires Manager satisfaction with recruitment process Employees recruited from key competitors

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HR measures 6 of 15PRODUCTIVITYRevenue per employee Profit per employeeProfit per people $Average days absent Business specific productivity metrics Salary increase v revenue increase

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HR measures 7 of 15PERFORMANCE MANAGEMENTAverage performance rating Problem employee rate Rehabilitation rate for problem employees Termination rate for problem employees Average cost to terminate employee

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HR measures 8 of 15COSTSAverage salary Salary deviation (by job level) Cost of benefits as a percentage of salary Cost of benefits as a percentage of revenue

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HR measures 9 of 15KEY EMPLOYEES AND STAR PERFORMERSKey employee satisfaction rate Key employee retention rate Key employee cost rate Key employees eligible for retirement Bench strength Key employee turnover by reason code

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HR measures 10 of 15HR PIPELINEEmployee salary by level Number of employees by band Employee productivity by position Attrition by level

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HR measures 11 of 15EMPLOYEE RETENTIONInvoluntary termination rate Voluntary termination rate Average retention period Employees eligible for retirement Employees eligible for early retirement Average tenure Voluntary termination by reason code

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HR measures 12 of 15EMPLOYEE SATISFACTIONJob satisfaction Job empowerment Compensation satisfaction Opportunities for advancement Training and development effectiveness Net promotion rate HR department satisfaction rate Management effectiveness Clarity of company vision

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HR measures 13 of 15EMPLOYEE SATISFACTIONEqual opportunities Work/life balance Employee commitment index Market opportunity index Employee complaints Employee lawsuits

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HR measures 14 of 15TRAINING AND DEVELOPMENTTraining cost per employee Training per employee

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HR measures 15 of 15DIVERSITY AND COMPLIANCEGenderDisabilities

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Points to consider with HR measures

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Points to consider with HR measures 1 of 5

Don’t just start measuring the usual suspects, start with your organizational strategy and work from thereDon’t copy your neighbor’s HR metrics for the reason listed aboveDon’t use benchmarks for the sake of benchmarking because average does not equal better result

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Points to consider with HR measures 2 of 5

Don’t just email metrics out and expect your managers to understand them-make sure the metrics tell a compelling storyDon’t celebrate metrics that aren’t impactful because no one cares how many days it takes you to fill requisitions on average or if you have 100% participation in the performance management process, but they do care about what impacts revenue, profit and costs-DIRECTLY

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Points to consider with HR measures 3 of 5

Don’t use unreliable data or data that has not been verified-this will make you lose credibility points fastDon’t go through a lesson in correlations and regressions as no one cares; instead just tell the story on how the data analysis has uncovered something that impacts the business

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Points to consider with HR measures 4 of 5

Don’t measure for measuring sake as tracking hundreds of metrics is not smart nor does it move the dial-determine what are those levers that move your organizational success factors and measure thoseDon’t use fancy technology when an Excel spreadsheet will do-start small and if you get traction and buy in organizational wide then move to a more robust solution

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Points to consider with HR measures 5 of 5

Don’t depend on current employees to have the analytical muscle to perform statistical testing-not everyone feels comfortable with numbers…if you have that talent within the organization great, but that skill set is not one that is usually found in HR departments

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Conclusion and questions

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Conclusion and questions

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