7 People Results - HR performance and perception measures

7 People Results – HR Perception

http://www.flickr.com/photos/blyzz/2530816698/sizes/l/

and Performance Indicators

The EFQM Model –The EFQM Model 7 People Results

International Human Resources Management, Dr. Jörg Klukas 2

SUMMARY OF THE LAST SUMMARY OF THE LAST LECTURES – WHAT DID YOU LEARN? YOU LEARN?


What we have learnt.• Overview of the EFQM Model

to be applied for HR- • Criteria 5Departments

• Criteria 3• HR Planning• HR Marketing Recruiting

• Process Oriented Management System, Roles

• HR Processes, Sub-Processes, ProceduresHR Marketing, Recruiting,

Integration• Succession Planning• Employee Survey• Strategic Competency

• Indicators and Improvement of Processes

• Maturity Levels of Process Peformance

Strategic CompetencyManagement and Blended LearningSystem

• Annual Employee Feedback

• Criteria 4e• Learning Organization• People, Places and Objects

Interviews and Target Appraisals• Empowerment and Internal

Communication• Feedback (360°) and Motivation,

p , jApproach

• Intercultural Management by Li iTotal Reward Lixiu


The EFQM Model –The EFQM Model 7 People Results


The EFQM excellence modelQ

Enablers Results

People

Leadership

People

Policy andStrategy Processes

People Results

CustomerResults

KeyPerformancep Strategy

Partnerships& Resources

Processes Results

SocietyResults

Results

Innovation and Learning



Leadership

People

Strateg Processes

People Results

Customer Key Performance 7 P l R ltLeadership Strategy

Partnership& Resources

Processes Results

Society Results

PerformanceResults 7. People Results

a. PerceptionsThese are the people’s perceptions of the organization.

b. Performance IndicatorsThese are the internal measures used by the organization in order to monitor, understand, predict and improve the to monitor, understand, predict and improve the organizations people.


The EFQM excellence model –People Resultsp

In practice, excellent organizationsD l d f f i di d l d

Topics• Develop and agree a set of performance indicators and related outcomes to

determine the successful deployment of their strategy and supporting policies, based on the needs and expectations of their people.

• Set clear targets for Key Results based on the needs and expectations of their people, in line with their chosen strategy.

op cs

• Performance Indicator Theory

• Strategic alig e t (BSC)their people, in line with their chosen strategy.

• Demonstrate positive or sustained good People Results over at least 3 years.

• Clearly understand the underlying reasons for and drivers for observed trends and the impact these results will have on other performance indicators

alignment (BSC)• Leading/lagging

indicators• Target Setting• Approach

and the impact these results will have on other performance indicators and related outcomes.

• Anticipate future performance and results.

• Understand how the Key Results they achieve compare to similar organizations,

Linkage with Cause analysis

• Driver analysis (correlation analysis)and use this data, where relevant ,for target setting.

• Segment results to understand the needs and expectations of specific groups within their organization.

analysis)


Why are People Results important?y p p• People are the

resource that makes the makes the difference between organizations motivation and motivation and satisfaction are essential to successP l id • People provide the organization’s inspiration,

ti it i i creativity, vision and motivation


Why are People Results important?y p p• People

provide the organization’organizations skills and competencies

• People need t b to be satisfied with their job, motivated to d th i b t do their best and to be convinced that the

i ti organization acts in their best interest


INDICATORSINDICATORS


Indicators…• …a numerical measure of the degree to which the

objective is being achievedobjective is being achieved.• …item of information collected at regular intervals

to track the performance of a system.• …defines the measurement of a piece of important

and useful information about the performance of a program expressed as a percentage index rate or program expressed as a percentage, index, rate or other comparison which is monitored at regular intervals and is compared to one or more criterion.

How do you know what you are achieving?


Aspects for Performance Indicators.p

…monitor areas of risks/success

…analyze based on relevant segmentations

for interest groups

Performance Indicators…

…check whether operational process

objectives are achieved

…predict whether strategic targets can be

achieved(Balanced Scorecard)(Balanced Scorecard)


Example Performance Indicators.p

…monitor long term commitment

…analyze for all business units and hierarchy levels

and employees,freelancers, trainees

Fluctuation (employee turnover)

…check we have the right people, at the

right time at the right place

…predict achievement of End of Year

Headcount (acc to HR Plan)place (acc. to HR Plan)


Quality of Performance Indicators.Q y• Guess? Systematically retrieved?• Sometimes necessary to make educated guesses • Sometimes necessary to make educated guesses,

because of pure data availability• But an educated guess is better then no indicatorg

• Example: Estimation Methods• Number of Applicants per Year• Count applicants in January, March, August divide by

3 and multiply by 12


Leading Indicators vs. Lagging Indicators.g gg g

• Lagging Indicators: Retrospective monitoring and evaluation of a process or an activity and evaluation of a process or an activity. Target: Allow indications for improvement and learning.

• Leading Indicators: Indicators that predict the change of lagging indicators. T t All t k l i d Target: Allow to make conclusions and presumptions about performance and quality of future processes.

Leading Indicator (time t)

Lagging Indicator(time t+x)


Lagging gets sometimes Leading.gg g g g

Leading Indicator (time t)

Lagging Indicator(time t+x)( ) ( )

Fluctuation(measured monthly)

Commitment(measured annually in

employee survey)

Customer Satisfaction(measured after

each j t/ i )

Leading Indicator

Lagging Indicator

project/service)

(time t) (time t+x)


Leading & Lagging Indicatorsg gg gMarket / Customer (outside)

Profitability

Growth

C t

NewProducts &Innovation

Organization (inside)

Q ti

ServiceQuality

CustomerSatisfaction

Loyalty

Leadership

Strategy InternalProcesses

Questions of

employee survey

Attitude ofemployees

Behaviorof employees

Customer Relation

Careeropportunity

Growth driver employees

Performance/Feedback

Teamwork

Re at o

Empowerment

directleadership

Culturep


Leading/Lagging Indicatorsg gg g

Increase/growth

F db k

Clear Expectation,

Responsi-bilities Values

Commitment

learn

FeedbackConsequences

Requirementsof Motivation

Targets and Tasks Confidence

encourage

CommitmentEngagement

TrustStrategy

fPerformance

Tech-orga. work

environment

Skills

Recognition, Promotion

Material Conse-quences

Performance(Results)

See and understand

resultsfair?

Satisfaction with Results and System

Skills, Knowledge

improve

learn


Correlation Analysis.y• single number that describes the degree of

relationship between two variablesrelationship between two variables• Common used method: Pearson Product Moment

Correlation (Pearson's correlation)• Correlation coefficient:R2

measures the degree of relationship (and di ti ) b t t i bldirection) between two variables

• -1 < R² < 1R² = 0 no relationshipR 0 no relationshipR² = 1 perfect correlationR² = -1 as one variable increases, the

other decreasesInternational Human Resources Management, Dr. Jörg

Klukas 20

Spurious Correlation.p

• false presumption that two variables are that two variables are correlated when in reality they are not• result of a third factor that is not apparent at the time ppof examination• example: correlation between stork between stork population and birth rates (Matthews,

)2000) Source: flickr.comInternational Human Resources Management, Dr. Jörg

Klukas 21

Example of strong correlationp g

Employee motivation

index 86 pointsn Sa

les

Ret

urn

on

Employee i i

R

motivation index 46 points

Source:KundenstudieHandelsfilialen;Mitarbeitemotivationsindex auf einer Skale vom 0-keine Motivation bis 100- maximaleMotivation

Emotional customers connectionInternational Human Resources Management, Dr. Jörg

Klukas 22

Strategic Focus Indicators of a BSCg• Many 100 Performance Indicators for

• Processes• Approaches• Risks/success areas• Special segmentations (e.g. employees, freelancers, trainees)p g ( g p y , , )• …

• Strategic indicators embedded in a BSC are those few that Strategic indicators embedded in a BSC are those few that have a strategic focus in the current year by means of:• These indicators must change strongly (hire 100 people,

decrease sickness level by 50%) indicators of changey ) g• There are particular risks or success areas predicted that must

be monitored carefully (new competitor in the same region looking for 100 new hires keep commitment high) i di t f t i bilitindicator of sustainability


Target Settingg g• Targets for indicators are based on the needs and

expectations of interest groupsexpectations of interest groups• Hence, there a the following sources for target

setting:• The trend is your friend• Benchmark by Best-in-Class Organizations• Interest-Group Surveying about their expectationsInterest Group Surveying about their expectations• Strategic Possibilities in long-term


Cause Analysis –Identify the right improvement measuresy g p

Enablers Results

People

Leadership

People

Policy andStrategy Processes

People Results

CustomerResults

KeyPerformancep Strategy

Partnerships& Resources

Processes Results

SocietyResults

Results

Innovation and Learning


Analysis Possibilities.y• Root-Cause Analysis to identify improvement

measurements (question 7 times why to find the real cause)measurements (question 7 times why to find the real cause)• Tools: Fishbone Diagram

main problem causes main problem (indicated by indicator)

Sub problem

causesto be improved

• Impact Analysis to prioritize improvement measurements (you can’t do all improvements at once)

Cause B

rt to

chan

ge

Cause ACause C

Impact to improve main problem

Effo


Root-Cause Analysis.y• Identifying systematically the “root causes” of

problems or incidentsproblems or incidents• Root Cause: fundamental breakdown or failure of

a process prevents a recurrence of the problem when resolved


Fishbone Diagram.g• Displays potential causes for a certain problem or effect• Created by Kaoru IshikawaCreated by Kaoru Ishikawa• First used in the 1960s• Steps:

1 Problem identification1. Problem identification2. Identification of major factors involved3. Identification of possible causes4 Analysis4. Analysis

main problem (indicated by indicator)

causesto be improved

Sub problemInternational Human Resources Management, Dr. Jörg

Klukas 28

Fishbone Diagram.g• Fishbone Diagram - Example


Other Tools Used in Root Cause Analysis.y

BrainstormingBrainstorming5 Why’sPareto ChartPareto ChartGap Analysisetc ….


Impact-Analysis.p y• Assessment of the pros and cons of pursuing a

course of action in light of its possible course of action in light of its possible consequences, or the extent and nature of change it may cause

nge

Cause A

Cause B

Cause CEffo

rt to

chan

Cause C

Impact to improve main problem


7A PERCEPTION 7A PERCEPTION MEASURES



Leadership

People

Strateg Processes

People Results



Processes Results

Society Results



b. Performance IndicatorsThese are the internal measures used by the organization in order to monitor, understand, predict and improve the order to monitor, understand, predict and improve the organizations people.


The EFQM excellence model –People Results.p

P l ’ P ti f th O i ti

In practice, excellent organizationsD l d f f i di d l d d i h f l

People’s Perceptions of the Organization.

• Develop and agree a set of performance indicators and related outcomes to determine the successful deployment of their strategy and supporting policies, based on the needs and expectations of their people.

• Set clear targets for Key Results based on the needs and expectations of their people, in line with their chosen strategy.their chosen strategy.

• Demonstrate positive or sustained good People Results over at least 3 years.

• Clearly understand the underlying reasons for and drivers for observed trends and the impact these results will have on other performance indicators and related outcomes.

• Anticipate future performance and results.

• Understand how the Key Results they achieve compare to similar organizations, and use this data, where relevant ,for target setting.

S t lt t d t d th d d t ti f ifi ithi th i • Segment results to understand the needs and expectations of specific groups within their organization.


The EFQM excellence model –People Resultsp

P ti• These are the People’s perceptions of the organization. They may be obtained

from a number of sources, including surveys, focus groups, interviews and structured appraisals

Perceptions.

Topicsstructured appraisals.

• These perception should give a clear understanding of the effectiveness , from the people’s perspective, of the deployment and execution of the organization’s people strategy and supporting policies and processes.

D di h f h i i f

op cs

• Employee Survey• Applicant Survey• Image as

tt ti l • Depending on the purpose of the organization, measures may focus on:

• Satisfaction, involvement and engagement

• Pride and fulfillment

attractive employer (media resonance analysis) (8a)

• Internal Customer Survey of HR

• Leadership and management

• Target setting, competency and performance management

• Competency, training and career development

Department (6a)• Aggregated View

of EmployeeFeedback Talks or 360°

• Effective communications

• Working conditions

or 360Feedbacks


HOW TO MEASURE HOW TO MEASURE PEOPLE RESULTS?


Examples.p• Employee Survey (internal evaluation)• Employee Survey (external visibility of results) à Employee Survey (external visibility of results) à

kununu.de; GreatPlaceToWork;…• Employee Survey in sense of an internal customer

survey of HRsurvey of HR• Surveys about Cooperation with partners (Employees

Council, Labor Union, Buying Department,…)• Surveys of candidates about expectations of an attractive Surveys of candidates about expectations of an attractive

employer versus survey of employees about delivery of expectations


EMPLOYEE SURVEYEMPLOYEE SURVEY


Excellent Organizations use people surveys and other forms of employee feedback to improve people strategies, policies and plans

Aims of employee feedbacks:

plans

• alignment of views between staff and managers to conduct performance, goals and potentials

• Optimal exploitation and expansion of the potential of employeesOptimal exploitation and expansion of the potential of employees• Feedback for the leader

• promotion of job satisfaction and motivation


Excellent Organizations use people surveys and other forms of employee feedback to improve people strategies, policies and plans

Aims of employee feedbacks:

plans

• early recognition and overcoming of possible conflicts and difficulties

• professional development opportunities for the employee• no call for caution or warning the employeeno call for caution or warning the employee• no call to action coordination on specific individual projects


Employee Survey – a process• After retrieving the

questionnaires they have to be

p y y p

evaluated regarding, last targets, strengths and weaknesses.

• These results have to be communicated to all employees, prioritized and cross – functional focus groups analyze reasons,

i d suggests actions and target values for the next survey


Participation Rate.p


360 DEGREE FEEDBACK360 DEGREE FEEDBACK


360 Degree Feedback.g• Systematic collection and

feedback of performance data on an individual or group derived from a number of their stakeholders in their

fTeam

Boss

performance• Measures the behaviors and

competencies shown by the i di id l i

Peers Members

individual or group in achieving goals

• Assessment by the boss, staff, b

SelfCusto-mers

S ffteam members, internal/external customers, suppliers, family, friends and self assessment

Staff

self assessmentInternational Human Resources Management, Dr. Jörg

Klukas 44

360 Degree Feedback - What does it measure?

• Not only the results achieved by people, but also how the results were achieved

• The increasing emphasis by organizations on measuring employee opinions on a number of issues, such as communication or morale, achievement of corporate standards of behavior or values

• Assessment of teams and departments and their group-communication, decision-making-processes

Peers

Team Members

Boss

SelfCusto-mers

Staff


The IT Survey Group Worldwide.

I like my work

gg

80

My team looks for possibilitiesto optimize processes

I am participatedin decisions of my work

Easy to get informationneeded for my work

& L

earn

ing

& L

earn

ing

74

60

69

My team recognizes different viewsof people

I am encouraged to suggestsinnovations and improvements

to optimize processes

Inno

vatio

n In

nova

tion

69

70

74

Could develop in the last12 th

Know, what kind of competenciesare needed in the future

My team cooperates with other teams

rodu

ctiv

ity,

rodu

ctiv

ity,

62

66

79

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Problems are discussed openlyin my team

12 month Pr

Pr

73

62

Yes% ITSG 2004Yes% ITSG 2004

46International Human Resources Management, Dr. Jörg

Klukas

The IT Survey Group Worldwide.

My leader recognizes good performance pp

60

Clarity how my performance is evaluated

Leader gives feedback to improve performance

Lead

ersh

ipLe

ader

ship

65

56

Our processes are designed to fulfill customer’s

My team knows customer needs exactly

Leader is available and supports mear

ket

arke

t

51

72

80

See clear connection between my work and strategy

Know strategy and could explainto someone else

Our processes are designed to fulfill customer s needs M

aM

aat

egy

ateg

y

68

46

51

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

My leaders explain strategy Stra

Stra

51

Yes% ITSG 2004


The IT Survey Group Worldwide.y p


Perception Measures for Interest Groups.p

HR Customers (leaders, employees, departments)

E l

( , p y , p )

Applicants Employee council

Employees PartnersEmployees Partners

SocietyInternational Human Resources Management, Dr. Jörg

Klukas 49

Perception Indicators - Examples.p pSatisfaction with their development opportunities (Surveying)• How satisfied are the employees with their development

opportunities?

Ø Deviation from Personnel Planning in %• Degree of deviation of the number of actual employments from

planned employments

Placement in the BestPersAward• How good is the organization’s HR in comparison to other

companies?

Evaluation of People-Competencies (Customer Surveys)• How do the customers (Employees) evaluate the competencies of

the HR Department?the HR Department?


COMMITMENTPeople’s Perceptions of the Organization

COMMITMENT


Commitment.•People with high commitment are people:

– who are prepared to go the extra mile for their employer,– who care about the future of their company and

h d illi d bl t– who are ready, willing and able to:• exert the maximum effort,• deploy maximum intelligence, • and apply the maximum creativity

in their work for the benefit of the organization as a whole. e wo o e e e o e o ga a o as a w o e.


Key drivers to high commitment.y g•Leadership 31%•Ethical organization

E it bl d•Equitable reward•Viable and creditable strategy

•Development 29%•Provide opportunities to develop•Regard people as assets to be invested in not cost to be cut•Investment in people = investment in company’s future•Support diversification (individuals)pp ( )

•Empowerment 27%•=Responsibility + Authority•Employees are respected for their talents•Employees are respected for their talents•Vest authority in their front-line staff•Employees are reluctant to express their views, or exercise their initiative

Hi h it t D ’t t ll l h t t thi k b t li t h t High commitment = Don’t tell employees what to think, but listen what employees say.


Commitment – Model (1).( )Commitment = 2 Conditions:

1. Necessary Condition = Retention– For whatever reason, employees intend to remain with

th i t ltheir current employer.

2. Sufficient Condition = Recommendation– Employees are not only motivated to stay, but also think

highly enough of it to recommend to others t join


Commitment – Model (1).( )

Recommendation

•4 Clusters (conditions = dimensions)

The engagedThe cohabiting

Recommendation

Europe: 54% of workforceGermany: 72% of workforce

Europe: 14% of workforceGermany: 6% of workforce

RetentionThe separated

Europe: 16% of workforce

The separated

Europe: 16% of workforce

Hi h i ti f t t t

pGermany: 13% of workforce

pGermany: 9% of workforce

High variation from country to country.International Human Resources Management, Dr. Jörg

Klukas 55

Commitment – Model (2).( )

ResidentsEngaged

Performers

fact

ion

(job security)Performers

(drivers)

Satis

f

(bad influencer)

The unreached

(improver)

Distant Performers

Motivating EnvironmentInternational Human Resources Management, Dr. Jörg

Klukas 56

Commitment and EFQM.Q“Top management does a good job of providing leadership.”

•EFQM Members 40%•NON-EFQM Members 33%

“I am satisfied with my involvement in issues that affect I am satisfied with my involvement in issues that affect my work.”

•EFQM Members 62%•NON-EFQM Members 57%

“I feel my performance is evaluated fairly.”•EFQM Members 50%

NON EFQM M b 53%•NON-EFQM Members 53%

“My supervisor develops people’s abilities.”•EFQM Members 49%EFQM Members 49%•NON-EFQM Members 50%


Commitment and Business Performance.•Period watched from 1999 to 2001

•Change in operating margin•High commitment companies +3,74%•Low commitment companies -2,01%

•Change in net profit margin•High commitment companies +2,06%

L i i 1 38%•Low commitment companies -1,38%


Commitment in the Cycle of Success.yValue added

KPIs

Number 1 in Germany

Customer People

Greater Loyalty Stronger Involvement

Customer Loyalty Index: 87

New Media Service Ranking

Participation Rate in Empl. Survey: 92 %Satisfaction Work Conditions: 99

Revenue65 m€

ROIHR

1,19per head revenue158T€

y yRecommendation Rate: 90%Willingness to Reorder: 90%Willingness to be announced as reference: 89%

Satisfaction Work Conditions: 99Satisfaction Job: 98Satisfaction Compensation: 79

Average Customer S ti f ti I d 90

Top100 Ranking as one of the most innovative German companies

Employee Commitment : 8,1Employee Commitment Benchmark:

Stronger CommitmentGreater Benefit

Satisfaction Index: 90

100 = fully satisfied 0 = unsatisfied

•Professional and innovative solutions based on internet and multimedia p y

7,2Top10% TRI*M: 7,8 Number of Certificates: 255

• thereof Technology: 126• thereof Quality: 50• thereof PMI/ITIL/Test: 75

More Experiences

technologies

•Customer s win awards and rankings for there internet sites:E-Oscar, iF, Goldene Biene, E-Result

More Experiences, Increased Productivity

Project/Service ExpertiseInternational Human Resources Management, Dr. Jörg Klukas 59

Commitment.•International Comparison:

•Europe 70%

•Norway, Denmark, Austria, Spain 76%•Germany, Finland, Switzerland, Greece 74%•Belgium 73%•Netherlands, Portugal 72%

T k 71%•Turkey 71%•Italy, Sweden 70%•Czech Republic 69%•France 67%France 67%•Poland 66%•Hungary 61%•UK 59%•Ireland 55%


Example TRI*M Commitments (2000)p ( )

10 0ITI

10,0

7,97,9 8,08,07,87,8 7,87,8 7 77 7

7,37,3

7,07,0 7,17,1

7,47,4

6 96 9

,,

6 96 97,17,1

,,

7,07,0

7,77,7

6 96 97,17,1

7,67,6

6 96 97,17,1

6,76,7

7,07,0

6,36,3

6,96,9

6,46,46 26 2

6,96,9 6,86,8

6 26 2

7,07,0 6,96,9

6,66,6

6 26 2

6,96,96,76,7

Top 10%

Top 30%

Medium

Bottom 30%Europe

6,16,1

CentralEurope

NorthEurope

6,26,2

SouthEurope

6,26,26,06,0

West-Europe

6,16,1

Germany

6,26,2

Bottom 10%EuropeEurope Europe Europe

(incl. D)


MOTIVATIONPeople’s Perceptions of the Organization

MOTIVATION


Motivation – Customer Retention and Employees Involvement.p y• Business Units with moderate involvement of employees and

moderate customer retention are in average financial better than b i i i h hi h l l f f

Partly optimized Optimized

business units with a high level of one factor.

HighPartly optimized

units which are working 1,7 times

more effectivethan not optimized units

Optimized units which are working

3,4 times more effective

than not optimized unitsp p

Not optimized Partly optimized

units which are working 1 7 ti

CustomerRetention

pBusiness units 1,7 times

more effectivethan not optimized units

Low

Low Involvement/MotivationHigh


SATISFACTION7a People’s Perceptions of the Organization

SATISFACTION


Satisfaction.Employees are:•happy contented and fulfill their desires and needs at workhappy, contented and fulfill their desires and needs at work•Satisfaction is a factor in:

• employee motivation• employee goal achievementemployee goal achievement• positive employee morale in the workplace

•Factors, which improve employees satisfaction:• benefitsbenefits• company activities• positive management within a success framework of goals, measurement and expectations measurement and expectations

•Measured by:• employee satisfaction surveys• in areas such as : management understanding of mission and in areas such as : management, understanding of mission and vision, empowerment, teamwork, communication, and coworker interaction. International Human Resources Management, Dr. Jörg

Klukas 65

What employee want? A typical example of Survey Studiesyp p y1. New professional challenges2 Development opportunities2. Development opportunities3. Pleasant working environment4. Salary4. Salary

Source: Drake Beam Morin, Internationale Befragung 2002

Information & Communication

Work environment

High correlation with overall satisfaction:• Leadership• Information / Communication

OverallUnderstandingStrategy &

Link to Job

Leadership

e o e

Development

Information / Communication• Understanding and Linking Strategy to Job

The closer two areas, the stronger the correlationthe stronger the correlation.


Satisfaction.

Source: Strategies for survival in the war of talent (2002) in: Career Source: Strategies for survival in the war of talent (2002), in: Career Development International


Satisfaction.

• Satisfaction of employees in the United KingdomSatisfaction of employees in the United Kingdom

Strongly disagree 1

Disagree 2

Agree 3

Strongly agree 4

Data from the ETS Employee Survey benchmark Database, UK, 2009 International Human Resources Management, Dr. Jörg

Klukas 68

Satisfaction – Absence.

Source: flickr.com


Satisfaction – Absence-Tendencies.CCH's Law, Explanation and Analysis of the Patient Protection and Affordable Care Act

• The rate of absence is on the rise and U.S. employers are losing ground in their battle against it

• employers are struggling to find effective programs that keep healthy p y gg g p g p yworkers on the job because unscheduled absence can cost large companies an estimated $850,000 per year

• The 2006 survey revealed an absence rate of 2.5 percent—that’s up from 2.3 percent in 2005 2 4 percent in 2004 and 1 9 percent in 2003percent in 2005, 2.4 percent in 2004 and 1.9 percent in 2003

• In fact, the 2006 rate is the highest rate we have seen since 1999, when it was 2.7 percent

• Similar to the 2005 survey results, this year's survey found that 65 percent f h d l d b t t f th b t l of unscheduled absences—two out of every three absent employees—were

for reasons other than personal illness.

Absenteeism Satisfaction


Satisfaction – Monetary Satisfaction.y• Source: payScale


Satisfaction – Monetary Satisfaction.y• Source: http://www.itjoblog.co.uk


7B PERFORMANCE INDICATORS



Leadership

People

Strateg Processes

People Results



Processes Results

Society Results



b. Performance IndicatorsThese are the internal measures used by the organization in order to monitor, understand, predict and improve the order to monitor, understand, predict and improve the organizations people.


The EFQM excellence model –People Results.p

P f I di t• These are the internal measures used by the organization in order to monitor, understand, predict

and improve the performance of the organization’s people and to predict their impact on perceptions

Performance Indicators.

perceptions.

• These indicators should give a clear understanding of the efficiency and the effectiveness of deployment and execution of the organization’s people strategy and supporting policies and processes.

D di h f h i i f • Depending on the purpose of the organization, measures may focus on:

• Involvement and engagement

• Target setting, competency and performance management

• Leadership performance

• Training and career development

• Internal communications


7b Performance Indicator for HR Sub Processes, e.g. Plan&Find, g

Procedures

Qualitative HR Planning and Budgeting Quarterly Review as part of Business Unit ReviewsHR Planning and HR Planning and

Review; Mgmt. of Review; Mgmt. of l ditil diti

Measures

Deviations of plans

Main Steps

Updating communications planes, marketing activities and job posts

Allocation of internal and external channels; Organizing communication

and marketing campaigns

Commission of marketing measures and deployment of

communication plan

general conditionsgeneral conditions

HR marketing and HR marketing and communication communication managementmanagement

p

#applicants per open

position; cost of recruiting

Management of general conditions (policies and quota of hiring, training with prioritizing by means of cost-benefit analysis,…)

and marketing campaigns communication planmanagementmanagement

Applicant Applicant

Receipt of application, registration and request of

missing information

Pre-selection by HR and forward to Leaders

Manage leaders responses and follow up

1. Decision:decline, recommend, invite

per open position

time to hire, t pppp

ManagementManagement Management of interviews or assessments

2. Decision:decline, recommend/save, offer

Prepare offer and negotiation

Creation,

success rates of interviews

time to ContractContractManagementManagement

verification, authorization of

contract

Mailing and administration, Information of leaders

Response Controlling, Follow ups Creation of personal files

IntegrationIntegrationM tM t

Preparation of infrastructur, f ilit d i i t ti

1 First Work D Welcome Day

Target Interviews, P b ti

Monitoring integration steps (e.g. initiation

time to contract,

rejection rate

fluctuation (labor

turnover) within ManagementManagement facility, administration,… Day y Probation

Talks

p ( gplan)employment

probation period

76International Human Resources Management, Dr. Jörg

Klukas

Performance Indicators - Examples.pTalents-quota in %• Share of Apprentices/BA-Students/Bachelors/Diploma-

Students/MBA-Students• Definition: Number of Apprentices/Number of Employees• How good is the organization’s prevention for being independent of

the market and framework (e.g. stop of employment)?

Rate of labor turnover rate during the trial period of new l (l th h lf )employees (less than a half year)

• Did the organization made the right choice? • Definition: Number of terminations during the trial

period/Number of Employmentsperiod/Number of Employments• Are the right People employed and trained on the right way?

ø Organization’s expert knowledge in yearsø Organization s expert knowledge in years• Is the organization able to commit employees in the long run?


Degree of certification (Human Capital Readiness Index)Human capital category/objective such as

• Strategy - Strategic competencies

( p )

• Leadership• Talent - Strategic awareness/culture• Culture - Strategic alignment/motivation

Measure of strategic readiness• Leadership Gap Employee Survey of leadership effectiveness • Cultural Alignment Index% Employees understanding strategy Cultural Alignment Index% Employees understanding strategy • Goal Alignment (%)• Incentive Alignment (%)

Source: IPRC, 2010


Consequences of a high turnover rate.q g• High tangible and intangible costs

• Between 50% - 200% of an employee’s annual salary• Severance costs • Unemployment insurance premiums • Outplacement fees• Advertising costs• Training costsetc…

• High turnover rate is often cited as a key barrier to high quality service.

• Reduction of productivity of an entire work unit/team, particularly as a result of uncompensated extra workloads, the stress and tension caused by turnover and, as a result, a decline in corporate morale.


Turnover Rate - Impact.p• businesses that do not demand so many skills and

knowledge from their workers turnover impacts knowledge from their workers turnover impacts business in a negative way

• Waiters and cooks are valuable “assets” because very often clients are attracted or repulsed more by the personality of the waiter or by the meals the chef prepares than by the brand name or the furnishing of the restaurant. In such cases when a “star” waiter or cook leaves, part of the clientele goes away to the new place where the waiter or the cook starts work, thus stealing clients in addition to making the work process more difficult for his or her previous employer.

• for IT companies it might be a bit better • At least a former employee of an IT company cannot steal customers if there are

long-term commitments from existing customers or if the clauses in his or her long term commitments from existing customers or if the clauses in his or her contract forbid working with current company customers but the skills gap left behind him or her might be absolutely enough. In any case, when people leave in bulk, this is a symptom and there is food for thought about the (real) reasons that make them do it.


Turnover Rate – Industry Average.y g


Reasons for Termination.Types of termination

Termination agreement Termination by

End of fixed-termcontract

20%

10%Termination by

Employer32%

Initiative for termination of employment

b

Termination by Employee

38%

… byemployer

44%… by

employee49%

Both7%


Reasons for Termination.

Why do employees leave the company?Why do employees leave the company?

• 33,3 % working atmosphere • 23,4 % lots of employer terminations in organization • 17,6 % career opportunities • 11,2 % job has to be changed after 3-5 years11,2 % job has to be changed after 3 5 years • 7,6 % job has to be changed after 5-10 years• 6,7% private reasons

Commitment?

Source: Focus Money 2006International Human Resources Management, Dr. Jörg

Klukas 83

The role of employee satisfaction and the costs of turnover.

Satisfaction Turnover Rate Commitment

Career opportunities, including: Availability of training, including:• Perceived opportunity for advancement • Presence and/or clarity of development plan.Enjoyment of the work, including:• How well work utilizes skills

• Opportunity to learn new skills/develop new talents • Corporate commitment to training and development • Keeping up with latest technology.Compensation/rewards, including:How well work utilizes skills

• “Fit” with job • Work/life balance.Corporate leadership, including:

Compensation/rewards, including:• Base/variable pay • Benefits • Recognition of contributions • Communication regarding performance• Clarity and strength of vision and mission

• Management style • Overall perception of leadership • Level of respect and support received.

• Communication regarding performance.


Number of applications for each vacancy.pp y

• poll of employers by Association of Graduate Recruiters in 2010 (over 200 firms including Recruiters in 2010 (over 200 firms including Cadbury, Marks & Spencer, JP Morgan and Vodafone):

f f • Highly increasing number of applications for each vacancy (today: 68,8)

• In hotly contested sectors (makers of fast-moving d ) l f h j bconsumer goods): 205 applications for each job

• number of available positions: predicted to fall by nearly 7%


Work related illness.• higher prevalence in a body of workers (e.g.

department) than in the general populationdepartment) than in the general population• Different types

• Stress• Climatic conditions (e.g. offices with air conditions,

geographical region with high humity etc.)• Radiation (for workers in nuclear industry)

L di ( i k )• Lung disease (mine workers)• Skin disease (hairdressing, printing)


Work related illness.

Costs? Commitment?


Work related illness.• Since 2000: working days lost per

worker with a statistically significant fall of nearly 30% significant fall of nearly 30%

• Statistically significant falls over the period for both injury absence and days lost resulting from work-y grelated illness

• Average working days lost per worker as a result of work-related ill h lth f ll b 28% th ill health fell by 28% over the decade

Source: HSE: The Health and SafetyExecutive Statistics 2009/10, GreatBritain


Time-To-Fill.

Need for employeesSign up of the labour contract

Start HR marketing End of onboarding

Permission for position

Selection of candidates

First working day

End of trial period

Permission for position g y

Time to fillTime to fillInternational Human Resources Management, Dr. Jörg

Klukas 89

Media Resonance Analysis.y• Shows the media presence of a company, e.g.

• number of contributions number of contributions • contact coverage • distribution across media types and regions

f f • level of awareness of the corporate messages (mentions per article, presence in headlines and on pictures etc.)

Source: flickr.com


Employment Costs. p yThe Employment Cost Index•quarterly report of compensation costs in USAquarterly report of compensation costs in USA•presents the relative changes in wages, bonuses and benefits•provided by the U.S. Bureau of Labor Statistics

Employment cost Index, 3-month percent change, seasonally adjusted, civilian j ,workers, compensation, Sep. 2008-Sep. 2010, source: BLS News Release 10/2010


market leader in Germany

1. 1.1. 1. 1.Driver for SuccessExample T-Systems MMS

10.

5.

M€ turnover46

5665

a p e Syste s S

employee commitment (TRI*M )

customer satisfaction index

86

88 8932

17

24

34

91

(TRI*M )

7 7

7.98.18.3

82

8686

80

17

LEP AwardWinner+

EEAPrize Winner

EEAPrize Winner

+

8.1

7.67.7

7 1EEA

Recognized for

EEAFinalist

+ 2. Platz

BestPersAward

+LEP

PriceWinner+

3. Platz BestPersAward

7.1

International Best Service Award

EEARecognized for

Excellence

gExcellence

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006International Human Resources Management, Dr. Jörg

Klukas 92

Contact me!Dr. Jörg Klukas• XING: https://www xing com/profile/Joerg KlukasXING: https://www.xing.com/profile/Joerg_Klukas• Facebook: http://www.facebook.com/home.php?#!/joerg.klukas• Slideshare: http://www.slideshare.net/pludoni• Twitter: http://twitter com/pludoniTwitter: http://twitter.com/pludoni• Email: [email protected]


Documents

7 People Results - HR performance and perception measures