Industry -Specific HR Sub Function Benchmarking and Cost Reduction via Application of Industry

Leading Practices

HR Specialty Products & Services Catalogue Executive Summary

A No Frills Distillation of Vendor’s Marketing Collateral

Thomas A Ference

President & CEO

Human Resources Mining & Distribution Co

Locating, Validating and Accelerating HR  Innovation

 

Office: 219-662-0201

Cell: 630-240-2583

Fax: 219-661-0236

e-mail: tference@hrmdco.com

Website: www.hrmdco.com

HR Benchmarking and Leading Practices Application

• HR metrics while telling in and of themselves must be backed by industry-specific leading practices in order to generate immediate value from improved business performance

• This HR consultancy develops HR benchmarking in an objective way so as to measure and validate how an organization is performing relative to it’s peers in the same industry, in the same - or different - geographic markets and across it’s own business units

• Then, best practices and client experiences are used to identify ways to improve operational performance while ensuring the organization has the requisite skills and human capacity to legally change and still meet the business’s financial goals

Typical HR & Workforce Benchmark Categories

Benchmark Category Number of Benchmarks Benefits 7

Compensation 11

HR Structure 6

Organizational Effectiveness 5

Separation 4

Staffing 16

Training and Development 9

Total 58

EXAMPLES: -Benefit Expenses / Compensation-Operating Expenses / HR Expenses-Annual Training Costs / # of Employees

Uses Publicly Available Information to Identify Causal Relationships that Identify

Savings Opportunities

• For 2012, XYZ Corporation had a 24% lower ROI on HR than previous year

• Suggests lost productivity for 2012 of approximately $13,112 / employee or a total of $619 Million

Organizational Effectiveness

$0

$50,000

$100,000

$150,000

$200,000

19981997199619951994

-

0.50

1.00

1.50

2.00

HR R

OI

Revenues/ FTE Expense/ FTE Profit/ FTE HVA HR ROI

2008 2009 2010 2011 2012

Case Study at XYZ Corporation

Collaborative Client / Consultant Recommendations Development Process

• Design and develop a customized approach to measure and articulate organizational, operational and business performance

• Identify relevant organizations that possess superior performance and Best Practices in those areas represented by benchmarks & business performance

• Eliminate redundant/ ineffective interventions to achieve cost-cutting savings and apply to economies of scale

• Create optimum workforce alignment and agility • Drive to capture and implement initiatives that can provide the

best “Speed to Value”• Capitalize on current HR interventions with superior ROI and

leverage those in other areas of the clients organization

Next Steps• This product/service is contained in the HR Specialty

Products & Services Catalogue™ • Operational level details about this particular service

provider can be obtained in conference with the vendor• The HR Mining &Distribution Co. is an independent and

contracted representative of the vendor• Upon your request, we will arrange for an introduction

that can range from a simple, quick conference call to a services overview / system demo

• Tom Ference 219-662-0201 (Chicagoland area) or tference@hrmdco.com

• Thank you for your potential interest in this fresh thinking