5 Employee Relations Metrics you Should be Tracking & Why

5 Employee Relations Metrics you Should be Tracking & WhyMarch 29, 2012

Twitter Hashtag: #dovetailhr

Who is Dovetail?

2

Dovetail is a leader in employee support software enabling organizations to:

reduce administrative costs, increase productivity, and improve service delivery.

Customer Snapshot:

Speaker Introduction

3

Cathy Missildine-MartinCo-founder & Chief

Performance OfficerIntellectual Capital Consulting

Twitter Hashtag: #dovetailhr

Audience Poll Question

4

What are you currently measuring in HR?

Efficiency metrics like cost/hire and turnover Effectiveness metrics like training program ROI HR Impact metrics like revenue/emp, Human Capital ROI All of the Above None of the Above

Objectives: What we will learn today

Why ER metrics are just as important to HR analytics as performance metrics

How to use technology to track, measure and report on ER metrics

What ER metrics you should be tracking and what they reveal

How to use ER metrics to drive corporate policy change

What is a Metric Anyway?

A number is just that, a stand alone figure

A metric is different from a number because it can contain multiple elements

A business metric is any type of measurement used to gauge some quantifiable component of a company's performance, such as return on investment (ROI), employee and customer churn rates, revenues, or EBITDA.

Business metrics are part of the broad area of business intelligence, which comprises a wide variety of applications and technologies for gathering, storing, analyzing, and providing access to data to help enterprise users make better business decisions

Phase 1

Phase 2

Phase 3

Phase 4

Phase 5

Impact• Creating Change• Achieving Strategic

Goals• Congratulations,

You have arrived at the true purpose of Analytics!

Justification• Foundational human capital

investments • Data collection• Reporting• Rudimentary tools• Distributed efforts

Measurement• Metrics defined • HR Scorecards &

Dashboards • Leadership

accountability• Standardization• Improvements

celebrated

Effectiveness• Key Performance

Indicators• Cohesive efforts• Process

improvement• Expanded

organizational accountability

• More sophisticated tools

Value Creation• Genuine Insights• Decisions based on

data & learnings• Connections between

people investment and business outcomes defined

• Predictive Models• Cultural shifts

Data leads to Insights …. Insights lead to ActionPrice to Play Poker (what you need)•Executive Support•The Right Tools•The Right People

Analytical Roadmap

Provided by: STEVE WOOLWINE, PHR, Chief of Staff, Talent and Human Capital Services, SEARS HOLDINGS CORPORATION

Making the Business Case

Human Capital expense is a company’s greatest expense

Doing more with less

Start small (low hanging fruit)

Better decision making

Eliminates confusion over what is important (linkage to strategy)

Words of Wisdom

“After 30 years studying HR Departments, I have found the largest single difference between a great HR department and an average one, is the extensive use of metrics.”

Dr. John Sullivan , HR Metrics the World Class Way

3 Types of HR Metrics

• HR Tracking/numbers internal HR DepartmentHR Efficiency

• HR ProgramsHR Effectiveness

• Outcomes bases on investment in human capital

• Linked to strategic outcomesHR Impact

Efficiency Metrics

1. Recruiting Metrics-time to fill, cost per hire QOH2. Compensation Metrics-budget variance, %

redlined, actual/market %3. Benefits-Benefits %/total comp, benefits

cost/emp4. Training-training cost/emp, training hours/emp,

average perfect scores5. Employee Relations-# Grievances, cost of

grievances'

How do you get ER Metrics?

13

Documented Grievances

Centralized Repository

Ability to Produce Metrics

Creating a Grievance Case

Grievance Cases Average Cost ($) 2011

Tracking Case Metrics


Visibility into Case History


Why ER Metrics are important?

Cost standpoint

Employee engagement

Litigation

Time

Continuous improvement

What Can We Learn From the Data?

1. Must get to root cause of the ER issues so that prevention is the goal

2. True cost of grievances

3. True resources spent on grievances

4. Prevention of ER issues leads to better employee engagement

What are you currently measuring in Employee Relations?

Poll Question

Tracking Metrics (number of grievances) Cost Metrics Root Cause Metrics All of the Above None of the Above Other

Which 5 ER Metrics are Important?

1. Tracking Activity/Grievance rate

2. Cost of a grievance

3. Root cause analysis

4. Average close time

5. Employee Relations ROI

1. Tracking activity

# of grievances/time By manager By department By region By facility

ADR success Rate

Reporting on Activity


Grievance Cases March 2012 By Manager



Grievance Cases March 2012 By Department



Grievance Cases March 2012 By Region



Grievance Cases March 2012 By Facility

2. Cost of Grievances

Investigation time (Manager, HR & Legal)

Employee time

Lost productivity

Outside/Inside counsel

Cost Analysis


Grievance Cases 2011 Average Cost

3. Root Cause Analysis

Manager/Supervisor errors

Policy/Procedures

Training

Poor hires

Reporting on Root Cause


Grievance Cases March 2012 By Root Cause

Root Cause Analysis


Grievance Cases March 2012 By Location and RCA

4. Average Close Time

How many days does it take to resolve an issue from the day the issue is raised until resolved

$$$$$

Case Closed

Reporting on TTR


Grievance Cases 2011 Average TTR (Days)

5. ROI ER Program

How much money over time has an effective ER program saved the organization

How much more revenue is earned due to lack of ER issues

Revenue/emp Profit/emp

The Disconnect

“HR professionals are failing to predict staff grievances accurately. In spite of the sources of grievance remaining constant, it is evident that there is a mismatch between what HR professionals have expected and what has actually happened in practice.”

*2012 The State of HR Report, http://www.hrmagazine.co.uk/hro/news/1020911/the-hr-

investing-talent-failing-predict-staff-grievances

End Goal: Predicting ER Issues

ButterfliesAdd Turnover %

ER Analysis

Change Seekers

Add Turnover %ER Analysis

True LoyalistsAdd Turnover %

ER analysis

Morale Busters

Add Turnover %ER Analysis

High Performance

Low Performance

Engagement

Using ER Metrics to Drive Change

Promotes a culture of continuous improvement

Increases productivity of workforce and managers

Uncover potential issues before they become expensive and explosive

Metrics hold managers accountable for actions…what gets measured gets done

Questions?

37

Contact Us

38

Dovetail Software

(800)684-2055

@dovetail

dovetailsoftware.com/dovetailconnectblog

dovetailsoftware.com

Cathy Missildine-Martin

(678)797-5331

@cathymartin

intellectualcapitalconsulting.blogspot

intellectual-capital.net

[email protected] [email protected]

Next Steps

Visit our Resource Center: dovetailsoftware.com/resources

Latest Whitepaper: An HR Case Management System is Essential to Protecting your Organization’s Reputation and Bottom Line

Upcoming Events

DIR Power to Purchase Technology Expo April 26th, Palmer Events Center, Austin, TX Visit us at Booth #432 Free for Public Sector Employees

IHRIM HRMStrategies Conference & Technology Expo May 1st – 2nd, Hilton Chicago, Chicago, IL Visit us at Booth #914 Early Bird Registration Rate through March 30th

39