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Measurements for the HR department

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Viewing 11 posts - 1 through 11 (of 11 total)
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  • #24013

    Joss
    Participant

    Hi, I recently qualified as a Black Belt. I have been asked to work with HR and develop measurements to help the HR department to improve various apspects of their responsibility. Appart from the obvious like measuring absenteeism and attrition, I am not sure where to start. Is there anyone who can help me with this?

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    #57526

    Adam L Bowden
    Participant

    Hey Joss,
    First … every position in the business should be to increase
    revenue or cut cost.In HR there is a lot of busy work that is not focussed on the right
    things.I have a presentation on this subject if you want. The key and high
    level elements of hr are
    – Attract
    – Acquire
    – Develop/performance of human capital
    – Expulsion from businessThere are many, many metrics and you will get cultural resistance
    from this group. This is one of the tougher assignments.Best regards,Adam
    http://www.linkedin.com/pub/0/317/397

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    #57527

    Joss
    Participant

    Hi Adam, Thank you for your reply. I would be very interested to see the presentation. Would you be able to forward it to me please.
    regards
    Joss

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    #57528

    Adam L Bowden
    Participant

    Hello Joss,drop me a line to [email protected] and I’ll send it to you.Regards,Adam

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    #57531

    Joseph Noone
    Participant

    We measure the following:
    rate of performance of planned training actions per actions scheduled; recruitment cycle per target (from signed requisition to signature of contract), rate of performance of annual appraisal process per target,  number of validated reqs > target. % of new recruits inducted per target, etc.

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    #57532

    Adam L Bowden
    Participant

    Those kind of metrics do not seem to be very “value added”Adam

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    #57534

    Joseph Noone
    Participant

    You have to start somewhere and certainly we can do better. But if you say these types of measures are not value added, can you give me some examples of measures which for you are value added?
     
    Joseph Noone

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    #57535

    Adam L Bowden
    Participant

    Good afternoon Joseph,I stated that the metrics are non-value added – here is some
    explanation from my perspective…
    1) “rate of performance of planned training actions per actions
    scheduled”
    In most companies people get to pick their training – if 80% of all
    training is waste then 20% is value added. What “counterbalancing”
    metrics do you keep to show business benefit from the training ? I
    provide Consulting, training and coaching that is based upon
    process performance i.e there is a significant ROI on training.2) recruitment cycle per target (from signed requisition to
    signature of contract),
    This is a typical metric used in HR – it is a metric that is
    “controllable” within the HR department. If you look at this from a
    value add perspective the metric should be from date of “need” to a
    new employee reaching say 80% productivity – this is the HR value
    stream and crosses multiple boundaries to drive business benefit.3) rate of performance of annual appraisal process per target,
    this is again a typical metric – a Management metric. A proactive
    metric may come from employee satisfaction with Leader coaching
    and support rather than a static “check the box” metric which is
    sadly the norm.4) number of validated reqs > target.
    Requisition count is often meaningless. By transforming req count
    into “revenue opportunity”, or “cost take out” etc you will get a
    metric that provided for HR to impact the P&L. I.e if there is a rec
    for a sales person. If that sales person generates say 1,000,000
    per annum in sales with 100,000 in EBIT per annum and the time
    to hire is say 12 weeks and it takes a further 4 weeks to become
    proficient that is 16 weeks to generate benefit. From a Lean
    perspective – if you can reduce the Lead time to productivity to say
    8 weeks (50% reduction) then HR will have proactively increased
    revenue by 8/52, or 154,000 and increased EBIT by 8/52 or
    16,000. Do you look at HR as just head count or in Business terms
    ? target.
    Requisition count is often meaningless. By transforming req count
    into “revenue opportunity”, or “cost take out” etc you will get a
    metric that provided for HR to impact the P&L. I.e if there is a rec
    for a sales person. If that sales person generates say 1,000,000
    per annum in sales with 100,000 in EBIT per annum and the time
    to hire is say 12 weeks and it takes a further 4 weeks to become
    proficient that is 16 weeks to generate benefit. From a Lean
    perspective – if you can reduce the Lead time to productivity to say
    8 weeks (50% reduction) then HR will have proactively increased
    revenue by 8/52, or 154,000 and increased EBIT by 8/52 or
    16,000. Do you look at HR as just head count or in Business terms
    ? target.
    Requisition count is often meaningless. By transforming req count
    into “revenue opportunity”, or “cost take out” etc you will get a
    metric that provided for HR to impact the P&L. I.e if there is a rec
    for a sales person. If that sales person generates say 1,000,000
    per annum in sales with 100,000 in EBIT per annum and the time
    to hire is say 12 weeks and it takes a further 4 weeks to become
    proficient that is 16 weeks to generate benefit. From a Lean
    perspective – if you can reduce the Lead time to productivity to say
    8 weeks (50% reduction) then HR will have proactively increased
    revenue by 8/52, or 154,000 and increased EBIT by 8/52 or
    16,000. Do you look at HR as just head count or in Business terms
    ?5) % of new recruits inducted per target, etc.
    OK – so lets just meet the numbers target and forget about Quality.
    A counterbalancing metric to % to target is Quality. If it’s a call
    center and the 100 % target is fulfilled – great ! Bus after 12 weeks
    of training only 20% make the grade then 80% is waste.Hope this helps – HR is not just a “service” is an integral part of the
    business – one where huge impacts can be made to revenue and
    EBIT.Adam

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    #57634

    CHITNIS
    Participant

    Dear Alan ,
    I am also a recently qualified BB working on a project in HR arena . Can I also have the presentation please .
    Thanks in advance
    Arvind
     
     
     

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    #57635

    SUJOY BANERJEE
    Member

    Hello Adam,
    I am Sujoy working for a IT firm and head the HR shared services based at Chennai, India. I am looking for some material or case study to help me understand how develop or design a HR shared services metrics based on the FMEA principles.
    I will be grateful you can share some thoughts around this or materials in this regard.
    Thanks and Regards,
    Sujoy
     
     
     
     
     

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    #57636

    Adam L Bowden
    Participant

    Hello Arvind,I can absolutely share what I have with you – please send me an e-
    mail and I’ll reply to that.Regards,Adam
    [email protected]

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