INSEAD Library

CD available inside back cover

Includes bibliographical references and index

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HR Metrics, the World-Class Way How to enhance your status and build the business case for HR Table of Contents Introduction .............................................................................. 1 Becoming a Leader Means Thinking Like One ................................................... 4 Killing HR History: Agility Is the Future .............................................................6 Chapter One: Metrics, an Introduction .............................................. 9 What Makes a Metric a Metric? ......................................................................... 11 Benefits of Doing Metrics .................................................................................. 14 The Consequences of Not Using Metrics ........................................................... 17 The Ultimate Driver for Metrics: Changing Behaviors...................................... 18 The Value of "Distributing" Metrics in Order to Change Behavior....................20 Metrics Are Easy: The Five Main Types of Metrics (QQTM and CS) ................ 22 World-Class HR Metrics -- a Checklist For Assessing Where You Stand ....... 24 Common Problems with HR Metrics ................................................................. 26 If You Only Use One Metric -- Here Is the "Ultimate Metric" ........................ 28 Concluding Thoughts on Metrics ....................................................................... 29 Chapter Two: Staffing Metrics..................................................... 31 What Managers Expect From Recruiting. Setting Performance Expectations Up Front .............................................................. 31 What Managers Say They Need from Staffing........................................................... 33 The Changing Economy -- What This Means for Staffing .......................................... 34 Making the Business Case -- Why Managers Need to Pay Attention to Recruiting .................................................. 35 A Checklist for Assessing Your Recruiting Tools and Practices: A Quick Audit ............ 37 A Checklist for Assessing Your Employment Strategy: Common Errors to Avoid......................................................................................... 39 Steps in Developing a Plan for Transforming into a World-Class Employment Function ................................................................. 41 Are You an Employer of Choice? Metrics for Assessing Your Progress ....................... 43 Introduction to "Quality of Hire" -- What Is a "Better Hire"? ...................................... 47 How and When to Measure Quality of Hire .............................................................. 49 How to Measure the Quality of Your Applicants (Before You Hire Them).................... 57 Stop Measuring the Cost of Hire: It's Not a Strategic Measure ...................................... 59 Calculating the Cost of a Vacant Position (A List of the Possible "COV" Factors) ............................................................... 63 Assumptions About Vacancies .............................................................................64 Cost of a Vacancy Checklist: The Business Impacts of a Vacancy ...................... 65 Calculating the Value of Hiring and Retaining Top Performers (Dollar Difference in Output for Top Performers) ............................................... 70 Top Performers Are a Bargain -- The Business Case for Hiring the Best ........... 74 Possible Retention Metrics ................................................................................... 77 The Complete Checklist of Possible Employment Metrics .................................. 79 Top 10 Recommended Employment Metrics ....................................................... 83 Characteristics of World-Class College Recruiting .............................................. 84 College Recruiting Assessment Criteria: Should We Target a Specific School? .................................................................. 88 Thoughts on the Future of Staffing....................................................................... 90 Chapter Three: Training Metrics ................................................. 93 Training's Trouble Spots: Why It's One of the First Things to Get Cut When Dollars Are Tight .................. 93 Goals for World-Class Training Metrics .............................................................. 95 A Checklist of Metrics for Measuring Training Effectiveness and Impact .......... 96 Building the Business Case -- Questions Training Professionals Should Be Able to Answer............................. 100 Assessing Your Training Organization -- Is Your Organization a Learning Organization? ................................................ 102 Questions from the CEO! .................................................................................. 105 Concluding Thoughts on Training ...................................................................... 107 Chapter Four: Compensation Metrics ........................................ 109 Compensation Is a Strategic Function ................................................................ 109 The Business Impacts of Having Weak Incentive Programs (That Result in Unmotivated Employees) .......................................................... 111 Proving that Great Compensation Works ........................................................... 114 What Makes Up World-Class Compensation? ................................................... 115 Questions from the CEO! .................................................................................. 120 Concluding Thoughts on Compensation and Benefits ....................................... 121 Chapter Five: Metrics for Employee Relations ............................. 123 Characteristics of a World-Class Employee Relations (ER) System ................ 123 Metrics for Assessing ER Program Impact ...................................................... 127 Chapter Six: Metrics for the Entire HR Organization .................... 129 HR and Organizational Effectiveness: It's All About the Bottom Line............. 129 Develop an HR Dashboard, Index, Internal Improvement Monitors, and "Smoke Detectors" .................................................................................... 130 Additional Suggestions for Improving HR Metrics ..........................................143 Advanced Measures for Assessing HR's Real Business Impact -- What Your CEO Wants to Know About HR.....................................................145 Steps in Becoming a Strategic HR Department/Program ................................. 152 Advanced Steps in Becoming Strategic ........................................................... 154 Concluding Thoughts on Strategic HR..............................................................156 Chapter Seven: Getting and Using the Right Data for Your Metrics ..................................................................... 159 Finding Existing Data: It's All Around You ..................................................... 160 Forced Ranking ................................................................................................165 Liken scales ..................................................................................................... 167 Scaling ............................................................................................................. 168 Weighting ........................................................................................................ 169 Duplicate Questions ......................................................................................... 170 Anonymity ....................................................................................................... 170 Semantic Differentials ..................................................................................... 171 Chapter Eight: Impressing Managers -- Making a "Business Case" and Using Service-Level Agreements .........................................175 Making the Business Case for HR A Step-by-Step Guide ................................175 The Elements of an Effective HR Business Case .............................................176 The Service-Level Agreement: A Tool for True Professionals Who Deliver .....................................................188 Chapter Nine: Building Your Personal Action Plan....................... 193 Fight Questions You Need to Answer ..............................................................193 HR Metrics and You ........................................................................................ 196 Appendix: Additional Sources of Information......................................... 197