Engineering business 6
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LW07BuildingaPeopleAnalyticsStrategypart2.pptxMA in People Management and Development
Building a People Analytics Strategy and constructing a Framework of Measures – Part Two
HRM 4412
Learning Week 07
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BUILDING OR REVISING OUR
“ANNUAL STRATEGIC DIRECTION”
What are the names of the five steps on the “Maturity Ladder”, and what
questions do they answer?
What are some of the questions we need to ask when just starting up in
HR Analytics?
What are some of the metrics that will be of interest to senior management?
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The Job Description of the HR Analytics Manager
(From last week)
The core purpose of this role is likely to be:
Prepare a HR Analytics Strategy for the department which will:
provide a regular monthly, quarterly and annual reporting schedule
of metrics and analysis, chosen to add value to stakeholder groups in helping
them be more effective
define and publicise a process for conducting investigatory projects
define a roadmap for the department to develop its expertise and contribution
over time
We defined a strategy as…….
A STRATEGY is about making choices in order to focus
on those that will bring the most benefit or
help the organisation take the right actions
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It is a document that guides what an HR Analytics
department will do and explains that to others
Today we are going to look at how we make the choices, or
revise them in an annual review.
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What will this “Document” Look Like in Practice?
It will be a Document with the following Headings:
Introduction – purpose and objectives
Positioning in the organisation; key staff roles; contact details
How its work can benefit the organisation and its mission
Terms of Reference for the department
Reporting – what reports it will produce, for whom and when
Process for special analytical investigations
Internal and External Benchmarking
APPENDIX A – Current Framework for Metrics that will support the Reports
APPENDIX B - Investigative Projects envisaged in the year
Fixed or
Renewable?
F
Mostly F
F
F
R
F
R
R
R
“F” means we only need to revise it if something significant has changed
“R” means we would do at least an annual review.
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A Model for Building a People Analytics Strategy
Workforce Issues
Ongoing
Emerging
HR Process Effectiveness
Ongoing
Failing
Tactical Inputs
Strategic Inputs
Overall Business Strategy
PEOPLE ANALYTICS
STRATEGY
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Source: Andrew Mayo/Workforce Dimensions
Departmental Business Strategies and Plans
External “Horizon scanning”
Strategic
Workforce Plan
HR and People Strategy and
Plans
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External “Horizon scanning”
External
“Horizon scanning”
“Horizon Scanning”
The organisation needs to be doing this at regular intervals in order to ensure the business strategy is correct. They look at “PESTLE” factors – Political, Economic, Social, Technological, Legal and Environmental changes.
In a commercial organisation Marketing will be studying competitive products and activities, and issues like brand recognition.
HR needs to do its on scanning of the same issues in relation to EMPLOYMENT and the Labour Market.
HR also keeps track of the “EMPLOYEE BRAND” – how attractive the organisation is to potential recruits.
From time to time this
Leads to a SWOT analysis
(Strengths,Weaknesses,
Opportunities, Threats)
Workforce Issues
Ongoing
Ongoing
Business Strategy and Challenges
-
The components of a People Analytics Strategy - supporting the Business
In practice, although HR is always saying they
want to be “aligned to the business strategy”
this is often just empty words!
Even if HR does have access to the organisation’s
business strategy it is most likely to be at too
high a level to be able to translate it into any
useful metrics
So what we do is we go to the senior “departmental”
managers to talk about their plans, objectives and
challenges
We need to apply “consultancy skills” – we are
there to LISTEN, not to TELL.
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Departmental Business Strategies and Plans
Overall
Business Strategy
Workforce Issues
Ongoing
Ongoing
Business Strategy and Challenges
-
The components of a People Analytics Strategy - supporting line managers
Take each of the Business Goals in turn and ask:
Does this have a direct employee/
manager impact that will be essential for success?
For example, will it be dependant on
recruitment, staff motivation or productivity,
new training, cultural change, bonus incentives,
employee communication…or anything else?
If so, how could HR metrics be used to define and
monitor progress?
Then ask similar questions about problems and
challenges the manager is having – people issues??
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Departmental Business Strategies and Plans
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Workforce Issues
Ongoing
Ongoing
Business Strategy and Challenges
-
Tthe components of a People Analytics Strategy - the workforce plan
The workforce plan is directly derived from the
departmental business goals, with inputs of key
people data such as labour turnover
It answers the question: At various periods in the
future, what is the quantity and competency of the
human resource that we need to deliver the products
and services required by the Business?
Or, How will we ensure that we always have the right
people in the right place at the right time with the
right skills?
Ongoing
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Strategic
Workforce Plan
We will look at how to do this in LW 08/09. This essential plan feeds many other
HR plans, such as recruitment, training and compensation
Workforce Issues
Ongoing
Ongoing
Business Strategy and Challenges
-
The components of a People Analytics Strategy - the HR/People Strategy
This is the People/HR departmental “strategy/plans/goals”
It defines policies, directions and initiatives that the HR
department will undertake.
It should start by analysing the Business Strategies to
be sure the business will be receiving all the “people
support’ that it needs
It will then have its own agenda of initiatives and changes
it plans to make
Ongoing
HR Analytics will look at where Metrics will help in monitoring progress
and diagnostics on projects
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HR and People Strategy and
Plans
Workforce Issues
Ongoing
Ongoing
The components of a People Analytics Strategy – HR processes
This is about the processes that the HR
department is accountable for - eg appraisals, recruitment,
bonus schemes, communications etc
For some critical ones we might want ongoing
monitoring and targets
Others may be in revision or change and we want to
monitor the success of the changes
This feeds into the HR Strategy, and then into HR Analytics
Ongoing
HR Process Effectiveness
Ongoing
Failing
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Ongoing
Ongoing
The components of a People Analytics Strategy – “Workforce Issues”
This is about our workforce generally. Some
metrics are going to be assessed continuously in
order to keep track and get early warning of any
potential issues.
There will also be metrics we are monitoring
this year, derived from the current strategies
and issues
Ongoing
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Workforce Issues
Ongoing
Emerging
What do we actually DO to finally get to our People Analytics Strategy?
Ongoing
Tactical Inputs
Strategic Inputs
PEOPLE ANALYTICS
STRATEGY
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Source: Andrew Mayo/Workforce Dimensions
We study documents with the business strategies and plans (which we may get from
the HR Director) , and mark up possible areas for discussion
We hold structured dialogues with departmental managers and the HR Director in
“consultancy mode” to ensure we understand where the right metrics are going to
correctly monitor progress in a strategy or an initiative
Through our own ongoing data analysis, such dialogues would not be one way and
HR Analytics may have its own suggestions to make
Back to our actual metrics…
Telling your audience something they didn’t already know
Insightful
About something that matters
Relevant
Which will realistically trigger a meaningful intervention
Actionable
Or may not attach significance to – we need to be prepared for the ‘so what’ response
‘Quantity of data and metrics ’ is not our success measure
Can they (we) mitigate the risk or maximise the opportunity?
Copyright | Source: Workforce Dimensions Limited
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Four criteria for a good metric…….
Clearly specified
Is consistently and meaningfully calculated with specified validity and reliability
We need “Quality” metrics that are truly comparable
We need to build a table of the basic Data/Measures that are going to be used and will be the basis of our chosen “metrics”. What columns do we need?
The name of the measure/data – definition if needed
Is it “Hard” or “Soft”?
How often is it collected/updated?
What is its source and who owns it?
Notes on Validity and Reliability – any cautions
Appendix A1: Our Table of Basic Data/Measures from which our Metrics are derived
What columns do we need?
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The Name
Hard or Soft?
Frequency
4. Source and Owner
5. Notes on Reliability/validity
Time to Recruit – defined as days between notification
of need to recruit and the starting date of the recruit
Hard
For each vacancy
Recruitment Department - Jane Smith
None – provided accurate records are kept.
Appendix A1: Table of Measures – Example
TIME TO RECRUIT
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Each Metric in the Framework Strategy needs the Following Elements
Which stakeholders(s) will have particular interest in this metric?
Why is it important to them?
A description (or name) of the metric followed by the calculation to be used
Target level (if set)
The frequency of the metric – how often will we calculate it?
The insights/benefits to be gained from the metric
Appendix A2: Table of Metrics that we have chosen
What columns do we need?
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Stakeholders with particular interest
Why is it important?
A description of the metric followed
by the calculation to be used
4. Target level (if any)
5. The frequency of the metric
6. The insights/benefits to be gained
from the metric
Shareholders, Government, Senior Managers
Legal compliance
Average male pay – average female pay
Average male pay
0% by 2025
Evaluated once per 6 months
If this is segmented into different levels
it will help us to analyse and understand differences
and be able to explain what causes the gap.
X 100
Appendix A1: Framework for Metrics that will
support our Reports – Example 1 GENDER PAY GAP
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Stakeholders(s) with particular interest
Why is it important?
A description of the metric followed
by the calculation to be used
4. Target level (if any)
5. The frequency of the metric
6. The insights/benefits to be gained
from the metric
Senior managers (for internal benchmarking);
operational managers (detail)
Affects Performance and other metrics
% employees scoring above 3.5/5 average
of Engagement Evidence questions in survey
80%
Measured once per 3 months
If measured correctly this has major links to
productivity and other metrics
Appendix A: Framework for Metrics that will
support our Reports – Example 2 EMPLOYEE ENGAGEMENT
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