When deployed properly, the human resources function should be a driver of organizational success. The measures and methods of tracking and managing HR activities are equally important as the activities themselves. Learn to develop and use the right metrics to prove HR’s impact on the bottom line and how technology makes this process easier to manage, and take a strategic approach to work to ensure that the HR activities are having their intended impact. Join this webinar and discover how to: Define various measures, methods, metrics and evaluation protocols. Compare and contrast HR metrics and business metrics (HR metrics with a strategic linkage) to demonstrate the difference in how the value of HR activities can lead to productivity and profitability. Use ROI/cost benefit protocols to determine the effectiveness of HR interventions. Design and use technology tools to virtually automate data collection and analysis activities. Utilize strategic management principles when developing and implementing HR activities to ensure organizational effectives by design.

1. You can listen to today’s webinar using your computer’s
speakers or you may dial into the teleconference.
If you would like to join the teleconference,
please dial 1.650.479.3208 and enter access code: 925 187 276 #.
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2. Speaker: Dr. Christopher Lee
Associate Vice Chancellor, Human Resources
Virginia Community College System
Moderator: Connie Costigan
Director of Marketing Communications
Halogen Software
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3. Developing Metrics to Evaluate HR's
Contribution to the Achievement of
Organizational Goals
• Presenter:
Dr. Christopher Lee, PhD, SPHR
© 2013 Halogen Software Inc. Confidential – Not to be used,
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4. AGENDA
• Business Case
• Business Strategy
• Ask Business Related Questions
• Checklist of Considerations
• Tips to Deploy Metrics
• Use Examples
• Q&A
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

5. Albert Einstein
Any intelligent fool can make things
bigger and more complex... It takes a
touch of genius - and a lot of courage to
move in the opposite direction.
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

6. Definition of Metrics
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, EBITDA, and so on.
Metric = How to Keep Score
© 2013 Halogen Software Inc. Confidential – Not to be used,
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7. Business Case for Metrics
• It’s Strategic
• It Matters
• Enhances HR Credibility
• Proof of HR Effectiveness
• Helps to Improve Organization
• It’s what business does
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

8. “Business” Case
(How Do I Know HR’s Making an Impact)
• Reduce Costs
• Improve Revenue
• Improve Quality
• Increase Customer Satisfaction
• Contribute to Growth
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

9. Organizations measure what they treasure!
~Anonymous
What gets measured, gets done.
~ Peter Druker
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

10. STRATEGIC OPERATIONAL
Turnover of Key Positions Turnover
Revenue Per FTE Time to Hire
Profits Per Employee Absenteeism
Diversity turnover Employee Demographics
Intent to Stay/Go Results Employee Satisfaction
Engagement Score Results Number of Accidents
Labor/Operating Costs Lost Work Days
% Impact of Pay Increases Training Satisfaction
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

11. Data Metrics
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

12. Strategic Metrics
Impact Measures
Marrying HR Metrics with Business
Data
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

13. IMPACT
We offer our engineers “20-percent time” so
that they’re free to work on what they’re
really passionate about. Google Suggest,
AdSense for Content, and Orkut are among
the many products of this perk.
~http://www.google.com/jobs/lifeatgoogle/englife/index.html
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

14. Marry HR Data with Business Data
A core focus of the RBS HR function was to
help business leaders utilize key people
measures such as employee engagement,
turnover and leadership effectiveness. The
human capital strategy enabled the provision
of this data side-by-side with business data,
such as customer service scores and
business performance measures.
~The Royal Bank of Scotland Group: The Human Capital Strategy
© 2013 Halogen Software Inc. Confidential – Not to be used,
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15. Process
• Ask A Series of Questions
• Get Others Involved
• Draw Connections to Business
• Compare with Standards
• Share Results
• Take Actions
• Ask More Questions
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

16. Lloyd Alexander
We learn more by looking for the
answer to a question and not finding
it than we do from learning the
answer itself.
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

17. Why Does HR Exist?
A. To provide full employment for math-phobic
professionals?
B. To provide for the ‘care and feeding’ of
employees?
C. To help organizations meet their goals?
D. To comply with appropriate laws/regulations?
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

18. Metrics
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

19. Concepts
• Correlation
• Causation
• Longitudinal/Trends
© 2013 Halogen Software Inc. Confidential – Not to be used,
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20. Preparatory Activities
• Know the “Business” of the Business
• Interpret Environmental Scan
• Produce data/reports for
Decisions/Actions
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

21. Indira Gandhi
The power to question is the basis of
all human progress.
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

22. Old Questions?
What can we count?
What should we measure in HR?
What metrics are most important to the
organization?
New Questions
What is most important to the organization?
What can HR do to help the organization meet
these objectives?
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

23. Questions?
What is most important?
Why is it most important?
What can HR do to help this most important
thing?
Ask the 2nd and 3rd Question
What happens next?
What do we do now that we know this?
If this is what it is…?
What does this tell us about?
If we change ‘x’, will it improve ‘y’?
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

24. So What?
Will it helps us save money?
Drive Revenue?
Increase customer retention?
Revenue, Costs, Quality, Customers!
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

25. Methods
• Dashboards
• Key Performance Indicators
• Balanced Scorecard
• CBA/ROI
• You don’t know Jack (Fitz-enz & Phillips)
• Index Card (Business Necessity, Strategy Focused)
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

26. Sources of Data
• Existing operational data sources
• HR Data (compensation, benefits, training assessments,
budgets, etc.)
• Employee Satisfaction Surveys
• Exit interviews
• HR Technology systems
• Interviews & Focus Groups
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

27. Sources of Data (2)
• Industry Benchmarking Surveys
• (SHRM, World at Work etc.)
• Customer Data
• Direct Observation
• Business Reports
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

28. Organizational Competency Metrics
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29. Goal Achievement Metrics
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30. Bench Strength Metrics
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31. Training Effectiveness Metrics
© 2013 Halogen Software Inc. Confidential – Not to be used,
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32. Necessary But, Not Sufficient
Turnover Cost Per Hire
Cost of Turnover HR Staffing/# of Employees
Voluntary Turnover % Of Employee Complaints
Involuntary Turnover Healthcare Cost Per Employee
Average length of service Absenteeism Rate
Average age of employees Yield Rate
Time to Hire Internal Promotions Rate
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

33. Strategic Metric Examples
% Employees who feel mgmt Increase productivity/Training
supports their success (ROI)
% Increase in Pay for % in Training Costs/Revenue by unit
Performance
Intent to Stay % Employee Satisfaction/Training $
Turnover percentage by manager Avg Rating Group/Leader Rating
Compensation/Sales Ratio Staffing/Unit of Production
Rating/Sales Ratio Cost hire by position
Compensation/Rating Ratio
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

34. Happy Marriage
% Employees who feel mgmt Department Performance,
supports their success Sales,
Employee Satisfaction/By Unit Customer Sales/By Unit
Appraisal Rating Retention of Key Talent (& slackers)
Appraisal Rating Compensation
Recruitment, retention, source, etc. Diversity
Turnover Percentage by Manager Manager’s Rating
Employee Satisfaction Retention
Compensation Budget Total Operating Expenses
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

35. Metric Quality Checklist
• Strategic
• Simple
• Specific
• Small Number
• Actionable
• Timely
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36. Strategic
• Tied to . . .
• Mission
• Strategy
• Goal
• Initiative
• (Period).
• Owner, Sponsor, Customer
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37. Simple
• K.I.S.S.
• Simple to
• Collect*
• Communicate
• Use
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38. Specific
Related to target area of business
activity, effort, or performance
Small Number
1 – 2 per HR area
6-15 overall
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

39. High-performing companies take a radically
different approach to HR. They put much more
effort than low performers into measuring workforce
performance…,
— High performers actually focus efforts on fewer,
carefully chosen HR projects, but they keep refining
and experimenting in these areas to make them
stronger.
~ High-Performing Companies Make HR a Strategic Partner, Others Don't
2010, The Boston Consulting Group (BCG) and the World Federation of People Management
Associations (WFPMA).
© 2013 Halogen Software Inc. Confidential – Not to be used,
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40. Actionable
• Action taken based upon results
• Decisions made as a result
• Improve quality of business
decision
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

41. Timely
• Regular interval
• Just in Time
• Alerts
© 2013 Halogen Software Inc. Confidential – Not to be used,
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42. Developing Metrics to Evaluate HR‘s
Contribution
Though standards are evolving, simple figures will not
necessarily provide enough information. Many
companies track retention, for example, but to solve a
turnover problem, HR needs to discover why people
leave. HR adds value when professionals decide not
only what to measure, but also how to interpret the
data when compared to benchmarks and how to
improve its methodology to get the kind of information
the organization can use to achieve its overall goals.
~HR Measurement and Metrics: Gaining HR a Seat at the Strategy Table
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

43. Impact
In the very early days, Google got rid of all managers. Although
they were later reintroduced, a belief persisted within the
company that managers do not really make a difference.
So the analytics team looked at a combination of performance
review data and employee surveys, where employees review
their bosses to determine whether there were significant
differences between the impact of the best and worst bosses.
The answer from the data was a resounding “yes”.
~http://www.google.com/jobs/lifeatgoogle/englife/index.html
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

44. Technology Tools
Automates Data Gathering, so that you can
concentration on …
© 2013 Halogen Software Inc. Confidential – Not to be used,
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45. Actions/Decisions
Ask Better Questions
Share and Compare
Define Metric
Make Information
Gather data
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

46. Cha’n Master Mingjiao
Accumulate learning by study,
understand what you learn by
questioning.
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

47. Tips Summary
• So What? Test
• Impact, not information measures
• Look Outward, Not Inward
• Target audience is Operations
• Merge HR Data with Business Data
• Report cost of doing nothing
• Recommend uses of metric w/ reports
• Fewer, Better
• Each metric has a customer
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

48. Review
• Identify Business Purpose
• Ask a series of questions
• Agree upon Metrics with
customers
• Benchmark, where appropriate
• Identify use of information before
gathering information
• Refine and Repeat (?????)
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

49. Q&A
• Additional questions regarding the webinar? Contact:
Christopher Lee- chris@performanceconversations.com
• For additional Halogen Software inquiries or to request a
personalized demonstration, contact:
Connie Costigan – ccostigan@halogensoftware.com
© 2013 Halogen Software Inc. Confidential – Not to be used,
copied or redistributed without Halogen’s prior written permission.

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How to Avoid Bad Hires Through
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