We know that on average a minimum 60% of a business’s annual costs are associated with staff. This figure is certainly not new. What is new is the emerging discipline of People Analytics, which can revolutionize your Human Resources department and the impact HR will have on your business.

People Analytics comprises seven key elements that can dramatically impact on your organizations annual labour costs and thereby improve bottom line profitability, enable investment in new or better products and services or the acquisition of additional resources.

In each element, we use integrated metrics to measure and improve key areas of workforce management and performance:

1. Measuring Workforce Accountability

Workforce Objectives: Ensuring your staff clearly understand position accountabilities & expected outputs. Have all your staff been given clear KPIs? Do they know what they need to achieve by a certain timeframe? Is this a formalised process?

Business Benefits: Increased efficiency, enhanced delivery of key business plans, reduced duplication of workforce efforts.

2. Measuring Workforce Alignment

Workforce Objectives: Making sure your staff effort and contribution is linked with key organisational drivers. Can you draw a clear line from what the company goals and objectives to your staff individual KPIs?

Business Benefits: Enhanced business reputation & standing. Increased longevity & sustainability.

3. Measuring Workforce Efficiency

Workforce Objectives: Making sure your staff are utilised & managed in a cost – effective manner

Business Benefits: Enhanced pricing & profit margins. Optimising services & offering.

4. Measuring Workforce Effectiveness

Workforce Objectives: Making sure your staff are sufficiently capable and enabled to achieve optimum performance.

Do they have the right training and mentoring? Is there a formalised performance management process is place?

Business Benefits: Enhanced product/service quality. Optimising rework, returns, write-offs, litigation & waste.

5. Measuring Workforce Resourcing

Workforce Objectives: Making sure you staff bench-strength & depth meets future business needs. Do you have the best recruitment and candidate attraction strategies? Are the recruitment agencies used the best fit for your business? What is your time to fill a role? How does that compare to within your company and within your industry?

Business Benefits: Reduced labour replacement costs. Minimum disruption to desired service standards.

6. Measuring Workforce Sustainability

Workforce Objectives: Making sure your staff configuration & composition can be effectively maintained. How successful is your     succession planning?

Business Benefits: Optimising long-term resourcing capacity. Underpinning future business plans & objectives.

7. Measuring the HR Department’s Contribution

Business Objective: Making sure the HR team can achieve its true potential

Business Benefits: Optimising strategic capability & business contribution

In the first instance, you will need to give careful thought as to which of the seven key elements previously illustrated are the most appropriate for your organisation and therefore should be utilized as the basis upon which your detailed People Analytics reporting is developed and implemented.

I.e. If measuring Workforce Efficiency is an important issue to you then specific KPI reports might include Workforce Headcount, Workforce Utilization; Workforce Recruitment or Workforce Absenteeism.

Thereafter you must also consider how to position People Analytics within the organization in relation to ownership & accountability, and thereby what role Human resources shall play in the reporting process itself:

  • Developing and sustaining meaningful reporting that informs and enables optimum workforce management and performance;
  • Facilitating regular discussion at both a corporate and divisional level that ensures all reports are properly analysed and interpreted;
  • Assisting Divisional executives and line managers in developing and implementing effective intervention strategies where performance is identified to be less than acceptable;

For those HR departments seeking to move from working in the business to working on the business People Analytics provide the pivotal transition point by enabling every HR professional to talk the “the universal language of their organisation”. To build an effective business case that supports a desired HR program or initiative. To engage key internal customers whereby they can readily identify the benefits to be enjoyed both and intangible. To demonstrate a real contribution to business results.

No-one said the journey was an easy one… but for those that persevere, the rewards are many and varied. Shareholders, managers, employees and HR departments themselves are all benefactors from properly developed and executed People Analytics.

What gets measured gets managed!

Stephen Moore

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