Friday, October 15, 2010
Today we have heard a lot of discussion round the execution of an effective HR Measurement Strategy. What has been confirmed for me and/or things that I have learned are:
1. The goal of measurement is to see how the investment of people leads to reaching strategic goals. (Gene Peese, CEO Capital Analytics)
2. Some companies both large and small report measurement is sometimes difficult but always worth it.
3. HR Departments need to utilize statistical talent in order to provide the organization insight and determine impact.
4. A company's metrics strategy is very dependent on company culture. (i.e. cultures that are highly technical tend measure more, others are razor focused on strategic outcomes)
5. Fancy technology is not necessarily needed especially to get started.
6. Data is universally hard to get, due to many reasons: silos, politics, disparate systems, access, etc. Again, not impossible, just have to navigate the issues.
7. One big lesson learned for many companies is the issue of how to present the data back to the organization. Many speakers and practitioners talked about "story telling" with the data.
8. It is important to bring multiple sources of data together to look at the complete data story.
9. The data questions are getting more sophisticated (What is the business impact for this new Performance Management System?)
10. Using linkage analysis to determine root cause leading to predictability and eventually to optimization is the common model used by many speakers today.
10.5 You don't have to have Ph.D. to do this stuff...just an inquisitive mind!
10.75 Involving key stakeholders on the front end is essential to get the customer perspective (Dr. Jac Fitz-Enz)
Some examples of what companies are finding out though using metrics:
1) Mentoring Program actually had a huge impact on turnover. Cost savings an estimated $7M
2) Predicting turnover within specific departments and using proactive interventions to PREVENT that turnover.
3) A tuition reimbursement program was studied to determine that participants were promoted and retained at a rate of 2x of those that did not participate. The company decided NOT to cut this benefit during the recession.
And I have many more examples.
My next blog will discuss what I believe the impact is on all that I have learned on the HR profession. What do you think about this week's debriefs from the conference? Helpful?