Time & Attendance
By Staff Report
Nov. 16, 2011
No Line of Sight:
The seminal books on business analytics were written by Thomas Davenport and, in the HR domain by John Boudreau. A pre-recession study by the Hackett Group in Atlanta drew a financial-impact conclusion between good and great talent management for the Fortune 500.
In our client work, we have developed metric dashboards that create an HR EVA (Economic Value Added) for the domain. The approach has three principles:
1. Narrow down what is measured. Avoid measures such as number of trained versus “real cost” per hire (real monies and hours multiplied by total compensation of those involved in process).
2. Develop an economic model for the metrics: for example, the replacement cost for high potentials is six times total compensation (impact on Income From Operations, or IFO).
3. Relate the metrics to C-suite-desired data. For example, each 0.1 percent increase in engagement is equal to X amount in revenue. (Use historical comparisons from material you have now.)
The reality is that quantifying HR is like quantifying love: It is best to set your own standards rather than rely on the definitions of others.
SOURCE: Thomas Casey, managing principal, Discussion Partner Collaborative, Burlington, Massachusetts
LEARN MORE: Companies should use caution to ensure the metrics they use provide real value.
The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.
Come see what we’re building in the world of predictive employee scheduling, superior labor insights and next-gen employee apps. We’re on a mission to automate workforce management for hourly employees and bring productivity, optimization and engagement to the frontline.
ComplianceMinimum Wage by State in 2023 – All You Need to Know
Summary Twenty-three states and D.C. raised their minimum wage rates in 2023, effective January 1. Thr...
federal law, minimum wage, pay rates, state law, wage law compliance
HR AdministrationIs your employee attendance policy and procedure fit for purpose?
Summary: Lateness and absenteeism are early warning signs of a deteriorating attendance policy. — More ...
compliance, HR technology, human resources
HR AdministrationClawback provisions: A safety net against employee fraud losses
Summary Clawback provisions are usually included as clauses in employee contracts and are used to recou...
clawback provisions, human resources, policy