HR Metrics-Driven HR Strategic Command Center HR Specialty Products & Services Catalogue Executive Summary A No Frills Distillation of Vendor’s Marketing Collateral Thomas A Ference President & CEO Human Resources Mining & Distribution Co Locating, Validating and Accelerating HR Innovation Office: 219-662-0201 Cell: 630-240-2583 Fax: 219-661-0236 e-mail: [email protected] Website: www.hrmdco.com HR Strategic Command Center • Developed under guidance from the “Father of HR Metrics” • Vendors’ state-of-the art Data Management Center incorporates employers data related to workforce, business, customer and company financials • Proprietary and statistically valid formulae use data to calculate 600 powerful HC metrics and KPI’s • Metrics portfolio gets culled down to only those that are relevant to the client given its industry, business goals, HR tactics, etc. • Powerful dashboards and graphics and can be manipulated using built-in analytics such as quantifiers, calculators, mapping tools, wizards, etc. • Optionally, metrics can be used by vendor to develop an initial and visual Process Roadmap for employer showing specific steps and activities required to get HR from the Current State to a Future State. • Future State effectively links the talent and workforce planning strategies with the business strategy • ROI typically 10 to 1 Strategic Differentiators • Two-way database facilitates real-time HR scenario modeling linked to financial forecasting under most likely, least likely and optimistic scenarios with flexibility to adjust HR levers HR Functions Financial Forecasts -Compensation and Benefits -Workforce Productivity -Recruiting and Hiring -Total Cost of Workforce -Engagement and Performance -Financial Performance -Training and Development -Workforce Planning Scenarios -Mobility and Career Paths -Predictive Workforce Modeling -Leadership and Management -Data-Driven Decision Making -Turnover and Retention -All metrics and scenarios are converted to ROI and dollars -A complete set of HC Financial Statements related to HC Impact, HC Assets and HC Flow statements Enabling Rapid Process Improvement Inputs Process Outputs Current State Assessment Workforce Strategy Transformation Future State Solid Data Quality Marginal Data Quality No Standards Standard Metrics Workforce Standards and Measurement No Metrics Consistency Not Predictive Unstable Foundation Analytic Capability Skill Gaps No Data Integration Lack of Insight Need Workforce Planning Visibility Workforce Standards Analytic Skills Training Workshops Assessment and Analysis Critical Job Roles Productivity Measures $ ROI Opportunities Advanced Tools and Reports Workforce Analytic Power Tools Workforce Planning 4 Human Capital Financial Statements Source Systems Metrics Handbook Job Framework Standards Standards Standards HR Data 150.0% 140.0% Performer over Rewarded Under Performer over Rewarded Critical Job Roles High P erformer High Reward 1. Workforce Strategy 2. Governance 3. Best Practices 130.0% 120.0% 110.0% 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 62.0 Under Performer not Rewarded 64.0 66.0 "Below" 68.0 High Performer under Rewarded Performer under Rewarded 70.0 72.0 74.0 76.0 78.0 80.0 82.0 "Meets" 1. 84.0 86.0 88.0 90.0 92.0 94.0 96.0 2 R = 0.3084 98.0 "Above" Flow Statement Standards 5 2. Asset Statement 3. Impact Statement Sample Visuals 6 $600 -At all tenure levels, salespeople completing all XYZ Course training have higher annual sales production. $500 -Sales Staff with at least 36 months tenure completing all modules produce $250k more per year than those with similar tenure completing no modules* $400 (Thousands) Average Annual Production Advanced Analytics Example Average Annual Revenue by Tenure and Training Module Completion $601 $530 $482 $403 -The potential ROI of training remaining employees between 12 and 36 months of tenure is just over $180M in the first year $318 after training is completed**. $407 $351 $307 $300 $263 $259 $249 $201 $200 $179 $197 $142 $100 $170 $153 $121 $203 $222 12 - 24 Months 24 - 36 Months $250 $148 $110 $58 $0 < 3 Months 3 - 6 Months 6 - 12 Months 36+ Months Employee Tenure Annual Difference Between All and No Courses No Courses Some Courses All Courses Example Human Capital Analytics Journey Data Driven Decision Making! Advanced Analytic Studies Integrated HR Databases HR Data Warehouse Drill-down, standard reports Scenario Analysis First Good Metrics Turnover, Initial Reports Headcount, Hiring& Data Errors Analysis Lost HR Credibility HRIS system data Data Gathering HR Analytics Mandate COE Launches Training Courses 1st Analytics Study Bus. Units Reject Analysis Bus. Units HR Analysis Demand more Validated HR Data Cleansed historical data scrubbed External Benchmarking Context for decisions HR Standards Established HR data/systems Assessed COE Formation Data Errors Historical data still bad Analytics journey steps Setbacks along the way Journey path and goal Next Steps • This product/service is contained in the HR Specialty Products & Services Catalogue™ • Operational level details about this particular service provider can be obtained in conference with the vendor • The HR Mining &Distribution Co. is an independent and contracted representative of the vendor • Upon your request, we will arrange for an introduction that can range from a simple, quick conference call to a services overview / system demo • Tom Ference 219-662-0201 (Chicagoland area) or [email protected] • Thank you for your potential interest in this fresh thinking