Utilizing HR Metrics to Illustrate & Improve Human Resource's Contribution

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    Speaker: Pete Tosh

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    Duration: 90 Minutes
    Product Code: 50466
    Level: Intermediate

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Human Resource Departments have traditionally been concerned with the processing of transactions and administrative functions – often with little or no objective data to provide them feedback on:

• the effectiveness of their HR processes
• or the contribution that these processes are making to the organization’s business strategy

However, many senior corporate executives are no longer satisfied with this scenario – they want HR to prove its value and effectiveness through objective data.

Human Resources metrics allow HR professionals to:

• be seen as business partners who are customer focused, strategic and change oriented
• make greater contributions to their business’ strategic and operational plans
• speak the ‘language of business’
• gauge whether they are satisfying the needs of their internal customers
• make continuous, meaningful improvements to HR processes
• show that they are not afraid of measuring their contribution
• avoid being outsourced

This interactive HR metrics trainingwill provide an overview of frequently used HR Metrics and describe a methodology for implementing them in your HR function.


HR professionals leading many of the best managed HR departments across the U.S. rely heavily on HR Metrics to guide and improve their departments' performance. They recognize that metrics offer significant benefits to both their departments and organizations. These HR professionals recognize that:

• Metrics is the ‘language of businesses’. Senior leaders are seeking objectivity. They don't speak in generalities and don't make key decisions based on opinions.Metrics communicate by painting an unbiased, objective and believable picture
• They are in the service business and their H.R. function can be seen as only an overhead expense until others see value from the function. They appreciate the fact that the results that they don't objectively report often don’t count
• They need metrics to be able tocompare themselves to standards and ‘best practices’ in other organizations. That metrics provide early warning signals and identify performance gaps. And that it is difficult to control & improve upon any HR process that is not measured.
• Metrics provide a means of increasing visibility, clarifying performance expectations and setting goals. That just measuring an HR process conveys its importance and tends to improve the performance of the process.
• Since the leaders of the other functions within their organizations -manufacturing, sales, accounting, customer service, etc. - measure and report their contributions and performance, they as HR professionals should as well.

At the end of this HR management training, participants will be able to:

• use HR Metrics to ‘paint a picture’ and speak the ‘language of business’
• gauge whether they are satisfying the needs of their internal customers
• make continuous, meaningful improvements to HR processes
• make greater contributions to their business’ strategic and operational plans
• develop their personalized HR score card
• discuss ways of strategically implementing their HR metrics dashboard
• see and select from many potential HR Metrics
• show that they are not afraid of measuring their contribution


• The Benefits of HR Metrics to HR departments and Organizations

o Reasons for Utilizing HR Metrics
o What HR Metrics Produce

• Identifying What to Measure

o Why Use HR Metrics?
o The Benefits and Limitations of Measurement
o The Key Question is How to Best Measure an HR Process and Whether the Result will be Worth the Cost of Measuring
o What are Your Customers’ Most Important Expectations?
o What HR Processes Impact/Have an Effect on These Expectations?
o How Can the Performance or Results of These HR Processes be Measured?
o Five Categories of HR Metrics
o Four Step Process for Implementing HR Metrics

• Recruiting, Interviewing & Selection Metrics

o Cost: Per-Hire Formula
o Cost: Per-Interview Formula
o Time-to-Fill Formula
o Offers Resulting in a Hire Formula
o Quality of Hire Formula
o Other Frequently Utilized Recruiting Process Measures
o Human Reactions to the Recruiting Process

• Compensation & Benefits Metrics

o Four Key Objectives of a Compensation System
o Employee Compensation Cost Formula
o Compensation & Benefits Costs as a Percentage of Operating Costs Formula
o Profit Factor per Employee Formula
o Revenue Factor per Employee Formula
o Other Frequently Utilized Compensation Metrics
o Other Frequently Utilized Benefit Metrics
o Human Reactions to Compensation

• Training & Development Metrics

o Training and Development’s Biggest Challenges
o Developing a Training Objective for Your Organization
o The Four Levels of Training Evaluation
o Training Cost Formula
o Training Cost Per Hour Formula
o Knowledge Change Formula
o Skill Change Formula
o Performance Change Formula
o Other Frequently Utilized Training and Development Metrics
o Human Reactions to Training & Development

• Retention Metrics Formulas

o Average Length of Service Formula
o Cost of Turnover Formula
o Quantity of Turnover Formula
o Quantity of Voluntary Turnover Formula
o Voluntary Separation Rate by Tenure Formula
o Replacement Factor Formula
o Quality of Performer Retention Formula
o Other Frequently Utilized Retention Metrics
o Human Reactions to Employee Retention & Turnover

• Measuring Other HR Processes

o Other HR Processes for Which You Might Like to Have HR Metrics

• Strategically Implementing Your Action Plan & HR Dashboard

o Creating Your HR Dashboard
o Four Key Summary Questions
o Questions for Taking the Next Steps


There are two strong forces behind the growing movement toward the use of HR Metrics – this is true for large organizations like IBM, Fed Ex, Southwest Airlines, etc. as well as any of thehundreds of smaller organizations that have turned to HR Metrics.

• An External Force: senior management is expecting HR to be more actively involved in the achievement of business goals and contribute in visible and meaningful ways; top management wants to ‘see’ value from its HR function – without ‘seeing’ that value HR is viewed as an expense and dollars can be saved by outsourcing HR
• An Internal Force: HR has been graced by an influx of bright, energetic professionals who have chosen HR as a profession, have a business orientation and want to make a visibleand meaningful impact on their businesses; they recognize that HR manages a number of processes that impact their organizations and they want to maximize and illustrate the positive impact of those processes


• HR Professionals New to the Field
• Experienced HR Professionals Looking for New Ideas
• A Refresher


Years of Experience: 25+ years

Areas of Expertise: Leadership Development and HR Management

Pete Tosh is Founder of The Focus Group, a management consulting and training firm that assists organizations in sustaining profitable growth through four core disciplines:

  • Implementing Strategic HR Initiatives
  • Maximizing Leadership Effectiveness
  • Strategic Planning
  • Enhancing Customer Loyalty

The Focus Group has provided these consulting and training services to manufacturing and service organizations across the U.S., Canada, Europe and the Middle East. Pete has worked closely with the leadership teams of organizations such as Exxon, Brinks, EMC, State Farm, Marriott, N.C.I. and Freddie Mac.

Prior to founding his own firm 25 years ago, Pete had 15 years of experience — at the plant, divisional and corporate levels — in Human Resource and Quality functions. Pete held leadership positions — to include the V.P. of Human Resources and Quality — with Allied Signal, Imperial Chemical Industries, Reynolds Metals, Charter Medical and Access Integrated Networks. 

Pete also frequently facilitates a variety of leadership development programs for organizations such as the American Management Association — including Strategic Planning, Moving from an Operational Manager to a Strategic Leader, Strategic HR Management and Utilizing HR Metrics. Employees from over 3,000 organizations have benefited from Pete’s experience and perspective. Pete is co-author of Leading Your Organization to the Next Level: the Core Disciplines of Sustained Profitable Growth. 

Pete holds a B.A. degree in Psychology from Emory and Henry College and Masters degrees in both Business Administration and Industrial Psychology from Virginia Commonwealth University.

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