ARSHA MERCY,
HERE IS SOME USEFUL MATERIAL.
REGARDS
LEO LINGHAM
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Your HR report must reflect your organization's current
HR activities/achievements/ results against plans/ target.
WHAT I PROPOSE TO GIVE A WIDE GUIDELINES,
COVERING ALMOST ALL ELEMENTS OF HR.
YOU CAN PICK THE ONES THAT RELEVENT TO
YOUR CURRENT YEAR.
AND ALSO WHAT YOU PLAN TO DO IN FUTURE.
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NORMALLY THE REPORT OF THIS NATURE HAS
TWO ELEMENTS
MONTH [ ACTUAL vs BUDGET ]
2. YEAR TO DATE [ ACTUAL vs BUDGET ]
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MONTH AND YEAR TO DATE [YTD ] PERFORMANCE HIGHLIGHTS.
EXECUTIVE SUMMARY
HR budget / actual
-highlights
-actions taken/ justification.
-outcomes.
-old policies reviewed
-new HR policies developed
[example retirement/retention/workplace discipline/organization wellness etc]
[ YOU CAN COVER ANY OTHER ''EXCEPTIONAL '' ITEMS.]
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THE TYPES OF HR PERFORMANCE MEASURES.
1. HR BUDGET ELEMENTS
The elements in YOUR HR department annual budget would vary with
-company policy
-budget process
-company accounting system
-nature of the business operation
etc
HERE is a broad set of guidelines what the budget could contain
ACTUAL vs BUDGET
-recruitment/ selection [ internal/ outsourcing ] monthly/ annual.
-contractors [external ]monthly/ annual.
-salary/ wages---monthly/ annual.
-training/ development [ includes induction/ orientation]monthly/ annual.
-staff benefits----monthly/ annual.
-staff amenities---monthly/ annual.
-workplace facilities---monthly/ annual.
-workplace safety [ OHS]
-salary contingency---monthly/ annual.
-workers compensation---monthly/ annual.
-staff communication [ includes newsletter/ intranet ]---monthly/ annual.
-labor relations [ legal/ investigations]---monthly/ annual.
-HR administration expenses---monthly/ annual.
-HR travels expenses---monthly/ annual.
etc etc.
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2. Employee behaviour criteria
Employee behaviour criteria include:
*employee retention and turnover rates;
* absenteeism rate;
* ratio of suggestions received to number of employees;
* number of usable proposals from quality circles or improvement groups;
*cost savings arising from suggestions and/or quality circle recommendations; *frequency/ severity rate of accidents;
* ratio of grievances to number of employees;
*time lost through disputes;
*number of references to industrial tribunals on unfair dismissal, equal opporrunity~ equal pay, harassment, racial discrimination issues etc and the outcome of
s
uch references.
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3. Service-level criteria
Service level criteria include:
*average time to fill vacancies;
*time to respond to applicants;
*ratio of acceptance to offers made;
*cost of advertisements per reply/ engagement;
* training hours/days per employee;
*time to respond to and settle grievances;
* cost of induction training per employee;
*cost of benefits per employee;
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4. HR IMPACT ON BUSINESS
*measurable improvements in productivity as a direct result of training;
*measurable improvements in individual and organizational performance as direct result of the operation of performance-related pay and performan management schemes;
*ratio of HR department costs to profit, sales turnover or added value;
* personnel costs in relation to budget;
*ratio of HR staff to employees.
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5. Achievement of specified goals
This approach involves measuring achievements against agreed objectives - it could be the final outcome or a measure of progress towards a goal as indicated by the extent to which specified 'milestones' have been reached.
The specified objectives could be expressed in terms such as:
*all employees to have received training on the implementation of equal opportunities policies by 1 June;
* an agreement with the various trade unions to setting up single table bargaining to be reached by the end of the year;
* the competence analysis programme to be completed within 12 months;
* salary surveys to be conducted and a report on the implications on salary scales to be submitted by 1 September;
*the new performance management system to be fully operational within the next six months.
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6. HR SERVICE EFFECTIVENESS
HR function, service level standards could be drawn up for such activities as:
*response to requests for help or guidance in specific areas, eg recruitment, trainin
g,
handling discipline cases and grievances and health and safety;
*time taken to prepare job descriptions, fill vacancies or conduct a job evaluation
*the amount of time lost through absenteeism or work-related sickness or accidents;
*the proportion of discipline and grievance issues settled at the time of the first involvement
of HR;
ETC
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FROM THE ABOVE, I HAVE DEVELOPED
A RANGE OF HR METRICS , WHICH CAN BE USED.
GENERAL
PER EMPLOYEES [DAYS]
RECRUITMENT TIME [DAYS]
TURNOVER [ % ]
SATISFACTION [ LEVELS ]
EMPLOYEE TENURE [ YEARS]
TRAINING [ % OF NEW EMPLOYEES]
7. TRAINING WORKSHOP [ % ] CONDUCTED/PLANNED
8. TRAINING AT EXTERNAL COURSES [ %] ACTUAL / PLANNED
APPRAISALS [ NOS.] AGAINST TOTAL EMPLOYEES.
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HERE ARE SOME HR OPERATIONAL METRICS
1
HR UTILIZATION
%
TOTAL PAYROLL $ / TOTAL SALES $
2.
HR PRODUCTIVITY
%
TOTAL EMPLOYMENT COST $/TOTAL
PRODUCTION VOLUME IN $ X 100
3.
HR BUDGET
%
ACTUAL $ / BUDGET $ X 100
4'.
ACCIDENT COSTS
%
CURRENT ACTUAL $ / LAST YEAR $ X 100
5'.
ACCIDENT SAFETY
%
CURRENT ACTUAL $ / LAST YEAR $ X 100
RATINGS
6'.
EMPLOYEE
%
EMPLOYEE BENEFITS $ / TOTAL PAYROLL $ X100
BENEFITS
EMPLOYEE BENEFITS $ /TOTAL SALES $ X 100
7'.
HR BUDGET
%
ACTUAL HR EXPENSES $ / TOTAL SALES $ X 100
sales effectiveness
8'.
HR EXPENSES
$
TOTAL HR EXPENSES $ / TOTAL NO. OF EMPLOYEES
per head
9'.
HR EXPENSES
%
HR EXPENSES $ / TOTAL EXPENSES $ X 100
cost effectivenss
10'.
NO.OF COURSES
%
ACTUAL CONDUCTED / PLANNED X 100
CONDUCTED
11.
NO. OF SAFETY
%
ACTUAL CONDUCTED / PLANNED X 100
training programs
12.
TRAINING DAYS
%
ACTUAL TRAINING DAYS / PLANNED X 100
EFFECTIVENESS
13.
EMPLOYEES
%
ACTUAL TAKING PART / PLANNED X 100
involvement in train
14.
SICK DAYS
nos.
TOTAL SICKDAYS TAKEN/ TOTAL EMPLOYEES
managemeent effectiveness
15.
STAFF orientation
%
NO. OF NEW STAFF LEAVING IN THREE MONTHS/
EFFECTIVENESS
TOTAL NO. OF NEW STAFF ORIENTED
X 100
16.
TIME TO FILL AN
NO.DAYS
TOTAL NO OF DAYS / TOTAL NO positions filled
OPEN POSITION
17.
TURNOVER BY
%
TURNOVER / TOTAL RECRUITMENTS X100
RECRUITING source
BY EACH SOURCE
18.
TURNOVER BY
%
TURNOVER / TOTAL EMPLOYEES BY EACH
EACH JOB
CATEGORY
CATEGORY
X 100
19.
WORKERS
%
ACTUAL $ / PLANNED BUDGET $ X 100
çompensation costs
20.
HR STAFFING
NO.
TOTAL HR STAFF / TOTAL EMPLOYEES
EFFICIENCY
1
HR UTILIZATION
%
TOTAL PAYROLL $ / TOTAL SALES $
2.
HR PRODUCTIVITY
%
TOTAL EMPLOYMENT COST $/TOTAL
PRODUCTION VOLUME IN $ X 100
3.
HR BUDGET
%
ACTUAL $ / BUDGET $ X 100
4'.
ACCIDENT COSTS
%
CURRENT ACTUAL $ / LAST YEAR $ X 100
5'.
ACCIDENT SAFETY
%
CURRENT ACTUAL $ / LAST YEAR $ X 100
RATINGS
6'.
EMPLOYEE
%
EMPLOYEE BENEFITS $ / TOTAL PAYROLL $ X100
BENEFITS
EMPLOYEE BENEFITS $ /TOTAL SALES $ X 100
7'.
HR BUDGET
%
ACTUAL HR EXPENSES $ / TOTAL SALES $ X 100
sales effectiveness
8'.
HR EXPENSES
$
TOTAL HR EXPENSES $ / TOTAL NO. OF EMPLOYEES
per head
9'.
HR EXPENSES
%
HR EXPENSES $ / TOTAL EXPENSES $ X 100
cost effectivenss
10'.
NO.OF COURSES
%
ACTUAL CONDUCTED / PLANNED X 100
CONDUCTED
11.
NO. OF SAFETY
%
ACTUAL CONDUCTED / PLANNED X 100
training programs
12.
TRAINING DAYS
%
ACTUAL TRAINING DAYS / PLANNED X 100
EFFECTIVENESS
13.
EMPLOYEES
%
ACTUAL TAKING PART / PLANNED X 100
involvement in train
14.
SICK DAYS
nos.
TOTAL SICKDAYS TAKEN/ TOTAL EMPLOYEES
managemeent effectiveness
15.
STAFF orientation
%
NO. OF NEW STAFF LEAVING IN THREE MONTHS/
EFFECTIVENESS
TOTAL NO. OF NEW STAFF ORIENTED
X 100
16.
TIME TO FILL AN
NO.DAYS
TOTAL NO OF DAYS / TOTAL NO positions filled
OPEN POSITION
17.
TURNOVER BY
%
TURNOVER / TOTAL RECRUITMENTS X100
RECRUITING source
BY EACH SOURCE
18.
TURNOVER BY
%
TURNOVER / TOTAL EMPLOYEES BY EACH
EACH JOB
CATEGORY
CATEGORY
X 100
19.
WORKERS
%
ACTUAL $ / PLANNED BUDGET $ X 100
çompensation costs
20.
HR STAFFING
NO.
TOTAL HR STAFF / TOTAL EMPLOYEES
EFFICIENCY
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The formula for percentage of employees absent is the number of employees absent during the time period divided by the total number of employees on payroll during the period.
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No. of lost workdays due to absence divided by the average number of workdays during period multiplied by 100.
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The formula for average absence rate per employee is the number of absences divided by the total number of employees
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INTERNAL COST [ HR DEPT SALARY/ TRAVEL ETC] + EXTERNAL COST [ ADVERTISEMENTS ETC]
DIVIDED BY NO. OF RECRUITS.
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TOTAL REVENUE minus TOTAL OPERATING EXP minus COMPENS/BENEFITS EXPENSES
divided by COMPENS/BENEFITS EXPENSES.
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FULL TIME HR STAFF is divided by FULL TIME ALL STAFF.
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COMPENSATION/ BENEFITS is divided by TOTAL REVENUE X 100
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TOTAL REVENUE minus OPERATING EXPENSES is divided by TOTAL NO. OF FULL TIME STAFF.
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TOTAL REVENUE is divided by TOTAL NO. OF FULL TIME STAFF
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TOTAL TRAINING COST [ training + travel] is divided by TOTAL TRAINEES
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TOTAL NO. OF EMPLOYEE SEPARATION is divided by AVERAGE TOTAL EMPLOYEES X 100
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