Monday, March 28, 2011
Monday, March 21, 2011
Tuesday, March 15, 2011
Luk Smeyers, with iNostix is our guest blogger. Thanks Luk for continuing to provide great content!
No HR background
Prasad Setty, a self-described "numbers guy," never expected to find himself in HR, says Andrew McIlvaine in a 2010 article in HREonline. "If you'd asked me in business school if I would be spending time in HR, I would've laughed, because I thought HR was soft and fluffy and that I had no intuition for people issues," says Setty, who holds an MBA from the Wharton School and a master's degree in chemical engineering from Carnegie Mellon University.
VP of People Analytics
And yet today, Setty is happily ensconced in HR at Google Inc., albeit in a numbers-driven role, serving as the company's VP of people analytics. "Google is a great place to try a data-driven approach to HR," says Setty, who joined the Mountain View, Calif.-based technology behemoth in 2006 after stints at McKinsey & Co. and Capital One.
At Google, Setty's mandates includes:
· finding better ways to determine what's on the minds of "Googlers," as the company's employees are called
· making sure top performers stay with the company and continue to innovate throughout their careers
Setty’s 8 tips for HR Analytics
· understand what's important to the organization on a people level (and start measuring it)
· determine what's on the mind of your employees
· measure the impact good managers have (and develop more of them)
· build a decision-making system that avoids cognitive errors
· measure the intention to stay or leave (and not a long satisfaction survey)
· compare retention scores of high performers versus low performers
· be very transparent with results of surveys
· identify low performers and give them the opportunity to course-correct
Not copying best practices
In so doing, he's found a way to match numbers and HR in exciting new ways, encouraging his HR staff to push the boundaries of what can be done within the profession. This is partly out of necessity: Given its unique culture of constant invention, Google simply isn't interested in copying best practices from other large companies, says interviewer McIlvaine.
You can read the full article here.
Monday, March 14, 2011
1. Choosing the metrics to link to employee engagement2. Determining the logistics of the research3. Sharing results of the research with employees to create an action plan to achieve improvements.
- Make sure you link to the right metrics. Look at your industry and company and make sure that you understand what drives your revenue and/or what impacts your strategic execution.
- Make sure your data is reliable and valid. This is one of the hardest areas for most HR professionals. When it comes to data hygiene HR hasn't been the best.
- Look at how you will be analyzing your data. Data is everywhere in your company. To be able to look at data system wide you have to have a unit of comparison. Whether that unit is by department or by location. You have to compare apples to apples.
- Tell a compelling story. Don't just do a show and tell of ALL of you cool data. Paint a picture on what you found out and what it means to YOUR AUDIENCE.
- Follow through on your observations and recommendations with action plans that hold managers and employees accountable for change.
Friday, March 4, 2011
Thursday, March 3, 2011
Thanks again to Luk Smeyers from INostix, Netherlands for guest posting on our blog. Another great topic.
A few days ago, I was reading a digital summary at FT.com of the brand new 2nd edition of Wayne Cascio’s and John Boudreau’s book ‘Investing in People’. Especially the chapter ‘hitting the wall in HR measurement’ is my absolute favorite. Let me summarize a few of the ideas.
Hitting the wall in HR measurement
Type "HR measurement" into a search engine, and you get millions of results. Scorecards, metrics, dashboards, data warehouses, surveys, benchmarks, and audits in abundance ratios. The spectrum of HR measurement methodologies seems unlimited. The paradox however is that even when HR measurements are executed well, most organizations typically hit a ‘wall’: HR metrics or measures only rarely drive true strategic change! Boudreau’s and Cascio’s figure (see below) shows how, over time, despite more sophisticated measures, the trend line doesn't seem to be leading to the desired strategic results.
A huge gap
Some HR professionals assume that they have strategic impact by - at best – holding line managers accountable for the outcomes of HR metrics. Proudly they declare that top managers’ bonuses depend in part on the results of an HR scorecard. Unfortunately, there is a major gap between the results of the measurements and their actual impact on the organization. Because descriptive metrics – such as turnover, retention, time to fill, illness rate, etc. – just don’t have a strategic impact. These kind of metrics will never give HR the necessary insights to break through the wall.
What can HR do?
• Moving from descriptive metrics to much more insightful analytics to be able to break through the wall (and understanding the differences between HR metrics and HR analytics)
• Developing more insightful analytics to underpin strategic decision making (and linking with bonus absolutely doesn’t make sense!)
• With HR measurements, focusing much more on the organizational impact of HR investments instead of focusing too much on HR efficiency metrics (like HR costs, HR ratios, cost of hiring, etc)
• Moving from an HR scorecard approach to a Business scorecard philosophy.