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by 45% and cuts the cost of delays / “doing nothing”
35Source: Forbes 2012
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ddHR goal # 11Calculate the added value of top performers
Prioritize your top performers
The top 1% of your workforce produces what %
of your total output ?
The top 5% produce
The bottom 5%...
A top performer produces how much more than
the average employee in the same job?
- 10 times the average
- 25 times more than average employee
- 300 times more than the average
- 1000 times more than the average
GE, Netflix & Yahoo
5%
Apple
Google
Microsoft
26% (5X) - U of Indiana study
may actually lose you $
37
ddHR goal # 12Calculate the cost of weak performers
A weak employee may cause errors and disruption
each year up to 2 ¼ times their annual salary
(O’Boyle and Aguinis)
They take up a manager’s time because their
managers must spend nearly one day a week
(17%) dealing with them (Source: Robert Half)
Toxic employees make their teammates 54% more
likely to quit Source: Cornerstone Selection survey
Bad ones stay forever… weak hires may stay 20
years, multiplying their negative impact
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Conclusion – best practice sharing increases revenue by $250,000
per year, at a cost of $50,000, with an ROI of 4 to 1
Monthly sales
Best
practice
sharing
in sales
started
Sales up
+ 22.4% after 1 yr.
of B. Practice sharing
1st Quarter
$1.5 mil
$1.4 mil
$1.3 mil
$1.2 mil
$1.0 mil
.02% change in sales in control group
2nd Quarter 3rd Quarter 4th Quarter
Control group
ddHR goal # 13Use split samples to show programs work
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ddHR goal # 14 Integrated data allows you to “connect the dots”
Don’t miss the costs of unintended consequences
Pocket #1 – Froze safety training (Saved $50,000)
But look at “other pocket” costs after one year…
Pocket #2 – Accident rates doubled (+$400,000)
Pocket #3 – Insurance rates up 23% (+$187,000)
P. #4 – Turnover of safety ee’s +15% (+$89,000)
Other pocket costs = - $676,000 >
40
ddHR goal # 15 ddHR reveals the cost of slow
Last year they had only 110 vacancy days in loan officer positions at this Midwestern bank, before the CFO cut the recruiting staff by 20% (The root cause)
This year there were 210 position vacancy days
$5000 is the lost revenue for each day that a loan officer position is vacant
X the 100 additional excess vacancy days equals a $500,000 loss per year
The savings from the 20% recruiter cut was only $200,000 (a minimum $300,000 net loss)
OMG!
ddHR goal # 16Predictive metrics alert you of upcoming problems
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Employee retirement projection alert
(% of all employees likely to retire)
2015 2016 2017 2018
Alert: Retirements will triple by 2018
at a cost of $12 mil. in lost productivity
42
Benchmark Google (read Work Rules)
Put together an HR analytics team
Hire HR pro’s with data/analytics skills
Work with exec’s to prioritize HR areasShift from historical to real-time and