HC Source ® 1 STAFFING EFFECTIVENESS Dr. Jac Fitz-enz CEO Human Capital Source.

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STAFFING EFFECTIVENESS

Dr. Jac Fitz-enzCEO

Human Capital Source

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WHAT TO MEASURE?

The Choice of Metrics Depends on Business Initiatives

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THE BASIC PRINCIPLE OFPLANNING AND EVALUATING

“ceterus paribus”

All things being equal……

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CAUSES AND EFFECTS

What Happened?: Activity: Cost, Time, QuantityWho – What – Where – When – How Much

What Was the Intermediate Effect?: ImprovementQuality – Innovation – Productivity – Service

GoalProfitability – Market Share (Mission Accomplishment)

GoalProfitability – Market Share (Mission Accomplishment)

What Was the Market Effect?:

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QualityHire

BetterCustomer

ServiceCustomerRetention& Spend

MarketingSpends on

New Prospects

ProfitIncrease

SAMPLE: CETERUS PARIBUSFROM CAUSE TO EFFECT

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TIPS, TRICKS & SYSTEMS

The One-Minute Recruiter

Benchmarking

Systems

>

>

>

>

>Scan

Plan

ProcessIntegrate

Evaluate

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STAFFING: A COMPLEX FUNCTION

Strategy

Structure

Processes

Skills

Evaluation

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CORPORATE INITIATIVES DRIVE STAFFING DECISIONS

Reduce Operating Expenses

Shorten Time to Market

Improve Customer Service

Increase Gross Margins

STRATEGIC LEVEL

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STRUCTURESOURCING vs. RECRUITING / SELECTION

Division of Labor and Motivation

Communication

Accountability

Reward and Recognition

?

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MEASUREMENT INVERSION

Future Values

Process Efficiency

Employee Productivity

Pay & Benefits Costs

Initial Cost to HireLeast Value

MostValue

Most Measured

Least Measured

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EFFICIENCY OR EFFECTIVENESS?

Cost Time

Quantity Quality

Reaction

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SAMPLE METRICS

QUANTITYNumber hired / Recruiter Add RateReplacement RateHire to Requisition RatioReferral RateInternal Fill Rate

COSTCost per HireSign on Bonuses

TIMEResponse TimeTime to FillTime to Start

QUALITYFit RatingOffer to Acceptance Rate

REACTIONManager Satisfaction

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ACCOUNTABILITY

SOURCING RECRUITMENT

Select (Cull)InterviewReferConfer/AdviseProcess: Quality Timeliness Satisfaction

Produce Leads: Quantity Quality Timeliness

COST

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ACTIVITY DATE ET

Requisition . . . 2/1Recruitment Plan . . 2/7 + 6Begin Sourcing . . 2/10 + 9First List . . . 2/22 +21Referral . . . 2/25 +24Selection . . . 4/15 +64Offer Made . . . 4/25 +74Accept / Reject . . 4/28 +77

Onboarding . . . 5/8 +87Arrival . . . 5/20 +99

TIME TRACKING POINTS

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Value

Time

Ad hoc HR Measures

Benchmarks

ScorecardsDashboards

Correlations Leading Indicators Intangibles Predictability Causation

Source: Boudreau & Ramstad, & HCS

LEAPING THE DATA WALL

1980s 1990s 2000s

Measurement Era Analytics Era

(ACTIVITY) (VALUE)

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PROCESS EFFECTIVENESS

N= Newspaper, M= Prof Mag, S= Search, E=Referral, J= Job Board, W= Walk InI= Personal Interview, G= Group Interview, T= Test, A= Assessment, O= OnboardingB= Performance, C= Pay Increases, P= Potential Rating, T= Tenure

Which Combination Yields the Best Talent?

NAME SOURCES METHODS RESULTSN M S E J W I G T A O B C P T

Al M I T 2 2 1 1Bea J I G T O 3 2 2 2CeeCee E I G O 3 2 3 2Didi N I T O 2 2 2 2Earl J I O 1 1 1 2Frank J I T 2 1 1 1Gina W I G A O 2 2 1 2Hal M T O 3 3 3 2Isaac S I G A O 3 3 2 2Jon E I G T O 3 3 2 2Ken N I G T 1 2 2 1Leo N I 2 1 1 1

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LINKED MEASURES

INITIATIVES

Cost Reduction >

Time to Market >

Customer Service >

Gross Margins >

EFFECTIVENESS

Cost of Staffing

Process Timing

Fit (Quality)

HR Productivity

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STATEGIC CAPACITY SCANExternal and Internal

forces affecting structuralrelational and human capital

CAPABILITY PLANNINGWorkforce and

Succession Planning

PROCESS OPTIMIZATIONRedesign Human Capital

ProcessesInput – Throughput – Output

SERVICE INTEGRATIONIntegrated Delivery of

Human Capital Productsand Services

EVALUATION METRICSLeading Indicators and

Intangible Measures for Predictability

THE BIG PICTURE

sourcing

recruiting

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OUR PROBLEM

HumanResources

Production

Sales & Marketing

CustomerService

SC&B

PM

L&D

R

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INTEGRATION

“The first thing we've got to do is not to have silos.

We had to design our culture and systems to focus on the customer, not on the product line.

We reward the behavior we want, which is getting all of our customers' business.”

Dick Kovacevich CEO

Wells Fargo Bank

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HCM

Hire

Pay

Support

Develop

Inform

INTEGRATED DELIVERY

Plan

R&D - Production Sales - Service IT - Finance

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Readiness Leadership K Worker Churn (Succession (Survey) (QIPS Levels) Planning)

Engagement Culture Manager Effectiveness (Survey) (BPTW) (Tenure: Shrink-CS-T)

Commitment Brand Awareness L&D Spend (Productivity (Employee Survey) (ROI Metrics) & Turnover)

LEADING INDICATORS AND INTANGIBLES

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Vision

Brand Culture

Leadership Engagement

Readiness

Knowledge Management

FORECASTERS

&

PREDICTORS

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WHAT & HOW TO DO IT

1. Adopt a new vision (Capability)

2. Connect to the Initiatives (Importance)

3. Find Competitive Advantages (Change)

4. Integrate Planning & Delivery (Synchronize)

5. Measure Predictors (Future Focus)

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THANK YOU

Dr. Jac Fitz-enz

Human Capital [email protected]

408.223.77508321 Pinotage Court – San Jose, CA

95135