[MUSIC] Welcome to HR metrics and analytics I'm so excited you're taking this course, metrics has evolved from a buzzword and morphed into a required word. Businesses grow, evolve or flop around the business's ability to outline key metrics impacting the bottom line. The same is true for the HR function. Our function is when equal to that of finance, operation or sales, we are equally accountable to the success of the business and we should require metrics to be part of our success story. The reality is, we must include metrics in our story, because now more than ever, HR has a seat at the table, and that table demands a spreadsheet. The single difference between what makes a great HR team versus an average team is the extent to which we use metrics to drive decisions. Second two metrics is the business's ability to differentiate rewards and performance. Without numbers or data. It's just an opinion. Metrics alone have little value unless you put them into use. They need to solve a problem or backup a need. We collect a lot of data in HR, but what do we do with it? HR impacts the business, its products and profitability. When you think of HR, we need to move away from being an HR VP to being a true HR business leader, a strategic thinker. We work for a business unit called the HR department, just like some of my work for the business unit finance we are critical to the success of our organisations. Our function is responsible for the strategies that attract retain the talent that drives business results. It is critical that we as leaders build HR functions that thrive on agility. Agile HR teams must be purposeful on the way they tell a story. We must use data and metrics to backup our observations. And those observations have critical business impact to the success of the bottom line. And agile HR department must be able to move resources people rapidly throughout the business to higher impact business areas. We need to be able to move a resource away from lower return areas. What does that mean? We need to be able to predict the future. We need to know how to focus our resources and how to focus them well. As we think about the dynamic role that we play, let's first look at the six key areas of the employee lifecycle to build a framework on which our metrics should sit on. More and more we hear the importance of the employee experience how the experience equates to an increase or decline in the business outcome. The experiences impacted directly during each stage of the employee lifecycle. The lifecycle or journey is the stages of which an employee will experience your company through their tenure ship. In general, the life cycle begins with the company attracting a new hire and ends with the employee departing from the company. Think of these six stages is our strategic roadmap for metrics success. Each stage has a story and need a metric in which the success can be measured. Each stage impacts the bottom line of the company's profitability, attracting. It's a recruiting and Courtship of the talent that you're going to have join your company. Think of things like how do you show up? What's your employee value proposition? How do you know that you are an employer of choice? Hiring. How do you select the best candidate for your open roles? Are you diverse enough? Are you representing your customers or partners in the right way? Onboarding? How do you integrate that new employee into your company? What does that experience look like? How are they learning? How are they meeting new people? How do they know what the culture is at your company? And how are you melding them together developing? How are you building a career path and coaching for growth. Do you know your succession plans? What are the experience and projects that you're going to put people on? What is the development roadmap to keep someone? For number five engaging retained in the organization. Are you fostering a purposeful company? One that's building the strengths of the employees. Do you have fair expectations? Are your rewards and recognition designed to drive high performance? And last departing? How do you craft a positive exit experience? How do you make sure you mitigate losses to your competitors? How do you ensure that it doesn't go back to impacting number one? How you attract people each of these stages of the life cycle correlate with an HR function from recruiting teams to benefit and compensation teams moving into our employee relations teams and HR business partners. They impact our L and D teams and so forth. Some of us may have organizations that have centers of excellence in HR that are very vast, while other of us might be a center of excellence of one, regardless of how big or small your team is, what is consistent is the need and the use of metrics to build your business case to solve your business problem. To predict your future business needs to ensure that you have a strategic successful HR career. So now let's explore what makes a really good metric. Metrics can and should be used to change behavior and influence outcomes. Metrics are numbers that help us tell a story. They are the linchpins to our success that gives our argument credibility. While our words can make the argument persuasive, the facts, the metrics are what make the argument powerful. A great metric will tell a five-point story. The five attributes of an successful metric are quantity, quality, time, cost and money and finally, customer service or satisfaction. So what does this mean? It means when looking to solve a problem predict a change or when building a business case, the more you can pull the metrics that have five attributes as these the more solid the foundation, your case will be built on. Let's look at a few examples of how to use these attributes and building a metric story. If we only use words, we hired amazingly well. That doesn't tell us a lot. If we add in a number, we hired 15 people, a little bit better. But if we added a metric, we hired 15 people this month and 75% of them are achieving at or above their sales target already. That new onboarding tool is providing success. That sounds a lot better. But we can even make it superior. Let's look at it this way. The organization hired 15 people between January 1st and January 30th. For our top five key roles. Of those 15 people, 75% have completed their onboarding resulting in a $15,000 over delivery of a swift sales quota. Additionally, all associates rated their first month, a four or better on a five point scale. Look at what happened when we put in all five attributes. See how much better that presents? So let's pretend we're trying to validate if that onboarding program worked, or if our recruiting efforts are effective. These types of metrics stories make all the difference in the outcome and the delivery of our findings when we can pull all five metrics together. While we might not always be able to incorporate all five attributes, your goal is to think through what are we attempting to solve prove or predict, and outline what type of metric in each of these categories would help us to prove or disprove our hypothesis. So let's dig a little bit more into each of these metric attributes. Traditionally, HR has used what is called a soft metric for things like employee impulse surveys, interviews and discussion points, where the rest of the business typically uses hard metrics or things like outputs, error rates and ROI both types of metrics are important. However, in an agile world of business hrms focus on investing in the use of hard metrics to impact decision making. Let's dissect hard metrics for the five metric attributes we discussed earlier are known as what is. As hard metrics, hard metrics generally measure visible in tangible things. So let's start with quality, quality measures and error rate or the quality output of a process or programme. A good example of this could be something like quality of recording. And we're focusing on a new recruiting avenue sources and processes we could measure the question quality of the hires versus the old process and the new process. Working with our business owners, we could identify what quality metrics the business would deem appropriate and measuring the quality of a new hire. Quantity metrics. They measure the metric or numerical output of a process or a programme over a specific period of time. A few examples of this metric are best seen in validating the effectiveness of a training program. We could evaluate the number of training hours or courses we gave over a period of time, and the increase or decrease or no impact at all those trainings had on a specific outcome. Think sales training or reduction in time to complete a specific process that leads us into the time metric. This measures the speed or elapsed time period in which a specific action or process is completed. The difference of this metric versus quantity or quality as it measures the speed of which something is completed. Not the quality or quantity to which something was completed. Most of the time the time metric is used with quantity and quality. The most common use in HR is time to fill. However, beware of this metric gotcha, while a group may say wow, I had a really quick time to fill, what if the quality of those hires were not so great? Another example of the time metric is sometimes found in healthcare costs. Many organizations will measure core mobidities, the costs between a specific period of time of diabetes last year versus this year. You might also notice that we were measuring. Our last hard metric of cost and money in that example. So as I said, cost and money is the last of the four hard metrics. Let's go back to that comorbidity example. We could be measuring diabetes between last year and this year, but also looking at the cost between last year and this year. A common metric also used in the time or money metric is around the cost of a program or process. You see this used a lot in our lives. Many organizations will measure the cost of a training program or the cost of new hires. You also see the cost of, as I talked about, healthcare. Things like that. Now that we understand our hard metrics, let's look at the fifth metric attribute which is our soft metric. Typically seen in employee surveys, interviews and discussions. Soft metrics measure of feelings, something that's intangible. They're typically not things like cost or time, quantity or quality. What you see most used frequently and soft metrics are the attribute of customer service or satisfaction surveys. You're measuring a degree to an outcome of a process did it meet the expectations of the customer. So here's an example. An employee engagement survey. A 360 interview question. These are things that have more emotion in them. They've been highly used by HR. They are effective with words, but it's super important that we use the four hard metric attributes. When we create a metric story.
