Metrics on perfomance management v1

Jon Boyes
Employability and Graduate Development
HR SPOT
www.hrspot.co.in | www.onlinehrspot.com
Kolkata | Bhubaneswar | Online
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Star Greenbelt of East (Six Sigma)
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www.hrspot.co.in | ISO Certified | Winner of 8 Service Excellence Awards
HR Analytics
HUMAN RESOURCE MANAGEMENT
HR ANALYTICS

HR Analytics
HR Metrics
Performance Management
Metrics

HR Analytics
Purpose :
Measuring profit per employee can ensure whether the company is over or understaffed.
This HR metrics helps to identify whether increased staffing is generating better business or
merely eating into profits.
Example :
If Business Profit : 1,00,000 (income – investment & expense)
No of employees : 10
Profit Per Employee: 1,00,000/10 = 10,000
PROFIT PER EMPLOYEE
Formula :
Profit Per Employee = Business Profit
Number of
employees

HR Analytics
Purpose:
A Strategic Performance management tool, Importance of any process or person can be
measured through the Four Legs of the Balanced Scorecard.
• Objectives
• Measures
• Targets
• Initiatives
Perspectives :
• Financial Perspectives – Financial Performance
• Customer Perspectives – Satisfaction
• Internal Perspectives – Efficiency
• Learning & Growth Perspectives – Knowledge & Innovation
BALANCE SCORE CARD
Criteria :

HR Analytics
BALANCE SCORE CARD

HR Analytics
Purpose:
It is a way of ranking employees by a list of best to worst employee.
All employees gets compared with each other and evaluated on their performance.
Example :
In case of 50 employees in the Organization,
10/100 * 50 = 5
Last 5 employees in the Rank will be Replaced.
FORCED RANKING
Objective :
Bottom 10% of the workforce gets fired or replaced
Formula:
Forced Ranking = 10% * No of Employees

HR Analytics
Purpose :
It assesses the value of human capital i.e. knowledge, habits, social and personal attributes.
Total Revenue in a quarter : 30,00,000
Total Expense in a quarter : 22,00,000
Average No of manpower : (Beginning & end of period) 26 + 28 = 54 / 2 = 27
Human Capital ROI : 30,00,000 - 22,00,000 = 8,00,000
= Rs. 29,630 per employee
Formula :
Human Capital ROI
Example :
Total Revenue - Total Expenses
No of Manpower
Human Capital ROI =

HR Analytics
Purpose :
Employees who are more motivated and produce more in terms of work quantity can be
identified.
Formula :
OVERTIME PER EMPLOYEE
Example :
Total hours of Overtime
Total no of Employees
Overtime Per Employee =
Employee Shift Timing
Shift
Hours
Working
Hours
Over
Time Total OT
EMP01 10am - 7pm 9hrs 10am - 9pm 2hr
8hrs
EMP02 10am - 7pm 9hrs 10am -10pm 3hrs
EMP03 10am - 7pm 9hrs 10am - 9pm 2hrs
EMP04 10am - 7pm 9hrs 10am - 8pm 1hr
Overtime per
employee = 8/4
= 2hrs per employee

HR Analytics
Purpose :
It helps to analyze the productivity per head & per hour in a day and accordingly target can be
fixed.
Average no of employees : (Beginning & end of period) 96 + 04 = 100 | 100 /2 = 50
50 employees prepare : 10,000 material per day
Per head productivity : 10,000/50 = 200 material per day
Per day working hours : 8hrs
Per hour productivity : 200/8 = 25 material
Formula :
PRODUCTIVITY OF EMPLOYEE
Example :
No of Material Produced
per day
No of employees
Per head
productivity =
Per hour
productivity =
No of Material Produced per
head
No of working hours

HR Analytics
Purpose :
Satisfaction level of customers can be identified.
Average No of Customer in a quarter : (Beginning & end of period) 310 + 350 = 330
No of Satisfied Customer : 270
Customer Satisfaction Ratio : 270 / 330 * 100 = 82%
Formula :
CUSTOMER SATISFACTION RATIO
Example :
No of Satisfied Customer
Total no of Customer
Customer Satisfaction Ratio = x 100

HR Analytics
Purpose :
It measures overall customer satisfaction by the rating of specify sets of questions.
Process :
Customer Rates in 5-point rating scale (0 – 5)
Probable Questions :
1. How satisfied are you with our service ?
2. How satisfied are you with your purchase ?
3. How satisfied are you with our delivery ?
Example :
For Question-1,
No of Customer given rating : 6
Ratings of 5 employees : 5+5+4+4+3+4
Satisfaction Score of 1-Q : 25/6 = 4.16
For total customer satisfaction score, all rating of individual Q1-Q3 needs to added together.
CUSTOMER SATISFACTION SCORE

HR Analytics
Purpose :
It sets long-term success goals to make the employees aware of what is expected from them.
KRA-KPI
KRA KPI
 Responsibilities identified as important or crucial
 Outlines what job is expected to accomplish
 It is a strategic Factor
 Qualitative
 Indicates the progress
 Identifies the achievement and compares with
expectation
 It is a metric
 Quantitative

HR Analytics
Goals :
KRA-KPI
KRA without measurable KPI KRA with measurable KPI
KRA: Run from Kolkata to Delhi
Reward: You run well - Get trophy
Questions: Who will get trophy?
What is “Good Run”?
KRA: Run from Kolkata to Delhi
KPI: Complete within 10 hours
Reward: If you can complete within 10 hours
then you will get trophy
Example:
S M A R T
Specific Measurable Attainable Relevant Timely

Metrics on perfomance management v1

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