Professional Documents
Culture Documents
What is Strategic Partner? Apply logic and good business sense; this means applying a systematic and consistentapproach to identifying problems in the business Address real and tangible issues that relates to business objectives
AsPeterDruckerputsit:"Ifyouwantit,measureit;butifyoucantmeasure it, forget it!" Thus use financial measurement for HR, since it is a typical measurementthatisapplicabletoeveryfunction.
3. Get the Evidence When you find hard evidence, ask the following questions: How do you measure it? What is it now? What is the current situation? What would you like it to be? What is the value of the difference? What is the total value over time? (3 to 5 years) 4. Formulate the Impact When measuring the impact, we use the "back of the envelope" economics
Example: Problem: "Low Sales Productivity" How do you measure it? Calls per hour What is it now?15 calls per hour What would you like it to be?20 calls per hour What is the value of the difference? 5 calls x total headcount (200) x average profit per call (Rs. 10,000) x total hours per week (30 hours) = Rs 300,000,000/week = Rs 1,200,000,000/month What is the value over time? (3 to 5 years) = Rs. 43,200,000,000,000 (for 3 years) = Rs. 72,000,000,000,000 (for 5 years)
HR measures -Examples
Here are several examples of HR measures that provides financial analysis: Productivity Ratio Absenteeism Ratio/Cost Employee Turnover Cost: Recruitment Cost Replacement Cost Training Cost Administrative Cost Total Personnel Cost