Hi All,
I'm doing a study of HR Metrics for Compensation and Benefits. Could anyone suggest some reading material and give me some input on the kind of metrics that could be used in measuring Compensation and Benefits. Thanks a lot.
Regards,
Ken
From India, Bangalore
1I'm doing a study of HR Metrics for Compensation and Benefits. Could anyone suggest some reading material and give me some input on the kind of metrics that could be used in measuring Compensation and Benefits. Thanks a lot.
Regards,
Ken
From India, Bangalore
HR METRICS IN COMPENSATION
WHY WE NEED THE METRICS ??
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Are the people we have the most productive in the industry?
What is our productivity (output) per dollar of people costs spent? (People Costs include: sal, benefits, training, & HR Dept. costs.) Can HR show the trend (over several years and project future years) and compare it to our chief competitors.
What is our "People Profit" (the number of dollars of "people" costs we must incur in order to generate a dollar of profit)?
What is the trend and how does it compare to our chief competitors?
What is our "Revenue per employee"? Is it higher than our competitors?
Are we over paying our employees for the output they produce?
Can HR show the impact of pay increases? What is the % increase in employee performance as the result of every 1% increase in pay.
Does paying top dollar matter? Do the employees paid in the top quartile of the salary range produce proportionally more output than those paid in the middle quartile?
Demonstrate that we have tied a higher proportion of our total compensation to productivity and company performance than our competitors. How much differently do we treat (pay) our top contributors from our average contributors?
Who are we over/ under paying? Demonstrate we have an effective system for identifying and forecasting whether we are under or over paying our employees.
Is there evidence that our benefits programs really attract or keep people?
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PROBABLE HR METRICS IN COMPENSATION
1.ANNUAL TOTAL COMPENSATION INCREASE RATE [%] [this year vs last year]
2.ANNUAL TURNOVER RATE.[this year v s last year]
3.COMPENSATION &BENEFITS AS A % OF SALES.
4.COMPENSATION & BENEFITS AS A % OF OPERATING EXPENSES.
5.COMPENSATION & BENEFITS PER EMPLOYEE [ this year vs last year]
6.COMPENSATION & BENEFITS COMPETITIVENESS INDEX.
7.INCENTIVE PAYMENT AS A % OF TOTAL COMPENSATION & BENEFITS.
8.BENEFITS SPEND AS A % OF TOTAL COMPENSATION & BENEFITS
9.COMPENSATION & BENEFITS BY LEVELS OF STAFF
-senior mgnt/ executives/middle mgnt/ junior mgnt/supervisors/staff etc.
10.NEW COMERS COMPENSATION & BENEFITS AGAINST TOTAL FOR THE YEAR.
11.% OF EMPLOYEES SATISFIED WITH CURRENT SYSTEM [ SURVEY ]
12.MEDICAL BENEFITS EXPENSES TOTAL [ THIS YEAR VS LAST YEAR]
13.MEDICAL BENEFITS EXPENSES PER EMPLOYEE.
REGARDS
LEO LINGHAM
From India, Mumbai
WHY WE NEED THE METRICS ??
----------------------------------------------------------------------------------------------------
Are the people we have the most productive in the industry?
What is our productivity (output) per dollar of people costs spent? (People Costs include: sal, benefits, training, & HR Dept. costs.) Can HR show the trend (over several years and project future years) and compare it to our chief competitors.
What is our "People Profit" (the number of dollars of "people" costs we must incur in order to generate a dollar of profit)?
What is the trend and how does it compare to our chief competitors?
What is our "Revenue per employee"? Is it higher than our competitors?
Are we over paying our employees for the output they produce?
Can HR show the impact of pay increases? What is the % increase in employee performance as the result of every 1% increase in pay.
Does paying top dollar matter? Do the employees paid in the top quartile of the salary range produce proportionally more output than those paid in the middle quartile?
Demonstrate that we have tied a higher proportion of our total compensation to productivity and company performance than our competitors. How much differently do we treat (pay) our top contributors from our average contributors?
Who are we over/ under paying? Demonstrate we have an effective system for identifying and forecasting whether we are under or over paying our employees.
Is there evidence that our benefits programs really attract or keep people?
----------------------------------------------------------------------------------------------------------------------------------------
PROBABLE HR METRICS IN COMPENSATION
1.ANNUAL TOTAL COMPENSATION INCREASE RATE [%] [this year vs last year]
2.ANNUAL TURNOVER RATE.[this year v s last year]
3.COMPENSATION &BENEFITS AS A % OF SALES.
4.COMPENSATION & BENEFITS AS A % OF OPERATING EXPENSES.
5.COMPENSATION & BENEFITS PER EMPLOYEE [ this year vs last year]
6.COMPENSATION & BENEFITS COMPETITIVENESS INDEX.
7.INCENTIVE PAYMENT AS A % OF TOTAL COMPENSATION & BENEFITS.
8.BENEFITS SPEND AS A % OF TOTAL COMPENSATION & BENEFITS
9.COMPENSATION & BENEFITS BY LEVELS OF STAFF
-senior mgnt/ executives/middle mgnt/ junior mgnt/supervisors/staff etc.
10.NEW COMERS COMPENSATION & BENEFITS AGAINST TOTAL FOR THE YEAR.
11.% OF EMPLOYEES SATISFIED WITH CURRENT SYSTEM [ SURVEY ]
12.MEDICAL BENEFITS EXPENSES TOTAL [ THIS YEAR VS LAST YEAR]
13.MEDICAL BENEFITS EXPENSES PER EMPLOYEE.
REGARDS
LEO LINGHAM
From India, Mumbai
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Hr metrics.doc