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TAKING HR TO THE BOTTOM LINE Presented by AL LUCIA www.adlassociates.com.

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Presentation on theme: "TAKING HR TO THE BOTTOM LINE Presented by AL LUCIA www.adlassociates.com."— Presentation transcript:

1 TAKING HR TO THE BOTTOM LINE Presented by AL LUCIA

2 People >>>>>>>>> >>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>> $$$

3 THE PEOPLE BUSINESS Selection; Development; Assessment; Compensation; Recognition>>>>>>>>>>>>>>>> >>>Engagement; Commitment; Performance ;>>>>>>>>>>> $$$

4 Important Studies about The People Side of Business …what the experts are saying!

5 The more highly engaged employees are, the more likely they are to put customers at the heart of what they do and how they think about their jobs, and the less likely they are to leave their company. Towers Perrin Talent Study

6 Highly satisfied groups of employees often exhibit above-average levels of customer loyalty, productivity, employee retention, safety, and profitability. Gallup, 2004 Survey of 1.5 million employees

7 Employee engagement levels at high- growth companies exceed those of lower-growth companies by more than 20%. Hewitt Associates Survey of 4 million employees

8 There is a direct correlation between the quality of the boss/worker relationship and various elements of the workers job like career advancement and high stress levels. Career Builder Survey May 2004

9 Disengaged workforce is costing the US $350 billion annually. This equates to 11% of an organizations payroll begin paid out for unproductive time from disengaged employees. Gallup, 2004

10 The front-line manager is the key to attracting and retaining talented employees. First Break All The Rules Buckingham and Coffman 400 companies surveyed

11 A safe, pleasant workplace is high on good workers list of expectations. Kiplinger Letter Spring 2004

12 An organization that makes work as fulfilling as possible will develop and retain the most productive workers and enjoy the most loyal customers. The ROI of Human Capital Jac Fitz-enz

13 Share performance (stock price) of companies with high employee trust levels outperform companies with low trust levels by 186 percent. Watson Wyatt, 2003

14 GTE metrics show that every 1% improvement in employee engagement boosts customer satisfaction by 0.5%. Harvard Business School The New ROI: Return on Individual

15 Employee Engagement Survey Results 2005 Conducted by &

16 87 Organizations 30 Different Industries Over 850,000 Employees

17 Overall Survey Conclusion… You will not get sustained employee engagement without the human touch!

18 Lowest Scoring Item… Effectively handling the emotional side of change 42% rated their companys effectiveness below average

19 Second Lowest Scoring Item… Actively reinforcing application of learning and development activities Averaging just 2.78 on a 5 point scale

20 Leadership Caring Makes A HUGE Difference in Engagement! If I scored (Q22) 1 … engagement 12% favorable. If I scored (Q22) 2 … engagement 26% favorable. If I scored (Q22) 3 … engagement 50% favorable. If I scored (Q22) 4 … engagement 78% favorable. If I scored (Q22) 5 … engagement 91% favorable. Correlation between EOS survey question on management cares about employees well-being and favorable Engagement Index

21 Talent ManagementThe best opportunity for connecting to your organizations bottom line Deloitte November 2005

22 FOCUS ON CAPTURING THE HEART OF YOUR EMPLOYEES Deloitte Nov 2005

23 TALENT CRISIS HIGHLIGHTS Decreasing Loyalty and Tenure Growing Discontent Information Fatigue

24 THE RULE For Making Things Happen!

25 THE RULE For Making Things Happen ! 40 % The Need to do it 20 % The Skills to do it 40 % The Accountability for doing it

26 HR TRENDS

27 Recruiting and Retaining Talent

28 The front-line manager is the key to attracting and retaining talented employees. First Break All The Rules Buckingham and Coffman 400 companies surveyed

29 Hire Easy - Manage Tough Hire Tough - Manage Easy

30 HR TRENDS Recruiting and Retaining Talent Disease Management

31 There is a direct correlation between the quality of the boss/worker relationship and various elements of the workers job like career advancement and high stress levels. Career Builder Survey May 2004

32 Rising health care cost Absenteeism Turnover Stress Psychological health Work/Life Balance There are leaks in your bottom line…. …Adds up to lost productivity

33 Need Proof? Did you know that for every 100 employees: 78 consider their jobs as stressful 64 are overweight, 49 have high cholesterol 10 suffer from alcohol or drug problems 25 smoke 20 have cardiovascular disease 25 have high blood pressure 50 dont wear their safety belts regularly 10 have diabetes Source: US Department of Health and Human Services

34 This all adds up to….. Stressful work environment Higher turnover rate Lowered morale Higher healthcare costs for employees/employers ….. Lots of Money!

35 S0…What can you do? Preventive and Informative Investments ROI $1.70 –to- 1 First Year $2.00 –to- 1 Second Year $2.46 –to- 1 Third Year Source: Workforce Management, 3-05

36 HR TRENDS Recruiting and Retaining Talent Disease Management Measurement of Results

37 PRACTICAL METRICS Gain leadership alignment on value that will be produced for the business

38 KEY METRIC AREAS > Customer Satisfaction Internal and External > Turnover Cost Overall…not line items

39 Turnover Calculations Hard CostsAt $10.00/Hr Predeparture Exit Interview$37 Separation Processing$12 Vacancy Costs Temporary Fill$1288 Overtime$690 Advertising$110 Recruiting Admin.$121 Selection Interviewing$138 Testing$100 Reference Ck.$34 Info. Literature$50 On-The-Job Training$1150 Total Hard Costs$3730

40 SOFT COSTS At $10/HR Employees Lost Productivity$80 Co-Workers Lost Productivity$97 Supv. Lost Production$207 Supv. Interim Lost Productivity$138 New Employees Learning Curve$482 Supv. Teaching Time$483 Current Business Lost$350 New Business Not Acquired$350 Domino Effect$350 Total Soft Costs$2,537 Turnover Calculations

41 Soft Costs Hard Costs3, Total Hard & Soft Cost$6, Turnover Calculations

42 BALANCED SCORECARD Customer People Sales Profits

43 HR TRENDS Recruiting and Retaining Talent Disease Management Measurement of Results Diversity/Inclusion

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46 HR TRENDS Recruiting and Retaining Talent Disease Management Measurement of Results Diversity/Inclusion Branding

47 Highly satisfied groups of employees often exhibit above-average levels of customer loyalty, productivity, employee retention, safety, and profitability. Gallup, 2004 Survey of 1.5 million employees

48 We fulfill dreams through the Experience of Motorcycling Proven Management Team Steady, Manageable Growth Trust Empowered Employees Stakeholder Relationships Respect

49 People >>>>>>>>> >>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>> $$$

50 TAKING HR TO THE… ………………………… ………………………… ………………………… ………………………… BOTTOM LINE With Al Lucia


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