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Building a People Metrics Reporting Framework

HRM 4412 Assignment 2

Based on the people strategies and/or issues for a specific organisation, build a people metrics reporting  framework that will benefit different stakeholders who have an interest in people metrics. Seek feedback on the initial framework from tutors and fellow students in order to complete the final submission.

1. The Goals of this Assignment

The goals of this assignment are as follows:

• To enable you to examine a business or HR strategy (ref the diagram in LW06 slides 3-10) and turn it into a set of metrics   that will effectively track progress
• For the type of business that is chosen, to help you think about the HR metrics that would be needed to meet the needs of different stakeholders
• To enable you to put this together into a “framework” of HR metrics that will be managed by the Metrics and Analytics department of HR, and will be the basis of your regular reporting.

 Note A: If you can master this, you will have learnt to do something most people in your future HR departments won’t know how to do

Note B: this framework is designed to define what HR Analytics Department needs to be regularly monitoring for the next year. It will be reviewed at least annually.

 Note C: You are asked to choose a sample only for each stakeholder group. In real life you would choose all you need to meet the needs of the diagram explained in LW07

Note D: this is not an academic assignment and references are not required – it is a practical exercise

2. The Organisation to Study

• Choose an organisation’s annual report to study. There is a selection below.
• An Annual report is produced for the benefit of the shareholders and potential investors. In some countries (like the USA) they almost entirely about legally required financial reporting. What companies report publicly beyond the legal requirements is optional and varies a great deal. The ones below have been chosen because they have a lot about HR and some HR Metrics to give us some idea of their people priorities/strategies.
• If you want to choose a different organization, please do so. Some students in the past have chosen organizations they are attracted to but they do not serve the purpose of this assignment well.
• If you are at work it would be good of course to do your own organisation. But this is not recommended because it makes the assignment too lengthy and difficult as you have access to “too much information”

Note: If we were inside an organisation we would not look at the Annual Report – we would go and talk to the right people to find out Business Strategies and Plans; HR Strategies and Policies; and current people issues that need monitoring with metrics. We would follow the full model as described in LW07. And our Framework would be more extensive than in this assignment. Most of you do not have access to all this kind of information so we recommend all students pick a published annual report

2.5 Here are some options for an Annual report to be the basis for your Assignment 2. They have been chosen for having considerable information about “Our People”. You should look at 3 or 4 before making your choice.

BRITISH TELECOM (TELECOMS)

https://www.bt.com/bt-plc/assets/documents/investors/financial-reporting-and-news/annual-reports/2020/2020-bt-annual-report.pdf

 (SEE SECTION ON “Culture and Colleagues”)

3. Looking at Annual Reports

• What we are trying to do is to create an analytics framework which will meet the needs of the chosen organisation in a) regular and ongoing reporting and monitoring of people issues and also to note  b) specific metrics that we may want in order to monitor particular business or HR strategies or problems to be addressed.
• This is what you should look for in an Annual Report. It will all be in the introductory sections before the detailed accounts begin and there will be a contents list at the beginning.
• Business Strategies that may have a People impact. Not all of them will do so – typical ones that do have a direct people impact might be geographical expansion, cultural change, new values, business restructuring, special training, people related KPI’s
• The sections on “Our People” (sometimes this is found under “Social Responsibility” or “Stakeholders”). There may be other references to employees so you do need to scan the whole “strategic and operational” section of the report . We are looking for people strategies, and especially any people areas where they quote some numbers.
• Any people related items in the section on “Risks”

Note there may be other relevant (i.e people related) materials available on the internet which we can also access. To do so may gain you additional marks

4. Structuring the Assignment

Below is a guide to the structure of the assignment and what you should include.

5. The Introduction

This should cover the following:

1. a) what documents or parts of a document (such as the annual report) that you have accessed
2. b) state any business strategies that will have clear people impacts (see examples above)
3. c) state any clear people policies, strategies or existing people metrics that you have discovered or you know about
4. d) state any business risks that are people related and have been identified and need monitoring (from the risks section)

At the end of this section you should summarise what you have found in a table as follows:

Some of the above you will transfer to the Framework of Metrics

5.2  The Framework/Table of Metrics

5.2.1  How will the Framework look? (SEE APPENDIX below)

Make a table (it can be a separate excel file if you prefer). Across the top, the first row will be the title of the columns. In the first column will be the headings for the rows.

Within each stakeholder group choose up to SIX metrics. It helps to number them and keep one line for each metric (eg SM01 for the first one under “senior management”)

These are the columns to use:

• Column 2 – metric description (example) Labour turnover
• Column 3 – why has this been chosen? In support of a strategy/priority/ problem monitoring/ compliance?   (example)  problem monitoring
• Column 4 – was this mentioned in the report or has it been added by me? (example: from annual report)
• Column 5 – metric calculation (example) 6 month moving average of leavers/total staff x 100 split  voluntary and involuntary
• Column 6 – frequency of measurement (example) monthly
• Column 7 – source of the data (example) from HRIS  
• Column 8 – expected insights and learning (example) To understand and reduce causes; to predict future recruitment needs  

(Note in “real life” we might also add columns for “Owner of the Metric”; “Target level”; “Benchmark this metric?”

Note: Some metrics may be applicable to more than one group but usually “segments” of a general metric. On labour turnover for example, Senior Managers will want to know it for specific talent groups. Line managers want it for their own staff, plus reasons for leaving. HR will want the whole dataset

Note: In Column 6 avoid metrics that we would only report on ANNUALLY.  They would be part of a separate internal annual report.

5.2.2 The choices of metrics

• The annual report and other relevant literature will tell us what this particular organisation regards as important in HR. But we must remember that annual reports are selective in what they tell the outside. The ones chosen above are particularly generous with their commentary on their people – but for every one report like that there are ten that tell the public virtually nothing beyond some “motherhood” generalisations.
• So you need also to use some common sense. Is anything obviously missing that should be in this table? Most reports do not mention “absenteeism” for example – clearly we do want to track that.
• First think about the basic HR metrics that you want to keep track of anyway as a well run organisation. Not everything you can think of – but a basic platform appropriate for the kind of organization you have chosen.
• Then, based on what you find out is important for the organisation, and using your general understanding of HR, select some metrics for each stakeholder group.
• The Senior Management team – are there people aspects of the business strategy that they would want to monitor? What else would be important at the top level? Where would they like to make internal comparisons between departments?
• Operational line managers and HR professionals working together day to day – what do they need to get the best results from their people? And meet their own business objectives?
• The HR Executive/Department – what does the leadership of the HR department need to monitor its own service, processes and performance? (see LW 10). And particular initiatives/strategies that we are aware of from studying the Annual Report?

5.3 The Summary Commentary

The Summary Commentary should cover:

• Any explanatory comments you want to make about your choices, especially if you added some not found in the Annual report but because you felt they would be needed
• Any cautions about specific measures regarding their reliability, or difficulties there might be in getting good data
• Add a section listing up to SIX additional metrics that would form part of an INTERNAL ANNUAL REPORT – ie only calculated once a year

5.4 Insights from the Feedback

• Summarise the feedback received on your drafts from your tutor and your two fellow students
• Say how that influenced any changes leading to your final draft

Note: we have not included “shareholders” although it is an important “investor relations” decision as to how much to share with them. We would generally select “good news” and the only legal requirement (in UK) is to publish data on director remuneration and the gender pay gap.