tag:blogger.com,1999:blog-7686742259258701545.post3035155929967800020..comments2024-03-28T09:29:23.550+00:00Comments on Strategic Human Capital Management (HCM) Blog: Benchmarking the HR functionJon Inghamhttp://www.blogger.com/profile/05553537200734270043noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7686742259258701545.post-21392764894878932622008-02-05T09:42:00.000+00:002008-02-05T09:42:00.000+00:00Hi Jo,I agree. We need to get organisations much ...Hi Jo,<BR/><BR/>I agree. We need to get organisations much more focused on lead indicators, and understanding the link between these and their final business outcomes.Jon Inghamhttps://www.blogger.com/profile/05553537200734270043noreply@blogger.comtag:blogger.com,1999:blog-7686742259258701545.post-53535851808618937872008-01-27T12:47:00.000+00:002008-01-27T12:47:00.000+00:00Hi JonI was introduced to the idea that HRM is the...Hi Jon<BR/><BR/>I was introduced to the idea that HRM is the management of the supply and demand of labour by Michael Riley at the University of Surrey. I find Sales/HR costs to be a useful metric.<BR/>When I first started using it, two things quickly became apparent.<BR/><BR/>1. Sales and HR Costs are almost perfectly correlated. You have to spend money to make money. To improve the ratio, we need to improve our productivity, i.e., our ability to manage the intricate processes of the business. That brings HRM directly into the business conversation.<BR/><BR/>2. The ratios vary quite a lot even within a firm. Take a supermarket chain. Some outlets are simply in a better location. Equally costs may be high or low for all sorts of reasons - e.g., staff might have longer tenure, and we aren't going to meddle with that for the sake of a number. So this ratio is not carved in stone. It simply helps me ask questions and my question asking helps managers understand how HR interacts with a lot of other factors to contribute to their results <BR/><BR/>I use other quants as well to help us explore the operating of a business unit. My focus though is on lead indicators that help us take part in the business conversation and facilitate concerted action.<BR/><BR/>The prize is better performance of the business unit. We will have played our small part and join in the party to celebrate!<BR/><BR/>I like figuring out metric reports so if anyone wants to collaborate, I am game.Anonymousnoreply@blogger.com