TechTropolis is an information technology company. Its vision is to be a word class corporation, to be used as a standard of measuring other companies. The corporate mission of TechTropolis is to devise and deliver the utmost quality of IT solutions used by 75% of the market as the same time sustaining a 98% customer fulfillment. The organizational functions of TechTropolis have a record of creating obstacles and additional work for the employee, hindering them from attaining organizational goals. Whereas the company has been very successful, its Human Resource runs in a decentralized way. Presently, the majority of the human resource related decisions are made at in the office. That implies that human resource programs and problems of employment differ across the United States since there are more than 5 area offices.
That can impede the company’s capacity to effectively counter upcoming problems or conduct inventive employment relationship approaches that are to the interest the company. To meet employees’ needs and attain organizational and human resource goals, the organization has to develop a centralized human resource function positioned at the company’s office that recognizes and supports personal desires and the use of locally allocated HR (Noe, 2020). A centralized HR will promote consistency across the organization. The intended change will ensure that each will have one human resource delegate acting as the face of human resource in the profession, known as HR Business Partner. The purpose of this report is to design a centralized human resource department that will be the company’s corporate offices for the identification and support of employees’ personal needs and for use of the locally assigned HR contacts.
Strategic Recommendations for Recruitment and Selection
Based on the human resource purpose statement the HR department is committed to collaborating with TechTropolis company units to exploit the potential of the organization’s employees, its greatest asset. To achieve that, the centralized HR in its recruitment and selection will ensure consolidation of human resource activities and decisions in the able hands of competent and qualified people (Noe, 2020). It will ensure that employees in the department have the qualifications and training that are specific to human resource (O’Meara & Petzall, 2013). A centralized human resource department will assist the organization to save money on organizational and transactional costs for recruitment and selection. Recruiters who are centrally located can work together in recruitment campaigns, regulate and lower recruitment costs used in advertising, searching for the right candidate, and adhere easily to record keeping requirements (O’Meara & Petzall, 2013). Working from a single department, will enable HR employees to enhance the quality of services in recruitment and selection since they can work as a team.
Important Quantitative HR Metrics for recruitment and selection
Time to fill
This is the time taken to hire or find another candidate for a vacant position, which is usually determined by the number of days from the time a job opening is published to a time one is hired. The time to fill is influenced by the demand and supply ratios for certain jobs and the speed of operation of the recruitment department (Noe, 2020). Time to fill is calculated by adding all the measurements of time to fill for each position filled in a given time and the divide by the number of positions. For example, if three accountants were hired, with 20-, 10-, and 30-days’ time to fill, the average time to fill = 20+10+30/3=20. A lower average time to fill in the centralized HR will be an indication of an increase in efficiency compared to the existing decentralized HR.
Time to hire
Time to hire is a representation of the days between the moment a candidate applies for a position and the moment when she or he accepts the job (De & Boudreau, 2003). That is, it is used to measure the time a candidate takes to move through a hiring process after applying for a job. Time to hire provides an indication of the performance of the recruitment team (De & Boudreau, 2003). A short time to hire usually enables an organization to employ better candidates, avoiding a situation in which the best candidates are snatched by organization with a shorter time to hire.
Time to hire = day candidate accepts the offer- the day a candidate got into the employment process.
This is a major recruiting metric and it shows hiring success. Candidate who leaves the company within the first year of employment do not become fully productive and cost the company lost of money. Attrition can be managed or unmanaged (De & Boudreau, 2003). A managed attrition means that the employer ends the contract whereas the unmanaged one means the employee leaves on their own. The managed attrition indicates poor performance in the first year or a bad-fit with the working team. The unmanaged one is an indicator of impractical expectations that lead to the candidate quitting (De & Boudreau, 2003). That could be due to mismatch between the actual job and the job description.
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Quality of hire
Quality of hire usually measured by the performance rating of the hired candidate indicates their performance in the first year (De & Boudreau, 2003). Candidates with high performance rating demonstrate success hiring whereas the opposite is true. Low performance rating in the first year demonstrates bad hires. Quality of hire is (input for success ratio) calculated as the number of candidates with good performance divided by the total candidates hired. A low success ratio implies that the human resource has to perfect its selection process.
Success ratio= number of hired candidates with good performance/total number of hired candidates
Strategic Recommendations for Performance Management
A centralized performance management will enable the company to deliver quality customer service and identify the well performing employees and rewarding them. A centralized performance management will ensure that the company uses similar standards for all its employees in appraising them (Kuvaas et al., 2016). Employees with thus be aware of their weaknesses and strengths based on the expectations of the company. Personal rating techniques help in identifying the poorly performing employees for corrective measures and training, adding value to the organization.
The centralized HR should define and communicate organizational goals and performance objectives for employees. Employees cannot the performance objectives and organizational goals if they are not clearly defined (Kuvaas et al., 2016). Employees across the organization should get frequent performance feedback. That is essential for the reinforcement of strong skills and positive behavior, as well as indicating areas that require improvement. The human resource department should set meetings regularly to discuss results, also referred to as progress meetings or reports. These are to establish how things are progressing with the set objectives and goals.
Important Quantitative HR Metrics for Performance Management
Net promoter score
This metric can be applied to measure employee performance. The net promoter score is measured on a scale of 1 to 10 that shows the clients’ readiness to advocate for the services of an organization to another prospective client (Kuvaas et al., 2016). Clients with scores of 9 or 10 are regarded as highly satisfied and can promote the services of the company.
Number of sales
Number of sales is a simple metric that can be applied to show the exact output of an employee. That means only the best company’s employees with the best skills will sell mot of the company’s services. Regarding the company, its number of sales can be measured based on the employee who serves most clients or seems to be preferred by most clients (Bogetoft, 2012). However, this metric becomes less dependable when the sales frequency is low and when randomness plays a greater part in effective sales outcomes. An increase in sales may act as an indication of high skilled workers and high performance.
Number of units produced
Number of units produced is a metric of measuring employee performance (Bogetoft, 2012). The number of units generated per worker is usually a reliable qualitative metric. The company can measure quantitative production by tracking the amount of lines of codes produced by each programmer in the company.
The number of errors
Number of mistakes made by an employee could be used as measure of employee performance in the company. That is similar to the number of rectifications in any typed work or amount of bugs found in a code of software (Bogetoft, 2012). If an employee keeps on making numerous mistakes at the workplace especially those related to their work, then they can be regarded as performing poorly. The HR department performance in recruiting the right candidates for the job could also be regarded as low since most recruited employees cannot perform their duties effectively.
Average performance rating
This metric indicates the average performance of a selected group of workers. The average performance rating is determined by dividing the total of performance rating by the number of workers rated and then multiplying by 100 (Bogetoft, 2012). Measuring this metric will allow the human resource to be aware if its performance management practices are effective and if there are teams falling behind.
Strategic Recommendations for Training and Development
A centralized training and development is one in which the function of training and development is organized from a central point in an organization. In this case, training and development will be organized from one HR department central office of the company (Douglas, 2016). All the training and development processes and resources will be managed within one organization, reporting to one HR manager. The centralized training and development will be useful to the organization due to high consistency in the manner of managing training processes across the company. Centralized training and development functions provide a strong harmonization through the central learning group, whose team members report to one HR executive (Douglas, 2016). That helps in the prevention of replication of learning efforts and provides the company with economies of scale. The learning and development function is accountable for business-wide resources, budget, vendor management, learning and development talent, external partnerships, and principles and guidelines (Douglas, 2016). Nonetheless in centralized training, there is the risk that the teams can be less adjusted to the specific business units needs.
Consequently, although training and development is centralized, it is recommended that training content should be customized to suit individual company units. Standardization of content may not fit certain business unit needs (Douglas, 2016). Internal management training courses can be used to centralize corporate training, building unity among workers and raising the delivery speed and transfer to the work.
Important QuantitativeHR Metrics for Training and Development
Training expense per employee
Training expense per employee helps to track the development costs. It will assist the HR department to make smart investments in personnel development. That is so because training courses are costly and inadequate in giving a continuous learning experience being sought by employees. Investing the HR training budget in continuous learning will result in a much more effective training program for workers (De & Boudreau, 2003). Training expense per employee = total cost of the training programs and courses of a company / overall number of workers.
Training completion rate
Training completion rate = number of employee who finished a certain training / the overall number of workers * 100 (De & Boudreau, 2003).
Time of completion
Time of completion is used to measure the average time taken by an employee to conclude a particular training course. A centralized training and development should improve the time of completion since training is planned from a central place.
Training effectiveness index
To determine training effectiveness, one has to measure what the employees learned. One cannot measure the performance of employees before and after they attend training, since people apply for training whenever they feel they are not performing as per expectations (De & Boudreau, 2003). Whenever evaluating training effectiveness, it is important to set training goals and assess whether trained employees have attained them after training. Baseline productivity can also be tracked and an assessment of the impact of training over an extended period of time.
Training effectiveness index= number of training programs attaining the intended goals/overall number of training programs attended *100
Or (number of trained employees acting as needed/running equipment as per the set standards)/ number of employees trained *100 (De & Boudreau, 2003).
Total benefits/ total costs*100
Effective training should help employees improve their job performance increasing their performance level. That is the productive index of employees increase.
Determining the efficiency of training will help the HR department optimize the company’s budget for training and training (De & Boudreau, 2003). The metric helps the HR department to know how well it is utilizing the allocated funds for training and development. This metric will be compared to the previous one to determine if centralized HR will help in the improvement in training and development.
Training efficiency = training expenses per employee / training effectiveness
Strategic Recommendations for Compensation and Benefits
Having a centralized compensation and benefits will ensure consistency. The best manner of creating and maintaining consistency in employee compensation and benefits is centralized Hr. offering guidance and directions on compensation and benefits from a central office will attract the best talents in the market and ensure low employee turnover. Employees’ morale and abilities should be quite constant, assuming the organization has qualified managers to execute HR services and programs at the local level. If employees are competent and motivated to work, clients will be satisfied with the company’s services and products.
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HR department should understand the company’s budge when implementing compensation and benefits. It has to have knowledge of how money will be spent as maintaining a balanced compensation and benefits is important in ensuring human resource continue to adapt the intended strategy accordingly. Employees’ compensation should be reviewed consistently – at least quarterly allowing adjustments as required. Compensation should also be adjusted regularly. There are several changes that could influence salaries and the need to adjust them for employees. The HR department should have salary ranges. This helps in ensuring a competitive organization in the industry to attract competent and talented people.
Important QuantitativeHR Metrics for Compensation and Benefits
Percentage cost of Workforce
This is the cost of the employees compared to other costs. The percentage cost of labor force can be calculated by addition of all the salaries and dividing by sum of the costs incurred by the company in a given period (De & Boudreau, 2003). The human resource department can determine if the cost incurred in maintaining the workforce is proportion to the total costs incurred by the company.
Percentage of workforce = total salaries /total costs of the company
Salary competitiveness ratio (SCR)
This metric is employed in the determination of the competitiveness of the compensation options of a company. Salary competitive ratio is calculated by dividing the standard salary offered by the company by the standard salary offered by its rivals or that in the industry (De & Boudreau, 2003). It could determine if the salaries offered to employees are competitive enough.
SCR= average salary offered/ average salary
Health care expense per current employee
This metric is used to offer insight on the company’s fullness of the health care program. It can be evaluated by dividing the sum of price of health care costs by the number of all workers (De & Boudreau, 2003).
Benefit satisfaction allows the HR department of a company to determine how satisfied a worker is with particular benefits given to them (De & Boudreau, 2003). Dissatisfaction can lead to employee turnover. It can be evaluated by use of surveys, and it can be applied in breaking each benefit individually.
Employee productive rate
The metric is used in measuring the efficiency of the employee over time. It is used to determine the ability to grow in regards to the production of employees (De & Boudreau, 2003). Employee productive rate is evaluated by dividing the company’s revenue by the total number of workers.
Employee productive rate = company’s revenue/total number of employees
Benefit participation rate
This is the percentage of workers taking part in a specific program or plan. The benefit participation rate is assessed dividing the number of employees registered in a benefit or plan by the number of those qualified, and then multiplying by 100 (De & Boudreau, 2003). All employer benefits have a cost. If employees are not using some of the benefits, then they can be deregistered and funds used in plans that are widely used by workers.
Return on investment
The organization has to ensure that the funds invested in training and development of employees is paying off. Return on investment is thus the profit per each dollar invested in the social benefits.
Bogetoft, P. (2012). Performance Benchmarking: Measuring and Managing Performance. Dordrecht: Springer.
De, C. H., & Boudreau, J. W. (2003). Global human resource metrics. Ithaca, N.Y: Center for Advanced Human Resource Studies, Cornell University.
Douglas, A. (2016). Training and Development in Performance Management. Human Resources Magazine, 21(2), 37–38. Retrieved from http://search.ebscohost.com.csuglobal.idm.oclc.org/login.aspx?direct=true&db=l0r&AN=118700172&site=ehost-live
Kuvaas, B., Buch, R., & Dysvik, A. (2016). Performance Management: Perceiving Goals as Invariable and Implications for Perceived Job Autonomy and Work Performance. Human Resource Management, 55(3), 401–412. https://doi-org.csuglobal.idm.oclc.org/10.1002/hrm.21680
Noe, R. A. (2020). Human Resource Management. Columbus: McGraw-Hill US Higher Ed USE.
O’Meara, B., & Petzall, S. B. (2013). The handbook of strategic recruitment and selection: A systems approach. Binglay: Emerald.