high performance hr
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High Performance HR Maximizing People for Profits September 1, 2011TRANSCRIPT
Confidentional
High Performance HRMaximizing People for Profits
September 1, 2011
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The People Profit Connection The People Profit Connection
Did you know…..
The average dealership spends$2.5 Million on payroll (NADA)
That the cost of a bad hire is 1.5 to 2 x the annual salary?
That companies spend on average $1700 per employee to comply with workplace regulations?
That harassment cases cost on average– Pre-trial settlements: $300,000.– Litigation judgments: $1.8 Million
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The People Profit Connection The People Profit Connection
Did you know…..
That on average 35% of operating expense is attributed to employee compensation and benefits?
The average implemented employee suggestions saves a company $6,224 in operational expenses according to the Employee Involvement Association
The typical worker wastes about 2 hours a day- and the cost is a staggering $759 billion a year nationwide! (SHRM)
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Hire, Retain, EngageHire, Retain, Engage
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Engage
Retain
HireSelect the best because you have a choice
Keep the best with a good working environment
Engage to maximize productivity
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Hire the right person for the right jobHire the right person for the right job
• Dealerships report they spend less than 4 hours in the hiring process*
• Cost of bad hire is 2 to 3 times the annual salary
• 95% of a managers time is spent on 5% of the employees
Bad hires cost you money, and even worse they keep you up at night!
*survey of 268 dealerships
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Are you using the right tools for the jobAre you using the right tools for the job
• Effective job application form• Conduct a behavioral interview• Personally conduct references• Perform background check • Use a scorecard to make objective decision
If the answer to any of these questions is anything but yes- then you are taking on more risk than is necessary and increasing your chance of making a bad hire
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The Five ToolsThe Five Tools
Effective Application
Behavioral Interview
Reference Checking
Background Checking
Candidate Scorecard
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The Five HabitsThe Five Habits
Follow a defined process
Use the five tools
Always be recruiting
Include others in the process
Never talk yourself into saying yes
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Hire the right person for the right jobHire the right person for the right job
• Using the five habits and the five tools will:– Establish a proven method to reduce the risk
of making a bad hire- do what works!– Save time by using the five tools to screen out
poor fit early in the process- don’t waste your time!
– Reduce the time you spend on management by hiring the right person in the first place- spend your time on your top employees!
Time is money, can you afford to make poor hiring decisions?
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Retaining EmployeesRetaining Employees
• Spending time on retention is good business
– Reduces training– Improved productivity– Creates an attractive workplace
• Retaining poor employees is bad business– Performance reviews– Disciplinary action plans
Remember that 95% of a manager’s time is spent on 5% of the employees, but your goal is to reverse this equation in your dealership
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The Engaged Organization The Engaged Organization
Employees
ManagersExecutives
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EmployeesEmployees
Employees align what they want — and what the business needs— and then take action to achieve both
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Ownership
Clarity
Action
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ManagersManagers
Managers understand each employees talents and skills and match to the businesses objectives — while at the same time creating personal, trusting relationships
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Coaching
Relationships
Dialague
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ExecutivesExecutives
Executives demonstrate consistency in words and actions, communicate a lot, and align business practices and behaviors throughout the organization to drive results and engagement.
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Trust
Communication
Culture
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Cultivate an Ownership MentalityCultivate an Ownership Mentality
• Education– How does the company make money– How can do I impact or take away value
• Measure– Key Performance Indicators– High Visibility/High Accountability
• Incent– Self funding incentive plans– Align behavior to financial objectives
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Four Key Performance IndicatorsFour Key Performance Indicators
• Employee Costs• Employee
Turnover/Retention• Employee
Engagement/Satisfaction• Workplace Compliance
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Employee CostsEmployee Costs
• Average Costs of an Employee– Salary– Benefits
• Percentage of Revenue by Employee
• Employment Costs as a % of Operating Expenses
• % of time lost to absences
• Average overtime per employee
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Employee Turnover/ RetentionEmployee Turnover/ Retention
• Total replacement hires per year
• Total cost to hire
• % of new hires achieving 6 months
• % of new hires achieving 12 months
• % of new hires achieving satisfactory appraisals
• Cost of training per employee
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Employee Engagement/SatisfactionEmployee Engagement/Satisfaction
Annual measurements on attitudes and beliefs…
Compensation and benefits Co-workers, managers Promotion opportunities Training Work Tasks
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Workplace ComplianceWorkplace Compliance
• Total number of complaints
• Total number of lawsuits/audits– cost of defense as a % of revenue
• Lost time to accidents
• Training– Measure impact of training year to year against
lawsuits and complaints
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Maximizing the People Profit ConnectionMaximizing the People Profit Connection
• What makes a company attractive to candidates makes it easy to retain employees
• Use the five tools and five habits to hire the right person for the right job
• Spend time upfront to hire the right person, it is a good use of your time
• Don’t spend your time on the bottom 5%, spend your time on the top 25%
• Measure KPIs for HR annually, can’t measure, can’t improve
• Ownership mentality makes all the difference
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Questions and AnswersQuestions and Answers
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QUESTIONS?
Contact InformationContact Information
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Kathryn Carlson
303-228-8765