human capital

Lean Wednesday Tip: Client Relations

“Never let a client treat your employees badly and if such incident does occur fire the client immediately. It is of most importance that the clients you work with have cultures that naturally sync with yours. A sale is never worth the mistreatment of your employees.”

Notable Friday Chat: Care about your employees!

Happy Friday!

I hope you’ve had a productive and enriching week. Today I want to leave you with a short message that will have a significant impact on your talent management goals and overall company wide health. I hope you have a great weekend and remember, “Success is continuous improvement!”

 

“Taking the time to talk to and ask atleast one employee each day how they are doing and somehow guide them in solving a professional or personal problem will in turn, help you build a stronger relationship with your employees but also support your talent management goals.

 

The Most Important HR Metrics that you should be tracking

To really understand the health and performance of your human resources function, I have created a list of the most important HR metrics that will provide a clear picture of how the department is performing.

  1. Cost of Hire
  2. Ratio Compensation/Benefits to Revenue/Profit (compare each year to industry averages)
  3. Employee turnover rate of new hires within their first 24 months
  4. Percentage of new hires that rate training and educational opportunities among the top 3 reasons they accepted and still love their job – compared with the % who rate training and educational opportunities as excellent 12 months into the job
  5. Quarterly turnover % of high performing employees
  6. Turnover % of low performing employees within one year of receiving low rating
  7. Percentage of employees with superior performance ratings against salary levels
  8. Monthly turnover rate
  9. Revenue per employee: total revenue/total number of employees
  10. Percentage of women promotions to top level positions
  11. Promotions Rate: Promotions/Headcount
  12. Number of raises
  13. *Compensation Analysis to ensure competitive market salary is offered

On-boarding Employees: Where are the supplies?

 Onboarding a new hire is stressful enough. Paperwork needs to be done, work area needs to be set up, et cetera. But no one remembers about supplies. Utilizing Lean Six Sigma methods and tools like 5S, visual management and Kanban to remove office waste is a great way to have a supplies inventory system that ensures all employees know where each item is kept and are aware of what is considered to be low inventory. This will ensure an order is placed in a timely manner to avoid any impairment in daily business operations or having to run out to your local supplies store and grossly over-pay.

When all supplies are cataloged, organized, labeled, tracked in Excel and this information is readily available to employees; waste is reduced in terms of time looking for supplies, productivity time wasted and money wasted. Ensuring employees know where all supply items are kept will significantly reduce time and productivity wastes. They should also be aware of what is considered to be low inventory (Zero is not acceptable) because this will allow immediate and timely replenishment.

For example, you would start by creating an inventory tracking Excel sheet like the one below (you can personalize it as you wish). You can set it up in Google Sheets and share with your team. You can encourage employees to make notes on whether items should be made more accessible to them (move printer closer to marketing team, et cetera) or add additional items to the list that will help them enhance their productivity.

In short, those that prepare and organize their office supplies inventory systems effectively reduce the most critical waste which is time and then of course, money.

How to Create a Benefits Strategy to optimize talent management

3D Successful business group

 

Employees don’t want to be handed books of paper about the benefits available to them through your company. They need guidance on which medical, dental, and retirement plan to choose. Therefore, to increase overall employee satisfaction and improve your benefits administration process I suggest the following:

1. Utilize the Voice of Your Employee by conducting surveys, such as, how often they want benefits related information to be provided to them, what communication channels do they prefer to receive the information (videos, PPT, mobile, intranet, email, et cetera).

2. Create personalized material to fit critical variables based on survey data and employee goals.

3. When you identify how often employees are willing to see benefits information make sure to create a calendar of when this information will be distributed and actively survey employees on what topics they want to learn more about (make sure the content is not too long, gets to the point, and is easy to understand but also fun too)

4. Utilize or create a single platform that offers all benefits information because this reduces the need for multiple passwords/websites.

5. Set time every quarter to discuss benefits and explain to employees why premiums increase every year. Also have your broker be part of the meeting so they can offer advice to employees on which plan is best for them or answer any questions they may have.

6. Comparison shop every year to see if you are able to find a more cost-effective plan by using the total-cost method (e.g taking into consideration the overall cost of the plan includes broker fees/commission, admin fees, et cetera) See this entrepreneur article for more information.

7. Continue to survey employees every Quarter because many things can change in their lives in just 3 months. You have to stay abreast to those changes so that relative guidance, content and information can be readily available to them so they can make smart decisions.