Resource Management Process - Human Resource Management

Process Objectives

• Attract and retain skilled and motivated workforce
• Control employee costs while maintaining morale and productivity
• Comply with regulatory/tax filing requirements
• Adherence to code of conduct

Critical Success Factors (CSF’s)

    A.   Commitment to training and development (1,2)
    B.   Retention of key personnel (1,2)
    C.   Maintain competitive compensation/benefit packages (1,2)
    D,   Optimise employee utilisation and productivity (2)
    E.   Employee commitment to customers (1,4)
    F.   Optimise human resource administration efficiencies (3,4)

Key Performance Indicators (KPI’s) Linked to CSF’s

• Training hours per employee; training dollars per employee (A)
• Employee turnover (B)
• Employee turnover; compensation/benefit levels compared to the industry (C)
• Sales per employee; payroll to sales (D)
• Customer complaint percentage; customer surveys/focus groups (E)
• Human resource employees/total employees; human resource department costs to sales (F)

Inputs

Strategic plan Operating plan Resource requests

Employee regulations Tax regulations Union contracts

Industry statistics and market data Training goals / requests Personnel feedback

Activities

Outputs

Regulatory filings Compensation and benefits policies and administration Personnel files

Tax filings Human resource policies/procedures Training programmes

Performance reviews Payroll and benefits disbursements Staffing and cost data

Systems

Human resource management Compensation and benefits

Tax system Regulatory systems

Cash disbursements / payables systems Employee self-service systems

Classes of Transactions

Routine Payroll and benefit expenses Payroll related accruals Training expenses

Non-Routine Pensions Other post-retirement benefits Post-employment benefits Incentive compensation accruals

Accounting Estimates Self-insured medical Self-insured workers’ compensation Self-insured general liability claims

Risks Which Threaten Objectives

    A.   High level of staff turnover (1,2)
    B.   Poorly motivated staff (2)
    C.   Non-compliance with regulations (tax, labour, etc.) (3,4)
    D.   Lack of personnel with skill sets needed (1)
    E.   Non-competitive compensation packages (1)

Management Responses Linked to Risks

• Conduct employee surveys with follow-up on results; implement growth and opportunity plans for employees (A,B)
• Compare incentive pay to performance; conduct employee surveys with follow up on results; monitor labour relations and establish employee grievance committees (B)
• Regulatory monitoring (C)
• Establish formal hiring criteria; develop and implement effective training programmes (D)
• Compare salary costs to industry norms; compare incentive pay to performance (E)

Other Symptoms of Poor Performance

Poor internal communication Fines and penalties for untimely, inaccurate tax and regulatory filings

High level of absenteeism Inconsistent employee management

Low productivity High level of customer complaints

Performance Improvement Observations

Incentive compensation consulting Managed health care studies

Claims systems reviews Retirement plan reviews

Human resource department re-engineering Human resource benchmarking