MCBASSI & COMPANY

Using Analytics to Create a Bridge Between HR & Finance

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In many companies, the relationship between HR and Finance ranges from uneasy to downright unpleasant. Given Finance’s ability to veto its initiatives, it is easy for HR to come to think of Finance as the arch-enemy.

If you are in HR and this sounds even vaguely familiar, we invite you to a webinar co-presented by McBassi CEO Laurie Bassi later this week.  The webinar (Wednesday, June 15, 2016 at 12:00 noon EDT) is being put on by Financial Executives International (FEI).

Entitled “Balancing Effective People Management and Profitable People Management,” the webinar focuses on how CFOs and HR are partnering to drive a more profitable and strategic business.  Click here for more details and registration information.

Laurie will be discussing how to use analytics to bridge the HR/Finance gap by doing the following:

  • Focusing on measuring the “human drivers” of value creation (not just employee engagement)
  • Linking “people data” to business data
  • Creating the “right” human capital metrics/indices for tracking & reporting
  • Building these metrics into the performance management & compensation systems

There’s a lot of wisdom in the old adage, “If you can’t beat them, join them.”  Analytics is the language of finance.  And increasingly, it is becoming the second language of HR.

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Should Companies Disclose More Human Capital Information?

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CFO Magazine recently hosted an online/print discussion on the long-running debate over whether companies should expand their human capital disclosure.  They invited McBassi CEO Laurie Bassi to participate as one of four debaters.

It will come as little surprise to our loyal readers that Laurie weighed in on the side of more disclosure, arguing that it’s crazy to report a company’s most important assets as nothing more than costs:

“Yes, companies surely should disclose more information about their human capital.

“Looking at the issue from the perspective of major stakeholders – including companies, shareholders, employees, and society as a whole – increased disclosure on human capital is unambiguously a good thing.  It’s a bad thing only for companies that do a lousy job on the ‘people side’ of their business, and human resources executives who would prefer to avoid accountability for human capital performance.”

Read the full article here.

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How to Grow Your HR Analytics Budget

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If you’re like many HR professionals, you share two characteristics:
  • You know you should be making more progress on HR analytics
  • You also don’t know where to get the money to do it

And yet, some organizations – admittedly a minority – report that they have sufficient HR analytics budgets.

So we set out to determine what distinguishes those HR functions that report having an ample budget for analytics.  To answer this question we analyzed McBassi’s HR analytics maturity benchmarking database. (If you would like a free customized benchmarking report on how your company’s current HR analytics maturity stacks up, click here.)

Our analysis showed that the following attributes distinguish HR functions that have a sufficient HR analytics budget from those that don’t:

1.  They have a strategy in place ensuring that their HR analytics initiatives are aligned with the organization’s strategic objectives.

2.  They get the basics right. They have reports/dashboards making it possible to determine whether goals are being met for each of HR’s key responsibilities (recruiting and selection, training and development, compensation and benefits, retention and promotion).

3. They have developed the capacity to link together disparate pieces of information on people and business outcomes to produce actionable, executive-level insights.

Now we know what you may be thinking – “We can’t possibly do these things because we don’t have the budget to get them done.” Classic chicken-and-egg problem. But what we’ve learned is that it doesn’t take a lot of money to make a good, running start at each of these issues. It does take being clever and resourceful – and committed.

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Should You Be Worried About Your Company’s Glassdoor Scores?

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Glassdoor.com has created a high degree of transparency about what it’s like to work in any given organization.  This new reality has spawned a variety of different reactions from individuals and from company representatives.  One fairly common reaction among executives has been to dismiss employees’ Glassdoor ratings as representing just the “whiners” within their firm.

We think it’s important to take a closer look.  For one thing, companies with high Glassdoor scores have consistently outperformed the stock market as a whole (see figure below).  And this means the investment community is beginning to pay more attention to Glassdoor ratings.

And what about the impact of scores on potential job applicants?  They’re the main audience on Glassdoor, and they’re systematically combing through scores and reviews for you and for your competitors.  So if your scores are lower than your competitors, it’s likely you’re going to have a tougher time getting high-quality job applicants.

The bottom line? If your Glassdoor scores are lower than your competition, yes, you should indeed be worried.  Your next step should be some “analytics sleuthing” to figure out what you can do about it.  (By the way, we can help you with that!)

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How to Improve the Evaluation of Learning

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We hope this finds you well, your new year off to a good start, and your resolve to make improvements and have a positive impact at work intact!

Maybe one of your New Year’s resolutions was to make improvements in the impact that your firm’s investments in learning have on its business results? Or maybe to improve your ability to evaluate those impacts? Perhaps even to elevate the strategic importance of learning? If so, we have a (belated) holiday gift for you!  Our (significantly expanded) ATD paper entitled “7 Steps to Using Analytics to Improve the Evaluation of Learning” can be downloaded here.

We hope this stimulates some fresh thinking and helps you to make progress on a problem that has long vexed our profession. Drop us a line and let us know!

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