Human Capital Development (HCD)

Key Performance Indicators (KPIs) Form

“If you cannot measure it, you cannot manage it”

Revised: 7th May 2014

SATA2014

All rights reserved. No part of this form may be reproduced, by any means whatsoever, without the prior written permission of SATA.

DEFINITIONS

1.1Key Performance Indicators – KPIs

A performance indicator or key performance indicator (KPI) is a measure of performance. Such measures are commonly used to help an organization define and evaluate how successful it is, typically in terms of making progress towards its long-term organizational goals. KPIs can be specified by answering the question, "What is really important to different stakeholders?" KPIs may be monitored using Business Intelligence techniques to assess the present state of the business and to assist in prescribing a course of action. The act of monitoring KPIs in real-time is known as business activity monitoring(BAM). KPIs are frequently used to "value" difficult to measure activities such as the benefits of leadership development, engagement, service, and satisfaction. KPIs are typically tied to an organization's strategy using concepts or techniques such as the Balanced Scorecard.

The KPIs differ depending on the nature of the organization and the organization's strategy. They help to evaluate the progress of an organization towards its vision and long-term goals, especially toward difficult to quantify knowledge-based goals.

A KPI is a key part of a measurable objective, which is made up of a direction, KPI, benchmark, target, and time frame. For example: "Increase Average Revenue per User from US$ 80 to US$ 100 by end of year 2015". In this case, 'Average Revenue Per User' is the KPI.

KPIs should not be confused with a “Critical Success Factor”. For the example above, a critical success factor would be something that needs to be in place to achieve that objective; for example, an attractive new product/service.

In the broadest sense, a KPI provides the most important performance information that enables organisations or their stakeholders to understand whether the organisation is on track or not.

1.2Key Result Areas – KRAs

Key Result Areas or Key Responsibility Areas are general areas of outputs or outcomes for which the department / Business Unit is responsible. These areas are the primary responsibilities of an individual, the core areas which each person is accountable for.

1.3Metrics

Metrics is a standard of measurement by which efficiency, performance, progress, or quality of a plan, process, or product can be assessed.

“Every company has metrics that track performance. The key question is whether these metrics really provide visibility to performance as viewed by the customer.” (Steve Matthesen, Boston Consulting Group)

  1. KEY PERFORMANCE INDICATORS (KPIs) AND KEY RESULT AREAS (KRAs)

In the following Form, please put the necessary values and percentages (%) as indicated. For more clarification, please see Part (Clause) 4 of this Document.

No. / KEY PERFORMANCE INDICATORS (KPIs) / KEY RESULT AREAS (KRAs) / METRICS / Organization Score
1. / Capacity Building / Training delivered / Number of people identified for training and who have actually undergone training
% of key/critical persons who have undergone training
Training Budget / Training & development Budget as a % of Total OPEX
Average Training Investment per employee
Training effectiveness / Number of presentations made to colleagues by staff after training
Training Turnout Rate / % of registered employees who actually turn out for training
E-Learning Training / Number of e-learning courses unitised
% of e-learning pass rate
Succession Planning / Number of people (successors) trained and developed for succession
2. / Resource Optimisation / Savings made / Amount saved on OPEX
Productivity Gain / Ratio of labour costs to revenue
Ratio of sales revenue per employee
Ratio of indirect labour costs to revenue against budget
Recruitment / Average sourcing cost per hire
Average time to recruit per position
% new hires achieving 12 months service
HR Efficiency / Revenue generated per Full Time Equivalents (FTEs)
Administration cost per employee
3. / Safety and Health / Non Conformance / Number of accidents per year
% of fatal accidents relative to all accidents per year
Number of non-conformance per year
Costing / Cost of solved safety non-conformance for the month
Health and Safety prevention costs within the month
4. / Employee Satisfaction / Employee Satisfaction Survey / % average satisfaction about compensation and benefits
% average satisfaction about prospects for growth
% average satisfaction about work environment
% average satisfaction by supervisors/managers
  1. OTHER KEY HUMAN RESOURCES MEASUREMENTS

Revenue Factor / Revenue/Total Full Time Equivalent (FTE) / Organisation Score
Human Capital value Added / (Revenue – Operating Expenses – Compensation & Benefit Cost)/Total FTE
Human Capital ROI / (Revenue – Operating Expenses – Compensation & Benefit Cost)/Compensation & Benefit Cost
Total Compensation Revenue Ratio / Compensation & Benefits Cost/Revenue
Labour Cost Revenue Ratio / Total Labour Costs (Compensation & Benefit Cost + Other Personnel Cost)/Revenue
Training Investment Factor / Total Training Cost/Headcount
Health Care Costs per Employee / Total Health Care Costs/Total Employees
Turnover Costs / Termination Costs + Hiring Costs + Training Costs + Other Costs
  1. DETAILED HUMAN CAPITAL DEVELOPMENT (HCD/HR) KPIs

The details below are meant to help in filling the above HR Form. This Part 4 of the Form is therefore not expected to be returned to the SATA Secretariat.

4.1Recruitment Key performance Indicator

Recruitment key performance indicators (KPI) is a part of Human Resources KPI include KPI as follows:

4.1.1Recruitment costing KPI

Recruitment costing per position.

Recruitment costing per position per channel

Average sourcing cost per hire Average sourcing cost per hire. Sourcing costs include advertising, referral and agency

4.1.2Recruitment time KPI

Average time to recruit. Calculating from date of recruitment require to date of employee hired.

Average time to recruit per position.

4.1.3Recruitment source KPI

Number of CVs / per channel

Recruitment source ratio. Ratio between internal versus external recruits.

4.1.4Selection KPI

Average number of interviews from submitted resumes. Track the number of converted submitted resumes to interviews.

Number of qualified candidate compared to resumes.

4.1.5Recruitment efficiency KPI

% recruitment achievement meet hiring plan

% new hires achieving 6 months service

% new hires achieving 12 months service

% new hires achieving satisfactory appraisal at first assessment

4.2Training Key Performance Indicators

4.2.1Training Cost KPI

Company training expenditure (% of salaries and wages)

4.2.2Training Hours KPI

Average number of training hours per employee

4.2.3Training Certificates KPI

Number of employees completing sponsored MBA programs

4.2.4Training Courses KPI

Number of courses offered

Number of courses implemented.

4.2.5Training Satisfaction KPI

Employee satisfaction with training.

4.2.6Training Budget KPI

% of HR budget spent on training

Average training costs per employee

4.2.7Training Results KPI

% of employees gone through training

Average time to competence. That is average time it takes until expected competence level is reached.

% & employee reach competence after training.

4.2.8Training Penetration Rate KPI

It measures the percentage of employees completing a course compared to total number of employees employed.

4.2.9E-Learning Training KPI

e-learning courses utilized

% of e-learning pass rate

4.3Health and Safety KPI

4.3.1Health and safety non-conformance KPI

Number of non-conformance per year / quarter

Number of accidents per year

Number of reportable accidents year

Number of reportable non-fatal accidents per year

Number of solved safety non-conformance for the month

Percentage of corrective actions closed out within specified time-frame

Percentage of fatal accidents relative to all accidents per year.

4.3.2Health and safety training KPI

Percentage of staff with adequate occupational health and safety training

Total of hours in safety and health training in the month.

4.3.3Health and safety representatives KPI

Percentage of staff with adequate occupational health and safety training

Total of hours in safety and health training in the month.

4.3.4Health and safety costing KPI

Cost of solved safety non-conformance for the month

Health and safety prevention costs within the month.

4.3.5Health and safety results KPI

Lost time (in hours) due to non-fatal accidents per year

Lost time (in hours) due to accidents (including fatalities) per year.

4.4Performance KPI

What is the difference between competence appraisal and performance appraisal?

Competence focus on capability that include knowledge, abilities, skills to perform tasks

Performance focus on result of tasks.

Performance KPI includes:

4.4.1% of appraisals completed on time

4.4.2% of employees above competence

4.4.3% of employees below competence

4.4.4% of low performing employees

4.4.5% of high performing employees

4.4.6% of employee with their performance decreased compared to last month

4.4.7% of employee with their performance increased compared to last month

4.5Employee Loyalty KPI

4.5.1Employee turnover KPI

Employee turnover = total staff as recruited / total staff as planned

The rate of this measure can rate the company’s rate, one division or the rate at each position.

4.5.2Average tenure per employee KPI

The rate of life cycles of employees = total time served in enterprises of all staff/total staff recruited

This rate can be done by company or department.

4.5.3Average time employees are in same job/function KPI

The rate of life cycles of employees = total time served in enterprises of each position/total staff recruited.

4.6Working Time KPI

Working time KPI includes:

4.6.1% of total hours lost to absenteeism

4.6.2Average overtime hours per person

Low number is indicator or proper scheduling and reduce opportunity of human fatigue related events

4.6.3% of man days lost due to strike

4.6.4Total time lost by work late

This rate can be used by company or department.

4.6.5Lost time due to non-fatal accidents or accidents per year

This rate can be used by company or department.

4.7Employee Satisfaction KPI

Employee satisfaction KPI includes:

4.7.1% Average satisfaction

4.7.2% Average satisfaction by each department

4.7.3% Average satisfaction by field such as:

Attitude about compensation and benefits

Attitude about promotions, training.

Attitude about work tasks

Attitude about co-workers

Attitude about supervisors/managers.

4.7.4% Average satisfaction by new employee.

4.8Job Leaving KPI

Job leaving KPI includes:

4.8.1Job leaving ratio per year

4.8.2Job leaving ratio per department

4.8.3Average age of employees that retire

4.8.4Percentage of early retirements

4.8.5Attitude of employee who leave job:

Satisfaction ratio with wages/salary/benefits

Satisfaction ratio with conditions/physical work environment

Satisfaction ratio with job

Satisfaction ratio with personal relations

Satisfaction ratio with participation and recognition

Satisfaction ratio with opportunities for development

Number of employees who would seek re-employment with company

4.9Workforce Information KPI

Workforce information KPI includes:

4.9.1Number of FTEs in HR

4.9.2HR FTEs as % of total workforce (FTEs)

4.9.3Percentage of outstanding employee probation reports

4.9.4Number of Full Time Employees

4.9.5Number of Part Time Employees

4.9.6Number of employees aged under 25

4.9.7Number of employees aged 25–35

4.9.8Number of employees aged 35–45

4.9.9Number of employees aged 45–55

4.9.10Number of employees aged over 55

4.9.11Average length of service (current employees)

4.9.12Average length of service (terminating employees)

4.9.13% ratio of salaried staff to waged staff

4.9.14% ratio of surplus

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SATA Key Performance Indicators - KPIs