Magic Numbers for Human Resource Management : Basic Measures to Achieve Better Results

by Hugh Bucknall; Zheng Wei

• ISBN13: 9780470821619
• ISBN10: 0470821612
• Format: Hardcover
• Copyright: 2005-09-01
• Publisher: WILEY

Summary

This book simply outlines a range of the key measures that any HR , financial or business manager can use to address this situation in a more business-like manner. For each definition, there is not only a description of the measure but also why it has vital significance to managing business better. It is written as a basic text book in easy to read language but with a powerful underlying message - HR managers must measure the main features of HR in order to get their voice heard at the executive table and make demonstrable impact on business operations.

Author Biography

Hugh Bucknall is a Worldwide Partner of Mercer Human Resource Consulting and the Asia Pacific leader for Mercer's Human Capital Advisory Services Business. In his current role, he sets the strategic direction for the business in Asia Pacific and provides technical leadership for major projects across the region.
He has worked extensively in Asia and Australia in the areas of reward strategy, job classification, team building, group facilitation, assessment centers, performance management, organization review, and job design. His wide client base includes multinationals and domestic companies across a number of industry sectors such as health, hi-tech, retail, and the public sector. On the topic of Asian HRM trends and issues, Hugh has spoken at a number of international forums and client events.
Prior to joining Mercer, High worked in the areas of HRM, computer systems, and management consultancy over a period of 14 years with Myer Stores, BHP, the Australian Public Service Board, The Australian Bureau of Statistics, and the Victorian Department of Conservation among others.

Zheng Wei is an associate director of Mercer Human Resource Consulting's Beijing office. He leads the Human Capital Advisory Services business in North China. He is an economist specializing in performance measurement, incentives, and financial analysis.
His main work involves helping both Chinese and global clients with alignment of their human capital strategy with business strategy. he also helps organizations identify and measure their essential productivity drivers, and project the economic gains for making changes in those factors.
He has worked on performance measures for a variety of clients spanning many industries including manufacturing, telecommunications, and financial services industries. His telecommunications clients include Aliant, Vodafone Group, Verizon Communications, Windstar, and China Netcom Group.

Table of Contents

Acknowledgements	vii
Glossary	ix
Introduction	1	(4)
Part One: Magic Numbers for Productivity and Efficiency	5	(66)
Absenteeism rate by job category and job performance	9	(5)
Accident costs	14	(8)
Average time for dispute resolution	22	(2)
Cost per hire	24	(3)
Finance staff as a percentage of total staff	27	(2)
Overtime hours	29	(3)
The HR budget as a percentage of sales	32	(3)
HR staff as a percentage of total staff	35	(3)
IT staff as a percentage of total staff	38	(2)
Marketing staff as a percentage of total staff	40	(3)
Payroll staff as a percentage of total staff	43	(2)
Percentage of employees making suggestions	45	(3)
Process-cycle time	48	(3)
Profit per employee	51	(3)
Response time per request for information	54	(4)
Sick-leave rate	58	(3)
Sick days per full-time equivalent employee per year	61	(2)
The cost of medical disbursement by category of ailment	63	(3)
Time taken to fill a job vacancy	66	(5)
Part Two: Magic Numbers for Staffing and Learning	71	(36)
Staff-turnover cost by recruitment source	75	(5)
Employee-engagement index	80	(5)
Involuntary staff-turnover rate	85	(2)
Turnover rate by job category and job performance	87	(2)
Voluntary staff-turnover rate	89	(3)
Competency-development expense per employee	92	(3)
Training hours per employee	95	(3)
Cost per trainee hour	98	(4)
Percentage of employees trained, by category	102	(5)
Part Three: Magic Numbers for Talent and Reward	107	(38)
Internal-hire probability	111	(2)
Retention rate of key employees	113	(2)
Range (distribution) of performance-appraisal ratings	115	(4)
Job evaluation	119	(6)
Firm salary/competitor salary ratio	125	(3)
Incentive compensation differential	128	(6)
The Black-Scholes method of calculating stock-option values	134	(5)
Total compensation expense per employee	139	(6)
Conclusion	145	(8)
Appendix 1	153	(15)
Appendix 2	168	(7)
Index	175