Contents
Chapter 1. Making HR Measurement Strategic
How a Decision Science Influences HR Measurement
Data, Measurement, and Analysis
Hitting the “Wall” in HR Measurement5
Logic: What Are the Vital Connections?
Measures: Getting the Numbers Right
Analytics: Finding Answers in the Data
Process: Making Insights Motivating and Actionable
Software to Accompany Chapters 3–11
Chapter 2. Analytical Foundations of HR Measurement
Traditional Versus Contemporary HR Measures
Four Levels of Sophistication in HR Analytics
Fundamental Analytical Concepts from Statistics and Research Design
Drawing Conclusions about Correlation and Causality
Eliminating Alternative Explanations Through Experiments and Quasi-Experiments
Fundamental Analytical Concepts from Economics and Finance
Fixed, Variable, and Opportunity Costs/Savings
The Time Value of Money: Compounding, Discounting, and Present Value24
Estimating the Value of Employee Time Using Total Pay
Cost-Benefit and Cost-Effectiveness Analyses
Utility as a Weighted Sum of Utility Attributes
Sensitivity and Break-Even Analysis
Chapter 3. The Hidden Costs of Absenteeism
The Logic of Absenteeism: How Absenteeism Creates Costs
Direct Costs and the Incidence of Employee Absenteeism
Analytics and Measures for Employee Absenteeism
Estimating the Cost of Employee Absenteeism
Process: Interpreting Absenteeism Costs
Case Study: From High Absenteeism Costs to an Actionable Strategy
Controlling Absenteeism Through Positive Incentives
Summary Comments on Absence-Control Policies
Applying the Tools to Low Productivity Due to Illness: “Presenteeism”
Chapter 4. The High Cost of Employee Separations
The Logic of Employee Turnover: Separations, Acquisitions, Cost, and Inventory
Voluntary Versus Involuntary Turnover
Functional Versus Dysfunctional Turnover
Pivotal Talent Pools with High Rates of Voluntary Turnover
Voluntary Turnover, Involuntary Turnover, For-Cause Dismissals, and Layoffs
Logical Costs to Include When Considering Turnover Implications
Example: Separation Costs for Wee Care Children’s Hospital
Performance Differences Between Leavers and Their Replacements
The Costs of Lost Productivity and Lost Business
Chapter 5. Employee Health, Wellness, and Welfare
Health, Wellness, and Worksite Health Promotion
Skyrocketing Health-Care Costs Brought Attention to Employee Health
Two Broad Strategies to Control Health-Care Costs
Logic: How Changes in Employee Health Affect Financial Outcomes
The Typical Logic of Workplace Health Programs
Legal Considerations and Incentives to Modify Lifestyles
Analytics for Decisions about WHP Programs
Measures: Cost Effectiveness, Cost-Benefit, and Return-on-Investment Analysis
Cost-Benefit and Return-on-Investment Analysis
Conclusions Regarding Cost-Effectiveness, Cost-Benefit, and ROI Analyses
Solving the Analysis and Measurement Dilemmas to Improve Decisions about WHP Programs
Process: Communicating Effects to Decision Makers
Improving Employee Welfare at Work: Employee Assistance Programs (EAPs)
Costs and Reported Benefits of EAPs
Enhanced Analytical Considerations in EAPs
A Template for Measuring the Effects of EAPs
Future of Lifestyle Modification, WHP, and EAPs
Chapter 6. Employee Attitudes and Engagement
Attitudes Include Satisfaction, Commitment, and Engagement
Satisfaction, Commitment, and Engagement as Job Outcomes
The Logic Connecting Employee Attitudes, Behaviors, and Financial Outcomes
Employee Engagement and Competitive Advantage
Employee Engagement and Service Climate
Measures of Employee Attitudes
Analytical Principles: Time Lags, Levels of Analysis, and Causal Ordering
Estimating the Financial Impact of Employee Attitudes: The Behavior-Costing Approach
Behavior Costing at SYSCO: The Value-Profit Chain
Chapter 7. Financial Effects of Work-Life Programs
Work-Life Programs: What Are They?
Impact of Work-Life Strains on Job Performance
Work-Life Programs and Professional Employees
The Toll on Those Who Don’t Opt Out
Enhancing Success Through Implementation
Analytics and Measures: Connecting Work-Life Programs to Outcomes
Work-Life Policies and Firm Performance
Stock Market Reactions to Work-Life Initiatives
Chapter 8. Staffing Utility: The Concept and Its Measurement
A Decision-Based Framework for Staffing Measurement
Framing Human Capital Decisions Through the Lens of Utility Analysis
Overview: The Logic of Utility Analysis
Utility Models and Staffing Decisions
The Brogden-Cronbach-Gleser Model
Process: Supply-Chain Analysis and Staffing Utility27
Chapter 9. The Economic Value of Job Performance
Pivotal Talent at Disney Theme Parks
Logic: Why Does Performance Vary Across Jobs?
Analytics: The Role of SDy in Utility Analysis
Measures: Estimating the Monetary Value of Variations in Job Performance (SDy)
The Cascio-Ramos Estimate of Performance in Dollars (CREPID)
System Effectiveness Technique
Superior Equivalents Technique
Process: How Accurate Are SDy Estimates, and How Much Does It Matter?
Chapter 10. The Payoff from Enhanced Selection
The Logic of Investment Value Calculated Using Utility Analysis
Measuring the Utility Components
Analytics: Results of the Utility Calculation
Process: Making Utility Analysis Estimates More Comparable to Financial Estimates
Logic: Three Financial Adjustments
Analytics: Calculating the Economic Adjustments
How Talent Creates “Compound Interest:” Effects of Employee Flows on Utility Estimates
Analytics: Calculating How Employee Flows Affect Specific Situations
Logic: The Effects of a Probationary Period
Logic: Effects of Job Offer Rejections
Logic: The Effect of Multiple Selection Devices
Process: It Matters How Staffing Processes Are Used
Cumulative Effects of Adjustments
Dealing with Risk and Uncertainty in Utility Analysis
Process: Communicating the Impact of Utility Analyses to Decision Makers
Employee Selection and the Talent Supply Chain
Chapter 11. Costs and Benefits of HR Development Programs
The Relationship Between Training Expenditures and Stock Prices
The Logic of Talent Development
Utility Analysis Approach to Decisions about HRD Programs
Modifying the Brogden-Cronbach-Gleser Model to Apply to Training
What If Training Covers Less Than the Full Range of Job Skills?
Break-Even Analysis Applied to Proposed HRD Programs
Duration of the Effects of an HRD Program
Economic Considerations and Employee Flows Applied to HRD Programs
Example: Skills Training for Bankers
Costs: Off-Site Versus Web-Based Meetings
Process: Enhancing Acceptance of Training Cost and Benefit Analyses
Chapter 12. Talent Investment Analysis: Catalyst for Change
Better Answers to Fundamental Questions
Absence Means More Than Just Getting the Work Done
Turnover Isn’t Always a Bad Thing
When Everyone Is Reducing Employee Health Investments, Is It Smart to Invest More?
Why Positive Employee Attitudes Are Not Simply “Soft” and Nice to Have
Work-Life Fit Is Not Just a “Generational” Thing
The Staffing Supply Chain Can Be As Powerful As the Traditional Supply Chain
Taking HR Development Beyond Training to Learning and Workforce Enhancement
Intangible Does Not Mean “Unmeasurable”
The HC BRidge Framework as a Meta Model
Lighting the LAMP of Organization Change