Saratoga HR metrics and benchmarking

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Saratoga, a PwC offering, is a global leader in human capital measurement, benchmarking and strategic application of human capital information.

During 2003 PwC acquired Saratoga in both the USA and UK thus achieving the position in that year of dominant worldwide provider of Human Capital

Since acquiring Saratoga, PwC (US organization) and PwC (UK organization) have been working to combine the technology and methodologies of Saratoga and EP-First. PwC provides a robust database of human capital performance measures.

Saratoga works with 40% of the FTSE 100 and the Fortune 500. We are dedicated to the principle that intelligent measurement is fundamental to performance improvement, and pride ourselves on the services we provide to premier organizations across Europe, the Americas and Asia Pacific.

In 2007 PwC in Poland decided to take part in the international HR metrics research project which operates under the common name for whole group of HR Benchmarking.

Nature of HR benchmarking

The HR Benchmarking Study offers a unique opportunity for obtaining a comprehensive analysis of key indicators focused on the structure, activities, financial expenses, and time incurred by an HR practice in companies doing business in Poland. Our HR Benchmarking Study offers information focused on the effectiveness and efficiency of an HR management system in the companies surveyed in the light of those companies’ overall performance. In addition, we will provide you with an HR scorecard serving as a tool for comparing your internal HR management system set-up with market results. The scorecard can also be used as an HR management statement.

Results of HR benchmarking

The results of HR Benchmarking will provide you with the following information:
how HR processes contribute to achieving corporate targets

what the priorities within HR management strategy are

effectiveness of an HR function in achieving targets in recruiting and selecting staff

methods, costs, concepts and best practice in all HR management areas: recruitment, performance management, remuneration, training and development, HR strategy, retaining staff, motivation and satisfaction, and managing absenteeism.

indicators that should be used in HR management and controlling

to what extent firms outsource HR services

employee turnover and the reasons for it

Content of HR Benchmarking

Financial results and HR Strategy
Revenue, Costs and Profits per employee Labour productivity and HR Added Value Index (Return on Investment) HR Strategy and priorities of HR practice Activities and structure of HR department Workforce statistics
Effectiveness of HR system
Effectiveness of HR system Sources of employee selection Internal and external recruitment Cost per hire Time spent per hire Criteria for employee selection Method of new employee selection Success rate in filling vacant positions Cost of graduate recruitment	Remuneration Remuneration costs Remuneration strategy Authority to create a remuneration system Market position in remuneration Salary increases Variable salary component Benefits
Training and Development Induction training Training costs Time spent on training Penetration of training Types of training External and internal training Evaluation of benefits from training and return on investment from training Talent management Innovation	Behaviour in an organization Employee turnover Reasons for resignations and how to monitor them Absences due to incapacity to work Monitoring the motivation and satisfaction of employees
Performance management
Linking the performance evaluation process to the remuneration system Performance management and promotion system Monitoring labour productivity

HR Benchmarking methodology

We distribute an electronic questionnaire in Microsoft Excel format to participants to elicit the data necessary for our analysis. The information is then processed through a specific application that our company developed for this purpose.

Saratoga: Saratoga uses empirically verified measurement model of performance in HR management based on data from 15,000 companies.
Security of data transfer : Each participant is allocated a specific code consisting of several digits. The questionnaires are protected by user passwords. All data is processed on a no-name basis.
A user-friendly database: The database contains help tools, methodology, and explanations of individual terms.
Integrated data processing: Our consultants check the information received and make any necessary adjustments after consulting with the client.
A clear interpretation of the findings: Our report contains clear illustrations in the form of graphs, charts, and tables of both the qualitative and quantitative indicators.

Costs of HR processes

Where can the findings of HR benchmarking be applied?

Identification of areas and possibilities for optimizing expenses incurred on HR activities

Increasing the quality of HR procedures and activities

Determining the optimal use of HR staff

Defining new services to be provided by an HR function and the manner for measuring the efficiency of HR practice

Reengineering HR processes

Identification of key indicators for HR controlling

Implementation of a new HR information system

HR scorecard

Opposite each performance indicator in the HR scorecard, you will find your position compared to the figure representing best market practice. Furthermore, the scorecard includes information for the sector, the entire group of surveyed companies, a specific group of Top 20% companies, and company groups categorised by size.

HR SCORECARD