Percentage of process group "develop and manage human resources planning, policies, and strategies" services delivered by a third-party provider

This measure calculates the percentage of process group "develop and manage human resources planning, policies, and strategies" services—which involve workforce planning, compensation planning, succession planning, employee diversity, program design, policy administration, and policy development—delivered by a third-party provider. A third-party provider is any independent company that provides ongoing services which internal personnel previously performed to the broader organization for or on behalf of the business entity. This measure is part of a set of Supplemental Information measures that help companies evaluate additional variables not covered elsewhere for the "develop and manage human resources planning, policies, and strategies" process.

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Measure Category:
Supplemental Information
Measure ID:
106261
Total Sample Size:
246 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
No
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Units for this measure are percent.

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Percentage of process group "develop and manage human resources planning, policies, and strategies" services delivered by a third-party provider

Key Terms

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Supplemental information is data that APQC determines is relevant to decision support for a specific process, but does not fit into the other measure categories such as cost effectiveness, cycle time, or staff productivity.

Measure Scope

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Cross Industry (6.0.0)

  • 6.1.1 - Develop human resources strategy (10415)
    • 6.1.1.1 - Identify strategic HR needs (10418) - Strategically defining the current and future needs for developing an efficient HR strategy.
    • 6.1.1.2 - Define HR and business function roles and accountability (10419) - Outlining the charge and duty of the HR function by defining its responsibility areas, as well as ensuring its accountability. Establish the HR function by laying out the roles and responsibilities for this function and the rules and regulations guiding HR. Define the goals and objectives of the HR, as well as a mission and vision for this function. Create a mechanism involving a set of policies, code of conduct, and institutional procedure to ensure HR accountability.
    • 6.1.1.3 - Determine HR costs (10420) - Ascertaining the costs and expenses of the HR function. Identify and report HR investments using, for example, a cost approach or a present value of future earnings approach.
    • 6.1.1.4 - Establish HR measures (10421) - Evaluating the performance of HR function. Lay out the course of HR procedures that would formulate a plan of action needed to fulfill strategic HR needs. Deploy measures such as hiring policies, leave management, internal code of conducts, and compensation structure.
    • 6.1.1.5 - Communicate HR strategies (10422) - Conveying the strategies of HR function to employees and management. Effectively explain the vision, plans, and anticipated benefits of the HR strategy employees, as well as the public. Develop statements and messages that are easy to read, informative, and relevant to the audience.
  • 6.1.2 - Develop and implement human resources plans (10416)
    • 6.1.2.1 - Gather skill requirements according to corporate strategy and market environment (10423) - Evaluating the current and future skill requirements of the organization with regard to the overall corporate strategy of the organization and market conditions. Identify and establish the minimum skills needed for the requisite HR needs.
    • 6.1.2.2 - Plan employee resourcing requirements per unit/organization (10424) - Determining the requirements for employees and the need for employee resourcing for each every unit/function. Lay out a plan detailing employee resourcing requirements of individual functions and the organization as a whole.
    • 6.1.2.3 - Develop compensation plan (10425) - Designing a plan that specifies the combination of wages, salaries, and benefits the employees receive in exchange for work. Define the total amount of compensation, in addition to the manner in which the compensation is paid and the purposes for which employees can receive bonuses, salary increases, and incentives.
    • 6.1.2.4 - Develop succession plan (10426) - Creating and implementing the plan for continuation of key positions within the organization. Identify internal people with the potential to fill key business leadership positions. Provide critical development experiences to employees who can move into important roles. Engage leaders to support the development of high-potential leaders.
    • 6.1.2.5 - Develop employee diversity plan (10427) - Creating and implementing the plan for ensuring a diverse work force. Develop and hire employees with varying characteristics including, but not limited to, religious and political beliefs, gender, ethnicity, education, socioeconomic background, sexual orientation, and geographic location.
    • 6.1.2.6 - Develop other HR programs (10428) - Creating HR programs and services such as employee engagements programs to promote positive employee behavior. Create a variety of programs and services to support employees' professional and personal needs at work and at home.
    • 6.1.2.7 - Develop HR policies (10429) - Creating rules and regulations that govern the HR function. Develop a policy plan that serves as a guideline for setting rules and regulations that help in achieving the HR goals and objectives.
    • 6.1.2.8 - Administer HR policies (10430) - Ensuring rules and regulations are followed and are flexible enough to accommodate indispensable deviations.
    • 6.1.2.9 - Plan employee benefits (10431) - Planning benefits in kind (also called fringe benefits, perquisites, or perks). Include various types of non-wage compensations provided to employees in addition to normal wages or salaries.
    • 6.1.2.10 - Develop strategy for HR systems/technologies/tools (10432) - Creating a strategy for the use of systems/technologies/tools in operating the HR function. Create a strategy concerning the use and utility of HR support tools and technologies. Decide what specific tools to use and in what quantity. Determine the levels of technology required for the HR management.
    • 6.1.2.11 - Develop work force strategy models (10433) - Creating and implementing models for effectively strategizing the work force of the organization. Develop a model that specifies the organization's overall approach for maximizing the performance of its work force by defining the goals, objectives, and expectations of the work force. Manage all aspects of performance required for the work force to function, including recruitment, selection, retention, and professional development.
  • 6.1.3 - Monitor and update plans (10417) - Supervising the HR strategy, plans, and policies in order to refurbish them whenever needed. Determine the performance of HR plans and policies by measuring the objective achievement rate and its contribution to the overall business strategy. Ensure that information about these plans and strategies is effectively communicated to various stakeholders. Incorporate any suggestions by these stakeholders when revising HR plans and policies.
    • 6.1.3.1 - Measure realization of objectives (10434) - Determining the accomplishment of HR goals and objectives. Evaluate the effectiveness of the HR function by estimating the present rate of achievement of the established objectives. Use metrics to determine if the objectives are being realized. Leverage measures such as turnover, training, return on human capital, costs of labor, and expenses per employee.
    • 6.1.3.2 - Measure contribution to business strategy (10435) - Determining the role of HR function in implementing the organizational strategy. Measure the correlation between the HR performance and the overall business strategy. Calculate the amount of contribution of the HR function to the overall business growth.
    • 6.1.3.3 - Communicate plans and provide updates to stakeholders (10436) - Conveying the plans for HR function to stakeholders. Ensure that the HR plans and strategy are effectively communicated to the people who can affect or be affected by the organization's actions, objectives, and policies such as the creditors, shareholders, employees, and suppliers. Provide regular updates to these stakeholders to ensure effective communication.
    • 6.1.3.4 - Determine value added from HR function (10437)
    • 6.1.3.5 - Review and revise HR plans (10438) - Reassessing the strategies, plans, and policies of the HR function, with the objective of revising them. Revisit the schematic plans for the HR function. Taking stock of any suggestions or feedback from the stakeholders, revamp the blueprint of HR strategies and plans.