Tuesday, September 5, 2017

BPI Workforce Numbers and Cost – Examples


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BPI Workforce Numbers and Cost – Examples


The following example demonstrates how to estimate the Workforce Numbers using the Human Resource Planning Model Technique. It was used to help a large public sector organization calculate the costs of delivering human resource management services according to the proposed 'To-Be' processes.

Process Costing Estimates

Working Assumptions

  • The estimates provided in this document have been made for headquarters only. However, it is assumed that these estimates could be extrapolated to establish overall costs for HR management across the organization.
  • The estimates have been made for the processes that were redesigned within the scope of this project only. These costs therefore do not represent the total costs for HR management. For an overall picture, costs associated with other processes (e.g., staff relations) should be factored in. As well, an additional 15% could be added to factor in administrative support as well as supervisory/management requirements.
  • The estimates include    management of both civilian and military personnel.
  • The number of managers within this group involved in the HR processes have been estimated as follows:   
    • 1 Deputy       
    • 7 Senior Directors       
    • 41 Directors       
    • 220 Managers   
  • Estimates for volume of HR transactions are based on historical statistics but adjusted to     reflect future environment (e.g., downsized Group). Estimates for level of effort required by HR service provider and line manager are based on "best guess" estimates of end-state taking into consideration technology and efficiency improvements of new processes.
  • The costs are not presented in terms of dollars but in terms of full time equivalences (FTEs). A dollar estimation could be derived by applying an average salary     amount to the FTE total. One FTE is considered to be equivalent to 190 days based on the following assumptions:   
    • Total work days: 260       
    • Sick leave: (5)       
    • Vacation: (15)       
    • Statutory holidays: (10)       
    • Net available days: 230       
    • Training: (5)                
    • Administration at 10%    (23)       
    • Indirect time at 5% (12)       
    • Net productive days (190)
  • 1 day is equivalent to 7.5 hours of work.   
  • Estimates have been based on an optimum level of service being provided to the manager (i.e., minimum input by managers and high-degree of reliance on support from HR service provider).
  • No distinction has been made as to "who" will provide the HR services (i.e.,     compensation/benefits specialists or HR generalists reporting directly to the line organizations).See Roles and Responsibilities table for a further breakdown.

Costing summary

Redesigned process
Level     of effort

HR service provider
Line Manager
       
Total days
FTE
Total days
FTE
Plan Human Resources
241 days
1.5
606 days
3
Manage Vacancies
879 days
4.5
1417 days
7.5
Manage individual performance
105 days
0.5
33323     days
175
Train workforce
2860 days
15
1625 days
8.5
Create/Modify     organization structure and classify positions
590  days
3
421 days
2
Total:       
4675 days
24.5 FTE
37392     days
196 FTE


Note1: Comparison with the baseline costs are difficult to established since the team that looked at the As-is processes did not determine the specific costs of each HR process. Only an overall cost of HR service delivery was established. This cost was established at ~160 FTEs (April baseline). The cost included field units and excluded temporary project-dedicated resources.
Note 2: The baseline cost of line management involvement (for As-is HR process) was not established. While the projected estimate of 196 FTEs is high, it is felt that it is probably not higher than what is currently expended, since line managers currently spend a significant proportion of their time on HR management.

Detailed costing estimates

Redesigned     process
Transaction volume / year
Level of effort
   
   
   
HR service provider
Line manager
   
   

Unit of measure
Total days
Unit of measure
Total days
   
1.0 Plan Human Resources
   
       
   
   
   
   
1.1 Interpret/establish strategic direction
- AOM & DILP
- DMPol & Mgnt
- Other direct reports to AOM
Once a year
   
80% of line mgnt effort
4.5   

0.5 day each
0.5 day each
0.5 day each

1

.5

3
   
1.2 Analyze strategic/operational requirements and translate into HR requirements
- AOM & DILP
   
- DMPol & Mgnt

- Other direct reports to ADM
           

100% of line effort
           
9
       




.25 day each
2 days each
1 day each
           

           

 0.5
   
2

6

1.3 Analyze gap
- AOM
- each Senior     Director and Directors
- each Manager
   
33% of line mgnt effort
31
           
   
1day
1 day each
1.5 hour each
  1
48
    44   
   
1.4 Review external environment
- DMPol & Mgnt

- Other direct reports to AOM

100% of line mgnt effort
11
           


4 days in total
1 day each
        4
    7
   

1.5 Generate, evaluate & select strategies
- AOM
- each Senior Director and Director
- each Manager
       
33.3% of line mgnt effort
78   


3 days
3 days each
3 hours each
        3
144
     
  88   

1.6 Develop HR plan and incorporate in BP
- AOM
- each Senior Director and Director
- each Manager
   
33.3% of line mgnt effort
78
           
   

3 days
3 days each
3 hours each   
        3
144
  88
   
1.7 Monitor and report on process performance
- Conduct audits/surveys
- Analyze audit/survey results
- Recommend     corrective options
- Implement changes
- Respond to queries
- Produce reports
1 audit/ survey
           


5 days

5 days

5 days
5 days
10 days
5 days
          

   5
   
5
   
 5
    10
5   
           


1 hour each (10% of mgrs surveyed)
n/a
n/a
minimal
n/a
n/a
           

6
n/a



n/a
   
min
n/a
n/a
           
Total             days        days        593 days
               
Total             FTEs        1.5 FTE        3.0 FTEs
           

Detailed costing estimates

Redesigned process
           
Transaction volume per year
Level of effort
           
       

HR service provider
Line manager
           
   
Unit of measure
Total     days
Unit of measure
Total     days
2.0    Manage vacancies
   
   
   
   
   
2.1    Review     options determine course of action
           
760 staffing transactions
80% of line mgnt effort
20
15 min (on average)
25   
2.2a    Select staff through deployment
- Notify     staff
- Identify potential candidates
- Determineassessment criteria
- Assess candidates
- Do reference checks
200 deployments
30% of line mgnt effort
48


15 min
0.5 hour
2 hours
3 hours
15 min


7
13
53
80
7
160
2.2b    Select staff without competition(including priority appointments)
- Determine assessment criteria
- Obtain referrals
- Assess candidates
- Document rationale        
- Obtain clearance    
120 staffing without competitions
50% of line mgnt effort
114   



4 hours
0.5 hour
1day
2 hours
15 min
       

64
8
120
32
4
228
2.2c    Select staff through competition
-  Obtain priority clearance
100 staffing through competition
50% of line mgnt effort
400   


15 min


3
-  Search for interested candidates/advertize
   
   
   
1 day
100
-  Prepare assessment criteria/selection tools
   
   
   
1 day
100
-  Review applications

   
   
1 day
100
- Administer tests
- Interview canditates and priorize
-  Conduct reference checks

   

1 day
3 days
   
1 day
100
300
    100
800
2.2d    Select staff to meet short-term reqts
- Obtain list of candidates
- Create assessment criteria
- Evaluate candidates
340
20% of line mgnt effort
14


0.5 hour
0.5 hour
0.5 hour
        23
23
23

Detailed costing estimates

Redesigned process
       
Transaction volume per year
Level of effort
           
           
   
HR service provider
Line manager

   
Unit     of measure
Total days
Unit of measure
Total     days
2.0    Manage vacancies (cont'd)
   
   
   
   
   
2.3    Appoint     and/or finalize action
- Request security and/or medical clearance   
570 (75% of total actions)
1 hour (80% of actions)   
60
1 hour (20% of actions)
15
- Request second language evaluation       
same
same
60
same
15
    - .Publish results/debrief   

   
   
   
   
            - Prepare appeal/complaint notice       
400
15 min (20% of notices)
3
15 min
(80%of notices)
11
- Defend appeal/deal with complaint   
20 appeals
5 days
100
3 days
60
    - Do letter of agreement / appointment   
760 actions
15 min
25
15 min
25   
2.4    Monitor     and report on process performance
-  Conduct audits/surveys
           
   

1 audit
       
5 days
        5
       
a hour (10 of mgrs surveyed)
        6   
  • Analyze audit/survey results
   
5 days
5
n/a
n/a
- Recommend     corrective options
- Implement changes
- Respond to queries
- Produce reports   

5 days
5 days
10 days
5 days
5
5
10
5
n/a
minimal
n/a
n/a   
n/a
min
n/a
n/a
Total days 879 days        1417days

Total FTEs                                            4.5 FTEs        7.5FTEs

Detailed costing estimates

Redesigned     process
Transaction volume per year
Level of effort
           
           


HR service provider
Line manager
       
   
       
Unit of measure
Total days
Unit of measure
Total days

3.1Determine individual performance expectations
-Determine expectation
-Determine measurement criteria
1677




n/a
   
n/a
               
n/a
    n/a   
               
1 day each
1 day each
               
1677
    1677
   
3.2 Monitor     performance and provide feedback periodically
- Making adjustments in expectations in response to changes in business plan
1677
n/a


   
n/a
n/a       

n/a   
2 hours per week
   

0.5 hour per wk
23254       

5813.6

3.3 Recognize     accomplishments & celebrate achievements   
84
(5% of employees)
1 hour
12
2 hours
22.4   
   
3.4 Counsel &     implement corrective action
- Identify deficiencies & evaluate options
- Counsel and take corrective action
34 (2%     of employees)
           
1 day
        n/a
            34
        n/a
           
4 hours
       
1 day
            18
        34

3.5 Document     performance evaluation
- Identify training & dev't recommendations
- Senior Mgnt Board reviews
- Junior Mgnt Board review
1677
1 hr (on10%)
    n/a
   

n/a
    n/a
24
        n/a
        n/a
    n/a
2 hours        
1 hour
        1.5 days
   
3 days
447
       
224
        12
    144

3.6 Monitor and report on process performance
- Conduct     audits/surveys
- Analyze     audit/survey results
Recommend     corrective options
Implement changes
- Respond to queries
- Produce reports
1 survey
(10% of employees)       

               
5 days


5 days
5 days
   
5 days
   



10 days

5 days
5


5
5
    5





10

5
n/a
        n/a
minimal
    minimal
               
n/a

n/a
n/a
        n/a
min.
    min.
               
n/a
    n/a

Total     days                105 days        33323d
               
Total     FTEs                0.5 FTE        175 FTE

Detailed costing estimates

Redesigned process
           
Transaction volume per year
Level of effort
           
       

HR service provider
Line manager
       

Unit of measure
Total days
Unit of measure
Total days
4.0    Train workforce
   

   
   

4.1    Determine training objectives
- 1st yr: (50% of employees)
- 2nd yr: (25%)
- 3rd yr: (20%)
- 4th yr: (10%)
- 5th yr: (4%)   
       
Yr 1: 839
Yr 2: 419
Yr 3: 335
Yr 4: 168
Yr 5: 67
Total:     1828 objectives
       
0.5 hr     (on 20% of transactions)   
        24    
        \1 hour
        261   
4.2 Develop draft training plan
- Select option and cost



- Review/prioritize plan (49 managers)   

1828    



1 plan

0.5 hr     (on 50% of transactions)
n/a

61
            n/a

1 hour
       

4 hours

244
            28   
4.3    Develop implementation strategy               
- Develop implementation plan
- Draft on the job training program
- Anticipate future training needs
- Design/contract course dev't    
- Negotiate/manage bulk contracts-Yr 1
- Draft     nominations for PTC/DMA
request seats
develop substantiations
submit     nominations
Once per yr
   
84  (10% of cases)
25 courses
25 contracts
10
   
10
10
       
10 days
1 day each
30 days total
95 days each
5 days each 0.2 hour
4 hours
0.1 hour
        10
84
30     2390
125
minimal
5 days     minimal
        n/a
5 day
n/a
n/a
5 days
n/a
4 hrs
n/a
        500
420
n/a
n/a
125
n/a
5days
n/a   

Detailed costing estimates (continued)

Redesigned process
           
Transaction     volume per year
Level of effort
           
   
HR service provider
Line manager
       
   
Unit of measure
Total days
Unit of measure
Total     days
4.0    Train     workforce (cont'd)


   
   
   
4.4    Schedule training activity
- Register employees on courses
- Provide course loading info to employees       
        839 courses
839 course
    0.2 hour
0.1hour
    22
11
    n/a
n/a
    n/a
n/a
4.5    Attend courses and complete on the job training program
- Initiate payment for courses   
               
839 courses
        0.1 hour
        10
        n/a   
        n/a   
4.6    Evaluate training activities (level of effort of HR provided on internally designed courses only)
50 internal courses
   
   
n/a
n/a
4.7    Validate training activities
               
- Complete validations

- Review validations (level of effort of HR provided on internally designed courses only)   
               
629 courses (75%)
50 internal courses
        n/a
   
1
        n/a
    50   
        0.5 hour
    n/a   
        42
    n/a   
4.8    Monitor     and report on process performance
- Compare plan to actual
- Conduct audits/surveys
- Analyze audit/survey results
- Recommend corrective options
- Implement changes
- Respond to queries
- Produce reports   
               
12 times/yr
1 survey
(10%     of employees)
   

2 hours
5 days
5 days
5 days
5 days
10 days
5 days   
        3
5
5
5
5
10
5
        n/a
n/a
n/a
minimal
minimal
n/a
n/a
        n/a
n/a
n/a
minimal
minimal
n/a
n/a
Total     days    2860 days    1625d
               
Total     FTEs    15 FTE        8.5 FTE

Detailed costing estimates

Redesigned     Process
           
Transaction volume per year
Level of effort
           
       

HR service provider
Line manager
       
   
Unit of measure
Total days
Unit of measure
Total days
5.0 Create/modify org structure and classify positions

   


   
5.1    Develop organization model
20 new org models
10 days each
200
2 days each
40   
5.2    Search for organizational offsets   
250 search


0.5 hour
125
5.3 Develop new work descriptions       
100 new WD
2 days each
200
2 days
200
5.4 Determine level, rank/MOC
100 new WD
1.5 days each
150   
n/a (with current class. system)
n/a
5.5 Select generic work description   
150 generic WD
15 min
5    
1hour
20
5.6 Determine cost of modified org structure       
20 new org models
n/a
n/a
1 hour
20
5.7 Obtain  adjustment to resource allocation
TBD
n/a
n/a
TBD
TBD
5.8 Finalize org design/record class. decision
- Determine linguistic profile of new pos.       
250 pos
minimal
min.
0.5 hour
10
5.9 Monitor  and report on process performance
    - Conduct audits/surveys
    - Analyze audit/survey results
    - Recommend corrective options
    - Implement changes
    - Respond to queries
    - Produce reports
        1survey    per yr
1survey per yr
(10% of employees)
       
5 days
5 days
5 days

5 days
10 days
5 days
        5
5
5
    5
10
5
       
1 hour
n/a
minimal
    minimal
n/a
n/a
        6
n/a
min.
    min
n/a
n/a
Total     days         590 days            421 days
               
Total     FTEs        3 FTEs        2 FTEs

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