“If you can’t measure it, you can’t improve it.”
There’s a trove of business wisdom in Peter Drucker’s 39 books, but that quote is widely considered one of the most important in business.
There are plenty of metrics that an HR Service Center can track. But which ones should you track? When in doubt, focus on the basics for HR Service Delivery Metrics :
Let’s look at each, and why they matter.
Tier Zero Resolution (TZR) is the percentage of inquiries that are answered in Self-service, using the knowledge base. Every question answered through self-service is a question that doesn’t have to be answered by HR. It measures efficiency.
TZR is more important now than before. That’s because Millennials - the fasted-growing segment of the work force – prefer self-service. This means that when they can get it done themselves, they’re happier. And happier employees boost the bottom line.
Speaking of happiness…
Back in the day, HR Shared Services was all about cost reduction. Employee Satisfaction was a cherry on the cake, but most CFO’s didn't require the cherry.
But that was then. With today’s value on engaged and happy employees, it’s no longer enough to control costs. The conversation and focus have shifted to the customer, so it’s critical to actively manage employee satisfaction. And managing it begins with measuring it.
First Contact Resolution (FCR), aka “First Call Resolution,” is as old as the hills in the service center. But it means as much now as it did back when the telephone was the only way to reach the service center.
FCR is the percentage of requests that are resolved on the first “touch” by an agent. A high FCR rate means you’re efficient. Each time an agent must go back to the same issue, the cost to resolve that issue increases. A high FCR rare means productivity is high, and costs are low.
But FCR also means a lot to the employee. If they don't have to wait for a callback to have their problem solved, they're happier.
First Team Resolution (FTR) is like a consolation prize if you miss FCR. While you didn’t solve the case on the first touch, at least you didn’t have to escalate it. You finished the job you started (with a little help from your friends).
Some escalations are unavoidable. But a high percentage of escalations may indicate inadequate knowledge or skills among the receiving team, or poorly-design case routing.
In the case of low skills, agent training may be in order. But if a high volume of complex queries is landing in the laps of Tier 1 Agents, it may be time to reconfigure your routing rules. Most case management systems can automatically identify challenging requests, and route them directly to Subject Matter Experts.
No discussion of Service Center metrics is complete without SLA (Service Level Agreement) Achievement, right?
The SLA is essentially the Service Center’s commitment to the business. SLA Achievement rate is the percentage of requests and transactions that the HR Service Center resolved within the agreed-upon timeframe.
High SLA compliance indicates that the Service Center is doing what it said it will do, in agreement with the business. SLA Achievement is a measure of credibility. And credibility earns trust.
Today’s HR Service Centers can measure a performance points. But creating a foundation for success requires measuring and managing the basics. These include Tier Zero Resolution, Employee Satisfaction, First Contact Resolution, First Team Resolution and SLA Achievement.
Success is about focusing on the basics, and getting them right.