netrashetty
Netra Shetty
Human Resource Management of Regis Corporation : Regis Corporation is the largest hair salon chain in the world, with over 11,000 salons (including both company-owned and franchises), it is ranked 778 on the Fortune 1000. It has its headquarters in Edina, Minnesota.[1][2]
Its namesake is Regis Hair Salons, and it also owns the chains Carlton Hair International in Southern California, Images Salon in Las Vegas, NV, Michael of the Carlyle in Colorado Springs, and Denver, CO City Looks, Famous Hair, Best Cuts, Saturday's, HCUK, Supercuts, Pro-Cuts, Hair Crafters, Magicuts, MasterCuts, Borics Hair, Hair by Stewarts, Trade Secret, PureBeauty, SmartStyle, Cost Cutters, TGF Hair Salon, Hair Masters, Style America, Holiday Hair, and Mia & Maxx Hair Studio mostly in the United States, First Choice Haircutters based in Canada, and Vidal Sassoon, Jean Louis David, and Saint Algue based in Europe. In 2005 the company acquired Hair Club for Men and Women, in the hair loss field. The company recently sold all of its beauty schools to Empire Beauty School.
Human Resource Metrics has become important for Balanced Scorecards and other
performance measurement systems. The reason is due to the need for effective
management over human resource capital; i.e. the intellectual capital that drives
value. And to make matters more urgent, senior management often fails to
comprehend the value of human resources within the organization. It is quite
common to see little emphasis on human resource management within a balanced
scorecard. Consequently, it has become very important to demonstrate the value of
human resource capital to executive management. In one simple application, one
CFO decided to apply the P/E (Price to Earnings) Ratio to each new employee. If the
employee costs the company $ 50,000 per year and the P/E Ratio is 5, then the
employee should generate $ 250,000 in value. However, a much better approach to
human resource (HR) metrics is to delegate the design to HR people; i.e. let the HR
people demonstrate the value of human capital to the Non-HR people and not vice
versa.
The first step is for HR people to make the transition from "liking people" to "liking
value." The sad fact is that many HR people simply don't understand or grasp
concepts within value-based management (such as EVA, economic profits, etc.).
Once HR people understand value-based and financial metrics, then you can move
into developing a set of metrics that recognizes the relationship between human
resources and finance. The primary focus is on people and how are we going to
develop our human capital.
A good place to start is with a set of efficiency ratios to see how well you are
managing human capital. The Society of Human Resource Management has
identified ten key human capital measurements:
1. Revenue Factor = Revenue / Total Full Time Employees
2. Voluntary Separation Rate = Voluntary Separations / Headcount
3. Human Capital Value Added = (Revenue - Operating Expense -
Compensation & Benefit Cost) / Total Full Time Employees
4. Human Capital Return on Investment = (Revenue - Operating Expenses -
Compensation & Benefit Cost) / Compensation & Benefit Cost
5. Total Compensation Revenue Ratio = Compensation & Benefit Cost /
Revenue
6. Labor Cost Revenue Ratio = (Compensation & Benefit Cost + Other
Personnel Cost) / Revenue
7. Training Investment Factor = Total Training Cost / Headcount
A recruiting culture is a recruiting strategy that shifts the responsibility of recruiting to managers and employees. While the recruiting department provides leadership, every individual and department in the organization is assigned a prominent role in recruiting. No individual is exempt.
The process of building a recruiting culture begins with convincing senior executives that recruiting is so important that it must permeate the entire organization. In essence, recruiting becomes a business imperative.
The first step in accomplishing this is to build a "dead bang" business case which convinces the CEO and the CFO that recruiting impacts business results as much as other critical functions like marketing, R&D, and sales. Once buy-in has been achieved, the next step involves the CEO making it clear to everyone that he or she is the Chief Recruiting Officer for the organization, and as such, he or she will lead the charge to ensure that there is excellence in recruiting throughout the organization.
The business case must also be designed to convince every manager and employee that they too must play a critical role in recruiting. In effect, every manager and employee must be convinced that their personal business results, bonuses, stock value, and even their job security depends on them working alongside the very best people in the industry, and that the only way to ensure that they work alongside the very best is for everyone to work tirelessly 24/7 as a talent scout for the organization.
Examples Illustrating a Performance Culture
Perhaps two examples can further distinguish how recruiting cultures are unique:
1. In a recruiting culture, involving everyone in recruiting is critical, and organization-wide involvement is certainly the hallmark of FirstMerit Bank, which is one of the newest recruiting cultures that have been developed. Under the tutelage of Michael Homula, the bank achieved amazing recruiting results including a nearly 60 percent referral hire rate without a formal referral program. Practices also include an offer presentation process that requires all candidates given an offer to make referrals; a plan for recruiters and managers to visit the competition to recruit away talent; and a CEO who requested the director of recruiting present at the annual shareholders meeting on the economic impact of recruiting. As you can see, every employee, every new hire, and even managers are expected to be talent scouts and in addition, the CEO was so convinced of the value of recruiting that he placed recruiting on the agenda of the annual meeting.
2. Recruiting cultures are also very aggressive in their approach. In this example, a firm that is building a recruiting culture actively participated in the practice of aggressively poaching top talent from its competitors. When the firm's legal office received a well-written letter challenging the poaching practice from a lawyer at a competing firm, instead of getting intimidated, the head of recruiting acted like a true recruiter and asked for and received permission from their own legal advisors to recruit the lawyer who wrote the cease-and-desist letter. Yes, in a recruiting culture, even lawyers are recruiters.
Its namesake is Regis Hair Salons, and it also owns the chains Carlton Hair International in Southern California, Images Salon in Las Vegas, NV, Michael of the Carlyle in Colorado Springs, and Denver, CO City Looks, Famous Hair, Best Cuts, Saturday's, HCUK, Supercuts, Pro-Cuts, Hair Crafters, Magicuts, MasterCuts, Borics Hair, Hair by Stewarts, Trade Secret, PureBeauty, SmartStyle, Cost Cutters, TGF Hair Salon, Hair Masters, Style America, Holiday Hair, and Mia & Maxx Hair Studio mostly in the United States, First Choice Haircutters based in Canada, and Vidal Sassoon, Jean Louis David, and Saint Algue based in Europe. In 2005 the company acquired Hair Club for Men and Women, in the hair loss field. The company recently sold all of its beauty schools to Empire Beauty School.
Human Resource Metrics has become important for Balanced Scorecards and other
performance measurement systems. The reason is due to the need for effective
management over human resource capital; i.e. the intellectual capital that drives
value. And to make matters more urgent, senior management often fails to
comprehend the value of human resources within the organization. It is quite
common to see little emphasis on human resource management within a balanced
scorecard. Consequently, it has become very important to demonstrate the value of
human resource capital to executive management. In one simple application, one
CFO decided to apply the P/E (Price to Earnings) Ratio to each new employee. If the
employee costs the company $ 50,000 per year and the P/E Ratio is 5, then the
employee should generate $ 250,000 in value. However, a much better approach to
human resource (HR) metrics is to delegate the design to HR people; i.e. let the HR
people demonstrate the value of human capital to the Non-HR people and not vice
versa.
The first step is for HR people to make the transition from "liking people" to "liking
value." The sad fact is that many HR people simply don't understand or grasp
concepts within value-based management (such as EVA, economic profits, etc.).
Once HR people understand value-based and financial metrics, then you can move
into developing a set of metrics that recognizes the relationship between human
resources and finance. The primary focus is on people and how are we going to
develop our human capital.
A good place to start is with a set of efficiency ratios to see how well you are
managing human capital. The Society of Human Resource Management has
identified ten key human capital measurements:
1. Revenue Factor = Revenue / Total Full Time Employees
2. Voluntary Separation Rate = Voluntary Separations / Headcount
3. Human Capital Value Added = (Revenue - Operating Expense -
Compensation & Benefit Cost) / Total Full Time Employees
4. Human Capital Return on Investment = (Revenue - Operating Expenses -
Compensation & Benefit Cost) / Compensation & Benefit Cost
5. Total Compensation Revenue Ratio = Compensation & Benefit Cost /
Revenue
6. Labor Cost Revenue Ratio = (Compensation & Benefit Cost + Other
Personnel Cost) / Revenue
7. Training Investment Factor = Total Training Cost / Headcount
A recruiting culture is a recruiting strategy that shifts the responsibility of recruiting to managers and employees. While the recruiting department provides leadership, every individual and department in the organization is assigned a prominent role in recruiting. No individual is exempt.
The process of building a recruiting culture begins with convincing senior executives that recruiting is so important that it must permeate the entire organization. In essence, recruiting becomes a business imperative.
The first step in accomplishing this is to build a "dead bang" business case which convinces the CEO and the CFO that recruiting impacts business results as much as other critical functions like marketing, R&D, and sales. Once buy-in has been achieved, the next step involves the CEO making it clear to everyone that he or she is the Chief Recruiting Officer for the organization, and as such, he or she will lead the charge to ensure that there is excellence in recruiting throughout the organization.
The business case must also be designed to convince every manager and employee that they too must play a critical role in recruiting. In effect, every manager and employee must be convinced that their personal business results, bonuses, stock value, and even their job security depends on them working alongside the very best people in the industry, and that the only way to ensure that they work alongside the very best is for everyone to work tirelessly 24/7 as a talent scout for the organization.
Examples Illustrating a Performance Culture
Perhaps two examples can further distinguish how recruiting cultures are unique:
1. In a recruiting culture, involving everyone in recruiting is critical, and organization-wide involvement is certainly the hallmark of FirstMerit Bank, which is one of the newest recruiting cultures that have been developed. Under the tutelage of Michael Homula, the bank achieved amazing recruiting results including a nearly 60 percent referral hire rate without a formal referral program. Practices also include an offer presentation process that requires all candidates given an offer to make referrals; a plan for recruiters and managers to visit the competition to recruit away talent; and a CEO who requested the director of recruiting present at the annual shareholders meeting on the economic impact of recruiting. As you can see, every employee, every new hire, and even managers are expected to be talent scouts and in addition, the CEO was so convinced of the value of recruiting that he placed recruiting on the agenda of the annual meeting.
2. Recruiting cultures are also very aggressive in their approach. In this example, a firm that is building a recruiting culture actively participated in the practice of aggressively poaching top talent from its competitors. When the firm's legal office received a well-written letter challenging the poaching practice from a lawyer at a competing firm, instead of getting intimidated, the head of recruiting acted like a true recruiter and asked for and received permission from their own legal advisors to recruit the lawyer who wrote the cease-and-desist letter. Yes, in a recruiting culture, even lawyers are recruiters.
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