Emre Altun
CHRO
Harmony Public Schools - Texas
Episode 343
Why Your HR Needs an Engineer: The Data-Driven Path to Scalable People Systems
Current chapter: Covering monthly expenses is the number one concern for employees in 2024
Built By PeopleJanuary 17, 2025 · 11:14
Thesis
“A systematic, data-driven, engineering-inspired approach to HR is essential for designing scalable people systems, aligning financial incentives with organizational goals, and effectively addressing complex workforce challenges, particularly in unique sectors like education.”
Show notes
In this episode of the Built by People podcast, host Dave welcomes Emre Altun, the Chief Human Resources Officer at Harmony Public Schools. Emre shares his unique career journey from engineering to education and human resources, emphasizing how his technical background influences his data-driven approach to HR systems. The discussion covers strategies for designing performance-based compensation plans, balancing individual and team metrics, and the implementation of innovative HR frameworks. Emre also highlights the impact of the Teacher Incentive Allotment Program and the importance of continuous improvement in HR practices. 00:44 Guest Introduction: Emre's Career Journey 01:02 From Engineering to Education 02:33 Impact of Engineering on HR Systems 03:49 Data-Driven HR Strategies 05:01 Performance-Based Compensation Challenges 07:27 Balancing Individual and Team Metrics 08:43 Engineering Solutions to HR Challenges 10:30 Parting Advice and Conclusion
What you'll take away
- 1Adopt a 'systems thinking' engineering approach in HR to systematically break down complex processes and use data as the foundation for decision-making.
- 2Understand that HR metrics are more than just numbers; they narrate the story of employee engagement, growth, and organizational health, and should strategically align with financial incentives and broader company objectives.
- 3When developing performance-based compensation plans, prioritize metrics that are meaningful, measurable, and directly linked to core organizational goals such as fostering innovation and collaboration.
- 4Cultivate a balanced approach to compensation by integrating both individual and team-based performance metrics to encourage personal accountability while also promoting shared success and collaboration.
- 5Proactively identify and address unintended consequences of incentive programs by leveraging data to design responsive new systems, such as creating distinct leadership compensation when front-line pay surpasses it.
What most organizations get wrong
- •Implementing performance-based compensation in education, though uncommon and challenging due to potential dissatisfaction among those not meeting criteria, can be a highly strategic move to retain top talent with limited financial resources.
- •The unintended consequence of high-performing teachers earning more than their principals (due to a successful incentive program) presented a unique challenge that required a contrarian solution: designing a new performance-based compensation system specifically for campus leaders.
In Emre's words
“My engineering background has been very helpful in shaping the way I design and implement HR systems. Engineering is not just about understanding machinery or circuits, right? It's about understanding how moving parts of a system work together to achieve a larger goal.”
This quote clearly articulates Emre's unique approach to HR, blending engineering principles with people strategy.
“Metrics in performance management and compensation planning are just, are not just numbers. They are indicators of engagement. They're indicators of growth. They are also indicators of like organizational health.”
Emre highlights the qualitative story behind HR data, emphasizing its importance beyond mere statistics.
“The goal should be to identify metrics that are meaningful, that are measurable, and also directly aligned with organizational goals.”
This provides a concise framework for effective performance-based compensation design.
“So many of these exceptional teachers became less interested in being campus leaders... So they wondered like, why moving to leadership if I'm already earning more and doing what I love, right?”
This quote illustrates an unexpected challenge from a successful incentive program, highlighting the complexities of compensation and career progression.
“I would say always stay curious and don't shy away from bringing your unique background into your work. Whether it's engineering, finance, or another field, those skills can add tremendous value to HR. Also, use data, seek clarity, and never stop refining your systems.”
This is Emre's parting advice, encapsulating his philosophy of continuous improvement and leveraging diverse skills in HR.
The problems this episode addresses
- •Employee Financial Stress: Employees' top concern is covering monthly expenses, indicating a need for benefits that offer significant financial savings.
- •Dissatisfaction with Performance-Based Compensation: Risk of employee dissatisfaction in performance-based bonus structures where more individuals may not meet eligibility criteria, creating a perception of 'more losers than winners.'
- •Limited Financial Resources for Talent Retention: Challenges in incentivizing and retaining high-performing staff, particularly in sectors like education with often constrained financial budgets.
- •Unintended Consequences of Incentive Programs: Successful frontline incentive programs can inadvertently diminish interest in leadership roles if frontline compensation surpasses that of leadership, impacting leadership pipeline retention.
- •Aligning Compensation with Non-Traditional Metrics: Difficulty in establishing appropriate metrics to reward intangible qualities like innovation and collaboration within performance-based compensation plans, especially in non-traditional environments.
In this episode
Covering monthly expenses is the number one concern for employees in 2024
Built by People
Your career has been a blend of engineering, education and human resources
Top Executives: Personal Journey
My engineering background has been very helpful in shaping the way I design HR systems
How Has Your Engineering Background Shaped Your HR System Design?
Your technical training enhances your understanding of performance management and compensation planning
Understanding Performance Management and Compensation Planning
Developing a performance-based compensation plan in education can be challenging
Performance-based Compensation Plan in Education
Emre, thank you so much for joining us on the Built by People podcast
Interviewed by Dave Rubin
Topics covered
Organizations and entities mentioned
Full transcript
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