sabpp - eoh 2013
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ADVANCING THE HR PROFESSION AND PEOPLE
MANAGEMENT:
Setting HR Standards & Metrics for South Africa
Marius Meyer
26 February 2013
@SABPP1
New SABPP Model: HR Voice for
Professionals
Human resource development
Research - info
Value & visibility
Open for alliances
Innovation
CPD
Excel-lence
Quality assurance
Learning growth & develop-
ment
Knowledge
Self-governance Duty to society
Ethics
SABPP VALUE PROPOSITION:
Products/Services to advance HR profession RECOGNITION =
PROFESSIONAL STATUS RESOURCES =
PRODUCTS/SERVICES RESEARCH =
INFORMATION
• Professional registration • NLRD Upload (SAQA) • RPL • Awards • Advocacy • HR Assessors/Moderators
registration • Accreditation of providers • University accreditation
• HR Competency Model • Social media discussions • Knowledge Centre • Booklets/DVDs • Guides/toolkits • Charts/posters • Fact sheets • One-stop info • Updates (laws, trends) • Ethics help-line • Newsletters • Website • HR Internships/jobs • HR policies • Mentoring • Workshops/seminars • Access to alliances • Event/product discounts • CPD
• Students
• Research papers • Position papers • Books • Articles • Cases • Benchmarking • Magazines • Labour market
information
Professional registration levels
• M/D degree + 6 years top level experience
• LoW = executive level
MHRP
(Master)
CHRP
(Chartered)
• Degree/ND + 3 years experience
• LoW = middle management HRP (Professional)
HRA (Associate)
• Certificate + 1 year experience
• LoW = entry HRT (Technician)
• Hons degree + 4 years sr experience
• LoW = senior management
• 2 year dip + 2 years experience
• LoW = junior level
IBM CEO Study 2012:
Factors impacting organisations
1 Technology factors (71%) 2 People skills (69%) 3 Market factors (68%) 4 Macro-economic factors 5 Regulatory concerns 6 Globalisation 7 Socio-economic factors 8 Environmental issues 9 Geopolitical factors
IBM CEO Study 2012
SCARCE AND CRITICAL SKILLS
Pos. Type of scarce and critical skills area Magnitude of scarcity
1 Industrial & Mechanical Engineers and Technologists 12 665
2 Medical Technicians 10 000
3 Training & development professionals 9 260
4 Metal fitters & machinists 8 340
5 Specialist managers 6 955
6 Agriculture & forestry scientists 6 175
7 Chemistry, food & beverage technicians 6 145
8 Electrical Engineering, draft persons & technicians 5 145
9 Social workers 5 000
9 Medical and laboratory scientists & technologists 5 000
10 Motor mechanics 4 205
11 Structural steel & welding trade workers 4 045
11 Advertising, marketing & sales managers 4 045
12 Civil engineering, draft persons & technicians 3 960
13 HR Professionals 3 855
14 Advertising, marketing & sales professionals 3 095
15 Production & operations managers 3 130 (DHET, 2011)
Most important organisational
capabilities over the next five years
IBM: Working beyond Borders
31%
33%
34%
37%
28% 30% 32% 34% 36% 38%
Innovation
Client connectivity
Execution speed
Leadership
HR COMPETENCY HOUSE
SOUTH AFRICAN HR COMPETENCY MODEL
STRATEGY
TALENT MANAGEMENT
HR GOVERNANCE, RISK, COMPLIANCE
ANALYTICS & MEASUREMENT
HR SERVICE DELIVERY
5 HR
CAPABILITIES
LEADERSHIP & PERSONAL CREDIBILITY
ORGANISATIONAL CAPABILITY
SOLUTION CREATION & IMPLEMENTATION
INTERPERSONAL & COMMUNICATION
CITIZENSHIP FOR FUTURE: INNOVATION, TECHNOLOGY, SUSTAINABILITY
5 C
OR
E
CO
MP
ET
EN
CIE
S
HR & BUSINESS KNOWLEDGE
DUTY TO SOCIETY
ET
HIC
S
PR
OF
ES
SIO
NA
LIS
M
4
PILLARS
Comfort zone challenged
Use of workforce
analytics remains limited
IBM: Working beyond Borders
0% 10% 20% 30% 40% 50% 60%
Developing future leaders
Developing strategy linked to business strategy
Allocating the workforce across the organisation
Developing workforce skills and capabilities
Sourcing, recruiting and onboarding individuals fromoutside the organisation
Retaining valued talent within the organisation
Evaluating workforce performance
Enhancing workforce productivity
Measuring collaboration and knowledge sharing acrossthe organisation
29%
28%
35%
30%
40%
38%
40%
39%
14%
26%
25%
23%
22%
20%
19%
15%
14%
5%
Can identifyhistoricaltrends andpatterns
Can developscenarios andpredict futureoutcomes
L&D Benchmarks (ASTD/SABPP)
BENCHMARK USA RSA CHANGE
Average % payroll 2,24% 3,94% + 0,83
Hours /employee 36 40 - 12
Spend/employee $1068 R 6898 +R 1700
Employees/trainer 253 157 +19
% companies e-learning
31% 43% + 10%
% outsourced 22% 62% +10%
Management system standard: purpose and
benefits
A (business) management system standard should be a means to:
achieve business objectives
increase understanding of current operations and the likely impact of change
communicate knowledge
demonstrate compliance (with the requirements of King III the Combined code, Sarbanes-Oxley, sector-specific and international standards etc.)
Means to establish 'best (good) practice'
Means to ensure consistency
Establish and set priorities
Instigate organisational change
What is a management system?
One definition of management is 'the guidance and control of
action', and a system is defined as a 'set of components
interconnected for a purpose'.
A management system is: 'A set of components, interconnected
for the guidance and control of action'.
This suggests that the 'interconnection' has been planned for a
reason, and that the purpose would not be achieved without the
'interconnection'. In other words, the separate components
would not independently achieve the same results.
Integrated management system
The same + The same + The same =
Success
How important is consistency in the management process?
It is probably one of the primary factors in any success story.
In order to achieve a breakthrough one has to remain consistent in your efforts, your message, and your processes.
If you are inconsistent in any one of these, and you will potentially be doomed to repeat mistakes over and over.
This is because the actions that create successes can be mixed with the actions generating failures and it is very difficult to tell them apart when all you have is the result.
If an organisation remains consistent it will be far easier to
weed out out the failures and enjoy the successes.
If you can't measure it you cant manage it !
Operational Management Consistency in the
Management of People
One of the toughest things to be is consistent
Revenue per full-time employee
1%
24%
16%
12%
2%
23%
4%
3%
15%
0% 5% 10% 15% 20% 25% 30%
R0
> R100 000
R100 000 to R1 million
R1 million to R 10 million
R10 million+
Don’t measure/Don’t know
It’s confidential
?
Not applicable
Cost of labour as a % of revenue
9%
7%
12%
7%
9%
14%
11%
25%
4%
2%
0% 5% 10% 15% 20% 25% 30%
> 10%
11 - 20%
21 - 30%
31 - 40%
41 - 50%
51 - 60%
61 - 70%
Don’t know/Not applicable
Not done
Too confidential
LTO rate
35%
21%
44%
0% 10% 20% 30% 40% 50%
Don't know
Don't measure
Indicate LTO rate:
Absenteeism rate
34%
31%
35%
29% 30% 31% 32% 33% 34% 35% 36%
Don't know
Don't measure
Indicate absenteeism rate
HR manager’s response to
metrics?
1. Spending on human capital a. Total amount spent on employees (salaries, benefits, taxes) b. Total amount spent in support of employees c. Total amount spent in lieu of employees (contractors, etcetera) d. Total amount invested in training and development e. Total headcount and total FTE (full-time equivalents) at the end of the period 2. Ability to retain talent a. Voluntary and total turnover b. Broken down by subset of EEO-1 job types c. Industry standard formula of (# of terminations during the period) / (average active headcount during the period) 3. Leadership depth a. Percentage of defined positions that have an identified successor b. Percentage of open defined positions filled internally during the period
The basic metrics they propose as
essential for investors to know are:
SHRM (April 2012)
4. Leadership quality a. Index of relevant questions from employee survey b. Information on the response rate and methodology/tool 5. Employee engagement a. Index of relevant questions from employee survey 287 b. Information on the response rate and methodology/tool 6. Human capital discussion & analysis (HD&A) a. Narrative to provide context and discussion of the reported metrics b. Disclosure of any material risks or any other material information related to human capital Note: Organisations may wish to include breakdowns of these metrics by unit or region; it simply depends on what makes sense to the organisation and its investors.
The basic metrics they propose as
essential for investors to know are:
SHRM (April 2012)
Risk + readiness
Getting the balance right…
Professional knowledge and
standards (competence)
Professional ethics (conscience)
Doing good work
(excellence)
Ethical behaviour
and conduct (ethics)
Accountability Responsibility Fairness Transparency
SABPP HR System Standards Model
BUSINESS STRATEGY – HR BUSINESS ALIGNMENT
Strategic HRM
Talent Management
HR Risk Management
FUNCTIONAL & CROSS FUNCTIONAL HR VALUE CHAIN
HR VALUE & DELIVERY PLATFORM
Work- force
planning Learning
Perfor- mance
Reward Well- ness
ERM OD
HR Service Delivery
HR Technology (HRIS)
Pre- pare
Im- ple-
ment
Review Improve MEASURING HR SUCCESS HR Audit: Standards & Metrics
H R
C O
M P
E T E N C
I E S
SABPP HR Standards & Metrics
Roadmap
PHASE 1:
Manage- ment
System Standard
PHASE 2:
HR Functional standards
PHASE 3:
HR Metrics
PHASE 4:
Integrated Reporting
PHASE 5:
CPD & Support Tools
PHASE 6:
HR integrated in
King IV
2012 2013 2017
The need for consistency and quality
HR Standards Roll-out
Development (21-22 May)
Consultation (June-July)
Release (20-22 Aug)
Standards-writing
(100 top HR professionals)
Standards inputs
(100 top HR specialists +
1000 professionals)
Standards finalisation
(100 HR Directors
sign-off) HR Standards
conference
Questions for EOH team
• What are your challenges with your clients?
• Are there any opportunities for us to work
together in advancing the HR profession?
Conclusion
HR standards are needed to improve the
consistency and quality of people
management. HR metrics are needed to
assess the bottom-line impact of HR on
business. Improved people performance
translates to improved business performance.
Let us rise to the challenge and
deliver excellence
Let us create HR standards and metrics!
[email protected] (Professional Registration)
[email protected] (Stakeholder Relations)
[email protected] (Research)
[email protected] (Learning & Quality)
[email protected] (Strategy inputs)
[email protected] (Social media)
Website : www.sabpp.co.za
New office: 8 Sherborne Str, Parktown
Tel: 011 482-8595 Fax: 011 482-4830
Cel: 082 859 3593 (Marius Meyer)
New office