sabpp - hr standards - hr africa 2013
TRANSCRIPT
13 November 2013, HR Africa
Marius Meyer@SABPP1
Welcome to HR Africa
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supporters
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HR Talent Management
“Quite possibly the biggest challenge that needs to occur in
HR has to do with talent management – not elsewhere in
organisations, but how talent management in HR is a case of
the shoemaker’s children lacking shoes. Our results suggest
that HR often doesn’t have the right talent; all too often it has
talent that is inferior to the talent in other parts of the
organization.”
Ed Lawler III & John Boudreau (2009)
Achieving Excellence in Human Resources Management, Stanford University Press
Is it a case of the shoemaker’s
children lacking shoes?
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
CO
RE
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
Operational Management Consistency in the
Management of People
One of the toughest things to be is consistent
Why standards ?
The chair that you're sitting on, or the desk your computer is perched on, are held together by bolts and screws.
Humble bolts and screws also hold together our children's bicycles - and also the aircraft we trust our lives to during business trips or holiday travel.
The diversity of screw threads used to represent big problems for industry, particularly in maintenance, as lost or damaged nuts and bolts could not easily be replaced. A global solution is supplied in the ISO standards for metric screw threads.
The credit card you may have used to buy your holiday can be used worldwide because all its basic features are based on ISO standards.
We are so familiar with many objects, like credit or telephone cards, that we tend to assume they just "fell out of the sky". In fact, the ease with which we can use them can be traced back to an ISO standard.
Today standard users account for 78% of the FTSE 100, 53% of the Nikkei, and 44% of both the Fortune 500 and Hang Seng listed companies.
Standards influence our lives
19,500 ISO standards from ISO 163038 Guidance on the use of ISO 4074 in the quality management of natural rubber latex condoms to ISO 31000 risk management !!
Standards provide either a technological base a system of best management practices or a regulatory standard
Accounting profession, Financial planning , Internal audit
Every component of the car you drive has a universal standard in the main managed by ISO/TS 16949. Every automotive company in the world works to this standard – consistency
Globally standards are a framework for consistency &
continuous improvement and managing risk through
controls
“Consistency is far better than rare moments of greatness “
Strengthening the human factor in management systems
Why a national HR Standard?
• We need to improve the quality of HR
practice.
• HR will not be seen as a true profession
without standards.
• Inconsistencies – practices, sites, business
units, companies, industries.
• Too many bad examples of things going
wrong – Marikana, De Doorns, Medupi.
• Raising the bar for the HR profession and
business impact.
468 HR Leaders developing
HR Standards for South Africa
HR Standards Facilitators
Kate Dikgale-Freeman Michael Robbins Linda Chipunza
Global approaches to standards
• Production and safety lead – ISO standards
• Professional standards – accounting
• Top global companies – their own standards
• Canada – HR Standards & Metrics
• USA – HR Metrics (SHRM)
• ISO HR project started
• South African National HR Standards
Market reaction to project• All over SA (all 9 provinces)
• USA (SHRM and ISO)
• UK (CIPD)
• Australia
• Netherlands
• Zimbabwe
• Zambia
• Botswana
• Namibia
• Lesotho
• Swaziland
• Kenya
BUSINESS STRATEGY – HR BUSINESS ALIGNMENT
StrategicHRM
TalentManagement
HR RiskManagement
HR ARCHITECTURE
HR VALUE & DELIVERY PLATFORM
Work-force
planningLearning
Perfor-mance
RewardWell-ness
ERM OD
HR Service Delivery
HR Technology(HRIS)
Prepare
Imple-ment
Review ImproveHR MEASUREMENTHR Audit: Standards & Metrics
H R
C O
M P
E T E N C
I E SSABPP HRM SYSTEM STANDARDS MODEL
Some of the standard elements
Here are 4 examples of the Standards:
1. Strategic HR Management
2. Talent Management
3. HR Risk Management
4. HR Measurement
STRATEGIC HR
MANAGEMENT STANDARDDEFINITION
Strategic HR Management is a systematic
approach to developing and implementing
long-term HRM strategies, policies and plans
that enable the organisation to achieve its
objectives.
SABPP (2013)
STRATEGIC HR
MANAGEMENT STANDARD
OBJECTIVES1.2.1 To ensure the HR strategy is derived from and aligned to the
organisation’s objectives in consultation with key organisational
stakeholders.
1.2.2 To analyse the internal and external socio-economic, political and
technological environment and provide proactive people-related business
solutions.
1.2.3 To provide strategic direction and measurements for strategic
innovation and sustainable people practices.
1.2.4 To provide a foundation for the employment value proposition of the
organisation.
1.2.5 To establish a framework for the HR element of the organisation’s
governance, risk and compliance policies, practices and procedures which
balance the needs of all stakeholders.
SABPP (2013)
STRATEGIC HR
MANAGEMENT STANDARDIMPLEMENTATION
1.3.1 Translate the overall strategic intent of the organisation into HR strategy.
1.3.2 Position the strategic HR agenda as an integral part of strategic decision making and
operational plans.
1.3.3 Allocate HR resources and build capability to implement the HR mandate.
1.3.4 Provide the contextual foundation for the development of the policies, plans, practices
and procedures.
1.3.5 Allocate accountability and responsibilities for the execution of HR strategy.
1.3.6 Ensure the execution of the HR strategy is measured and monitored within the
governance framework of the organisation.
1.3.7 Drive continuous improvement and sustainability of the HR strategy through planned
reviews and integrated reporting.
SABPP (2013)
Strategic HR: It is all about alignment
TALENT MANAGEMENT
STANDARDDEFINITION
Talent Management is the proactive design and
implementation of a talent-driven business strategy
directed to attracting, deploying, developing,
retaining and optimising the appropriate talent
requirements as identified in the workforce plan to
ensure a sustainable organisation.
SABPP (2013)
OBJECTIVES2.2.1 To build a talent culture which defines the organisation’s philosophy, principles and
approach to talent, which leverages diversity and is communicated in a clear employment
value proposition.
2.2.2 To identify strategically critical positions and leadership roles and capabilities in the
organisation into the future from the Workforce Plan that will determine the sustainability of
the organisation.
2.2.3 To set up processes and systems which will:
• Attract a sustainable pool of talent for current objectives and future organisation needs.
• Achieve employment equity progress in the spirit of the legislation to achieve
transformation.
• Manage the retention and reward of talent.
• Develop the required leadership skills.
• Plan for succession to key roles.
• Identify high potential employees and link them with key future roles in the organisation
through monitored development plans.
• Identify through assessment the optimal development opportunities for talent.
2.2.4 To agree appropriate roles for stakeholders in development & management of talent.
2.2.5 To monitor and report on talent management key results areas and indicators.
TALENT MANAGEMENT
Talent management
TALENT MANAGEMENT
STANDARDIMPLEMENTATION
2.3.1 Analyse the talent needs of the organisation by assisting in the segmenting
and classifying talent across the organisation to ensure talent differentiation and
management thereof.
2.3.2 Conduct labour market trend analysis of the required skills.
2.3.3 Create a talent management system focusing on current and future needs.
2.3.4 Engage and support line management regarding talent identification and
requirements.
2.3.5 Decide on interventions to define and develop leadership competencies.
2.3.6 Decide on interventions to support effective talent management in the
organisation.
2.3.7 Conduct a talent review linked to organisational objectives.
SABPP (2013)
TALENT MANAGEMENT PROCESS
LONG TERM TALENT PLANNING
Talent needsanalysis
Labourmarket analysis
Talent review
Talent ManagementInterventions
Leadership & key
competenciesdevelopment
Talent Management
System
HR RISK MANAGEMENT
DEFINITION
HR Risk Management is a systematic
approach of identifying and addressing people
factors (uncertainties and opportunities) that
can either have a positive or negative effect
on the realisation of the objectives of an
organisation.
SABPP (2013)
Importance of HR Risk
Dave Beretti, City of Cape Town
“In any organisation people are the single most valuable asset, but if badly
managed, they can become the organisation’s
greatest liability.”
HR RISK MANAGEMENT
OBJECTIVES
3.2.1 To increase the probability and impact of positive events and decrease the
probability and impact of negative events caused by people factors on the
achievement of organisational objectives.
3.2.2 To align HR and people management practices within the governance, risk
and compliance framework and integrated reporting model of the organisation.
3.2.3 To ensure appropriate risk assessment practices and procedures relating to
people factors are embedded within the organisation.
3.2.4 To ensure appropriate risk controls are designed and applied to HR
activities and interventions.
3.2.5 To contribute in creating and sustaining a risk culture in an organisation
which also encourages innovation and creativity.
SABPP (2013)
“People and behaviour are often the biggest
risks”
• Critical to include people risks in a company’s risk management plan
• HR need to be the eyes & ears for people-related governance & compliance
Risk / Readiness Profile
H R - R I S K S
• Safety - accidents
• Skills shortages/gaps
• Incompetence
• Employee disengagement
• Strikes & poor employment relationships
• Fraud/corruption
• Stress
• Staff turnover
• Low staff satisfaction –impact on customer satisfaction
• Cyber security
• Conflict/disputes
• Diversity problems
• Sexual harassment
• Expatriate issues
• Non-compliance
HR RISK MANAGEMENT
IMPLEMENTATION
3.3.1 Position the role of HR in influencing and communicating the organisational risk
culture.
3.3.2 Assess potential positive and negative people factor risks to achieving organisational
objectives.
3.3.3 Identify and evaluate the potential risk impacts with regard to strategic and operational
HR activities.
3.3.4 Decide on appropriate risk tolerances for the different components of the HR function.
3.3.5 Design and implement appropriate people-based risk management systems, metrics,
risk controls, and HR practices which will contribute to mitigate the potential risks.
3.3.6 Ensure all HR risk practices conform to the organisational governance, risk and
compliance strategies and policies including integrated reporting.
SABPP (2013)
HR risks – people risk, governance
and compliance
HR MEASUREMENT
DEFINITION
HR measurement is a continuous process of
gathering, analysing, interpreting and
presenting quantitative and qualitative data to
measure and align the impact of HR practices
on organisational objectives, including
facilitating internal and external auditing of HR
policies, processes, practices and outcomes.
SABPP (2013)
HR MEASUREMENT
OBJECTIVES
13.2.1 Determine measurement approaches, methodologies and metrics to
assess the effectiveness and efficiency of HR practices.
13.2.2 Identify relevant measurement areas for the purpose of integrated
reporting.
13.2.3 Implement appropriate tools and methods to measure timely the efficiency,
effectiveness and consistency of HR practices across the organisation.
13.2.4 Provide a clear framework for measuring HR impact on the bottom-line of
the organisation.
13.2.5 Develop performance indicators for HR service delivery and business
impact and present to the organisation in an appropriate HR Scorecard
SABPP (2013)
HR manager’s response to
metrics?
IMPLEMENTATION
13.3.1 Develop an integrated HR measurement and reporting
framework.
13.3.2 Set up management systems and resource the HR function to
collect and report on agreed people management metrics.
13.3.3 Develop and implement an HR scorecard.
SABPP (2013)
13.3.1 Develop an integrated HR
measurement & reporting framework
• Determine key people-related metrics which will assist in
determining progress towards achievement of strategic
objectives.
• Determine additional people related data or info that may
be required to hold line accountable for performance of
teams and determine how reports will be tabled for
management control.
• Ensure that reporting on metrics include normal
organisational management reporting at all levels.
• Demonstrate financial and other forms of impact – enable
forecasting, scenario building, predictions.
• Data collected should enable ROI or Return on
Expectation ratios to evaluate programmes.
13.3.2 Set up management systems and
resource HR function to collect and report on
agreed people management metrics
• Scale and depth of HR measurement and reporting will be constrained
by the resources available.
• Credibility and utility of HR reporting depends on accurate and
complete data capture.
• Control systems including internal and external audits should be in
place to ensure data integrity.
• Careful definition of each metric is important.
• A detailed flow chart should be drawn up to describe data collection,
storage and reporting for each metric.
• One integrated HR data system is recommended.
• Reporting formats should follow the design of other management
reports – clear, simple, visible dashboards.
• Meaningful interpretation of reports requires good knowledge of
organisation and HR practices.
13.3.3 Develop and implement an
HR scorecard
• An HR scorecard selecting key indicators of HR Service
Delivery should be agreed between HR Head and top
management,
• Regular assessment of performance against the
scorecard, in accordance with the normal performance
management process of the organisation, should lead to
identification of areas for improvement and remedial
action.
• Conduct an internal and external audit of the HR function
and people practices of the organisation against the
documented service level agreement, documented HR
practices and HR scorecard.
Towards National HR Metrics• % of people meeting performance contracts
• % of outstanding performers
• Average time to resolve people issues
• % of payroll spent on training
• Training spent per employee (costs/FTE)
• Total amount spent on employees
• Number of training hours per employee (year)
• % of key positions with successors
• Vacancy rate (vacancies/headcount)
• Absenteeism rate (sick days/FTE)
• Labour turnover (people left/headcount)
• Diversity/employment equity profile (race, gender, disability)
Key Human Capital Metrics• Revenue per employee (Revenue/FTE)
• Profit per FTE (Revenue-Operating cost/FTE)
• Human Capital ROI (benefits-costs/costs)
• Leadership quality index
• Employee engagement score
• Employee satisfaction score
• Organisation climate score
• Employer of choice index
• Human capital risk index (less than 10% risk)
• HR customer satisfaction score
HR Standards Roll-out
Development(21 May)
Consultation(June-July)
Release(20-21 Aug 24 Oct)
Standards-writing
(100 top HR professionals)
Standards inputs
(100 top HR specialists +
1000 professionals)
Standards finalisation
(450 HR Directors sign-off)
HR Standards conference
HR Standards Development
Phase 1:
HR MANAGEMENT SYSTEM STANDARD
Phase 2:
HR MANAGEMENT SYSTEM APPLICATION
STANDARD
Phase 3:
HR PROFESSIONALPRACTICE STANDARDS
“WHAT” STANDARD
What are the elements of the HR system?
13 elements:DefinitionObjectives
Implementation(High level)
“HOW TO” STANDARD
How can we apply the HR System standard?
How to apply the 13 standard elements
“WHAT” AND “HOW” OF SPECIFIC PROFESSIONAL PRACTICE STANDARDS
• Succession Planning• Employment Equity• Career Development• Engagement• Learning culture• Change management• Organisation design
The need for consistency and quality
BUSINESS STRATEGY – HR BUSINESS ALIGNMENT
❶ StrategicHRM
❷ TalentManagement
❸ HR RiskManagement
HR ARCHITECTURE
HR VALUE & DELIVERY PLATFORM
❹Work-force
planning
❺
Learning
❻Perfor-mance
❼
Reward
❽Well-ness
❾ERM
❿OD
⓫ HR Service Delivery
⓬HR Technology
(HRIS)
Prepare
Imple-ment
Review Improve⓭ HR MEASUREMENTHR Audit: Standards & Metrics
H R
C O
M P
E T E N C
I E SSABPP HRM SYSTEM STANDARDS MODEL
Lessons learned
• Proper planning is key
• Balance the needs and interests of different
stakeholders
• If you want to get it done, balance quality with
speed
• If you want progress, the professional body should
drive the initiative and deliver
• Broad consultation vs speed
• Competency model needed for capacity
• Functional excellence vs overall system
• Communication and engagement
National HR Governance Strategy Alignment
HR Professional Standards:• HRMS (13)• HRMSAS (13)• HRPPS (30+)
HR Products/Services:• CPD• Mentoring• Professional registration• Research• HR Academy – QCTO• Curriculum standards
HR Metrics:• National HR Scorecard• HR Service Standards
HR Auditing:• Internal Audit• External Audit
King IV:HR Governance
ISO: HR
IntegratedReporting
HR Competencies
Conclusion
HR standards are needed to improve the
consistency and quality of HR management.
Consider the SABPP approach, process and
methodology, but develop your own HR
standards for your country.
Best wishes with your HR professional work.
If you need a copy of the 1st HR Standards File, contact us on
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