5. SABPP VALUE PROPOSITION:
Products/Services to advance HR profession
RECOGNITION =
PROFESSIONAL STATUS
•
•
•
•
•
•
•
•
Professional registration
NLRD Upload (SAQA)
RPL
Awards
Advocacy
HR Assessors/Moderators
registration
Accreditation of providers
University accreditation
RESOURCES =
PRODUCTS/SERVICES
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
HR Competency Model
HR Standards
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 =
INFORMATION
•
•
•
•
•
•
•
•
Research papers
Position papers
Books
Articles
Cases
Benchmarking
Magazines
Labour market
information
6. 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
7. Is it a case of the shoemaker’s
children lacking shoes?
13. Why standards ?
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.
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.
14. 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
15. 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
16. 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.
20. 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
21. 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
22. SABPP HRM SYSTEM STANDARDS MODEL
BUSINESS STRATEGY – HR BUSINESS ALIGNMENT
Prepare
HR Risk
Management
Talent
Management
HR ARCHITECTURE
Implement
Workforce
planning
Learning
HR Service
Delivery
Review
Performance
Reward
Wellness
HR VALUE &
DELIVERY PLATFORM
HR MEASUREMENT
HR Audit: Standards & Metrics
ERM
OD
HR Technology
(HRIS)
HR COMPETENCIES
Strategic
HRM
Improve
23. Some of the standard elements
Here are 4 examples of the Standards:
1.
2.
3.
4.
Strategic HR Management
Talent Management
HR Risk Management
HR Measurement
24. STRATEGIC HR
MANAGEMENT STANDARD
DEFINITION
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)
25. STRATEGIC HR
MANAGEMENT STANDARD
OBJECTIVES
1.2.1 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)
26. STRATEGIC HR
MANAGEMENT STANDARD
IMPLEMENTATION
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)
28. TALENT MANAGEMENT
STANDARD
DEFINITION
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)
29. TALENT MANAGEMENT
OBJECTIVES
2.2.1 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.
31. TALENT MANAGEMENT
STANDARD
IMPLEMENTATION
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)
32. TALENT MANAGEMENT PROCESS
LONG TERM TALENT PLANNING
Talent needs
analysis
Labour
market
analysis
Talent review
Talent
Management
Interventions
Leadership &
key
competencies
development
Talent
Management
System
33. 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)
34. Importance of HR Risk
“In any organisation
people are the single most
valuable asset, but if badly
managed, they can
become the organisation’s
greatest liability.”
Dave Beretti, City of Cape Town
35. 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)
36. “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 peoplerelated governance &
compliance
39. 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)
40. HR risks – people risk, governance
and compliance
41. 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)
42. 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)
44. 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)
45. 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.
46. 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.
47. 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.
48. 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)
49. 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
50. HR Standards Roll-out
Development
Consultation
Release
(21 May)
(June-July)
(20-21 Aug 24 Oct)
Standards-writing
Standards inputs
Standards
finalisation
(100 top HR
professionals)
(100 top HR
specialists +
1000 professionals)
(450 HR Directors
sign-off)
HR Standards
conference
51. HR Standards Development
Phase 1:
Phase 2:
HR MANAGEMENT
SYSTEM STANDARD
HR MANAGEMENT
SYSTEM APPLICATION
STANDARD
HR PROFESSIONAL
PRACTICE STANDARDS
“HOW TO” STANDARD
“WHAT” AND “HOW” OF
SPECIFIC PROFESSIONAL
PRACTICE STANDARDS
“WHAT” STANDARD
What are the elements
of the HR system?
13 elements:
Definition
Objectives
Implementation
(High level)
How can we apply the
HR System standard?
How to apply the 13
standard elements
Phase 3:
•
•
•
•
•
•
•
Succession Planning
Employment Equity
Career Development
Engagement
Learning culture
Change management
Organisation design
53. SABPP HRM SYSTEM STANDARDS MODEL
BUSINESS STRATEGY – HR BUSINESS ALIGNMENT
Prepare
❸ HR Risk
Management
❷ Talent
Management
HR ARCHITECTURE
Implement
❹
Workforce
planning
❺
Learning
⓫ HR Service
Delivery
Review
❻
Performance
❼
Reward
❽
Wellness
HR VALUE &
DELIVERY PLATFORM
⓭ HR MEASUREMENT
HR Audit: Standards & Metrics
❾
ERM
❿
OD
⓬
HR Technology
(HRIS)
HR COMPETENCIES
❶ Strategic
HRM
Improve
54. 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
55. National HR Governance Strategy Alignment
HR Competencies
•
•
•
•
•
•
HR Products/Services:
CPD
Mentoring
Professional registration
Research
HR Academy – QCTO
Curriculum standards
ISO: HR
HR Professional Standards:
• HRMS (13)
• HRMSAS (13)
• HRPPS (30+)
HR Metrics:
• National HR Scorecard
• HR Service Standards
Integrated
Reporting
HR Auditing:
• Internal Audit
• External Audit
King IV:
HR Governance
56. 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
executiveoffice@sabpp.co.za
57. FOLLOW US ON :
@sabpp1
@mariussabpp
#hrstandards2013
