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LONG-TERM CHALLENGES FACING HR AND
ORGANISATIONS:
New HR Competency Model, Standards & Metrics
for South Africa
Marius Meyer
25 June 2013
@SABPP1
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
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
We are changing with technology
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
Most important leadership qualities
over the next five years
IBM: Working beyond Borders
35%
52%
60%
0% 10% 20% 30% 40% 50% 60% 70%
Ability to balance work and lifedemands
Integrity
Creativity
Biggest Opportunities for HR
IBM: Working beyond Borders
• Cultivating creative leaders • Mobilising for greater speed and
flexibility • Capitalising on collective intelligence
i.e. collaboration
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)
Top SA HR priorities
High
FUTURE
IMPOR-
TANCE
Low
High CURRENT CAPABILITY Low
10
BCG/WFPMA (2008)
Talent Manage- ment
Leader- ship dev
Strate- gic
partner
Work- life
balance
Re-
cruit-
ment
Change
Com-
mit-
ment Per-
for-
mance
HR
process
Re-
struc-
turing
Global
Lear-
ning
org Diver-
sity
Demo-
graphics
CSR
Shared
services
• Identifying talent issues before they impact the
business
• Adjusting HR strategies to respond to changing
business needs
• Understanding how HR business partners can
support the business
The results of our research indicated that our top three priority
CCR’s include the following:
SABPP Strategic Vision
“To Professionalise the HR Profession”
SABPP - ETQASABPP – Registration
CommitteeHRD
Committee
Business Leader’s
Expectations
OR
Critical Customer Requirements
(CCR’s)
Key HR Business Partner Outputs
Competencies
Care
er P
ath
s
Le
arn
ing
So
lutio
ns
SABPP Strategic Vision
“To Professionalise the HR Profession”
SABPP - ETQASABPP – Registration
CommitteeHRD
Committee
Business Leader’s
Expectations
OR
Critical Customer Requirements
(CCR’s)
Key HR Business Partner Outputs
Competencies
Care
er P
ath
s
Le
arn
ing
So
lutio
ns
1Communicating organisational culture/values to Employees
1Keep abreast of new legislation that may impact on business
1Preparing for different situations
2Responding to organisational changes
2Managing conflict between managers
2Assessing Employee attitudes
3Enforcing standard HR policies and procedures
3Resolving political problems in the execution of business plans
4Respond to manager needs
4Retention of talent within the business
5Capacity building/Skills development
6Quickly responding to employee needs
6Communication around HR in general
11Tracking trends in employee behaviours and attitudes.
11Keep the line updated on HR initiatives
13Prioritizing across HR Needs
25Utilising new business strategies
30Developing the next generation of leaders
32Identifying talent issues before they can impact on the business
35Identifying HR Metrics
42Adjusting HR strategies to respond to changing business needs
43Understanding how HRB’s can support the business
48Redesigning Organisational Structure around strategic objectives
54Understanding the Talent needs of the business
TOTALCCR
1Communicating organisational culture/values to Employees
1Keep abreast of new legislation that may impact on business
1Preparing for different situations
2Responding to organisational changes
2Managing conflict between managers
2Assessing Employee attitudes
3Enforcing standard HR policies and procedures
3Resolving political problems in the execution of business plans
4Respond to manager needs
4Retention of talent within the business
5Capacity building/Skills development
6Quickly responding to employee needs
6Communication around HR in general
11Tracking trends in employee behaviours and attitudes.
11Keep the line updated on HR initiatives
13Prioritizing across HR Needs
25Utilising new business strategies
30Developing the next generation of leaders
32Identifying talent issues before they can impact on the business
35Identifying HR Metrics
42Adjusting HR strategies to respond to changing business needs
43Understanding how HRB’s can support the business
48Redesigning Organisational Structure around strategic objectives
54Understanding the Talent needs of the business
TOTALCCR
PARADIGM SHIFT
OPERATIONAL MINDSET
• Day-to-day tasks
• Transactional HR
• Getting things done
• Crisis reactive management
• Doing things now
• Training for tasks
• Managing people
• Internal focus
• Short-term measures
STRATEGIC THINKING
• Long term priorities
• Transformational HR
• Creating value
• Proactive management
• Planning things for future
• Organisational capability
• Leading people
• External focus
• Strategic measures - metrics
HR Trends
• HR as Strategic Partner and Talent Management
• HR Governance
• HR Risk Management
• New role to impact ethics in organisations
• HR contribution to CSR and socio-economic
situation - sustainability
• HR Technology and Social Media
• HR standards and metrics – integrated reporting
• HR Competency models - professionalism
PERFORMANCE VS
COMPLIANCE
Source: Kevin Carter
Triple bottom-line: 3 P’s
PEOPLE (Social)
PLANET (Environment)
PROFITS (Financial
performance)
S U S T A I N A B I L I T Y
THE GREEN REVOLUTION
“Good human resource management is imperative for good governance”
Mervin King
Competency levels of the top 10
HR priorities
Priority Area Priority
Weight
Competency
Weight
Priority
Rank
Competency
Rank
Creating a high-performance culture /
Performance management 3.91 3.42 1 6
Leadership and management
development 3.79 3.36 2 8
Skills development 3.77 3.58 3 3
Focus on corporate values, ethics 3.71 3.45 4 4
Industrial / Employee relations 3.69 3.70 5 2
Customer service / relations 3.68 3.43 6 5
Employee engagement 3.68 3.35 7 9
Change management 3.68 3.22 8 16
Crafting and implementing HR strategy 3.64 3.40 9 7
HR policies and procedures 3.62 3.71 10 1
HR Survey (2011)
Is it a case of the shoemaker’s
children lacking shoes?
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
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%
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
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)
HR risks – people risk, governance
and compliance
Risk + readiness
Are we ready for social media?
Utilisation of social media in HR
0%
20%
40%
60%
80%
100%
120%
32%
44% 35%
43% 40% 38%
25% 33%
11%
17%
17%
19% 18%
15%
16%
15%
28%
25%
26%
25% 22%
22%
21%
25%
16%
11% 17%
11% 18%
21%
28%
18%
13% 3% 6% 2% 2% 4%
10% 9%
Great extent
4
From time to time
2
Not at all
A social media strategy for the
HR department
12%
88%
0% 20% 40% 60% 80% 100%
Yes
No
Social media policies exist
38%
62%
0% 10% 20% 30% 40% 50% 60% 70%
Yes
No
Employees allowed to
access social media
40%
60%
0% 10% 20% 30% 40% 50% 60% 70%
Yes
No
Are people trained?
13%
87%
0% 20% 40% 60% 80% 100%
Yes
No
HR risks of social media
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
Importance of ethics
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 May) Consultation (June-July)
Release (20-21 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
National HR Standards Convention
Please join us at this historic event, become part of
the HR pioneers of 2013 setting HR standards for
South Africa.
20-21 August
Blog: hrtoday.me
How to improve HR talent
• Analyse the HR talent needs of the business
• Develop a talent management strategy for
the organisation
• Use a clear HR competency model
• Build high level HR talent
• HR mentoring/coaching
• Create HR talent pools
• Evaluate the impact of HR talent
management
Top management perspective
“The human resource professional in
an organisation needs to be an integral part of the leadership and
the ‘right hand’ of the chief executive. Establishing and sustaining an ethical ethos, the HR professional must work closely with the executive
leadership team to define and promote the culture of an
organisation based on the underlying values and then entrench the culture
through all the touch points in the human capital value chain.”
Edward Kieswetter, CEO: Alexander Forbes
HR strategy: It is all about alignment
Conclusion
There are many challenges and opportunities
in the field of HR.
The new competency model sets the
benchmark for HR competence. HR standards
are needed to improve the consistency and
quality of people management. Improved
people performance translates to improved
business performance.
Let us rise to the challenge and
deliver excellence
Let us build HR competence and create HR
standards!
[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 Blog: hrtoday.me
New office: 8 Sherborne Str, Parktown
Tel: 011 482-8595 Fax: 011 482-4830
Cel: 082 859 3593 (Marius Meyer)
New office
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