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BUILDING THE HR PROFESSION AND PEOPLE
MANAGEMENT:
New HR Competency Model, Standards & Metrics
for South Africa
Kenneth Nxumalo, Marius Meyer, Penny Abbott, Naren Vassan,
Sithembele Stofile
26 March 2013

marius@sabpp.co.za
@SABPP1
The results of our research indicated that our top three priority
CCR’s include the following:
CCR

TOTAL

Understanding the Talent needs of the business

54

Redesigning Organisational Structure around strategic objectives

48

Understanding how HRB’s can support the business

43

Adjusting HR strategies to respond to changing business needs

42

Identifying HR Metrics

35

Identifying talent issues before they can impact on the business

32

Developing the next generation of leaders

30

Utilising new business strategies

25

Prioritizing across HR Needs

13

Keep the line updated on HR initiatives

11

Tracking trends in employee behaviours and attitudes.

11

Retention of talent within the business

4

Respond to manager needs

4

Resolving political problems in the execution of business plans

3

Enforcing standard HR policies and procedures

3

Assessing Employee attitudes

2

Managing conflict between managers

2

Responding to organisational changes

2

Preparing for different situations

1

Keep abreast of new legislation that may impact on business

1

Communicating organisational culture/values to Employees

1

support the business

Business
Leader’s
Expectations
Key HR Business
Partner Outputs

OR

Competencies

Critical Customer
Requirements
(CCR’s)

SABPP - ETQA

SABPP – Registration
Committee

SABPP Strategic Vision
“To Professionalise the HR Profession”

Learning Solutions

5

•

6

Capacity building/Skills development

•

6

Quickly responding to employee needs

Identifying talent issues before they impact the
business
Adjusting HR strategies to respond to changing
business needs
Understanding how HR business partners can

Career Paths

Communication around HR in general

•

HRD
Committee
Top SA HR priorities
Talent
Management

High
Leadership
dev

Strategic
partner

FUTURE
IMPORTANCE

Low

HR
process

Restructuring

High

Performance

Commitment

Worklife
balance

Learning
Diverorg
sity

Change
Demographics

Global

Recruitment

CURRENT CAPABILITY

CSR
Shared
services

Low

4
BCG/WFPMA (2008)
1. SABPP is a professional body for HR
practitioners in South Africa
2. Quality assurance body for HR learning
provision.
3. SABPP also accredits the HR academic
programmes of universities.
New SABPP Model: HR Voice for
Professionals
Knowledge

Human resource
development

Ethics

Research - info

Quality
assurance

Value &
visibility

Open for
alliances

Learning
growth &
development

Innovation
CPD
Excellence

Self-governance

Duty to society
Alliances
ALLIANCES TO STRENGTHEN HR
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
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
Professional registration levels
MHRP
(Master)

• M/D degree + 6 years top level experience
• LoW = executive level

CHRP
(Chartered)
HRP (Professional)

• Hons degree + 4 years sr experience
• LoW = senior management
• Degree/ND + 3 years experience
• LoW = middle management

HRA (Associate)

• 2 year dip + 2 years experience
• LoW = junior level

HRT (Technician)

• Certificate + 1 year
experience
• LoW = entry
Marius Meyer, SABPP CEO receiving the SAQA certificate of
professional body recognition from the Minister of Higher Education
and Training, Dr Blade Nzimande.
Committees
Professional
Registration

CPD

ETQA

LGDI

Risk & Audit

IT Governance

Higher
Education

HRRI

Ethics

Disciplinary

Labour
market

Mentoring
DRIVERS:
HRD

Research
Value

NEW SABPP VALUE CHAIN
LEADERS

HEAD:
STAKEHOLDER
RELATIONS
Connect with HR
professionals &
partners
CEO
Lead, govern,
strategise,
align,
integrate

Openness
Innovation
CPD

Excellence

HEAD: LEARNING &
QUALITY
ASSURANCE
Build capacity and
accredit learning

HEAD:
PROFESSIONAL
SERVICES
Set standards &
deliver HR
professional
services

HEAD:
RESEARCH &
DEVELOPMENT
Innovate profession
through knowledge
IBM CEO Study 2012:

Factors impacting organisations

IBM CEO Study 2012

1
2
3
4
5
6
7
8
9

Technology factors (71%)
People skills (69%)
Market factors (68%)
Macro-economic factors
Regulatory concerns
Globalisation
Socio-economic factors
Environmental issues
Geopolitical factors
We are changing with technology
SCARCE AND CRITICAL SKILLS
Pos. Type of scarce and critical skills area

Magnitude of scarcity

1 Industrial & Mechanical Engineers and Technologists
2 Medical Technicians
3 Training & development professionals
4 Metal fitters & machinists
5 Specialist managers
6 Agriculture & forestry scientists
7 Chemistry, food & beverage technicians
8 Electrical Engineering, draft persons & technicians
9 Social workers
9 Medical and laboratory scientists & technologists
10 Motor mechanics
11 Structural steel & welding trade workers
11 Advertising, marketing & sales managers
12 Civil engineering, draft persons & technicians
13 HR Professionals
14 Advertising, marketing & sales professionals
15 Production & operations managers

12 665
10 000
9 260
8 340
6 955
6 175
6 145
5 145
5 000
5 000
4 205
4 045
4 045
3 960
3 855
3 095
3 130

(DHET, 2011)
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
BACKGROUND & METHODOLOGY
• First SABPP HR Competency Model (1990)
• Project driven by 2 top HR Talent specialists:
Lydia Cillie-Schmidt & Terry Meyer
• Good inputs from market – Steel company,
Nedbank, Sasol, DPSA, Ethekweni Municipality,
Qbit, Catalyst Consulting
• Continuous engagement and consultation
• Analysis of global and local HRCMs & research
• Integration of key elements into an SA HR
profession map and competency model
Design principles
• Based on overarching HR profession map
• Learn from the previous models, integrate best
elements – leading competencies world-wide
• But not copying from global models
• Relevant to South Africa – unique/local
• Alignment of personal and business
competencies and HR competencies
• Focus on present and future
ULRICH MODELS 1 - 4
ULRICH 5.0
CORPORATE LEADERSHIP
COUNCIL
CORPORATE LEADERSHIP
COUNCIL
RBL HR COMPETENCY STUDY
CIPD
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)
HR COMPETENCY HOUSE
SOUTH AFRICAN HR COMPETENCY MODEL
STRATEGY
5 HR
CAPABILITIES

TALENT
MANAGEMENT
HR GOVERNANCE, RISK,
COMPLIANCE
ANALYTICS & MEASUREMENT
HR SERVICE DELIVERY

HR & BUSINESS KNOWLEDGE

SOLUTION CREATION & IMPLEMENTATION
INTERPERSONAL & COMMUNICATION
CITIZENSHIP FOR FUTURE: INNOVATION, TECHNOLOGY, SUSTAINABILITY

4
PILLARS

DUTY TO SOCIETY

5 CORE
COMPETENCIES

ETHICS

ORGANISATIONAL CAPABILITY

PROFESSIONALISM

LEADERSHIP & PERSONAL CREDIBILITY
Comfort zone challenged
Use of workforce
analytics remains limited
Measuring collaboration and knowledge sharing across
the organisation

14% 5%

Enhancing workforce productivity

39%

Evaluating workforce performance

40%

15%

38%

19%

Retaining valued talent within the organisation
Sourcing, recruiting and onboarding individuals from
outside the organisation
Developing workforce skills and capabilities
Allocating the workforce across the organisation

14%

40%
30%
35%

Developing strategy linked to business strategy

28%

Developing future leaders

29%

20%
22%
23%
25%
26%

0% 10% 20% 30% 40% 50% 60%

IBM: Working beyond Borders

Can identify
historical
trends and
patterns
Can develop
scenarios and
predict future
outcomes
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 elearning

31%

43%

+ 10%

% outsourced

22%

62%

+10%

Order full report: hrri@sabpp.co.za
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
Not applicable

15%

?

3%

It’s confidential

4%

Don’t measure/Don’t know

23%

R10 million+

2%

R1 million to R 10 million

12%

R100 000 to R1 million

16%

> R100 000

24%

R0

1%
0%

5%

10%

15%

20%

25%

30%
Cost of labour as a % of revenue
Too confidential

2%

Not done

4%

Don’t know/Not applicable

25%

61 - 70%

11%

51 - 60%

14%

41 - 50%

9%

31 - 40%

7%

21 - 30%

12%

11 - 20%

7%

> 10%

9%
0%

5%

10%

15%

20%

25%

30%
LTO rate

Indicate LTO rate:

44%

Don't measure

21%

Don't know

35%

0%

10%

20%

30%

40%

50%
Absenteeism rate

Indicate absenteeism rate

35%

Don't measure

31%

Don't know

34%

29%

30%

31%

32%

33%

34%

35%

36%
HR manager’s response to
metrics?
The basic metrics they propose as
essential for investors to know are:

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
SHRM (April 2012)
The basic metrics they propose as
essential for investors to know are:

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.
SHRM (April 2012)
Risk + readiness
SocialHR Social Media Strategy
media strategy

e❸

engage for
empowerment towards
excellence
Connecting HR professionals in
professional social media
networks
FOLLOW US
for daily HR news, articles, reports

@sabpp1
HR facing social media
Getting the balance right…
Professional
knowledge and
standards
(competence)

Doing good
work
(excellence)

Accountability

Responsibility

Professional ethics
(conscience)

Ethical
behaviour
and conduct
(ethics)

Fairness

Transparency
SABPP HR System Standards Model
BUSINESS STRATEGY – HR BUSINESS ALIGNMENT
Prepare

HR Risk
Management

FUNCTIONAL & CROSS FUNCTIONAL HR VALUE CHAIN
Implement

Workforce
planning

Learning

HR Service
Delivery

Review

Performance

Reward

Wellness

HR VALUE & DELIVERY PLATFORM

MEASURING HR SUCCESS
HR Audit: Standards & Metrics

ERM

OD

HR COMPETENCIES

Talent
Management

Strategic
HRM

HR Technology
(HRIS)

Improve
SABPP HR Standards & Metrics
Roadmap
PHASE 2:

PHASE 4:

HR
Functional
standards

Integrated
Reporting

PHASE 1:

PHASE 6:

Management
System
Standard

HR
integrated in
King IV

PHASE 5:

PHASE 3:

CPD &
Support Tools

HR Metrics

2012

2013

2017
The need for consistency and quality
HR Standards Roll-out
Development
(21 May)

Consultation
(June-July)

Release
(20-22 Aug)

Standards-writing

Standards inputs

Standards
finalisation

(100 top HR
professionals)

(100 top HR
specialists +
1000 professionals)

(100 HR Directors
sign-off)
HR Standards
conference
Conclusion
It was great being with you. The new
competency model sets the benchmark for
HR competence. 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 build HR competence and create HR
standards!

professional@sabpp.co.za (Professional Registration)
sithembele@sabpp.co.za (Professional Services)
kenneth@sabpp.co.za (Stakeholder Relations)
penny@sabpp.co.za (Research)
naren@sabpp.co.za (Learning & Quality)
marius@sabpp.co.za (Strategy inputs)
voice@sabpp.co.za (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

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Building HR Profession in South Africa

  • 1. BUILDING THE HR PROFESSION AND PEOPLE MANAGEMENT: New HR Competency Model, Standards & Metrics for South Africa Kenneth Nxumalo, Marius Meyer, Penny Abbott, Naren Vassan, Sithembele Stofile 26 March 2013 marius@sabpp.co.za @SABPP1
  • 2.
  • 3. The results of our research indicated that our top three priority CCR’s include the following: CCR TOTAL Understanding the Talent needs of the business 54 Redesigning Organisational Structure around strategic objectives 48 Understanding how HRB’s can support the business 43 Adjusting HR strategies to respond to changing business needs 42 Identifying HR Metrics 35 Identifying talent issues before they can impact on the business 32 Developing the next generation of leaders 30 Utilising new business strategies 25 Prioritizing across HR Needs 13 Keep the line updated on HR initiatives 11 Tracking trends in employee behaviours and attitudes. 11 Retention of talent within the business 4 Respond to manager needs 4 Resolving political problems in the execution of business plans 3 Enforcing standard HR policies and procedures 3 Assessing Employee attitudes 2 Managing conflict between managers 2 Responding to organisational changes 2 Preparing for different situations 1 Keep abreast of new legislation that may impact on business 1 Communicating organisational culture/values to Employees 1 support the business Business Leader’s Expectations Key HR Business Partner Outputs OR Competencies Critical Customer Requirements (CCR’s) SABPP - ETQA SABPP – Registration Committee SABPP Strategic Vision “To Professionalise the HR Profession” Learning Solutions 5 • 6 Capacity building/Skills development • 6 Quickly responding to employee needs Identifying talent issues before they impact the business Adjusting HR strategies to respond to changing business needs Understanding how HR business partners can Career Paths Communication around HR in general • HRD Committee
  • 4. Top SA HR priorities Talent Management High Leadership dev Strategic partner FUTURE IMPORTANCE Low HR process Restructuring High Performance Commitment Worklife balance Learning Diverorg sity Change Demographics Global Recruitment CURRENT CAPABILITY CSR Shared services Low 4 BCG/WFPMA (2008)
  • 5. 1. SABPP is a professional body for HR practitioners in South Africa 2. Quality assurance body for HR learning provision. 3. SABPP also accredits the HR academic programmes of universities.
  • 6. New SABPP Model: HR Voice for Professionals Knowledge Human resource development Ethics Research - info Quality assurance Value & visibility Open for alliances Learning growth & development Innovation CPD Excellence Self-governance Duty to society
  • 8. 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 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
  • 9. Professional registration levels MHRP (Master) • M/D degree + 6 years top level experience • LoW = executive level CHRP (Chartered) HRP (Professional) • Hons degree + 4 years sr experience • LoW = senior management • Degree/ND + 3 years experience • LoW = middle management HRA (Associate) • 2 year dip + 2 years experience • LoW = junior level HRT (Technician) • Certificate + 1 year experience • LoW = entry
  • 10. Marius Meyer, SABPP CEO receiving the SAQA certificate of professional body recognition from the Minister of Higher Education and Training, Dr Blade Nzimande.
  • 11. Committees Professional Registration CPD ETQA LGDI Risk & Audit IT Governance Higher Education HRRI Ethics Disciplinary Labour market Mentoring
  • 12. DRIVERS: HRD Research Value NEW SABPP VALUE CHAIN LEADERS HEAD: STAKEHOLDER RELATIONS Connect with HR professionals & partners CEO Lead, govern, strategise, align, integrate Openness Innovation CPD Excellence HEAD: LEARNING & QUALITY ASSURANCE Build capacity and accredit learning HEAD: PROFESSIONAL SERVICES Set standards & deliver HR professional services HEAD: RESEARCH & DEVELOPMENT Innovate profession through knowledge
  • 13. IBM CEO Study 2012: Factors impacting organisations IBM CEO Study 2012 1 2 3 4 5 6 7 8 9 Technology factors (71%) People skills (69%) Market factors (68%) Macro-economic factors Regulatory concerns Globalisation Socio-economic factors Environmental issues Geopolitical factors
  • 14. We are changing with technology
  • 15. SCARCE AND CRITICAL SKILLS Pos. Type of scarce and critical skills area Magnitude of scarcity 1 Industrial & Mechanical Engineers and Technologists 2 Medical Technicians 3 Training & development professionals 4 Metal fitters & machinists 5 Specialist managers 6 Agriculture & forestry scientists 7 Chemistry, food & beverage technicians 8 Electrical Engineering, draft persons & technicians 9 Social workers 9 Medical and laboratory scientists & technologists 10 Motor mechanics 11 Structural steel & welding trade workers 11 Advertising, marketing & sales managers 12 Civil engineering, draft persons & technicians 13 HR Professionals 14 Advertising, marketing & sales professionals 15 Production & operations managers 12 665 10 000 9 260 8 340 6 955 6 175 6 145 5 145 5 000 5 000 4 205 4 045 4 045 3 960 3 855 3 095 3 130 (DHET, 2011)
  • 16. 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
  • 17. BACKGROUND & METHODOLOGY • First SABPP HR Competency Model (1990) • Project driven by 2 top HR Talent specialists: Lydia Cillie-Schmidt & Terry Meyer • Good inputs from market – Steel company, Nedbank, Sasol, DPSA, Ethekweni Municipality, Qbit, Catalyst Consulting • Continuous engagement and consultation • Analysis of global and local HRCMs & research • Integration of key elements into an SA HR profession map and competency model
  • 18. Design principles • Based on overarching HR profession map • Learn from the previous models, integrate best elements – leading competencies world-wide • But not copying from global models • Relevant to South Africa – unique/local • Alignment of personal and business competencies and HR competencies • Focus on present and future
  • 24. CIPD
  • 25. 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)
  • 27. SOUTH AFRICAN HR COMPETENCY MODEL STRATEGY 5 HR CAPABILITIES TALENT MANAGEMENT HR GOVERNANCE, RISK, COMPLIANCE ANALYTICS & MEASUREMENT HR SERVICE DELIVERY HR & BUSINESS KNOWLEDGE SOLUTION CREATION & IMPLEMENTATION INTERPERSONAL & COMMUNICATION CITIZENSHIP FOR FUTURE: INNOVATION, TECHNOLOGY, SUSTAINABILITY 4 PILLARS DUTY TO SOCIETY 5 CORE COMPETENCIES ETHICS ORGANISATIONAL CAPABILITY PROFESSIONALISM LEADERSHIP & PERSONAL CREDIBILITY
  • 29. Use of workforce analytics remains limited Measuring collaboration and knowledge sharing across the organisation 14% 5% Enhancing workforce productivity 39% Evaluating workforce performance 40% 15% 38% 19% Retaining valued talent within the organisation Sourcing, recruiting and onboarding individuals from outside the organisation Developing workforce skills and capabilities Allocating the workforce across the organisation 14% 40% 30% 35% Developing strategy linked to business strategy 28% Developing future leaders 29% 20% 22% 23% 25% 26% 0% 10% 20% 30% 40% 50% 60% IBM: Working beyond Borders Can identify historical trends and patterns Can develop scenarios and predict future outcomes
  • 30. 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 elearning 31% 43% + 10% % outsourced 22% 62% +10% Order full report: hrri@sabpp.co.za
  • 31. 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
  • 32. Operational Management Consistency in the Management of People One of the toughest things to be is consistent
  • 33. Revenue per full-time employee Not applicable 15% ? 3% It’s confidential 4% Don’t measure/Don’t know 23% R10 million+ 2% R1 million to R 10 million 12% R100 000 to R1 million 16% > R100 000 24% R0 1% 0% 5% 10% 15% 20% 25% 30%
  • 34. Cost of labour as a % of revenue Too confidential 2% Not done 4% Don’t know/Not applicable 25% 61 - 70% 11% 51 - 60% 14% 41 - 50% 9% 31 - 40% 7% 21 - 30% 12% 11 - 20% 7% > 10% 9% 0% 5% 10% 15% 20% 25% 30%
  • 35. LTO rate Indicate LTO rate: 44% Don't measure 21% Don't know 35% 0% 10% 20% 30% 40% 50%
  • 36. Absenteeism rate Indicate absenteeism rate 35% Don't measure 31% Don't know 34% 29% 30% 31% 32% 33% 34% 35% 36%
  • 37. HR manager’s response to metrics?
  • 38. The basic metrics they propose as essential for investors to know are: 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 SHRM (April 2012)
  • 39. The basic metrics they propose as essential for investors to know are: 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. SHRM (April 2012)
  • 41. SocialHR Social Media Strategy media strategy e❸ engage for empowerment towards excellence Connecting HR professionals in professional social media networks
  • 42. FOLLOW US for daily HR news, articles, reports @sabpp1
  • 44. Getting the balance right… Professional knowledge and standards (competence) Doing good work (excellence) Accountability Responsibility Professional ethics (conscience) Ethical behaviour and conduct (ethics) Fairness Transparency
  • 45. SABPP HR System Standards Model BUSINESS STRATEGY – HR BUSINESS ALIGNMENT Prepare HR Risk Management FUNCTIONAL & CROSS FUNCTIONAL HR VALUE CHAIN Implement Workforce planning Learning HR Service Delivery Review Performance Reward Wellness HR VALUE & DELIVERY PLATFORM MEASURING HR SUCCESS HR Audit: Standards & Metrics ERM OD HR COMPETENCIES Talent Management Strategic HRM HR Technology (HRIS) Improve
  • 46. SABPP HR Standards & Metrics Roadmap PHASE 2: PHASE 4: HR Functional standards Integrated Reporting PHASE 1: PHASE 6: Management System Standard HR integrated in King IV PHASE 5: PHASE 3: CPD & Support Tools HR Metrics 2012 2013 2017
  • 47. The need for consistency and quality
  • 48. HR Standards Roll-out Development (21 May) Consultation (June-July) Release (20-22 Aug) Standards-writing Standards inputs Standards finalisation (100 top HR professionals) (100 top HR specialists + 1000 professionals) (100 HR Directors sign-off) HR Standards conference
  • 49. Conclusion It was great being with you. The new competency model sets the benchmark for HR competence. 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.
  • 50. Let us rise to the challenge and deliver excellence
  • 51. Let us build HR competence and create HR standards! professional@sabpp.co.za (Professional Registration) sithembele@sabpp.co.za (Professional Services) kenneth@sabpp.co.za (Stakeholder Relations) penny@sabpp.co.za (Research) naren@sabpp.co.za (Learning & Quality) marius@sabpp.co.za (Strategy inputs) voice@sabpp.co.za (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