1. ADVANCING THE HR PROFESSION AND PEOPLE
MANAGEMENT:
Setting HR Standards & Metrics for South Africa
Marius Meyer
26 February 2013
marius@sabpp.co.za
@SABPP1

3. 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

4. SABPP VALUE PROPOSITION:
Products/Services to advance HR profession
RECOGNITION =
PROFESSIONAL STATUS
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•
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•
•
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

5. 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

6. 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

7. 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)

8. Most important organisational
capabilities over the next five years
Leadership
37%
Execution speed
34%
Client connectivity
33%
Innovation
31%
28%
IBM: Working beyond Borders
30%
32%
34%
36%
38%

9. HR COMPETENCY HOUSE

10. 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

11. Comfort zone challenged

12. 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

14. 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%

15. 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

16. 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

17. 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 !

18. Operational Management Consistency in the
Management of People
One of the toughest things to be is consistent

19. 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%

20. 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%

21. LTO rate
Indicate LTO rate:
44%
Don't measure
21%
Don't know
35%
0%
10%
20%
30%
40%
50%

22. Absenteeism rate
Indicate absenteeism rate
35%
Don't measure
31%
Don't know
34%
29%
30%
31%
32%
33%
34%
35%
36%

23. HR manager’s response to
metrics?

24. 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)

25. 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)

26. Risk + readiness

27. 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

28. 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

29. 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

30. The need for consistency and quality

31. HR Standards Roll-out
Development
(21-22 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

32. 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?

33. 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.

34. Let us rise to the challenge and
deliver excellence

35. Let us create HR standards and metrics!
professional@sabpp.co.za (Professional Registration)
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