ADVANCING THE HR PROFESSION AND PEOPLE
MANAGEMENT:
Setting HR Standards & Metrics for South Africa

Marius Meyer & Kenneth...
TOUGH ECONOMIC

Learning & Development 2009

TIMES
New SABPP Model: HR Voice for
Professionals
Knowledge

Human resource
development

Ethics

Research - info

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

Pro...
Professional registration levels
MHRP
(Master)

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

CHRP
...
IBM CEO Study 2012:

Factors impacting organisations

IBM CEO Study 2012

1
2
3
4
5
6
7
8
9

Technology factors (71%)
Peop...
SCARCE AND CRITICAL SKILLS
Pos. Type of scarce and critical skills area

Magnitude of scarcity

1 Industrial & Mechanical ...
Most important organisational
capabilities over the next five years
Leadership

37%

Execution speed

34%

Client connecti...
HR COMPETENCY HOUSE
SOUTH AFRICAN HR COMPETENCY MODEL
STRATEGY
5 HR
CAPABILITIES

TALENT
MANAGEMENT
HR GOVERNANCE, RISK,
COMPLIANCE
ANALYTICS ...
Comfort zone challenged
Use of workforce
analytics remains limited
Measuring collaboration and knowledge sharing across
the organisation

14% 5%

...
L&D Benchmarks
(ASTD/SABPP)
BENCHMARK

USA

RSA

CHANGE

Average % payroll

2,24%

3,94%

+ 0,83

Hours /employee

36

40
...
Management system standard: purpose and
benefits
A (business) management system standard should be a means to:
 achieve b...
What is a management system?
One definition of management is 'the guidance and control of
action', and a system is defined...
The same + The same + The same =
Success
How important is consistency in the management process?
 It is probably one of t...
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 milli...
Cost of labour as a % of revenue
Too confidential

2%

Not done

4%

Don’t know/Not applicable

25%

61 - 70%

11%

51 - 6...
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%

...
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...
The basic metrics they propose as
essential for investors to know are:

4. Leadership quality
a. Index of relevant questio...
Risk + readiness
Getting the balance right…
Professional
knowledge and
standards
(competence)

Doing good
work
(excellence)

Accountability...
SABPP HR System Standards Model
BUSINESS STRATEGY – HR BUSINESS ALIGNMENT
Prepare

HR Risk
Management

FUNCTIONAL & CROSS ...
SABPP HR Standards & Metrics
Roadmap
PHASE 2:

PHASE 4:

HR
Functional
standards

Integrated
Reporting

PHASE 1:

PHASE 6:...
The need for consistency and quality
HR Standards Roll-out
Development
(21-22 May)

Consultation
(June-July)

Release
(20-22 Aug)

Standards-writing

Standards...
Conclusion

HR standards are needed to improve the
consistency and quality of people
management. HR metrics are needed to
...
Let us rise to the challenge and
deliver excellence
Let us create HR standards and metrics!

professional@sabpp.co.za (Professional Registration)
kenneth@sabpp.co.za (Stakeho...
SABPP - ARM 2013
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SABPP - ARM 2013

  1. 1. ADVANCING THE HR PROFESSION AND PEOPLE MANAGEMENT: Setting HR Standards & Metrics for South Africa Marius Meyer & Kenneth Nxumalo 1 February 2013 marius@sabpp.co.za kenneth@sabpp.co.za @SABPP1
  2. 2. TOUGH ECONOMIC Learning & Development 2009 TIMES
  3. 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. 4. 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
  5. 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. 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. 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. 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. 9. HR COMPETENCY HOUSE
  10. 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. 11. Comfort zone challenged
  12. 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
  13. 13. 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%
  14. 14. 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
  15. 15. 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
  16. 16. 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 !
  17. 17. Operational Management Consistency in the Management of People One of the toughest things to be is consistent
  18. 18. 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%
  19. 19. 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%
  20. 20. LTO rate Indicate LTO rate: 44% Don't measure 21% Don't know 35% 0% 10% 20% 30% 40% 50%
  21. 21. Absenteeism rate Indicate absenteeism rate 35% Don't measure 31% Don't know 34% 29% 30% 31% 32% 33% 34% 35% 36%
  22. 22. HR manager’s response to metrics?
  23. 23. 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)
  24. 24. 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)
  25. 25. Risk + readiness
  26. 26. 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
  27. 27. 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
  28. 28. 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
  29. 29. The need for consistency and quality
  30. 30. 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
  31. 31. 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.
  32. 32. Let us rise to the challenge and deliver excellence
  33. 33. 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

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