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SABPP - IITPSA - 15 OCT 2013
 

SABPP - IITPSA - 15 OCT 2013

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    SABPP - IITPSA - 15 OCT 2013 SABPP - IITPSA - 15 OCT 2013 Presentation Transcript

    • PEOPLE MANAGEMENT, HUMAN CAPITAL AND TECHNOLOGY: Integration, Alignment and Optimisation Marius Meyer 15 October 2013 marius@sabpp.co.za @SABPP1
    • 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
    • Technology revolution
    • 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%
    • 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
    • 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 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
    • Use of HRIS
    • What is the business problem? “A business running without accurate data is running blind.” Ash Mahmud, Head of CRM: Groupon
    • What is the HR problem? An HR function running without accurate data is running blind.
    • Effectiveness of talent management system
    • 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%
    • Absenteeism rate Indicate absenteeism rate 35% Don't measure 31% Don't know 34% 29% 30% 31% 32% 33% 34% 35% 36%
    • LTO rate Indicate LTO rate: 44% Don't measure 21% Don't know 35% 0% 10% 20% 30% 40% 50%
    • Importance of measurement for HR “If you can’t measure it, you can’t manage it.”
    • Operational Management Consistency in the Management of People One of the toughest things to be is consistent
    • 468 HR Leaders developing HR Standards for South Africa
    • HR Standards Facilitators Kate Dikgale-Freeman Michael Robbins Linda Chipunza
    • SABPP HR SYSTEM STANDARDS MODEL BUSINESS STRATEGY – HR BUSINESS ALIGNMENT Strategic HRM 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 COMPETENCIES Prepare HR Technology (HRIS) Improve
    • IT skills for HR
    • 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)
    • 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
    • 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)
    • 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% To order the full report contact hrri@sabpp.co.za
    • 10 V’s of HR Technology Management 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Vision Value Variables Variance Variety Validity Verification Velocity Vendors Vulnerability - risks
    • We are changing with technology
    • Risk + readiness
    • 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
    • HR TECHNOLOGY DEFINITION HR Technology is the effective utilisation of the relevant technological applications and platforms that makes information both accessible and accurate, providing HR and line management with the knowledge and intelligence required for more effective decision-making, to align all employees towards the implementation of the organisation’s strategy. SABPP (2013)
    • HR TECHNOLOGY OBJECTIVES 12.2.1 To consolidate and rapidly extract relevant data in real time to empower HR for more effective decision making. 12.2.2 To deliver effective presentation of HR data and info to board or governing body, line management and executive committee meetings to provide them with intelligent data to guide their planning, decision-making and management of the workforce with full knowledge of potential people risks. 12.2.3 To allow easy access to relevant data (real-time, self-service) in compliance with relevant data security and other information technology compliance requirements, laws, codes and standards (privacy). 12.2.4 To create more capacity within existing HR structures to deliver value-adding activities. 12.2.5 To streamline the HR Management System and its associated processes for effective and efficient use. 12.2.6 To ensure that appropriate information security principles, policies and practices are developed and implemented. 12.2.7 To enable the effective implementation of change and improvements to the HR Management System to ensure it remains continually aligned with the organisation’s objectives.
    • HR facing technology?
    • HR TECHNOLOGY IMPLEMENTATION 12.3.1 Formulate an HR Technology policy and strategy. 12.3.2 Analyse and prioritise all the relevant HR categories of data and information. 12.3.3 Forecast future system load/spare capacity. 12.3.4 Design the specification to encompass all the relevant functionality required in the HR Information System (HRIS). 12.3.5 Define the desired business model – acquire the system as an in-house solution or utilise an outsource or hosted model. 12.3.6 Upload current and historical data to the system and configure the system to conform to current business and legislative requirements. 12.3.7 Test the effectiveness of the system on a pilot group of employees prior to rolling out the full implementation. 12.3.8 Build capacity of relevant staff members to access and use the system. 12.3.9 Ensure continuous process improvements. 12.3.10 Ensure HR-IT policies, practices and procedures are aligned with organisational IT governance. 12.3.11 Continually monitor and evaluate the effectiveness of the HRIS against changing business requirements and HR trends in the industry.
    • 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)
    • 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)
    • 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)
    • 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.
    • 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.
    • 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.
    • HR Standards Roll-out Development (21 May) Consultation (June-July) Release (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
    • The need for consistency and quality
    • 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
    • STANDARDS COMPANY AND EMPLOYEE DATA INFORMATION WHAT do we have? WHY do we have it? WHAT else is needed? WHAT can we do with it? HOW, WHO, WHEN, WHERE? BENCHMARK ING KNOWLEDGE TECHNOLOGY SYSTEMS INTELLIGENCE Business; Market; HR; Industry; Country; Region; World ANALTYICS AND METRICS DECISION-MAKING • Strategy • Interventions I MPLEMENTATION EVALUATION
    • Conclusion HR standards are needed to improve the consistency and quality of human capital management. We need to leverage technology and measurement for improved HR practice and business decision-making.
    • FOLLOW US ON TWITTER @sabpp1
    • Let us build our competence in HR Measurement and Technology! 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 Blog: www.hrtoday.me New office: 8 Sherborne Str, Parktown Tel: 011 482-8595 Fax: 011 482-4830 Cel: 082 859 3593 (Marius Meyer)