HR Challenges - ABC

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HR Challenges - ABC

  1. 1. LONG-TERM CHALLENGES FACING HR AND ORGANISATIONS: New HR Competency Model, Standards & Metrics for South Africa Marius Meyer 25 June 2013 marius@sabpp.co.za @SABPP1
  2. 2. 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
  3. 3. 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
  4. 4. We are changing with technology
  5. 5. 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%
  6. 6. Most important leadership qualities over the next five years Creativity 60% Integrity 52% Ability to balance work and life demands 35% 0% IBM: Working beyond Borders 10% 20% 30% 40% 50% 60% 70%
  7. 7. Biggest Opportunities for HR • Cultivating creative leaders • Mobilising for greater speed and flexibility • Capitalising on collective intelligence i.e. collaboration IBM: Working beyond Borders
  8. 8. 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)
  9. 9. 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 10 BCG/WFPMA (2008)
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. PERFORMANCE VS COMPLIANCE Source: Kevin Carter
  14. 14. Triple bottom-line: 3 P’s PEOPLE (Social) PLANET (Environment) SUSTAINABILITY PROFITS (Financial performance)
  15. 15. THE GREEN REVOLUTION
  16. 16. “Good human resource management is imperative for good governance” Mervin King
  17. 17. 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)
  18. 18. Is it a case of the shoemaker’s children lacking shoes?
  19. 19. 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
  20. 20. HR COMPETENCY HOUSE
  21. 21. 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
  22. 22. Comfort zone challenged
  23. 23. 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
  24. 24. 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%
  25. 25. 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
  26. 26. Operational Management Consistency in the Management of People One of the toughest things to be is consistent
  27. 27. 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%
  28. 28. 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%
  29. 29. LTO rate Indicate LTO rate: 44% Don't measure 21% Don't know 35% 0% 10% 20% 30% 40% 50%
  30. 30. Absenteeism rate Indicate absenteeism rate 35% Don't measure 31% Don't know 34% 29% 30% 31% 32% 33% 34% 35% 36%
  31. 31. HR manager’s response to metrics?
  32. 32. 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)
  33. 33. 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)
  34. 34. HR risks – people risk, governance and compliance
  35. 35. Risk + readiness
  36. 36. Are we ready for social media?
  37. 37. Utilisation of social media in HR 120% 100% 3% 13% 6% 11% 2% 11% 17% 80% 16% 28% 18% 17% 20% 0% 21% 9% 18% 22% 22% 19% 18% 25% 21% Great extent 15% 15% 11% 16% 44% 32% 10% 28% 17% 40% 4% 25% 25% 26% 60% 2% 35% 43% 40% 4 From time to time 2 38% 25% 33% Not at all
  38. 38. A social media strategy for the HR department No 88% Yes 12% 0% 20% 40% 60% 80% 100%
  39. 39. Social media policies exist No 62% Yes 38% 0% 10% 20% 30% 40% 50% 60% 70%
  40. 40. Employees allowed to access social media No 60% Yes 40% 0% 10% 20% 30% 40% 50% 60% 70%
  41. 41. Are people trained? No 87% Yes 13% 0% 20% 40% 60% 80% 100%
  42. 42. HR risks of social media
  43. 43. 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
  44. 44. Importance of ethics
  45. 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. 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. 47. The need for consistency and quality
  48. 48. HR Standards Roll-out Development (21 May) Consultation (June-July) Release (20-21 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. 49. 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 executiveoffice@sabpp.co.za Blog: hrtoday.me
  50. 50. 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
  51. 51. 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
  52. 52. HR strategy: It is all about alignment
  53. 53. 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.
  54. 54. Let us rise to the challenge and deliver excellence
  55. 55. Let us build HR competence and create HR standards! 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 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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