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

3. SABPP VALUE PROPOSITION:
Products/Services to advance HR profession
RECOGNITION =
PROFESSIONAL STATUS
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Professional registration
NLRD Upload (SAQA)
RPL
Awards
Advocacy
HR Assessors/Moderators
registration
Accreditation of providers
University accreditation
RESOURCES =
PRODUCTS/SERVICES
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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
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Students
RESEARCH =
INFORMATION
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Research papers
Position papers
Books
Articles
Cases
Benchmarking
Magazines
Labour market
information

4. 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

5. We are changing with technology

6. 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%

7. 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%

8. Biggest Opportunities for HR
• Cultivating creative leaders
• Mobilising for greater speed and
flexibility
• Capitalising on collective intelligence
i.e. collaboration
IBM: Working beyond Borders

9. 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)

10. 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)

11. 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

12. PARADIGM SHIFT
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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
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STRATEGIC THINKING
Long term priorities
Transformational HR
Creating value
Proactive management
Planning things for future
Organisational capability
Leading people
External focus
Strategic measures - metrics

13. HR Trends
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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

14. PERFORMANCE VS
COMPLIANCE
Source: Kevin Carter

15. Triple bottom-line: 3 P’s
PEOPLE
(Social)
PLANET
(Environment)
SUSTAINABILITY
PROFITS
(Financial
performance)

16. THE GREEN REVOLUTION

17. “Good human
resource
management is
imperative for
good governance”
Mervin King

18. 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)

19. Is it a case of the shoemaker’s
children lacking shoes?

20. 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

21. HR COMPETENCY HOUSE

22. 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

23. Comfort zone challenged

25. 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

26. 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%

27. 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

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

29. 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%

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%

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

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

33. HR manager’s response to
metrics?

34. 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)

35. 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)

36. HR risks – people risk, governance
and compliance

37. Risk + readiness

38. Are we ready for social media?

39. 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

40. A social media strategy for the
HR department
No
88%
Yes
12%
0%
20%
40%
60%
80%
100%

41. Social media policies exist
No
62%
Yes
38%
0%
10%
20%
30%
40%
50%
60%
70%

42. Employees allowed to
access social media
No
60%
Yes
40%
0%
10%
20%
30%
40%
50%
60%
70%

43. Are people trained?
No
87%
Yes
13%
0%
20%
40%
60%
80%
100%

44. HR risks of social media

45. 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

46. Importance of ethics

47. 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

48. 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

49. The need for consistency and quality

50. 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

51. 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

52. 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

53. 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

54. HR strategy: It is all about alignment

55. 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.

56. Let us rise to the challenge and
deliver excellence

57. 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