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Hr standards 8 june 2017
This document discusses HR standards and compliance. It covers topics such as the principles of compliance which involve laws, rules, codes and standards. It also discusses positioning governance, risk and compliance in companies and the role of managers. Additionally, it addresses the scope of compliance, both binding and non-binding aspects. The document emphasizes the importance of compliance in protecting organizations and outlines some current compliance challenges. It promotes the development of HR standards in South Africa.
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Hr standards 8 june 2017
- 1. HR STANDARDS ANDCOMPLIANCE 8 June 2017 HR BUSINESS PARTNER CONFERENCE Marius Meyer @SABPP1 @sabpp_1
- 2. Compliance is about4 things L R C S
- 3. Performance vs compliance Source:Kevin Carter
- 4. The principle ofcompliance Play the game by the rules.
- 5. POSITIONING GRC INCOMPANIES: ROLE OF MANAGERS • E T H I C S GOVER- NANCE RISK COM- PLIANCE LEADERSHIP MANAGEMENT CULTURE CONTROLS
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- 7. LIFE IS ABOUTRISKS – THE HUMAN LIFE CYCLE FIRST 20 YEARS 1 – 18 years 19 – 21 years MIDDLE 40 YEARS Death Before birth LAST 20 - 60 YEARS 0 – 2 years Retirement
- 8. The scope ofcompliance BINDING NON-BINDING LAWS NON- LABOUR LAWS • POPI • PAIA • ECA • JPCO LABOUR LAWS • BCEA • LRA • EEA • SDA • OHS INDUSTRY LAWS • MSA • FICA • FAIS • BA RULES CODES STAN- DARDS SECTOR RULES • Indus try rules • Pro- cedur es GOOD PRACTICE • DoL • King IV • IIRF • GRI INDUS- TRY STAN- DARDS • ISO • SABS • IFRS • HRS
- 9. Important Compliance News: SABPPHR Professionals are now Commissioners of Oaths!
- 10. Thank you! Advocate MichaelMasutha, Minister of Justice & Correctional Services
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- 12. Definition of Corporate Governance CorporateGovernance is about the exercise of ethical and effective leadership by the governing body. King IV™ (IODSA, 2016)
- 13. Objectives of KingIV ✓ To promote corporate governance ✓ Broaden the acceptance of King IV ✓ Reinforce corporate governance as a holistic and interrelated set of arrangements ✓ Encourage transparency and meaningful reporting King IV™ (IODSA, 2016)
- 14. CHAPTER AND CONTENTGOVERNANCE OUTCOME Chapter 1: LEADERSHIP, ETHICS AND CORPORATE CITIZENSHIP Ethical leadership; Organisational values, ethics and cultures, Responsible corporate citizenship ETHICAL CULTURE (1-3) Chapter 2: PERFORMANCE AND REPORTING Strategy, implementation, performance, Report and disclosure PERFORMANCE AND VALUE CREATION (4 -5) Chapter 3: GOVERNANCE BODY STRUCTURES AND DELEGATION Role of the governing body, composition of the governing body, committees of the governing body, delegation to management and performance evaluations ADEQUATE AND EFFECTIVE CONTROL (6-10) Chapter 4: GOVERNANCE FUNCTIONAL AREARS Risk and opportunity governance, technology and information governance, compliance governance, remuneration governance and assurance ADEQUATE AND EFFECTIVE CONTROL (11- 15) Chapter 5: STAKEHOLDER RELATIONSHIPS Stakeholders (Responsibilities of shareholders) TRUST, GOOD REPUTATION AND LEGITIMACY (16-17) King IV Code of Corporate Governance
- 15. King IV™ –Compliance Governance Principle 13 The governing body should govern compliance with applicable laws and adopted, non-binding rules, codes and standards in a way that supports the organisation being ethical and a good corporate citizen. IODSA (2016)
- 16. King IV™ –Compliance Governance Recommended practices (IODSA, 2016) • GB assume responsibility for governance of compliance with L, R, C, S • GB should approve policy that gives direction to compliance and identify non-binding R, C, S • GB should delegate to management responsibility for compliance management • GB should exercise oversight of compliance • GB should consider the need for independent assurance • Disclose approach and actions in compliance • Material or repeated penalties, sanctions, other forms of non- compliance should be disclosed • Details of monitoring & compliance inspections
- 17. The role ofHR …
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- 20. SOUTH AFRICAN HRCOMPETENCY MODEL STRATEGY TALENT MANAGEMENT HR GOVERNANCE, RISK, COMPLIANCE ANALYTICS & MEASUREMENT HR SERVICE DELIVERY 5 HR CAPABILITIES LEADERSHIP & PERSONAL CREDIBILITY ORGANISATIONAL CAPABILITY SOLUTION CREATION & IMPLEMENTATION INTERPERSONAL & COMMUNICATION CITIZENSHIP FOR FUTURE: INNOVATION, TECHNOLOGY, SUSTAINABILITY CORE COMPETENCIES HR & BUSINESS KNOWLEDGE DUTY TO SOCIETY ETHICS PROFESSIONALISM 4 PILLARS
- 21. Current Current reality •Fraud • Corruption • Theft • Espionage • Sabotage • Money laundering • Lies • Crime • Conflict of interest • Cyber crime • Nepotism • Favouratism • Price fixing • Exploitation • Mismanagement • Poor governance • Plagiarism • Bribery
- 23. Conflict of interest Director Manager Employee Interest Organisa- tion Interest CONFLICTOF INTEREST Personal Interest Others’ Interest
- 24. “Good human resource management is imperativefor good governance” Mervin King
- 25. HR Governance If CorporateGovernance is about ethical and effective leadership, what is HR Governance then? HR Governance is about ethical and effective HR leadership. Fulfilling our roles as board/exco members or prescribed officers (Companies Act). Ensuring that HR adds value and providing assurance of HR work.
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- 27. What are standardsreally? • A level of acceptable quality • Good enough in terms of professionalism • What is good or normal or usual • A guideline for practice • A foundation for reasonable expectations and sound judgement • A basis for measurement (M&E)
- 28. 468 HR Leadersdeveloping HR Standards for South Africa
- 29. BUSINESS STRATEGY –HR BUSINESS ALIGNMENT Strategic HRM Talent Management HR Risk Management HR ARCHITECTURE I HR VALUE & DELIVERY PLATFORM Work- force planning Learning & Deve- lopment Perfor- mance Mana- gement Reward & Recogni- tion Em- ployee wellness Employ- ment Rela- tions Organi- sation Deve- lopment HR Service Delivery HR Technology (HRIS) Prepare Imple- ment Review ImproveHR MEASUREMENT HR Audit: Standards & Metrics HRCOMPETENCIES © SABPP HR MANAGEMENT SYSTEM STANDARD MODEL
- 30. BUSINESS STRATEGY –HR BUSINESS ALIGNMENT Strategic HRM 5.8 Talent Management 4.5 HR Risk Management 6.3 FUNCTIONAL & CROSS FUNCTIONAL HR VALUE CHAIN HR VALUE & DELIVERY PLATFORM Work- force Planning 5.6 Learning 6.3 Perfor- mance 6.1 Reward 6.1 Well- ness 6.5 ERM 6.4 OD 5.5 HR Service Delivery 5.5 HR Technology (HRIS) 5.5 Prepare Imple- ment Review ImproveMEASURING HR SUCCESS 4.8 HR Audit: Standards & Metrics HRCOMPETENCIES AUDITED RATINGS – OVERALL AVERAGE (20 companies)
- 31. HR Standards Files 13standards (2013) 23 standards (2014)
- 32. HR Professional PracticeStandards • Absenteeism management • Career management • Coaching & mentoring • Collective bargaining • Disciplinary procedure • Dispute resolution • Diversity management • Grievance procedure • Leadership development • Learning design • Learning evaluation • Learning needs analysis • On-boarding • Organisation design • Performance appraisals • Recruitment • Remuneration benchmarking • Selection • Succession planning
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- 35. 3 Components ofa Standard Element How can we make it work in practice? Application What do we want to achieve? Objectives What is it? Definition
- 36. STRATEGIC HR MANAGEMENT STANDARD DEFINITION StrategicHR Management is a systematic approach to developing and implementing long-term HRM strategies, policies and plans that enable the organisation to achieve its objectives. SABPP (2013) ❶
- 37. STRATEGIC HR MANAGEMENT STANDARD OBJECTIVES 1.2.1To ensure the HR strategy is derived from and aligned to the organisation’s objectives in consultation with key organisational stakeholders. 1.2.2 To analyse the internal and external socio-economic, political and technological environment and provide proactive people-related business solutions. 1.2.3 To provide strategic direction and measurements for strategic innovation and sustainable people practices. 1.2.4 To provide a foundation for the employment value proposition of the organisation. 1.2.5 To establish a framework for the HR element of the organisation’s governance, risk and compliance policies, practices and procedures which balance the needs of all stakeholders. 1.2.6 To determine an appropriate HR structure, allocate tasks and monitor the development of HR competence to deliver HR strategic objectives. SABPP (2013)
- 38. STRATEGIC HRM PROCESS Frameworkof HR policies & programmes Environmental scan (PESTL) HR structure, service model and capability development People strategy HR strategic agenda Organisation’s strategic intent HR strategic agenda HR business plan People strategy Allocate roles & responsibilities (line/HR/support functions) MONITOR & EVALUATE
- 39. Strategic HR: Itis all about alignment
- 40. Value of HRAudits “An HR Management performance audit is future orientated and can identify areas for organisational improvement. HR Auditing crosses the boundaries between HR management and auditing … it can be a suitable method for evaluating the contribution of HR activities to organisational objectives assessed on the basis of value for money.” Dr Chris Andrews, HR Director: Bond University
- 41. What the Auditorsare looking for? Positive trend in results? Sustainable? Targets met? External benchmarks? Approach vs results? Quality of results Across whole organisation? Up and down the organisation? Extent of application Sound? Systematic? Integrated? Reviewed & updated? Quality approach
- 42. HR Audit -Certification
- 43. Compliance guidelines 1. Identifyall relevant laws (HR & others) 2. Assess rules, codes and standards 3. Do a risk analysis for your business 4. Create a GRC framework for HR function 5. Identify alignment, integration and gaps 6. Combined Assurance - Fill gaps 7. Arrange for HR audit and/or compliance audits (calculate cost of non-compliance) 8. Continuous improvement – GRC & business
- 44. Biggest lesson incompliance You can get away doing something unethical or being non-compliant over the short term. But how long will it last? A day, a week, a month, a year, a few years… Eventually the truth comes out. It takes years to build a good reputation and only a moment to destroy it. Build and maintain your ethical reputation.
- 46. Compliance with 4things … L R C S
- 47. Compliance is notonly about rules, it is common sense.
- 48. We set HRstandards! professional@sabpp.co.za or registrations@sabpp.co.za (Professional Registration) executiveoffice@sabpp.co.za (CEO office) marius@sabpp.co.za (CEO & Strategy inputs) xolani@sabpp.co.za (COO) hrstandards@sabpp.co.za (HR Standards) hraudit@sabpp.co.za (HR Audits) lathasha@sabpp.co.za (Research) naren@sabpp.co.za (Learning & Quality) events@sabpp.co.za (Events & HR Standards files) Website: www.sabpp.co.za Blog: hrtoday.me Office: 223 Jan Smuts Ave, Parktown North, South Africa Tel: +27 11 045-5400 Fax: 011 482-4830