National HR Standards: An opportunity for high impact business - driven people practices

@masteringsap #SAPHR16
Marius Meyer
SABPP
NATIONAL HR STANDARDS:
An opportunity for high impact business-driven
people practices
Mastering HR & Payroll with SAP Solutions 2016

• The HR standards journey
• HR Audits
• HR Metrics
• Questions
• Key Points to Take Home
A g e n d a

Perception or reality of HR?

Main message
Improve your HR function with standards and external
audits

Two radical changes in HR
“There are two radical changes in the HR space that are
coming from entirely different directions but are destined to
collide: HR Standards and Big Data. They are radical
because they will fundamentally change the performance
evaluation of HR, the teaching of the profession, and the
standing and credibility of practitioners.”
Neil McCormick & Chris Andrews
HR Advisory Bond University

• The National HR Standards developed for South Africa is
the first set of its kind in the world.
• It provides a common framework for HR best practices in
driving business performance by means of high impact
HR work delivered in a consistent manner.
• The goal is to reduce inconsistency and to deliver better
quality HR work across organisations and industries.
Now is the time to take HR to a new level

Introduction: 3 converging projects

468 HR Leaders developing HR Standards for SA

International interest

• 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 risk-based approach
• A basis for measurement (Monitoring & Evaluation)
What are the benefits of standards?

BUSINESS STRATEGY – HR BUSINESS ALIGNMENT
Strategic
HRM
Talent
Management
HR Risk
Manage-
ment
HR FUNCTIONAL & CROSS-FUNCTIONAL ARCHITECTURE
I
HR VALUE &
DELIVERY PLATFORM
Work-
force
Plan-
ning
L&D
Perfor-
mance
Mana-
gement
Reward
& Re-
cogni-
tion
Em-
ployee
well-
ness
ERM OD
HR Service
Delivery
HR Technology
(HRIS)
Pre-
pare
Imple-
ment
Review Im-
prove
HR MEASUREMENT
HR Audit: Standards & Metrics
HRCOMPETENCIES
© SABPP HR MANAGEMENT SYSTEM STANDARDS

Manage your HR Risks
12

Strategic
HRM
5.0
Talent
Management
4.3
HR Risk
Management
4.1
FUNCTIONAL & CROSS FUNCTIONAL HR VALUE CHAIN
HR VALUE &
DELIVERY PLATFORM
Work-
force
Planning
4.4
Learning
5.7
Perfor-
mance
5.3
Reward
4.7
Well-
ness
5.5
ERM
5.8
OD
4.7
HR Service
Delivery
5.6
HR Technology
(HRIS) 4.6
Prepare
Imple-
ment
Review
ImproveMEASURING HR SUCCESS 3.8
HRCOMPETENCIES
SELF RATINGS – OVERALL AVERAGE MAR 2016

Strategic
HRM
6.9
Talent
Management
5.5
HR Risk
Management
7.6
FUNCTIONAL & CROSS FUNCTIONAL HR VALUE CHAIN
HR VALUE &
DELIVERY PLATFORM
Work-
force
Planning
6.6
Learning
7.3
Perfor-
mance
7.2
Reward
7.3
Well-
ness
7.6
ERM
7.4
OD
6.6
HR Service
Delivery
6.5
HR Technology
(HRIS) 6.4
Prepare
Imple-
ment
Review
ImproveMEASURING HR SUCCESS 5.7
HRCOMPETENCIES
AUDITED RATINGS – OVERALL AVERAGE

HR Technology Standard
DEFINITION
HR Technology is the effective utilisation of
technological applications and platforms that make
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 Standard
OBJECTIVES
1. To leverage modern technology 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); and to support
efficiency and effectiveness in HR functions, for example Learning and Development
(for example, e-learning); and to create more capacity within existing HR structures to
deliver value-adding activities.
2. To consolidate and rapidly extract HR information in real time to deliver effective
presentation of HR information to the board or governing body, line management and
executive committee meetings to support planning, decision-making and management
of the workforce with full knowledge of potential people risks.
3. To streamline the HR Management System and its associated processes for effective
and efficient use.
4. To ensure that appropriate information security principles, policies and practices are
developed and implemented.
5. To enable the effective implementation of change and improvements to the technology
solutions to ensure they remain continually aligned with the organisation’s objectives.
SABPP (2013)

HR facing technology?

HR Technology Standard Implementation
MONITOR
&
EVALUATE
IT governance &
security rules
Available
technology (cost,
ROI)
HR management
system &
processes
HRIS & other
HR/HRD
requirements
Plan and implement
approved developments
Environmental
scanning for
new
developments
Training and support
Legislative
requirements

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
What the Auditors are looking for – 3 things

• HR teams are more ready than they think
• Integration, alignment, communication
• Fit-for-purpose
• Size does not matter
• Executive support is critical
• Measurement is key
Lessons from HR Audits against standards

• A clear HR strategy aligned to business strategy
• Very good relationships between HR & top management
• Good functional HR practices throughout value chain
• Committed and competent HR teams
• Explicit approach to continuous improvement
• Clear efforts to measure HR impact
Highlights from 2 HR audit cases studies

HR Metrics:
Human Capital Confidence Index
Human Capital Availability
• What is the match of supply and demand of economically
active people (skilled and unskilled) in the country?
• Where are specific under supply and over supply
situations?
Human Capital Contribution
• How productive is the employed population?
• What is the level of innovation in the country?
Human Capital Wellbeing
• What health and wellbeing issues impact on the general
productivity potential of the economically active
population?
Human Capital Wealth Creation
• How do different sectors of the employed population share
in the wealth created in the country?
• How attractive is the country to international talent?
Human Capital Cost, Investment and Growth
• What are we doing in terms of learning and development in
the school and post-school education system?
• How much are we spending on whom for what in the post-
school education system?
• What are we doing and how much are we spending on job
creation efforts?
• What health and wellbeing interventions are having
positive impacts on productivity?

HR manager’s response to metrics?

• Ensure a systematic approach to make all the
components of your HR function work
• Align your current HR strategy and practices to the HR
standards
• Build the capacity of your HR team to deliver value
• Leverage technology for speed, accuracy & service
delivery
• Measure internally (self-assessment) & externally (audit)
Key Points to Take Home

marius@sabpp.co.za
+27 11 045 5400
+27 082 859 3593
hrtoday.me sabpp.co.za
za.linkedin.com/in/SABPP/
facebook.com/SABPP/
@SABPP1 @MariusSABPP #hrstandards

National HR Standards: An opportunity for high impact business - driven people practices

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National HR Standards: An opportunity for high impact business - driven people practices