Competency • Waste
Why We Hate HRYou're great at administrivia and wasteful.
by Keith H. Hammonds
I N A KNOWLEDGEeconomy, compa-
nies with the best tal-ent win. And finding, nurturing, anddeveloping that talent should be oneof the most important tasks. So, whydoes human resources (HR) do such abad job—and how can we fix it? After20 years of hopeful rhetoric aboutbecoming "strategic partners" with a"seat at the table," most HR profes-sionals still have no seat. They are nei-ther strategic nor leaders.
Most HR professionals are per-ceived, at best, as a necessary evil—and at worst, a dark bureaucraticforce that blindly enforces nonsensicalrules, resists creativity, and impedesconstructive change. HR is the func-tion with the greatest potential—thekey driver, in theory, of performance—but also consistent underdelivers.
Why are annual performanceappraisals so time-consuming—anduseless? Why is HR so often a hench-man for the CFO, finding ever-moreways to cut benefits and hack at pay-roll? Why do its communicationsoften flout reality? Why are so manypeople processes duplicative andwasteful? And why does HR insist onsameness as a proxy for equity?
It's no wonder that we hate HR.Just 40 percent of employees com-mend their companies for retaininghigh-quality workers and think thatperformance evaluations are fair. Only58 percent rate their job training asfavorable. Few see opportunities foradvancement. Only half believe theircompanies take a genuine interest intheir well-being.
Since companies that have the besttalent win, HR execs should be find-ing the best hires, nurturing the stars,fostering a productive work environ-ment, and becoming joined to businessstrateg}' at the hip. Instead, most HRpeople have ghettoized themselves tothe brink of obsolescence. They arecompetent at the administrivia of pay,benefits, and retirement, but compa-nies are outsourcing those functions.What's left is the strategic role of rais-
ing the reputational and intellectualcapital of the company, and HR isuniquely unsuited for that.
Here are four reasons why:1. HR people aren't the sharpest tacks
in the box. The best and the brightestdon't go into HR. Some enter the fieldby choice and with the best of inten-tions, but for the wrong reasons. Theylike working with people and want tobe helpful, but they don't know howyou get the best and brightest peopleand raise the value of the firm. Thegulf between capabilities and jobrequirements is widening. Most HRmanagers lack basic business acumenand can't answer basic questions: Whois your core customer? What chal-lenges do they face? Who is the com-petition? What do they do well? Who
are we? What do we do well? Doesyour HR pro know the answers?
2. HR pursues efficiency in lieu ofvalue. It's easier to measure the numberof training hours (what you do) than itis to measure the value you deliver toemployees and line managers, and thebenefits that accrue to investors andcustomers. So, HR managers investmore in activities than in outcomes.HR can provide the number of peopleit hired, the percentage of performanceevaluations completed, and the extentto which employees are satisfied withtheir benefits. Rarely does it link any ofthose metrics to performance.
3. HR isn't working Jbr you.Companies put people through asi-nine performance appraisals everyyear to protect themselves againsttheir own employees. So if you everhave a confrontation, you can go to
the file and say, "I've documented thisproblem." There's a good reason forthis defensive stance, given all thelabor regulations, but it's easy to getsucked into that. There's tension creat-ed by HR's role as protector of corpo-rate assets—making sure it doesn't runafoul of the rules. That puts you in theposition of saying no a lot, of playingthe bad cop. You have to step out ofthat, see the broad possibilitie.s, andtake a more open-minded approach.
You need to understand where theexceptions to broad policies can bemade. Typically, HR people can't, orwon't. Instead, they pursue standard-ization and uniformity, either becauseone-size-fits-all is about compliance orconvenience. But making exceptionsshould be what HR does, all the time —because it drives the business. You keepyour best people by rewarding theirdistinctive performance—not by treat-ing them the same as everyone else.
4. The comer o^ce doesn't get HR (andvice versa HR managers rarely have theear of top management. Some execsdon't think HR matters because HR hasnever proven its business mettle—andvice versa, as there is often a high corre-lation between employee turnover anda lack of connection. The best HR prosdon't wait to hear from top manage-ment. They assume responsibility.
Certainly there are great individualHR managers—trustworthy, caringpeople who understand the businessand how people fit in. At Yahoo, LibbySartain, chief people officer, is buildinga truly effective HR department. Shestarted a weekly operations meetingthat she coordinates with COO DanRosensweig. Talent is always at the topof the agenda—and at the end of eachmeeting, the executive team mullsdevelopment decisions on key staffers.Yahoo is aniong a few companies—
among them Cardinal Health, Procter& Gamble, Pitney Bowes, GoldmanSachs, and General Electric—that bringHR into the realm of business strategy.Still, there's still a long way to go.
Most employers plan to expandoutsourcing to include almost every-thing HR now does. This unique func-tion discovers things about the businessthrough the lens of people and talent.That's an opportunity for competitiveadvantage. But in most companies,that opportunity' is utterly wasted.And that's why I don't like HR. LEKciWi H. Hammoiiils is Fast Cornfim}/^ deyuly editor. This ariickhas (vf)i adapted from an ariick featured in Fast Company, witli(tTiijisi k'u.u'W-ii:fa.^triimj<aiiii.com
ACTION: Improve your people leadership.
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CLEAR SPACE GUIDELINE
THE PEOPLE STRATEGISTSC O N N E C T ȏ � G R O W ȏ � T R A N S F O R M
THE PEOPLE STRATEGISTSC O N N E C T ȏ � G R O W ȏ � T R A N S F O R MPEOPLE STRATEGIES
Demand-based Talent Sourcing Recruitment Outsourcing Talent Management & Succession Planning
HR Outsourcing HR Benchmarking SABPP HR Standards Consultation
Organisational Development
Change Management
BPR
Brand Promise Delivery
Leadership 360-assessment & coaching
03
The SABPP
04
The SA Board for People Practices is the HR professional and statutory quality assurance body for the HR profession. The Board is an accredited ETQA under the SAQA Act.
04
Value Proposition
Recognition = Professional Status Resources = Products/Services Research Information
• Professional registration • NLRD Upload (SAQA) • RPL • Awards • Advocacy • HR Assessors/Moderators registration • Accreditation of providers • University accreditation
• HR Competency Model • HR Standards • 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 papers • Position papers • Books • Articles • Cases • Benchmarking • Magazines • Labour market info
04
Registration
03
What is the National HR Standard?
05
HR N
atio
nal S
tand
ard
The National HR Standards are intended to outline the minimum set of HR practices that any organisation should have in place in order to build an aligned, engaged and productive workforce that will achieve the organisation’s objectives. Companies are encouraged to benchmark themselves around the National Standard and then be formally audited in order to achieve a recognised 3-year status. HR will not be seen as a true profession without standards. The Strategic element of the Standard ensures that HR becomes a true business partner.
05
HR N
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HR N
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tand
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REVI
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PREP
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HR Strategy Talent Management
People Risk Management
Wor
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Plan
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Perfo
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HR Service Delivery HR Technology
HR Measurement HR Audits, Standards & Metrics
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HR N
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REVI
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PREP
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HR Strategy Talent Management
People Risk Management
Wor
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HR Service Delivery HR Technology
HR Measurement HR Audits, Standards & Metrics
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HR N
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tand
ard
Organisation’s strategic intent
Environmental Scan People strategy
People strategy
Framework of HR policies & programmes
HR strategic agenda
Allocate roles & responsibilities (line/HR/ support
functions)
HR strategic agenda
HR structure, service model and capability development HR Business Plan
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HR N
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REVI
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HR Strategy Talent Management
People Risk Management
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HR Service Delivery HR Technology
HR Measurement HR Audits, Standards & Metrics
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HR N
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The proactive design and implementation of an integrated talent-driven organisational strategy directed to attracting, deploying, developing, retaining and optimising the appropriate talent requirements as identified in the People Strategy.
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HR N
atio
nal S
tand
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TM philosophy, principles & approach
Long Term Talent
Demand / Supply
Forecast
Leadership & Key Competencies Framework
Talent Needs Analysis
Labour Market Analysis
Long Term Talent
Demand / Supply
Forecast
Talent review (what have we got & when will
talent be ready?)
Gap Analysis
* Job Profiles, Skills Audits, Development Plans, Succession Plans, Career Pathing, Talent Reviews, Communications Strategy
Gap Analysis
Talent Management System *
Strategic Talent Mngmnt
Talent Management Interventions**
** sourcing strategies, on-boarding, accelerated development, links to PM and Reward
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HR N
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REVI
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HR Strategy Talent Management
People Risk Management
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HR Measurement HR Audits, Standards & Metrics
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HR N
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A systematic approach of identifying and addressing people risks (uncertainties and opportunities) that can either have a positive or negative effect on the realisation of the objectives of an organisation. Examples of people risks: Attrition & cost of retraining; fraud & corruption; strike & business interruption; critical & scarce skills etc.
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HR N
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nal S
tand
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Organisation’s risk management
structures and processes
HR Risk Map
Identify and evaluate impact of HR Risks (impact & likelihood)
HR Risk Map Assessment of risk tolerance
for each HR Risk Register
HR Risk Register
HR Risk Management Plan
HR Practices & programmes to manage risk
Monitor & Evaluate
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HR N
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REVI
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PREP
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HR Strategy Talent Management
People Risk Management
Wor
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HR Service Delivery HR Technology
HR Measurement HR Audits, Standards & Metrics
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HR N
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The systematic identification and analysis of organisational workforce needs culminating in a workforce plan to ensure sustainable organisational capability in pursuit of the achievement of its strategic and operational objectives. The workforce plan will set out the actions necessary to have the right people in the right place at the right time – assisting the organisation with the planning cycle, budget, pipeline management and cost modeling process.
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HR N
atio
nal S
tand
ard
Monitor & Evaluate
Business Strategy &
Plans
Future workforce forecasts & costed scenarios Internal & External Trends
Present workforce COMPARE
GAP ANALYSIS & PLANS TO CLOSE GAPS
Workforce Scheduling
Recruitment, Assessment & Selection
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HR N
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REVI
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HR Strategy Talent Management
People Risk Management
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HR Measurement HR Audits, Standards & Metrics
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HR N
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The practice of providing occupationally directed and other learning activities that enable and enhance the knowledge, practical skills and work place experience and behaviour of individuals and teams based on current and future occupational requirements for optimal organisational performance and sustainability.
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HR N
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tand
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Integrated L&D approach & programmes
Monitor & Evaluate
Business Strategy &
Plans
Internal & External Trends
Skills Development
Legislation
Current Competencies
Structure & capability of L&D resources
Knowledge Management
“Skills are not a competitive advantage, retention of skills and the environment in which skills are deployed are the real competitive advantage”
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REVI
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HR Strategy Talent Management
People Risk Management
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HR N
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A planned process of directing, developing, supporting, aligning and improving individual and team performance in enabling the sustained achievement of organisational objectives.
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HR N
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Business Strategy &
Plans
Departmental Performance Expectations
Individual Performance Expectations
Performance Measurement & Feedback
Performance Development
To Learning & Development
Consistency & Leadership
PM Policy & Procedure PM Line Capability
Enabler
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HR Strategy Talent Management
People Risk Management
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HR Measurement HR Audits, Standards & Metrics
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HR N
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A strategy and system that enables organisations to offer fair and appropriate levels of pay and benefits in recognition for their contribution to the achievement of agreed deliverables in line with organisational objectives and values. Recognition is a related strategy and system that seeks to reward employees for other achievements through mechanisms outside the pay and benefits structure.
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HR N
atio
nal S
tand
ard Talent
Mngment Strategy
Business Objectives & Culture
Legal and Governance requiremnts
Market trends – sector,
national
Individual needs and wants
Individual needs and wants
Reward & Recognition
Strategy
Reward System Reward &
Recognition Strategy
RRM Policies &
Procedures **
Benchmark
** Correlation & integration with other HR processes e.g. Performance Management
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REVI
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A strategy to ensure that a safe and healthy work and social environment is created and maintained, together with individual wellness commitment that enables employees to perform optimally while meeting all health and safety legislative requirements and other relevant wellness good practices in support of the achievement of organisational objectives.
05
HR N
atio
nal S
tand
ard Employee
Self-responsibility
Employee Awarenesss
Communication & Traning
EMPLOYEES ORGANISATION
** Correlation & integration with other HR processes e.g. Performance Management, Industrial Relations
Wellness Strategy
Legal and governance
requirements
Cost Mngmnt
Wellness Assessment – Risk & Current Reality
Employee Consultation
Wellness Policies & Procedures **
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HR N
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REVI
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HR Strategy Talent Management
People Risk Management
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HR Measurement HR Audits, Standards & Metrics
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HR N
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The management of individual and collective relationships in an organisation through the implementation of good practices that enable the achievement of organisational objectives compliant with the legislative framework and appropriate to socio-economic conditions
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HR N
atio
nal S
tand
ard
Legal Requirements & agreements
Workforce characteristics
Socio/ economic/ political trends
ER Philosophy ERM Strategy
ERM Strategy ERM Policies & Procedures **
ER resources & structure Communication and Training
Leadership behaviour – build trust and respect
** Correlation & integration with other HR processes e.g. Performance Management, Industrial Relations
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HR N
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REVI
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HR Strategy Talent Management
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HR Measurement HR Audits, Standards & Metrics
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HR N
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A planned systemic change process to continually improve an organisation’s effectiveness and efficiency by utilising diagnostic data, and designing and implementing appropriate solutions and interventions to measurably enable the organisation to optimise its purpose and strategy.
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ELEMENTS TO BE LINKED & OPTIMISED
Diagnose
Define intended outcomes, design interventions
Organisational Purpose
Prioritise & Engage OD Activities
Organisational Design Employee’s capability to
work together
ENABLERS
Other HR Processes e.g. L&D
Consultation with appropriate stakeholders Employee Communication
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HR N
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REVI
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HR Strategy Talent Management
People Risk Management
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HR Measurement HR Audits, Standards & Metrics
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HR N
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The influencing and partnering approach in the provision of HR services meeting the needs of the organisation and its employees which enables delivery of organisational goals and targets. HR Strategy drives Policies, Procedures, Codes and a clear SLA with business. It’s about ensuring that HR’s work is delivered efficiently and at a pace that the BUSINESS needs.
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HR Strategy Talent Management
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HR Service Delivery HR Technology
HR Measurement HR Audits, Standards & Metrics
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HR N
atio
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ard
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.
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PREP
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HR Strategy Talent Management
People Risk Management
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Plan
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HR Measurement HR Audits, Standards & Metrics
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atio
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A continuous process of gathering, analysing, interpreting, evaluating and presenting quantitative and qualitative data to measure, align and benchmark the impact of HR practices on organisational objectives, including facilitating internal and external auditing of HR policies, processes, practices and outcomes. Monitoring each element of the Standard to determine if the business objectives are being met.
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HR Strategy Talent Management
People Risk Management
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Plan
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HR Service Delivery HR Technology
HR Measurement HR Audits, Standards & Metrics
IMPL
EMEN
T
Recruitment
Selection
On-boarding
Employment Equity
Succession Planning
Career Management
Workplace Learning
Training Needs Analysis
Learning Design
Facilitation
Learning Culture
Graduate Development
Coaching and Mentoring
Knowledge Management
Performance Management
Process
Performance Appraisals
Performance Monitoring and Management
Remuneration & Reward Analysis
Remuneration Planning
Reward Mechanisms
Remuneration Management
Wellness Strategy
Development
Staff Wellness Management
Grievance Procedures
Disciplinary Procedures
Collective Bargaining
Dispute Resolution
Diversity Management
Absenteeism Management
Leadership Development
Organisation Culture
Change Management
Organisation Design
Employee Engagement
Wor
kfor
ce
Plan
ning
Lear
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&
Deve
lopm
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Perfo
rman
ce
Man
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Rew
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HR Service Delivery HR Technology
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[email protected] (Professional Registration) [email protected] (Professional Services) [email protected] (Stakeholder Relations) [email protected] (Research) [email protected] (Learning & Quality) [email protected] (Strategy inputs) [email protected] (Social media) Website: www.sabpp.co.za Blog: hrtoday.me Office: 8 Sherborne Str, Parktown Tel: 011 482-8595 Fax: 011 482-4830 Cel: 082 859 3593 (Marius Meyer)
07
How do we partner with you?
TALENT SOURCE
09
BRAND OVERVIEW
Brand integrity is of the utmost importance. The clear space guideline allows the brand to sit with other brands but still retain placement and relevance. The clear space must be seen as part of the logo.
7KLV�ZLOO�EH�VKRZQ�LQ�WKH�ȴQDO�GHOLYHU\�Ȃ�LQFRUSRUDWLQJ�WKH�ORJR�HQKDQFHPHQWȇV��
CLEAR SPACE GUIDELINE
THE PEOPLE STRATEGISTSC O N N E C T ȏ � G R O W ȏ � T R A N S F O R M
THE PEOPLE STRATEGISTSC O N N E C T ȏ � G R O W ȏ � T R A N S F O R MPEOPLE STRATEGIES
05
Special Offer for Attendees TODAY 20% off Gap-Analysis against standards (all or components) Will include the SABPP’s National Standard
08
We take time to understand your organisational strategy and goals and develop an HR Strategy that will provide you with the right people, with the right skills at the righ time in order to achieve your business goals. We identify key roles in the business and assess the current and future talent needs. We then develop a Talent strategy with you in order to develop of acquire the talent required. As people are your most valuable asset, they are also your greatest Risk. We work with key stakeholders in the business to identify these risks and we develop mitigating strategies in order to minimise the possible effects of events in the organisation. Examples include Strike Contingency plans, Scarce Skills Planning, Disaster Recovery Plans etc.
HR Planning
09
HR Implementation & Service Delivery
We offer an agreed number of on-site hours combined with 24 hr telephonic access to our various HR professionals who have expertise in the areas of: • Workforce Planning & Recruitment • Learning & Development • Performance Management • Reward & Remuneration • Wellness • Industrial Relations • Organisational Development
10
HR Review
Our main purpose is to improve the quality of your people practices. For this reason we will provide monthly and quarterly statistics outlining the following: • Absence rates & feedback • Revenue per Employee • Recruitment time-to-fill • Training and Development Hours and Impact • Industrial Relations Activity • Staff Turnover Analysis • Staff Performance Ratings • Any other areas identified by the organisation
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HAND
OVER
STRA
TEGI
C FO
CUS
DAIL
Y OP
ERAT
IONA
L 24hr telephonic & email general HR assistance on routine HR issues
Month 1 • Organisational
Analysis
Month 2 • Policies &
Frameworks
Month 3 • ??
Month 4 • ??
Month 5-12 • ??
Strategically hand over key line HR issues to HR
Further Terms • Possibly retained on key strategic issues
OTHE
R Recruitment Training Assessments Coaching