ADVANCING THE HR PROFESSION: Towards HR Competencies, Benchmarking & Benchmarks Marius Meyer, CEO 25 January 2013 [email protected] @MariusSABPP & @SABPP1
Oct 30, 2014
ADVANCING THE HR PROFESSION:
Towards HR Competencies, Benchmarking &
Benchmarks
Marius Meyer, CEO
25 January 2013
@MariusSABPP & @SABPP1
How we have changed
Economic impact on companies
This financial crisis is forcing government and local agencies to make some tough decisions.
If things continue for much longer, there's a real risk that we may have to lay off Jose.
Agenda
• Part A: HR trends and best practices
• Part B: State of HR profession
• Part C: HR Competency Model
Part A:
HR Trends & Best Practices
Where is HR going globally and in South Africa?
What are the major HR trends and best practices?
IBM CEO Study 2012:
Factors impacting organisations
1 Technology factors (71%) 2 People skills (69%) 3 Market factors (68%) 4 Macro-economic factors 5 Regulatory concerns 6 Globalisation 7 Socio-economic factors 8 Environmental issues 9 Geopolitical factors
IBM CEO Study 2012
Top 10 HR priorities
1. Creating a high performance culture / climate
2. Leadership and management development
3. Skills development
4. Focus on corporate values, ethics
5. Industrial/employee relations
6. Customer service
7. Employee engagement
8. Change Management
9. Crafting and implementing HR strategy
10. HR policies and procedures
HR Survey 2011
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
Biggest Opportunities for HR
IBM: Working beyond Borders
• Cultivating creative leaders • Mobilising for greater speed and
flexibility • Capitalising on collective intelligence
i.e. collaboration
Use of workforce
analytics remains limited
IBM: Working beyond Borders
0% 10% 20% 30% 40% 50% 60%
Developing future leaders
Developing strategy linked to business strategy
Allocating the workforce across the organisation
Developing workforce skills and capabilities
Sourcing, recruiting and onboarding individuals fromoutside the organisation
Retaining valued talent within the organisation
Evaluating workforce performance
Enhancing workforce productivity
Measuring collaboration and knowledge sharing acrossthe organisation
29%
28%
35%
30%
40%
38%
40%
39%
14%
26%
25%
23%
22%
20%
19%
15%
14%
5%
Can identifyhistoricaltrends andpatterns
Can developscenarios andpredict futureoutcomes
Planning for growth
44%
48%
44%
31%
35%
64%
0% 10% 20% 30% 40% 50% 60% 70%
Expanding into newmarkets/geographies
Developing newproduct/service offerings
Improving operationalefficiency
Today
Three years
IBM: Working beyond Borders
Most important organisational
capabilities over the next five years
IBM: Working beyond Borders
31%
33%
34%
37%
28% 30% 32% 34% 36% 38%
Innovation
Client connectivity
Execution speed
Leadership
Most important leadership qualities
over the next five years
IBM: Working beyond Borders
35%
52%
60%
0% 10% 20% 30% 40% 50% 60% 70%
Ability to balance work and lifedemands
Integrity
Creativity
Part B:
State of HR Profession in SA
What is the current state of HR in SA?
HR positions 2011
23%
22%
16%
14%
12%
5% 3% 3% 2%
HRM L&D OD ER HRAR&S REM EW HRIS
New SABPP Model: HR Voice for
Professionals
Human resource development
Research - info
Value & visibility
Open for alliances
Innovation
CPD
Excel-lence
Quality assurance
Learning growth & develop-
ment
Knowledge
Self-governance Duty to society
Ethics
SABPP BENEFITS 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 • Social media discussions • Knowledge Centre • Booklets/DVDs • Guides/toolkits • Charts/posters • Fact sheets • One-stop info • Updates (laws) • Ethics help-line • Newsletters • Website • HR Internships/jobs • HR policies • Mentoring • Workshops/seminars • Access to alliances • CPD • Students
• Research papers • Position papers • Books • Articles • Cases • Benchmarking • Magazines • Labour market
information
Professional registration levels
• M/D degree + 6 years top level experience
• LoW = executive level
MHRP
(Master)
CHRP
(Chartered)
• Degree/ND + 3 years experience
• LoW = middle management HRP (Professional)
HRA (Associate)
• Certificate + 1 year experience
• LoW = entry HRT (Technician)
• Hons degree + 4 years sr experience
• LoW = senior management
• 2 year dip + 2 years experience
• LoW = junior level
Top 7 SABPP priorities 2013
• Rebranding & visibility (all provinces)
• National HR standards & metrics project
• National HR competency model
• HR social media strategy
• SAQA pilot project – professional
designations upload on NLRD
• Professional products & services
• Research papers
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 e-learning
31% 43% + 10%
% outsourced 22% 62% +10%
Papers published
Importance of ethics
Research Projects
• Annual HR Survey (completed)
• Annual L&D State of Training in SA (ASTD)
• Green HR (new)
• Talent Survey (new)
• HR Social Media (new)
• HR Standards & Metrics (new)
For access to our research, contact
Penny Abbott on [email protected]
Cost of labour as a % of revenue
9%
7%
12%
7%
9%
14%
11%
25%
4%
2%
0% 5% 10% 15% 20% 25% 30%
> 10%
11 - 20%
21 - 30%
31 - 40%
41 - 50%
51 - 60%
61 - 70%
Don’t know/Not applicable
Not done
Too confidential
Revenue per full-time employee
1%
24%
16%
12%
2%
23%
4%
3%
15%
0% 5% 10% 15% 20% 25% 30%
R0
> R100 000
R100 000 to R1 million
R1 million to R 10 million
R10 million+
Don’t measure/Don’t know
It’s confidential
?
Not applicable
LTO rate
35%
21%
44%
0% 10% 20% 30% 40% 50%
Don't know
Don't measure
Indicate LTO rate:
Absenteeism rate
34%
31%
35%
29% 30% 31% 32% 33% 34% 35% 36%
Don't know
Don't measure
Indicate absenteeism rate
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
The basic metrics they propose as
essential for investors to know are:
SHRM (April 2012)
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.
The basic metrics they propose as
essential for investors to know are:
SHRM (April 2012)
HR manager’s response to
metrics?
Change themes for 2012
1% 1% 1% 1%
2% 3% 3%
4% 5%
6% 8%
9% 10%
20% 26%
0% 5% 10% 15% 20% 25% 30%
Increasing budget
Strategic alliances
HIV
Utilising social media
Introducing or fine-tuning performance management
Remuneration
New HR Information Systems
Focusing on business growth
Strategic business partnering
BEE
Motivation of the workforce
Change and transformation
Learning and development
Developing programmes for retaining talent
Finding talent
Changes planned for the
next two years
2%
2%
3%
3%
3%
5%
6%
8%
9%
10%
11%
14%
25%
0% 5% 10% 15% 20% 25% 30%
Use of coaching and mentoring
Do more transformational work
Outsourcing aspects of HR
Talent retention
Leadership development
Performance management
HRIS and shared services
Training, development, upskilling
Be more efficient
Strategic business partnering
Attracting talent and succession planning
Re-engineering and restructuring
None
KR/SABPP HR Survey (2011))
GOOD NEWS
• HR on boards/excos of 81% of companies
• 74% of HR professionals say that line management accepts HR as strategic partners
• HR professionals in SA is better qualified than counterparts in USA
• Talent management is 4th most important priority for HR for 2012
BAD NEWS
• Talent management is only priority no 17 for HR
• Talent management is ranked HR’s 22nd best competency area
• Only 55% of HR departments have HR succession plan
• Only 20% of SA companies have a competency model for HR
HR/Line relationship?
SCARCE AND CRITICAL SKILLS
Pos. Type of scarce and critical skills area Magnitude of scarcity
1 Industrial & Mechanical Engineers and Technologists 12 665
2 Medical Technicians 10 000
3 Training & development professionals 9 260
4 Metal fitters & machinists 8 340
5 Specialist managers 6 955
6 Agriculture & forestry scientists 6 175
7 Chemistry, food & beverage technicians 6 145
8 Electrical Engineering, draft persons & technicians 5 145
9 Social workers 5 000
9 Medical and laboratory scientists & technologists 5 000
10 Motor mechanics 4 205
11 Structural steel & welding trade workers 4 045
11 Advertising, marketing & sales managers 4 045
12 Civil engineering, draft persons & technicians 3 960
13 HR Professionals 3 855
14 Advertising, marketing & sales professionals 3 095
15 Production & operations managers 3 130 (DHET, 2011)
Risk + readiness
SABPP HR Risk Study
Source: SABPP (2010)
Identifying high-risk groups
79%
21%
0% 20% 40% 60% 80% 100%
Yes
No
Retention programmes geared
towards high-risk groups
47%
53%
44% 46% 48% 50% 52% 54%
Yes
No
HR Risk Management Framework
Human Factor
Risk Leader-
ship
Human Factor
Risk Manage-
ment Processes
Human Factor
Risk Handling
Outcomes
CAPABILITIES RESULTS
INNOVATION AND LEARNING
People
Human Factor Risk Policy &
Strategy
Partnerships
Adapted from EFQM & IMOR (Michael Robbins)
Getting the balance right…
Professional knowledge and
standards (competence)
Professional ethics (conscience)
Doing good work
(excellence)
Ethical behaviour
and conduct (ethics)
Accountability Responsibility Fairness Transparency
SocialHR Social Media Strategy media strategy
e❸
engage for
empowerment towards
excellence
Connecting HR professionals in professional social media
networks
Contact us on [email protected]
Are we ready for s-learning?
Utilisation of social media in HR
0%
20%
40%
60%
80%
100%
120%
32%
44% 35%
43% 40% 38%
25% 33%
11%
17%
17%
19% 18%
15%
16%
15%
28%
25%
26%
25% 22%
22%
21%
25%
16%
11% 17%
11% 18%
21%
28%
18%
13% 3% 6% 2% 2% 4%
10% 9%
Great extent
4
From time to time
2
Not at all
A social media strategy for the
HR department
12%
88%
0% 20% 40% 60% 80% 100%
Yes
No
Social media policies exist
38%
62%
0% 10% 20% 30% 40% 50% 60% 70%
Yes
No
Employees allowed to
access social media
40%
60%
0% 10% 20% 30% 40% 50% 60% 70%
Yes
No
Are people trained?
13%
87%
0% 20% 40% 60% 80% 100%
Yes
No
HR risks of social media
SABPP HR System Standards Model
BUSINESS STRATEGY – HR BUSINESS ALIGNMENT
Strategic HRM
Talent Management
HR Risk Management
FUNCTIONAL & CROSS FUNCTIONAL HR VALUE CHAIN
HR VALUE & DELIVERY PLATFORM
Work- force
planning Learning
Perfor- mance
Reward Well- ness
ERM OD
HR Service Delivery
HR Technology (HRIS)
Pre- pare
Im- ple-
ment
Review Improve MEASURING HR SUCCESS HR Audit: Standards & Metrics
H R
C O
M P
E T E N C
I E S
SABPP HR Standards & Metrics
Roadmap
PHASE 1:
Manage- ment
System Standard
PHASE 2:
HR Functional standards
PHASE 3:
HR Metrics
PHASE 4:
Integrated Reporting
PHASE 5:
CPD & Support Tools
PHASE 6:
HR integrated in
King IV
2012 2013 2017
The need for consistency and quality
Part C:
HR Competencies
What competencies do we need to deliver world-
class HR work?
Wisdom from the Free State
Prof Jonathan Jansen
“Competence is the quality of being adequately or well qualified physically and
intellectually. I have not for a long time heard that word
used to describe a politician – or any public servant, for that matter. Make competence a
respectable word again.”
• First SABPP HR Competency Model (1990)
• Project driven by 2 top HR Talent specialists:
Lydia Cillie-Schmidt & Terry Meyer
• Good inputs from market – Steel company,
Nedbank, Sasol, DPSA, Ethekweni Municipality,
Qbit, Catalyst Consulting
• Continuous engagement and consultation
• Analysis of global and local HRCMs & research
• Integration of key elements into an SA HR
profession map and competency model
BACKGROUND & METHODOLOGY
NEED FOR COMPETENT HR
PROFESSIONALS
Design principles
• Based on overarching HR profession map
• Learn from the previous models, integrate best elements – leading competencies world-wide
• But not copying from global models
• Relevant to South Africa – unique/local
• Alignment of personal and business competencies and HR competencies
• Focus on present and future
ULRICH MODELS 1 - 4
ULRICH 5.0
CORPORATE LEADERSHIP
COUNCIL
CORPORATE LEADERSHIP
COUNCIL
RBL HR COMPETENCY STUDY
CIPD
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)
HR COMPETENCY HOUSE
Professional seat at the table
“For HR to continue having a seat at the table, thinking
and behaving like professionals are
paramount.”
Getty Simelane CHRP
HR Consultant
SABPP/ Knowres: Wisdom from HR Mentors (2011)
SOUTH AFRICAN HR COMPETENCY 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
5 C
OR
E
CO
MP
ET
EN
CIE
S
HR & BUSINESS KNOWLEDGE
DUTY TO SOCIETY
ET
HIC
S
PR
OF
ES
SIO
NA
LIS
M
4
PILLARS
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
HR excellence: It is all about alignment
Conclusion
Professionalism in HR is important to acquire
and improve knowledge as professionals.
Join us on the journey towards HR
competence and benchmarking.
Let us rise to the challenge and
deliver excellence
Let us build a great HR profession!
[email protected] (Professional Registration)
[email protected] (Stakeholder Relations)
[email protected] (Research)
[email protected] (Learning & Quality)
[email protected] (Strategy inputs)
[email protected] (Social media)
Website : www.sabpp.co.za
New office: 8 Sherborne Str, Parktown
Tel: 011 482-8595 Fax: 011 482-4830
Cel: 082 859 3593 (Marius Meyer)
New office