SABPP - SAPPI - 2013

BUILDING THE HR PROFESSION AND PEOPLE

MANAGEMENT:

New HR Competency Model, Standards & Metrics

for South Africa

Marius Meyer

28 February 2013

[email protected]

@SABPP1

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 VALUE PROPOSITION:

Products/Services to advance HR profession 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, 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

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

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

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

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)

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

• 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

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

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

Comfort zone challenged

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

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%

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

Operational Management Consistency in the

Management of People

One of the toughest things to be is consistent

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

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

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

HR manager’s response to

metrics?

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)

Risk + readiness

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

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

HR Standards Roll-out

Development (21-22 May)

Consultation (June-July)

Release (20-22 Aug)

Standards-writing

(100 top HR professionals)

Standards inputs

(100 top HR specialists +

1000 professionals)

Standards finalisation

(100 HR Directors

sign-off) HR Standards

conference

Conclusion

The new competency model sets the

benchmark for HR competence. HR standards

are needed to improve the consistency and

quality of people management. HR metrics

are needed to assess the bottom-line impact

of HR on business. Improved people

performance translates to improved business

performance.

Let us rise to the challenge and

deliver excellence

Let us build HR competence and create HR

standards!

[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