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BUILDING THE HR PROFESSION AND PEOPLE MANAGEMENT: New HR Competency Model, Standards & Metrics for South Africa Kenneth Nxumalo, Marius Meyer, Penny Abbott, Naren Vassan, Sithembele Stofile 26 March 2013 [email protected] @SABPP1

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Page 1: SABPP - MTN - 2013

BUILDING THE HR PROFESSION AND PEOPLE

MANAGEMENT:

New HR Competency Model, Standards & Metrics

for South Africa

Kenneth Nxumalo, Marius Meyer, Penny Abbott, Naren Vassan,

Sithembele Stofile

26 March 2013

[email protected]

@SABPP1

Page 2: SABPP - MTN - 2013
Page 3: SABPP - MTN - 2013

• Identifying talent issues before they impact the

business

• Adjusting HR strategies to respond to changing

business needs

• Understanding how HR business partners can

support the business

The results of our research indicated that our top three priority

CCR’s include the following:

SABPP Strategic Vision

“To Professionalise the HR Profession”

SABPP - ETQASABPP – Registration

CommitteeHRD

Committee

Business Leader’s

Expectations

OR

Critical Customer Requirements

(CCR’s)

Key HR Business Partner Outputs

Competencies

Care

er P

ath

s

Le

arn

ing

So

lutio

ns

SABPP Strategic Vision

“To Professionalise the HR Profession”

SABPP - ETQASABPP – Registration

CommitteeHRD

Committee

Business Leader’s

Expectations

OR

Critical Customer Requirements

(CCR’s)

Key HR Business Partner Outputs

Competencies

Care

er P

ath

s

Le

arn

ing

So

lutio

ns

1Communicating organisational culture/values to Employees

1Keep abreast of new legislation that may impact on business

1Preparing for different situations

2Responding to organisational changes

2Managing conflict between managers

2Assessing Employee attitudes

3Enforcing standard HR policies and procedures

3Resolving political problems in the execution of business plans

4Respond to manager needs

4Retention of talent within the business

5Capacity building/Skills development

6Quickly responding to employee needs

6Communication around HR in general

11Tracking trends in employee behaviours and attitudes.

11Keep the line updated on HR initiatives

13Prioritizing across HR Needs

25Utilising new business strategies

30Developing the next generation of leaders

32Identifying talent issues before they can impact on the business

35Identifying HR Metrics

42Adjusting HR strategies to respond to changing business needs

43Understanding how HRB’s can support the business

48Redesigning Organisational Structure around strategic objectives

54Understanding the Talent needs of the business

TOTALCCR

1Communicating organisational culture/values to Employees

1Keep abreast of new legislation that may impact on business

1Preparing for different situations

2Responding to organisational changes

2Managing conflict between managers

2Assessing Employee attitudes

3Enforcing standard HR policies and procedures

3Resolving political problems in the execution of business plans

4Respond to manager needs

4Retention of talent within the business

5Capacity building/Skills development

6Quickly responding to employee needs

6Communication around HR in general

11Tracking trends in employee behaviours and attitudes.

11Keep the line updated on HR initiatives

13Prioritizing across HR Needs

25Utilising new business strategies

30Developing the next generation of leaders

32Identifying talent issues before they can impact on the business

35Identifying HR Metrics

42Adjusting HR strategies to respond to changing business needs

43Understanding how HRB’s can support the business

48Redesigning Organisational Structure around strategic objectives

54Understanding the Talent needs of the business

TOTALCCR

Page 4: SABPP - MTN - 2013

Top SA HR priorities

High

FUTURE

IMPOR-

TANCE

Low

High CURRENT CAPABILITY Low

4

BCG/WFPMA (2008)

Talent Manage- ment

Leader- ship dev

Strate- gic

partner

Work- life

balance

Re-

cruit-

ment

Change

Com-

mit-

ment Per-

for-

mance

HR

process

Re-

struc-

turing

Global

Lear-

ning

org Diver-

sity

Demo-

graphics

CSR

Shared

services

Page 5: SABPP - MTN - 2013

1. SABPP is a professional body for HR practitioners in South Africa

2. Quality assurance body for HR learning provision.

3. SABPP also accredits the HR academic programmes of universities.

Page 6: SABPP - MTN - 2013

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

Page 7: SABPP - MTN - 2013

Alliances ALLIANCES TO STRENGTHEN HR

Page 8: SABPP - MTN - 2013

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

Page 9: SABPP - MTN - 2013

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

Page 10: SABPP - MTN - 2013

Marius Meyer, SABPP CEO receiving the SAQA certificate of professional body recognition from the Minister of Higher Education

and Training, Dr Blade Nzimande.

Page 11: SABPP - MTN - 2013

Committees

Professio-nal

Regis-tration

CPD

Risk & Audit IT Gover-

nance

Labour market

Mentoring

ETQA LGDI Ethics Disciplinary

HRRI Higher Education

Page 12: SABPP - MTN - 2013

DRIVERS: NEW SABPP VALUE CHAIN

LEADERS

HRD

Research

Value

Openness

Innovation

CPD

Excellence

HEAD: STAKEHOLDER

RELATIONS Connect with HR professionals &

partners

HEAD: PROFESSIONAL

SERVICES Set standards &

deliver HR professional

services

HEAD: LEARNING & QUALITY

ASSURANCE Build capacity and accredit learning

HEAD: RESEARCH &

DEVELOPMENT Innovate profession through knowledge

CEO Lead, govern,

strategise, align,

integrate

Page 13: SABPP - MTN - 2013

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

Page 14: SABPP - MTN - 2013

We are changing with technology

Page 15: SABPP - MTN - 2013

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)

Page 16: SABPP - MTN - 2013

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

Page 17: SABPP - MTN - 2013

• 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

Page 18: SABPP - MTN - 2013

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

Page 19: SABPP - MTN - 2013

ULRICH MODELS 1 - 4

Page 20: SABPP - MTN - 2013

ULRICH 5.0

Page 21: SABPP - MTN - 2013

CORPORATE LEADERSHIP

COUNCIL

Page 22: SABPP - MTN - 2013

CORPORATE LEADERSHIP

COUNCIL

Page 23: SABPP - MTN - 2013

RBL HR COMPETENCY STUDY

Page 24: SABPP - MTN - 2013

CIPD

Page 25: SABPP - MTN - 2013

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)

Page 26: SABPP - MTN - 2013

HR COMPETENCY HOUSE

Page 27: SABPP - MTN - 2013

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

Page 28: SABPP - MTN - 2013

Comfort zone challenged

Page 29: SABPP - MTN - 2013

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

Page 30: SABPP - MTN - 2013

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%

Order full report: [email protected]

Page 31: SABPP - MTN - 2013

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

Page 32: SABPP - MTN - 2013

Operational Management Consistency in the

Management of People

One of the toughest things to be is consistent

Page 33: SABPP - MTN - 2013

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

Page 34: SABPP - MTN - 2013

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

Page 35: SABPP - MTN - 2013

LTO rate

35%

21%

44%

0% 10% 20% 30% 40% 50%

Don't know

Don't measure

Indicate LTO rate:

Page 36: SABPP - MTN - 2013

Absenteeism rate

34%

31%

35%

29% 30% 31% 32% 33% 34% 35% 36%

Don't know

Don't measure

Indicate absenteeism rate

Page 37: SABPP - MTN - 2013

HR manager’s response to

metrics?

Page 38: SABPP - MTN - 2013

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)

Page 39: SABPP - MTN - 2013

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)

Page 40: SABPP - MTN - 2013

Risk + readiness

Page 41: SABPP - MTN - 2013

SocialHR Social Media Strategy media strategy

e❸

engage for

empowerment towards

excellence

Connecting HR professionals in professional social media

networks

Page 42: SABPP - MTN - 2013

FOLLOW US for daily HR news, articles, reports

@sabpp1

Page 43: SABPP - MTN - 2013

HR facing social media

Page 44: SABPP - MTN - 2013

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

Page 45: SABPP - MTN - 2013

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

Page 46: SABPP - MTN - 2013

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

Page 47: SABPP - MTN - 2013

The need for consistency and quality

Page 48: SABPP - MTN - 2013

HR Standards Roll-out

Development

(21 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

Page 49: SABPP - MTN - 2013

Conclusion

It was great being with you. 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.

Page 50: SABPP - MTN - 2013

Let us rise to the challenge and

deliver excellence

Page 51: SABPP - MTN - 2013

Let us build HR competence and create HR

standards!

[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

New office: 8 Sherborne Str, Parktown

Tel: 011 482-8595 Fax: 011 482-4830

Cel: 082 859 3593 (Marius Meyer)

New office