ADVANCING THE HR PROFESSION:

Towards HR Competencies, Benchmarking &

Benchmarks

Marius Meyer, CEO

25 January 2013

marius@sabpp.co.za

@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 hrri@sabpp.co.za

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 voice@sabpp.co.za

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!

professional@sabpp.co.za (Professional Registration)

kenneth@sabpp.co.za (Stakeholder Relations)

penny@sabpp.co.za (Research)

naren@sabpp.co.za (Learning & Quality)

marius@sabpp.co.za (Strategy inputs)

voice@sabpp.co.za (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