SABPP - Technology - QBIT 2013
- 1. PEOPLE MANAGEMENT AND TECHNOLOGY: Two sides of the same coin in the modern workplace? Marius Meyer 15 March 2013 marius@sabpp.co.za @SABPP1
- 3. IBM CEO Study 2012: Factors impacting organisations IBM CEO Study 2012 1 2 3 4 5 6 7 8 9 Technology factors (71%) People skills (69%) Market factors (68%) Macro-economic factors Regulatory concerns Globalisation Socio-economic factors Environmental issues Geopolitical factors
- 5. Most important organisational capabilities over the next five years Leadership 37% Execution speed 34% Client connectivity 33% Innovation 31% 28% IBM: Working beyond Borders 30% 32% 34% 36% 38%
- 6. HR Talent Management “Quite possibly the biggest challenge that needs to occur in HR has to do with talent management – not elsewhere in organisations, but how talent management in HR is a case of the shoemaker’s children lacking shoes. Our results suggest that HR often doesn’t have the right talent; all too often it has talent that is inferior to the talent in other parts of the organization.” Ed Lawler III & John Boudreau (2009) Achieving Excellence in Human Resources Management, Stanford University Press
- 7. SOUTH AFRICAN HR COMPETENCY MODEL STRATEGY 5 HR CAPABILITIES TALENT MANAGEMENT HR GOVERNANCE, RISK, COMPLIANCE ANALYTICS & MEASUREMENT HR SERVICE DELIVERY HR & BUSINESS KNOWLEDGE SOLUTION CREATION & IMPLEMENTATION INTERPERSONAL & COMMUNICATION CITIZENSHIP FOR FUTURE: INNOVATION, TECHNOLOGY, SUSTAINABILITY 4 PILLARS DUTY TO SOCIETY 5 CORE COMPETENCIES ETHICS ORGANISATIONAL CAPABILITY PROFESSIONALISM LEADERSHIP & PERSONAL CREDIBILITY
- 9. Use of workforce analytics remains limited Measuring collaboration and knowledge sharing across the organisation 14% 5% Enhancing workforce productivity 39% Evaluating workforce performance 40% 15% 38% 19% Retaining valued talent within the organisation Sourcing, recruiting and onboarding individuals from outside the organisation Developing workforce skills and capabilities Allocating the workforce across the organisation 14% 40% 30% 35% Developing strategy linked to business strategy 28% Developing future leaders 29% 20% 22% 23% 25% 26% 0% 10% 20% 30% 40% 50% 60% IBM: Working beyond Borders Can identify historical trends and patterns Can develop scenarios and predict future outcomes
- 10. Use of HRIS
- 11. What is the business problem? “A business running without accurate data is running blind.” Ash Mahmud, Head of CRM: Groupon
- 12. What is the HR problem? An HR function running without accurate data is running blind.
- 13. Effectiveness of talent management system
- 14. HR facing social media
- 15. 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 elearning 31% 43% + 10% % outsourced 22% 62% +10% To order the full report contact hrri@sabpp.co.za
- 16. Management system standard: purpose and benefits A (business) management system standard should be a means to: achieve business objectives increase understanding of current operations and the likely impact of change communicate knowledge demonstrate compliance (with the requirements of King III the Combined code, Sarbanes-Oxley, sector-specific and international standards etc.) Means to establish 'best (good) practice' Means to ensure consistency Establish and set priorities Instigate organisational change
- 17. 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
- 18. IT skills for HR
- 19. Operational Management Consistency in the Management of People One of the toughest things to be is consistent
- 21. Revenue per full-time employee Not applicable 15% ? 3% It’s confidential 4% Don’t measure/Don’t know 23% R10 million+ 2% R1 million to R 10 million 12% R100 000 to R1 million 16% > R100 000 24% R0 1% 0% 5% 10% 15% 20% 25% 30%
- 22. Cost of labour as a % of revenue Too confidential 2% Not done 4% Don’t know/Not applicable 25% 61 - 70% 11% 51 - 60% 14% 41 - 50% 9% 31 - 40% 7% 21 - 30% 12% 11 - 20% 7% > 10% 9% 0% 5% 10% 15% 20% 25% 30%
- 23. LTO rate Indicate LTO rate: 44% Don't measure 21% Don't know 35% 0% 10% 20% 30% 40% 50%
- 24. Absenteeism rate Indicate absenteeism rate 35% Don't measure 31% Don't know 34% 29% 30% 31% 32% 33% 34% 35% 36%
- 25. HR manager’s response to technology?
- 26. The basic metrics they propose as essential for investors to know are: 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 SHRM (April 2012)
- 27. The basic metrics they propose as essential for investors to know are: 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. SHRM (April 2012)
- 28. We are changing with technology
- 29. 10 V’s of HR Technology Management 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Vision Value Variables Variance Variety Validity Verification Velocity Vendors Vulnerability - risks
- 30. Risk + readiness
- 31. SABPP HR System Standards Model BUSINESS STRATEGY – HR BUSINESS ALIGNMENT Prepare HR Risk Management FUNCTIONAL & CROSS FUNCTIONAL HR VALUE CHAIN Implement Workforce planning Learning HR Service Delivery Review Performance Reward Wellness HR VALUE & DELIVERY PLATFORM MEASURING HR SUCCESS HR Audit: Standards & Metrics ERM OD HR COMPETENCIES Talent Management Strategic HRM HR Technology (HRIS) Improve
- 32. SABPP HR Standards & Metrics Roadmap PHASE 2: PHASE 4: HR Functional standards Integrated Reporting PHASE 1: PHASE 6: Management System Standard HR integrated in King IV PHASE 5: PHASE 3: CPD & Support Tools HR Metrics 2012 2013 2017
- 33. HR Standards Roll-out Development (21-22 May) Consultation (June-July) Release (20-22 Aug) Standards-writing Standards inputs Standards finalisation (100 top HR professionals) (100 top HR specialists + 1000 professionals) (100 HR Directors sign-off) HR Standards conference
- 34. The need for consistency and quality
- 35. STANDARDS COMPANY AND EMPLOYEE DATA INFORMATION WHAT do we have? WHY do we have it? WHAT else is needed? WHAT can we do with it? HOW, WHO, WHEN, WHERE? BENCHMARK ING KNOWLEDGE TECHNOLOGY SYSTEMS INTELLIGENCE Business; Market; HR; Industry; Country; Region; World ANALTYICS AND METRICS DECISION-MAKING • Strategy • Interventions I MPLEMENTATION EVALUATION
- 37. Conclusion HR standards are needed to improve the consistency and quality of people management. HR managers should leverage technology for improved HR practice and business decision-making.
- 38. FOLLOW US ON TWITTER @sabpp1
- 39. Let us build our competence in HR Technology! professional@sabpp.co.za (Professional Registration) sithembele@sabpp.co.za (Professional Services) 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