Post on 22-Jan-2018
HR STANDARDS AND COMPLIANCE
8 June 2017
HR BUSINESS PARTNER CONFERENCE
Marius Meyer @SABPP1 @sabpp_1
Compliance is about 4 things
L R C S
Performance vs compliance
Source: Kevin Carter
The principle of compliance
Play the game by the rules.
POSITIONING GRC IN COMPANIES: ROLE OF MANAGERS
• E T H I C S
GOVER-NANCE
RISKCOM-
PLIANCE
LEADERSHIP
MANAGEMENT
CULTURE
CON
TROLS
Compliance to protect
LIFE IS ABOUT RISKS – THE HUMAN LIFE CYCLE
FIRST 20 YEARS
1 – 18 years
19 – 21 years
MIDDLE 40 YEARS
Death
Before birth
LAST 20 - 60 YEARS
0 – 2 years
Retirement
The scope of compliance
BINDING NON-BINDING
LAWS
NON-LABOUR
LAWS
• POPI• PAIA• ECA• JPCO
LABOUR LAWS
• BCEA• LRA• EEA• SDA• OHS
INDUSTRY LAWS
• MSA• FICA• FAIS• BA
RULES CODES STAN-DARDS
SECTOR RULES
• Industry rules
• Pro-cedures
GOOD PRACTICE
• DoL• King
IV• IIRF• GRI
INDUS-TRY
STAN-DARDS
• ISO• SABS• IFRS• HRS
Important Compliance News:SABPP HR Professionals are now
Commissioners of Oaths!
Thank you!
Advocate Michael Masutha, Minister of Justice & Correctional Services
Identity Fraud
Definition of Corporate Governance
Corporate Governance is about the exercise of ethical and effective leadership by the
governing body.
King IV™ (IODSA, 2016)
Objectives of King IV
✓ To promote corporate governance✓ Broaden the acceptance of King IV✓ Reinforce corporate governance as a
holistic and interrelated set of arrangements
✓ Encourage transparency and meaningful reporting
King IV™ (IODSA, 2016)
CHAPTER AND CONTENT GOVERNANCE OUTCOME
Chapter 1: LEADERSHIP, ETHICS AND CORPORATE CITIZENSHIPEthical leadership; Organisational values, ethics and cultures, Responsible corporate citizenship
ETHICAL CULTURE (1-3)
Chapter 2: PERFORMANCE AND REPORTING Strategy, implementation, performance, Report and disclosure
PERFORMANCE AND VALUE CREATION(4 -5)
Chapter 3: GOVERNANCE BODY STRUCTURES AND DELEGATION Role of the governing body, composition of the governing body, committees of the governing body, delegation to management and performanceevaluations
ADEQUATE AND EFFECTIVE CONTROL (6-10)
Chapter 4: GOVERNANCE FUNCTIONAL AREARSRisk and opportunity governance, technology and information governance, compliance governance, remuneration governance and assurance
ADEQUATE AND EFFECTIVE CONTROL (11- 15)
Chapter 5: STAKEHOLDER RELATIONSHIPSStakeholders (Responsibilities of shareholders)
TRUST, GOOD REPUTATION AND LEGITIMACY (16-17)
King IV Code of Corporate Governance
King IV™ – Compliance Governance
Principle 13
The governing body should govern compliance with applicable laws and adopted, non-binding rules, codes and standards in a
way that supports the organisation being ethical and a good corporate citizen.
IODSA (2016)
King IV™ – Compliance Governance
Recommended practices (IODSA, 2016)
• GB assume responsibility for governance of compliance with L, R, C, S• GB should approve policy that gives direction to compliance and
identify non-binding R, C, S• GB should delegate to management responsibility for compliance
management• GB should exercise oversight of compliance• GB should consider the need for independent assurance• Disclose approach and actions in compliance• Material or repeated penalties, sanctions, other forms of non-
compliance should be disclosed• Details of monitoring & compliance inspections
HR Professionalism Priorities
SABPP Professional ValuesRESPONSIBILITY
I
RESPECT
INTEGRITY
COMPETENCE
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
CO
RE
CO
MPETEN
CIES
HR & BUSINESS KNOWLEDGE
DUTY TO SOCIETY
ETHIC
S
PRO
FESSION
ALISM
4 PILLARS
Current Current reality• Fraud• Corruption• Theft• Espionage• Sabotage• Money laundering• Lies• Crime• Conflict of interest
• Cyber crime• Nepotism• Favouratism• Price fixing• Exploitation• Mismanagement• Poor governance• Plagiarism• Bribery
Conflict of interest
DirectorManagerEmployeeInterest
Organisa-tion
Interest
CONFLICT OF INTERESTPersonalInterest
Others’Interest
“Good human resource management is imperative for good governance”
Mervin King
HR Governance
If Corporate Governance is about ethical and effective leadership, what is HR Governance
then?HR Governance is about ethical and effective
HR leadership.Fulfilling our roles as board/exco members or
prescribed officers (Companies Act).Ensuring that HR adds value and providing
assurance of HR work.
What are standards really?
• A level of acceptable quality• Good enough in terms of professionalism• What is good or normal or usual• A guideline for practice• A foundation for reasonable expectations
and sound judgement• A basis for measurement (M&E)
468 HR Leaders developing HR Standards for South Africa
BUSINESS STRATEGY – HR BUSINESS ALIGNMENT
StrategicHRM
TalentManagement
HR RiskManagement
HR ARCHITECTURE
I
HR VALUE & DELIVERY PLATFORM
Work-force
planning
Learning&
Deve-lopment
Perfor-manceMana-
gement
Reward &
Recogni-tion
Em-ployee
wellness
Employ-mentRela-tions
Organi-sationDeve-
lopment
HR Service Delivery
HR Technology(HRIS)
Prepare
Imple-ment
Review ImproveHR MEASUREMENTHR Audit: Standards & Metrics
H R C O M
P E T E N C I E S
© SABPP HR MANAGEMENT SYSTEM STANDARD MODEL
BUSINESS STRATEGY – HR BUSINESS ALIGNMENT
StrategicHRM 5.8
TalentManagement
4.5
HR RiskManagement
6.3
FUNCTIONAL & CROSS FUNCTIONAL HR VALUE CHAIN
HR VALUE & DELIVERY PLATFORM
Work-force
Planning 5.6
Learning6.3
Perfor-mance
6.1
Reward6.1
Well-ness 6.5
ERM6.4
OD5.5
HR Service Delivery
5.5
HR Technology(HRIS) 5.5
Prepare
Imple-ment
Review ImproveMEASURING HR SUCCESS 4.8HR Audit: Standards & Metrics
H R C O M
P E T E N C I E S
AUDITED RATINGS – OVERALL AVERAGE (20 companies)
HR Standards Files
13 standards (2013) 23 standards (2014)
HR Professional Practice Standards• Absenteeism management• Career management• Coaching & mentoring• Collective bargaining• Disciplinary procedure• Dispute resolution• Diversity management• Grievance procedure• Leadership development• Learning design• Learning evaluation• Learning needs analysis• On-boarding• Organisation design• Performance appraisals• Recruitment• Remuneration benchmarking• Selection• Succession planning
International interest
20+ Universities
3 Components of a Standard Element
How can we make it work in practice?
Application
What do we want to achieve?
Objectives
What is it?
Definition
STRATEGIC HR MANAGEMENT STANDARD
DEFINITION
Strategic HR Management is a systematicapproach to developing and implementing
long-term HRM strategies, policies and plans that enable the organisation to achieve its
objectives.
SABPP (2013)❶
STRATEGIC HR MANAGEMENT STANDARD
OBJECTIVES1.2.1 To ensure the HR strategy is derived from and aligned to the organisation’s objectives in consultation with key organisational stakeholders.1.2.2 To analyse the internal and external socio-economic, political and technological environment and provide proactive people-related business solutions.1.2.3 To provide strategic direction and measurements for strategic innovation and sustainable people practices.1.2.4 To provide a foundation for the employment value proposition of the organisation.1.2.5 To establish a framework for the HR element of the organisation’s governance, risk and compliance policies, practices and procedures which balance the needs of all stakeholders. 1.2.6 To determine an appropriate HR structure, allocate tasks and monitor the development of HR competence to deliver HR strategic objectives.
SABPP (2013)
STRATEGIC HRM PROCESS
Framework of HR policies & programmes
Environmental scan (PESTL)
HR structure, service model and capability
development
People strategy
HR strategic agenda
Organisation’s strategic intent
HR strategic agenda
HR business
plan
People strategy
Allocate roles & responsibilities
(line/HR/support functions)
MONITOR & EVALUATE
Strategic HR: It is all about alignment
Value of HR Audits“An HR Management performance audit is future orientatedand can identify areas for organisational improvement. HRAuditing crosses the boundaries between HR managementand auditing … it can be a suitable method for evaluating thecontribution of HR activities to organisational objectivesassessed on the basis of value for money.”
Dr Chris Andrews, HR Director: Bond University
What the Auditors are looking for?
Positive trend in results?
Sustainable?
Targets met?
External benchmarks?
Approach vs results?
Quality of results
Across whole organisation?
Up and down the organisation?
Extent of application
Sound?
Systematic?
Integrated?
Reviewed & updated?
Quality approach
HR Audit - Certification
Compliance guidelines
1. Identify all relevant laws (HR & others)2. Assess rules, codes and standards3. Do a risk analysis for your business4. Create a GRC framework for HR function5. Identify alignment, integration and gaps6. Combined Assurance - Fill gaps7. Arrange for HR audit and/or compliance
audits (calculate cost of non-compliance)8. Continuous improvement – GRC & business
Biggest lesson in compliance
You can get away doing something unethical or being non-compliant over the short term. But how long will it last? A day, a week, a
month, a year, a few years… Eventually the truth comes out.
It takes years to build a good reputation and only a moment to destroy it.
Build and maintain your ethical reputation.
Compliance with 4 things …
L R C S
Compliance is not only about rules, it is common sense.
We set HR standards!
professional@sabpp.co.za or registrations@sabpp.co.za(Professional Registration)executiveoffice@sabpp.co.za (CEO office)marius@sabpp.co.za (CEO & Strategy inputs)xolani@sabpp.co.za (COO)hrstandards@sabpp.co.za (HR Standards)hraudit@sabpp.co.za (HR Audits)lathasha@sabpp.co.za (Research)naren@sabpp.co.za (Learning & Quality)events@sabpp.co.za (Events & HR Standards files)Website: www.sabpp.co.za Blog: hrtoday.meOffice: 223 Jan Smuts Ave, Parktown North, South AfricaTel: +27 11 045-5400 Fax: 011 482-4830