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AMIHRP

Presented by Maphutha Diaz

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Critical questions about standards

Facts about HR

Why a national standard

Myths about standards

Types of standards

Global approaches to standards

SABPP National HR standards model

Learning & Development standard

Positioning SABPP within the “lines of defence”

The SABPP auditing and certification process

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How many of you would like to eat in a restaurant without standards?

Or stay in a hotel without standards?

Or send your child to a school (or pre-school) without standards?

Or get operated in a hospital without any standards-stories about operations on right eye

iso left eye; or amputation of the incorrect leg?

Or drive a car without standards-remember recalled cars recently?

Or use an airline without standards- allegations on recent fatal airplane crashes relating

to standards?

Collapsing malls and churches, which have claimed lives due to alleged compromised

standards?

The food poisoning incidents in schools due to compromised standards?

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Why do we continue to manage people and

govern the most precious part of our

organisations (i.e. people) without

standards?

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Human Capital is the biggest concern for CEOs (PwC).

Only 18% of CEOs feel confident that they have the right people in place to execute strategy (CEB).

Human Capital is the biggest risk in business (HCI Africa).

Skills crisis is the top obstacle to economic growth.

Strikes cost SA R 200 million+ per day.

The 2012/2013 WCR placed SA at 113 out of 144 countries iro labour market efficiencies

2014 SA was ranked 148 out of 148 countries by WEF iro employer-employee cooperation and

labour

SA is “rushing to the bottom” of world rankings yearly iro HR standards.

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SA losing R12 billion a year due to absenteeism.

Only 19% auditors feel they use HR optimally (CG Index – Institute of

Internal Auditors).

Only 5% employees understand business strategy.

World-wide 13% of employees actively engaged.

Companies with engaged employees outperform others by 202% (Dale

Carnegie).

Companies with good HR Practices outperform others by treating HR as

critical business function, these companies are 105% more profitable.

Average ROI on wellness programmes: 300%.

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We need to improve the quality of HR practice.

HR will not be seen as a true profession without standards.

Inconsistencies – practices, sites, business units, companies,

industries.

Too many bad examples of things going wrong – Marikana, Medupi.

Raising the bar for the HR profession and business impact.

World competitiveness rankings by WEF since at least 2009 indicate

we have to do something drastic about our HR standards

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Impose an onerous compliance regime

Duplicate best practices

Our company is so unique syndrome

Standards stifle innovation

Take flexibility away

Ignore industry differences

Too practical, not based on theory/research

Standards are cast in stone

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Standards

Boost

Business

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Unit standards / Curriculum standards

Service delivery standards

Competence standards

Metrics/benchmarking standards

Professional practice standards

Business/industry/process/system standards - ISO

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Production and safety lead – ISO standards

Professional standards – accounting

Top global companies – their own standards

Canada – HR Standards & Metrics

UK – Human Capital Standard (BSI/CIPD)

ISO HR project started

South African National HR Standards

HR Standards in Namibia

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)

Prepare

Imple-

ment

Review Improve MEASURING HR SUCCESS

HR Audit: Standards & Metrics

H R

C O

M P

E T

E N

C I E

S

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DEFINITION

Learning and development is the practice of providing occupationally

directed and other learning activities that enable and enhance the

knowledge, practical skills and work place experience and behaviour of

individuals and teams based on current and future occupational

requirements for optimal organisational performance and

sustainability.

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5.2.1 To create an occupationally competent and engaged workforce which builds

organisational capability, providing employees with opportunities to develop new

knowledge and skills.

5.2.2 To focus learning and development plans on improving people’s ability to perform

to achieve organisational objectives and provide the means for measuring the impact of

learning and development interventions.

5.2.3 To support and accelerate skills development and achievement of employment

equity and organisational transformation and limit the impact of skills shortages.

5.2.4 To create a learning culture and environment that enables optimal individual, team

and organisation learning and growth in both competencies and behaviour.

5.2.5 To capture and replicate and enhance critical knowledge within the organisation.

5.2.6 To ensure learning and development is a catalyst for continuous improvement,

change and innovation.

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SABPP BOARD CEO

SABPP QA SERVICES

to be provided by existing

LQA function

HR AUDITS

COUNCIL

Board Committee

FUNCTIONS

Ensure structure and processes

are in place

Overview audit reports

Stimulate continuous

improvement

HEAD OF AUDIT

UNIT

ADMINISTRATOR

LEAD AUDITORS

[50]

FUNCTIONS

Other existing office

functions will contribute on

a matrix structure (e.g.

Stakeholder Relations,

Research, and Professional

Services).

AUDITORS

[150]

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ORGANISATIONAL BOARD / AUDIT COMMITTEE

MANAGEMENT CONTROL

INTERNAL CONTROL MEASURES

► FINANCIAL CONTROL

► SECURITY

► RISK MANAGEMENT

► QUALITY

► INSPECTION

► COMPLIANCE

INTERNAL AUDIT

SENIOR MANAGEMENT

1ST LINE

OF DEFENCE

2ND LINE

OF DEFENCE

3RD LINE

OF DEFENCE

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ORGANISATIONAL BOARD / AUDIT COMMITTEE

SENIOR MANAGEMENT

1ST LINE

OF DEFENCE

2ND LINE

OF DEFENCE

3RD LINE

OF DEFENCE

4TH LINE

OF DEFENCE

SABPP

AUDIT

UNIT

INTERNAL

AUDIT

FINANCIAL CONTROL

SECURITY

RISK MANAGEMENT

QUALITY

INSPECTION

COMPLIANCE

INTERNAL

CONTROL

MEASURES

MANAGEMENT

CONTROL

Resides outside the organisation

Set requirements intended to strengthen controls in an organisation

Independently and objectively assesses the whole or some part of the

first, second, and third line of defence

“An HR management performance audit is future orientated and can

identify areas for organisational improvement” - Abstract from Dissertation;

Chris Andrews: Bond University

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“HR Auditing crosses the boundaries between HR management and auditing… it

can be a suitable method for evaluating the contribution of HR activities to

organisational objectives assessed on the basis of value for money.” – Abstract

from Dissertation; Chris Andrews: Bond University.

This model provides HR Professionals with a robust, risk-based framework to

ensure an integrated, aligned and well-governed approach to auditing the

National HR Standards.

Ensures that HR controls quality and consistency in accordance with the spirit of

good governance as documented in King III.

Focus on strengthening the HR Business Partner philosophy without

compromising the principles of quality and independence.

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Comprehensive audit manual and tools

Quality assurance and system

Auditor competency profile

Training manual

Selection and training of the first 48 auditors

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Prepare HR Team

Brief Line

Management

Self-Assessment Tool

Address gaps

Build competencies

Assign audit team

Conduct audit

Close out meeting

Audit report and

findings

Certification (or not)

Improvement plans

CPD

case studies

AUDIT POST AUDIT PRE-AUDIT

Impartiality

Competence

Responsibility

Openness

Confidentiality

Responsiveness to complaints

Professional integrity

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76 Auditors completed their stringent, comprehensive selection and training

process.

Some of these will act as facilitators rather than auditors

Immediate products available are:

Pre-audit consultation

Full audits of 13 standards

Single standard audit with provisional credit

Work will be conducted in accordance with the highest ethical and professional

standard

The SABPP Internal Audit and Quality Assurance will apply

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We have a world-class product

We cannot and will not tolerate any form of mediocrity!

Confidentiality agreements will be signed by all Auditors

A complaints process is in place

Fraud prevention measures are in place

We already have a National footprint

Our aim is to work in partnership with our HR colleagues

Support YOU in achieving entrenching the standards within your own

organisation

Non-punitive

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Offer and contract

Initiate audit & prepare on-site activities

Conduct audit, agree on findings, conduct close-out meeting and submit report to Audit Unit

Audit Unit confirms findings, certification status and recommend continuous improvements

All 13 elements of the Standards will be audited

Each element must receive a score of 60%

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YEARS

1 AND 2

INITIAL AUDIT

REASSESSMENT AUDIT (where one element needed rectification)

► COMPLIANT

► MINOR NON-COMPLIANCE

► MAJOR NON-COMPLIANCE

YEAR 3

RECERTIFICATION AUDIT prior to expiration of certification

(shortened procedure)

AUDIT RECORDS RETAINED

FOR FIVE YEARS

► Audit certification may only be issued by the SABPP

► Audit registers will be maintained

► Only auditors who are qualified through the SABPP may conduct

audits

► All audits must be administered by the SABPP Audit Unit

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For regular updates on HR Standards & Audits

visit www.sabpp.co.za

or the blog hrtoday.me

or follow us on twitter @SABPP1

or contact Christine at hraudit@sabpp.co.za

or call us on 011 045 5400