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PEOPLE MANAGEMENT AND TECHNOLOGY:
Two sides of the same coin in the modern
workplace?

Marius Meyer
15 March 2013

marius@sabpp.co.za
@SABPP1
SABPP -  Technology - QBIT 2013
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
Technology revolution
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%
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
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
Comfort zone challenged
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
Use of HRIS
What is the business problem?

“A business running without accurate data is
running blind.”
Ash Mahmud, Head of CRM: Groupon
What is the HR problem?

An HR function running without accurate data
is running blind.
Effectiveness of talent management
system
HR facing social media
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
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
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
IT skills for HR
Operational Management Consistency in the
Management of People

One of the toughest things to be is consistent
Value of technology
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%
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%
LTO rate

Indicate LTO rate:

44%

Don't measure

21%

Don't know

35%

0%

10%

20%

30%

40%

50%
Absenteeism rate

Indicate absenteeism rate

35%

Don't measure

31%

Don't know

34%

29%

30%

31%

32%

33%

34%

35%

36%
HR manager’s response to
technology?
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)
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)
We are changing with technology
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
Risk + readiness
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
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
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
The need for consistency and quality
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
SABPP -  Technology - QBIT 2013
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.
FOLLOW US ON TWITTER

@sabpp1
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

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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
  • 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
  • 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
  • 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
  • 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