christine botha, head of #sabpp audit unit shares world’s 1st national hr audit framework
DESCRIPTION
Christine Botha, Head of #SABPP Audit Unit shares world’s 1st National HR Audit Framework #hrstandards2014TRANSCRIPT
1
Christine Botha, Head: SABPP Audit Unit
2
1. How many of you would like to eat in a restaurant without standards?
2. Or stay in a hotel without standards?
3. Or send your child to a school (or pre-school) without standards?
4. Or get operated in a hospital without any standards?
5. Or drive a car without standards?
6. Or use an airline without standards?
3
Why do we continue to manage
people and govern the most
precious part of our organisations
(i.e. people) without standards?
4
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.
5
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%.
6
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.
7
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
8
Standards
Boost
Business
9
Unit standards / Curriculum standards
Service delivery standards
Competence standards
Metrics/benchmarking standards
Professional practice standards
Business/industry/process/system standards - ISO
10
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
LearningPerfor-
manceReward Well- ness ERM OD
HR Service
Delivery
HR Technology
(HRIS)
Prepare
Imple-
ment
Review ImproveMEASURING HR SUCCESS
HR Audit: Standards & Metrics
H R
C O
M P
E T
E N
C I E
S
13
SABPP BOARDCEO
SABPPQA 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
AUDITORS
[150]ADMINISTRATOR
LEAD AUDITORS
[50]
FUNCTIONS
Other existing office functions
will contribute on a matrix
structure (e.g. Stakeholder
Relations, Research, and
Professional Services).
14
ORGANISATIONAL BOARD / AUDIT COMMITTEE
MANAGEMENTCONTROL
INTERNALCONTROLMEASURES
► FINANCIAL CONTROL
► SECURITY
► RISK MANAGEMENT
► QUALITY
► INSPECTION
► COMPLIANCE
INTERNALAUDIT
SENIOR MANAGEMENT
1ST LINE
OF DEFENCE
2ND LINE
OF DEFENCE
3RD LINE
OF DEFENCE
15
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
With effective coordination can be considered an additional 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
16
“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.
17
Comprehensive audit manual and tools
Quality assurance and system
Auditor competency profile
Training manual
Selection and training of the first 48 auditors
18
19
Prepare the HR Team with knowledge
and understanding
Brief Line Management
Use the Assessment Tool to identify
gaps
Plan and implement to address gaps
Build competencies where required
Assign audit team
Conduct audit against the 13 elements
of the SABPP HRMSS
Close out meeting
Audit report and findings
Certification (or not)
Improvement plans
Continue building professional
competency
Give case studies
AUDIT POST AUDITPRE-AUDIT
Impartiality
Competence
Responsibility
Openness
Confidentiality
Responsiveness to complaints
Professional integrity
20
CPD
► SABPP Membership
(HRA Level and above)
► Signed Code of Ethics
for Consultants
► Lead Auditors 10 years
and Auditors 7 years
Senior HRM or Consulting
Experience
► Introduction to HR Standards
– attend workshop
► Pre-workshop Studies
► Auditing Workshop
► Observation and feedback from
Trainer on competency
demonstrated
► Demonstrate an intimate
knowledge of all 13
Standards, Definitions and
Objectives
► Written examinations
► CV
► References
► 360° Evaluations
► Participate in several
audits
► Demonstrate
competency
PRE-SELECTIONUNDERSTANDING
OF THE AUDIT KNOWLEDGE OF HR
STANDARDS BACKGROUND
CHECKS CERTIFICATION
21
AUDITORCOMPETENCIES
KNOWLEDGE
OF HRKNOWLEDGE OF
HRMSS
KNOWLEDGE
OF AUDITING
VERBAL & WRITTEN
COMMUNICATION
LOGICAL
JUDGEMENT
RESPECTFULANALYTICAL
DECISIVE &SELF RELIANT
VERSATILE &TENACIOUS
OBSERVANT &PERCEPTIVE
PROFESSIONAL
OPEN-MINDED
& DIPLOMATIC
ETHICAL
22
48 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
23
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
24
SABPP Audit Unit confirms to Client whether they have passed the audit and if their HRMS will be certified.
Recommendations for continuous improvements are made.
CONFIRM CERTIFICATION
Submit audit report and recommendations to the SABPP Audit Unit.
Audit Unit confirm findings and agree certification or not.
SUBMIT FINDINGS TO SABPP AUDIT UNIT
Audit Team
agree on findings.
Close out
meeting.
PREPARE, APPROVE AND DISTRIBUTE AUDIT REPORT
Review Client HR Management System against the 13 elements of the SABPP HRMSS.
CONDUCT ON-SITE ACTIVITIES
Agree audit plan with Client and brief Audit Team.
PREPARE FOR ON-SITE ACTIVITIES
Select Lead Auditor.
If required select
additional audit
team members.
INITIATE AUDIT
Audit Unit agree audit scope and timeframe with Client.
OFFER AND CONTRACT
25
All 13 elements of the Standards will be audited
Each element must receive a score of 60%
26
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
27
28