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HRM RISK MANAGEMENT, -AUDITING AND SKILLS AUDITING CHARLES COTTER Ph.D candidate, MBA, B.A (Hons), B.A www.slideshare.net/CharlesCotter ACCRA, GHANA 24-26 JULY 2017

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Page 1: HR Risk Management_HRM Auditing_Skills Auditing

HRM RISK MANAGEMENT, -AUDITING AND SKILLS AUDITING

CHARLES COTTER Ph.D candidate, MBA, B.A (Hons), B.A

www.slideshare.net/CharlesCotter

ACCRA, GHANA24-26 JULY 2017

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3-DAY, TRAINING PROGRAMME OVERVIEW

• Introduction and Preview

• Day 1: HRM Risk Management

• Day 2: HRM Auditing

• Day 3: Skills Auditing

• Conclusion and Review

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HR RISK MANAGEMENT

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INTRODUCTORY LEARNING ACTIVITY

• Refer to page 10 of the Learner Manual

• Complete the following statement by inserting one (1) word. Asan HR Manager, in order to effectively identify and manage HRrisks, I need to/to be…………………………………………………………………..

• Jot this word down and find other learners who have writtendown the same word.

• Write this word down on the flip-chart. Each learner will beallowed the opportunity to elaborate on their respective choiceof words.

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THE FUNDAMENTALS OF HRM RISK MANAGEMENT

• Defining Risk and Risk Management

• Defining HR Risk Management

• The purpose and objectives of HRM RiskManagement

• Applying Risk Management to HRM

• Benefits of HR Risk Management

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DEFINING HR RISK MANAGEMENT

• HR risk is thus any people, culture or governance factor causinguncertainty in the business environment that could adverselyimpact on the company’s operations.

What are the HR risks that could jeopardize management in achieving itsbusiness objectives?

How serious are these risks, i.e. what are the impact of these HR risks?

What can we do about it, i.e. how can we mitigate the HR risks?

• HR Risk Management is a systematic approach of identifying andaddressing people factors (uncertainties and opportunities) thatcan either have a positive or negative effect on the realization ofthe objectives of an organization. (SABPP)

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PURPOSE AND OBJECTIVES OF HR RISK MANAGEMENT

• To increase the probability and impact of positive events and decrease theprobability and impact of negative events caused by people factors on theachievement of organizational objectives

• To align HR and people management practices within the governance, riskand compliance framework and integrated reporting model of theorganization

• To ensure appropriate risk assessment practices and procedures relating topeople factors are embedded within the organization

• To ensure appropriate risk controls are designed and applied to HRactivities and interventions

• To contribute in creating and sustaining a risk culture in an organizationwhich also encourages innovation and creativity

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APPLYING RISK MANAGEMENT TO HRM

• “The role of HR is to decrease the HR risk profile of theorganization.” (Leon Steyn)

• “A key risk in future – just like today – is people risk. We live in acountry with a dearth of skills. So a key test of entrepreneurshipis how you develop people. One of the big lessons from Bidvest isthat you grow by growing people and working together. Yourarely find bad people in business. The problem is usually a badfit. Give people the right opportunity, the right tools and training,and they will perform.” (Brian Joffe)

• “People represent a cause of operational risk that is as important(if not more important than) other causes such as failed systems,processes and information flows.” (Gilbert Renel)

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BENEFITS OF HR RISK MANAGEMENT

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BENEFITS OF HR RISK MANAGEMENT

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LEARNING ACTIVITY 1

• Refer to page 13 in the Learner Manual

• By means of a cost-benefit analysis, build abusiness case for efficient and effective HRM RiskManagement.

• Present a summary of group discussion

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RESEARCH-BASED REALITY CHECK

• Human capital is the biggest business risk in South Africa (HumanCapital Institute Africa);

• Human Capital is the biggest concern for CEOs (Pwc CEO study);

• Only 18% of CEOs feel confident that they have the right people toexecute business strategy (Corporate Executive Board);

• Strikes cost South Africa R200 million a day;

• South Africa is losing R12 billion a year due to absenteeism;

• World-wide only 13% of employees are actively engaged (Gallup)

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PROMINENT HR RISKS

• Compliance with legislation

• Understanding trends in the business environment

• People and corporate culture

• Implementing business strategy

• Carrying out operations

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SABPP RESEARCH

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HUMAN CAPITAL INSTITUTE RESEARCH

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AON HEWITT EXPERIENCE

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TRANSFORMING THE HR RISK MANAGEMENT PROCESS

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GUIDELINES FOR MANAGING HR RISK

• #1: Redesign your organization’s HR plan to include HR risk management.

• #2: Read more about risk management to gain a proper understanding ofthe importance of risk management and governance in the workplace.

• #3: Arrange a meeting with your organization’s CRO or head of risk.

• #4: Ensure that key staff members in your organization have the propertraining and education for managing risk.

• #5: Liaise with line managers to explore opportunities where you can helpto create and nurture a risk management culture in your organization.

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GUIDELINES FOR MANAGING HR RISK

• #6: Check whether your organization’s risk register has a record of HR risksand assist the CRO and line managers to identify risk managementstrategies to deal with these risks.

• #7: Excellent people and talent management are the best bulwarksagainst HR risks.

• #8: Support the board by ensuring that the company appoints a highlycompetent CRO and other risk managers for different business units.

• #9: Introduce robust HR risk controls, monitoring systems and respondappropriately to any HR risks by using early warning systems before an HRrisk starts to threaten the sustainability of the organization.

• #10: Consider holding regular meetings with staff members to discuss HRrisk factors that may affect business operations.

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LEARNING ACTIVITY 2

• Refer to page 25 in the Learner Manual

• Indicate whether you believe that people risk is aserious/priority risk and a strategic imperative in yourorganization. Substantiate your answer. If not apriority/strategic imperative, describe how HRM cantransform this process.

• By referring to the guidelines to HR Risk Management (2.9),critically review and evaluate current HRM RiskManagement practices. Identify gaps and recommendimprovement strategies.

• Present a summary of group discussion

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STAKEHOLDERS INVOLVED IN THE RISK MANAGEMENT PROCESS

• King IV Report on Corporate Governance

• Key Stakeholders – Professional Associations

• Implementation of the South African Board ofPeople Practice (SABPP) view and model of HRMRisk Management

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POWER-INTEREST STAKEHOLDER MATRIX

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LEARNING ACTIVITY 3

• Refer to page 28 in the Learner Manual

• Perform a stakeholder analysis of internal andexternal influencing forces compelling yourorganization to effectively manage HR risks. Plotthis stakeholder analysis in the Power-InterestMatrix.

• Present a summary of group discussion

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A HR RISK MANAGEMENT CONCEPTUAL FRAMEWORK

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STEP 1: IDENTIFY HR RISKS

• The identified risks must be recorded and documented in a HR risk managementregister.

• This process will be guided and defined by the organizational Risk Managementprocedure.

Identify the HR risks that you'll either need to manage or accept List all of the likely HR risks that your organization faces

• Every activity of an organization poses a risk so brainstorm and document the risks.Consider both the general risks and the risks specific to your organization.

• Refer to list of typical risks

• Tip: Involving staff, volunteers and board members in the risk identification processwill give you a comprehensive picture of the risks based on different people'sinvolvement in different areas of the organization.

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STEP 2: ANALYZE HR RISKS

• The chart allows HR Managers to rate potential risks on these twodimensions.

The probability that a risk will occur is represented on one axis of thechart

The impact of the risk, if it occurs, on the other.

• HR Managers can use these two measures to plot the risk on thechart.

• HR Managers can then decide what resources they will allocate tomanaging that particular risk.

• Risk Impact/Probability Chart.

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Page 34: HR Risk Management_HRM Auditing_Skills Auditing

STEP 3: PRIORITIZE HR RISKS

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LEARNING ACTIVITY 4

• Group Discussion:

• Apply steps 1-3 of the HR Risk Managementprocess to a selected organization.

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STEP 4: RISK RESPONSE AND IMPLEMENTATION

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HR RISK MANAGEMENT ACTION PLAN TEMPLATE

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RISK RESPONSE IMPLEMENTATION

• When you have decided which risk managementstrategies will be the most effective & affordable foryour organization, practically outline the steps andwho is responsible for each step in the riskmanagement plan.

• Provide training for all organizational staff andvolunteers so they understand the rationale of the riskmanagement plan as well as the expectations,procedures, forms etc.

• Communicate the plan and ensure that there is buy-infrom all who are involved in the organization.

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STEP 5: RISK EVALUATION

• Risk Monitoring

Is your plan working?Have your risks changed?Have you expanded or reduced your programs and services?Are changes or updates required?Are staff and volunteers following the risk management plan?Do they need re-training on the details?Do we need to better communicate the plan?

• Tip: Risk management is an evolving field. Therefore, it is a goodpractice to keep current and re-evaluate your organization's riskmanagement system on an annual basis.

• Risk Control

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HR RISK CONTROL PROCESS

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LEARNING ACTIVITY 5

• Group Discussion:

• Apply steps 4-5 of the HR Risk Managementprocess to a selected organization.

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CASE STUDY 1: HR RISK MANAGEMENT NEDBANK

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LEARNING ACTIVITY 6

• Refer to pages 41-42 in the Learner Manual.Answer the three (3) case studies questions.

• Present a summary of group discussion

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CASE STUDY 2: STREAMLINING HR RISK MANAGEMENT (24 HOUR FITNESS)

• Refer to and review pages 43-45

Timeliness of the reports

Accuracy of the information

Customer Service

Compliance

• “By working closely with our new partner, we finallyachieved what every HR team longs for: more time todevote to meaningful strategic human resourceinitiatives.”

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LEARNING ACTIVITY 7

• Refer to page 46 in the Learner Manual. Answerthe two (2) case studies questions.

• Present a summary of group discussion

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HRM AUDITING

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THE FUNDAMENTALS OF HRM AUDITING

• Defining a HRM Audit

• The driving forces of HRM Auditing

• The purpose, objectives and functions of HRMAuditing

• Benefits and costs (drawbacks) of HRM Auditing

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DEFINING HRM AUDIT

• An HR Audit as “an intensely objective look at the company’s HR policies,practices, procedures and strategies in order to protect the company,establish best practices and identify opportunities for improvement.”(SHRM)

• A Human Resources Audit is a review of current Human Resourcespractices, policies, procedures, documentation and systems and will assistyou to identify strengths and needs for improvement. It will providedirection and recommend the courses of action to be taken to ensurecompliance with ever-changing laws, rules and regulations.

• A HR audit is a way to diagnose problems in a company’s HR department.

• Auditing is evidence based.

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DRIVING FORCES OF HRM AUDITING

• Alignment of HR strategies and practices with strategic objectives of theorganization;

• Managing employment practice liability risks;

• Government compliance (skills audit);

• Understanding and determining the impact of HR policies, procedures andpractices;

• People investments need to be quantified to demonstrate a return oninvestment; and

• Roughly, over two-thirds of an organization’s money is spent on people.

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Page 52: HR Risk Management_HRM Auditing_Skills Auditing

MAIN GOALS OF HRM AUDIT

• The goal is the independent and objective evaluationof the efficiency and quality of a company´s HRmanagement, including its compliance with the legalrequirements of employment.

• Determine whether company's employment-relatedmaterials and practices are complying with the lawand the employer's own policies; and

• Identify and bring into compliance, any area that maynot be in compliance. An audit should identify what theemployer is doing right or wrong, as well as grey areasthat could use improvement.

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Page 54: HR Risk Management_HRM Auditing_Skills Auditing

8 CRITICAL SUCCESS FACTORS OF HRM AUDITING

• Organizational readiness for HRM Auditing

• Adequate resources

• The right people

• The audit requires the support of all trade unions and key role players in the SBU

• Guided by a policy

• Under the supervision of a subject matter expert.

• The auditing of HR should be put in the HR calendar and should synchroniseproperly with other business processes in the organization

• Senior management commitment and support and the general co-operation of keystakeholders

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10 KEY PRINCIPLES OF HR AUDITING

• #1: Need for independence;

• #2: Audit activities should be budgeted for properly;

• #3: Acknowledgement that there are many types of audits;

• #4: Each type of an HR audit has its own purpose andobjectives;

• #5: Establish timeframes for every phase/step of the audit;

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10 KEY PRINCIPLES OF HR AUDITING

• #6: Training of auditors is a must;

• #7: Set standards for the HR Audits;

• #8: Agreement on reporting template;

• #9: Auditors should sign a confidentiality agreement;and

• #10: Auditors should agree beforehand oncommunication strategy.

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LEARNING ACTIVITY 8

• Build a business case for efficient and effectiveHRM Auditing by performing a cost-benefitanalysis.

• By referring to the 8 CSF’s and 10 Key Principles,critically review and evaluate current HRMAuditing practices. Identify gaps and recommendimprovement strategies.

• Present a summary of group discussion

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THE SCOPE OF HRM AUDITING

• Evaluation of the organization’s operational HR policies,practices and processes and their effectiveness in achievingstrategic organizational goals.

• Assessment of current HR metrics for reasonableness andresults.

Efficient

Effective

Ethical

Economic use of talent to achieve organizational goals.

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TYPES OF HR AUDITS

• Skills audits;• Effectiveness audits;• Performance audits;• Value-add audit;• Cultural audits;• HR systems audit;• Compliance;• Best Practices;• Strategic;• Function-Specific

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HR AUDIT MEASURES

• Planning and staffing

• Recruitment efficiency

• Recruitment effectiveness

• Compensation measures

• Benefits

• Orientation cost per employee

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HR AUDIT MEASURES

• Counseling/disciplinary costs

• Lost time costs

• Turnover rates

• Training and development costs/measures

• Organization development measures

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LEARNING ACTIVITY 9

• Design the scope of a generic HRM Audit.

• For each of the identified focal areas developappropriate HR Audit measures (i.e. baselineindicators).

• Present a summary of group discussion

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HRM AUDITING PROCESS

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HRM AUDITING PROCESS

• Design and develop HR policies, procedures andpractices for your organization;

• Assess current HR policies, procedures andpractices against set criteria;

• Analyse the results from evidence; and

• Take action: to close gaps,make recommendations/set improvement goals.

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Page 68: HR Risk Management_HRM Auditing_Skills Auditing

HRM AUDITING PROCESS ILLUSTRATED

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HRM AUDIT ACTION PLAN

• Phase 1: Foundational/Initiation

• Phase 2: Assessment

• Phase 3: Concluding and Reporting

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PHASE 1: FOUNDATIONAL/INITIATION

• Audit set-up actions

• Audit planning actions

Determine the purpose and objectives of the audit

Determine the scope of the audit

Determine the organizational components to be audited

Determine the auditing tool to be used

Determine costs and resources needed to perform the audit

Determine audit team governance

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PHASE 2: ASSESSMENT

• General comments

• Identify key organizational metrics - determineemployment issues accountability

• Developing a checklist

• Formulating auditing methodology and tools

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Page 73: HR Risk Management_HRM Auditing_Skills Auditing

PHASE 3: CONCLUDING AND REPORTING

• Report preparation

• Report presentation

Quantify your results - start with outcomesInclude an executive summaryIdentify risksIdentify and prioritize solutions to problems identify. Where

possible, frame your solutions from a bottom line perspective, i.e., Calculate the benefits and costs of proposed solutions

Evaluate and discuss the organizational, financial and employee relations impact of action or inaction

• Develop a HR improvement plan

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LEARNING ACTIVITY 10

• Apply steps 1-3 of the HRM Audit cycle byspecifying the actions involved in the keyprocesses.

• Present a summary of group discussion

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SKILLS AUDITING

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FUNDAMENTALS OF SKILLS AUDITING

• Costs and Benefits of Skills Audits

• Understanding the concept, “competence”

“Applied Competence is the union of practical, foundational andreflexive competence”

• Types of evidence

• Techniques and Approaches for Conducting a Skills Audit

Panel approachConsultant approachOne-on-one approachAlternative approaches

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INTRODUCTORY QUESTIONS

• Q1: For any business manager, what is their mostcrucial financial and business risk mitigation tool?

• Q2: For any Learning & DevelopmentManager/Skills Development Facilitator, what istheir most under-utilized people/skills riskmitigation tool?

• ANSWER: AUDITING

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ORIGIN OF THE WORD, “AUDIT”

• The word audit originates from the Latin word‘audire’ which means to “listen”.

• An audit is a systematic, objective riskmanagement tool for how well the workplace iscomplying with regulatory and policy requirements.

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PURPOSE/OUTCOME OF A SKILLS AUDIT

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DEFINITION, PURPOSE AND OUTCOME OF SKILLS AUDITING

• A skills audit is a snapshot that allows an organization to determine thelevel of skills and knowledge of the workforce.

• It is compared against the competencies that are required in order todetermine the gaps and to focus training and development accordingly.

• Skills audits are conducted to determine training needs within anorganization in order for that organization to improve its skills andknowledge.

• A skills audit establishes an individual’s current competence against theskills matrix for a particular position.

• A skills audit gathers more information than current qualifications levels.

• The outcome of the skills audit process is a skills gap analysis.

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V-I-P SKILLS AUDITING

• Valid (accurate & correct

Measurement)

• Interrogative (3rd degree)

• Protective (against skills

& reputational risks)

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Page 84: HR Risk Management_HRM Auditing_Skills Auditing

LEARNING ACTIVITY 11

• Individual activity:

• Review and evaluate your organization’s currentskills audit process against the ten (10) bestpractice criteria.

• Identify gaps and recommend improvementstrategies to address these process gaps.

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BEST PRACTICE CRITERIA: SKILLS AUDITING

• #1: A job analysis must be used as a basis for the skills audit

• #2: Definitive performance standards must be developed, written,and provided to all stakeholders, regardless of the type of rating

• #3: Raters are trained to use the rating instrument properly

• #4: Formal appeal mechanisms must be in place and assessmentresults need to be reviewed to ensure fairness and reliability

• #5: Multiple techniques/approaches are utilized and ratings aresupported with documented examples of behaviour

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BEST PRACTICE CRITERIA: SKILLS AUDITING

• #6: Employees are given a chance to improve their skills through targeted developmentopportunities

• #7: The 7 E’s - the Skills Auditing process is efficient, effective, economical, educational,ethical, empirical and evidentiary

• #8: Compliance with the following principles of Skills Audits:

Fairness Validity Reliability Transparency/ Openness Constructive feedback Objective

• #9: The outcome of the skills audit generates predictive analytics and business intelligence,providing the organization with a strategic competitive advantage

• #10: Skills Auditing must be a holistic, systematic, integrated and aligned approach

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STRATEGIC IMPERATIVE OF SKILLS AUDITING

• The key piece of information an organization needs to improve and todeliver to its Mission Statement and strategy is to know what skills andknowledge the organization requires and what skills and knowledge theorganization currently has. This information is essential for a number ofreasons:

Without this information you don't know where to improve. With this information your training and development will be better planned

and more focused. Recruiting needs are better defined and more likely to result in the most

appropriate candidate. Placement decisions are easier with knowledge of current competence levels. Career pathing and succession planning is assisted with accurate information

on individuals.

• Meyer, Mabaso & Lancaster (2001) recommend proactive needsidentification and a more futuristic approach to the assessment of trainingneeds.

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KEY BENEFITS OF A SKILLS AUDIT

• Valid and valuable Workplace Skills Plans (WSP)

• Improved skills and knowledge

• Lower training and development costs because developmentefforts are more focused

• Business intelligence - acquisition and use of information that canbe used for purposes such as internal employee selection andplacement

• Increased productivity as people are better matched to theirpositions

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KEY BENEFITS OF A SKILLS AUDIT

• The results of a skills audit can be reported for each division to showindividual and divisional competency gaps against competency needs.

• This assists with the collation of a WSP that complies with the provisions ofthe Skills Development Act and Seta regulations.

• Lancaster, Mabaso & Meyer (2001) claim that “the skills plan can only beproduced after the organization has conducted a skills audit and acomprehensive needs analysis”

• Certain SETA’s have included skills auditing as one of the requirements forthe discretionary grant.

• Organizations that conduct skills audits in a structured manner, may submitlevy claims against Grant D of the skills development regulations.

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5 C’S – THE KEY BENEFITS OF A SKILLS AUDIT

• Compliance+

• Competitive +

• Cash+

• Credibility+

• Competence

= Clean Skills Audit

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COSTS OF SKILLS AUDITS

• Training

• Time

• Administrative expenses (e.g. stationery)

• Information system/software

• Communication

• Use of consultants (where necessary)

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POTENTIAL REPERCUSSIONS OF NOT CONDUCTING A VALID SKILLS AUDIT

• Invalid and unreliable training plans

• Training plans that are not specific to individual,departmental and organizational needs

• Little or no commitment to training & development bymanagement and staff, as plans are not seen as value-adding

• Little or no alignment of training and development toorganizational strategy and objectives

• Non-implementation of the Workplace Skills Plan andtherefore the organization will not be able to claim reportinggrants

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LEARNING ACTIVITY 12

• Group activity:

• Develop a business case for Skills Auditing i.e.dothe benefits outweigh the costs?

• Do skills audits comply with:

Viability

Feasibility

Sustainability

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SUB-COMPONENTS OF COMPETENCE

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COMPETENCE

• “Applied Competence is the union of practical, foundational and reflexivecompetence”

• Practical Competence - the demonstrated ability to perform a set of tasks in anauthentic context. A range of actions or possibilities is considered and decisions aremade about which actions to follow and to perform the chosen action.

• Foundational Competence - the demonstrated understanding of what the learneris doing and why. This underpins the practical competence and therefore theactions taken.

• Reflexive Competence - the learner demonstrates the ability to integrate orconnect performance with understanding so as to show that s/he is able to adaptto changed circumstances appropriately and responsibly, and to explain the reasonbehind an action.

• Thus competence is understood as including the individual’s learning,understanding and ability to transfer and apply learned skills and knowledge acrossa wide range of work contexts.

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MEASURING COMPETENCE

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PERFORMANCE-BASED TRAINING PROGRAMMES

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TECHNIQUES/APPROACHES TO A SKILLS AUDIT

• Panel approach

• Consultant approach

• One-on-one approach

• Alternative approaches:

Competence-based self-assessment with validation by direct manager or supervisor

360 degree reviews

Focus groups

Assessment centres

Assessment by subject matter experts

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EVIDENCE

• Types of evidence:

DirectIndirectHistorical

• Evaluation of evidence (VACCS):

ValidityAuthenticityConsistencyCurrencySufficiency

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LEARNING ACTIVITY 13

• Group Discussion:

• Review the different approaches to skills auditingand indicate your preference. Substantiate yourreasoning.

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SKILLS AUDITING PROCESS – ILLUSTRATED

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SKILLS AUDITING PROCESS

• Step 1: Determine Skills Requirements

• Step 2: Audit actual skills

• Step 3: Determine development needs and plan for training/restructuring

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STEP 1: DETERMINE SKILLS REQUIREMENTS

• In order to determine skills requirements, an organization should identify currentand future skills requirements per job.

• The end result is a skills matrix with related competency definitions. Definitionscan be allocated against various proficiency levels per job, such as basic,intermediate and complex.

• Objective: Determine the critical or required skills (elicited from job profiles, yourstrategy, or competency matrix).

• Skills matrix process:

Step 1: Workshop with a project team (include Subject Matter Experts) Step 2: Use outcomes analysis to derive skills/knowledge factors and unit standard titles Step 3: Use results of outcomes analysis and value chain process to develop a skills

matrix and titles matrix Step 4: Verify matrices with SMEs and finalise

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SAMPLE OF SKILLS MATRIX

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SAMPLE OF SKILLS MATRIX

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STEP 2: AUDIT ACTUAL SKILLS

• Step 2 involves an individual self-audit and skills audit

• Results are collated into reporting documents that mayinclude statistical graphs, qualitative reports andrecommendations

• A skills audit includes auditing qualifications,experience and training (knowledge)

• Conducting a Skills Gap Analysis

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HIERARCHY OF SKILLS

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SKILLS AUDIT RATING SCALE

Rating Description Definition

0 No evidence of competence An individual does not currently display any form or level of competence in the

skill listed. He or she may require formal training and exposure to the skill in the

workplace.

0.25 Some evidence of competence The individual may demonstrate part competence, but definitely needs formal

training and exposure to the skill in the workplace.

0.5 Evidence of competence, needs further

training

An individual is competent, but needs to improve. Training is the most effective

solution. The individual may be at a lower level than the position requires, i.e. at

linear, instead of complex level.

0.75 Evidence of competence, needs more

exposure to the skill

The individual is competent and has undergone training. Further exposure in the

workplace would ensure improvement and full competence. The individual may

be at a lower level than the position requires, i.e. at linear, instead of

intermediate level.

1 Full evidence of competence The individual is competent in the skills at the level allocated to his/ her position.

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STEP 3: DETERMINE DEVELOPMENT NEEDS AND PLAN FOR TRAINING/RESTRUCTURING

• Once skills audit information has been collected, an analysis of theresults may be used for planning purposes relating to training anddevelopment and other Human Resource interventions.

• Recommendations are then discussed and agreed actions areimplemented.

• This skill shortfall forms the basis of a Training Needs Analysis(TNA) so that the company can reach the desired skill baseamongst its employees.

• A gap analysis is the outcome of the skills audit process.

• Information that is provided through the skills audit can be usedfor the multiple HRM and business purposes.

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REPORTING SKILLS AUDIT RESULTS

• The reporting framework is generated according to the purpose you want to usethe skills data for.

• These reports are vital as they may be used to inform organizational training anddevelopment strategy, Workplace Skills Plans, individual development plans andperformance management interventions etc.

• These reports must be stored in a manner that respects the confidentiality ofindividual employees.

• It is therefore important to agree on and communicate who has access to skillsaudit results, and how these people may use the results upfront.

• Skills audit reports may take on a number of forms:

Individual competency profiles Divisional radar report Organizational pie chart

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INFORMATION EXTRACTION FROM REPORTS

Individual name & employee number

0%

20%

40%

60%

80%

100%

120%

Com

munica

tion

Inte

rper

sonal

Con

trollin

g

Admin

istra

tion

Plannin

g

Com

puter

Dra

fting

lega

l docs

Prope

rty la

w

Inte

rvie

win

g

Department name - Divisional Radar Report

0

20

40

60

80

100

Communication Skills (B)

Interpersonal Skills (B/E)

Administration skills (D)

Planning Skills (D)

Management Skills (G)

Marketing (B/C)

Loans Processing (A/B/C/D)

Computer skills (D)

Company name

ORGANISATIONAL

STRATEGIC COMPETENCY PROFILE

66%

73%

75%

69%

75%

71%69%

A. Strategic competency listing B. C. D. E. F. G.

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LEARNING ACTIVITY 14

• Group Discussion:

• Apply steps 1-3 of the skills audit process, to adefined organizational context.

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CONCLUSION

• Key points

• Summary

• Questions

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CONTACT DETAILS

• Charles Cotter

• (+27) 84 562 9446

[email protected]

• LinkedIn

• Twitter: @Charles_Cotter

• http://www.slideshare.net/CharlesCotter