Building on the development of the National HR Competency Model in 2012, the HR Professional and Quality Assurance body for South Africa, the SA Board for People Practices (SABPP) launched a project to generate human resource (HR) management system standards and metrics for South Africa. A group of HR directors recently met at the SABPP office in Parktown, Johannesburg to steer this project in the right direction. The purpose of the project is to lead and assist HR managers in generating integrated standards and metrics for the HR function aligned to business strategy. HR management system standards are needed to set a national benchmark of good practice and a consistent way of managing HR functions and people in organisations. HR metrics refer to tangible measures that show the impact of HR on the bottom-line of the business. It is time for HR to rise to the level of other professions as far as standards are concerned. There are clear standards for accounting, engineering and other professions, but the same cannot be said of HR. Accountants present their companies and clients with a consistent approach to the financial aspects of a company. For example, balance sheets and income statements are done in the same way, no matter the type of company or industry, and this consistent approach is prevalent throughout South Africa. However, there are many inconsistencies in the standard of HR work within organisations, between organisations, within and across sectors and nationally. These inconsistencies are based on a variance in standards at best, and the absence of standards at worst. This results in poor people management practices at most organisations costing them dearly, despite some pockets of excellence at leading companies. Leon Steyn, an HR Director at the Bidvest Group supports the project: For too long HR professionals have been plagued by an array of guidelines and standards which were either borrowed out of desperation, imposed or not suitable. This HR standards initiative is an exciting step in the right direction and a breath of fresh air for all HR professionals. I support this idea whole heartedly and it is great to be part of this project. SABPP will generate HR functional standards (for example for induction, training, performance management), tangible HR metrics, as well as standards for integrated reporting. The latter project is an exciting development flowing from the King III Code on Governance for South Africa according to which companies should not only report on their financial bottom-line, but also on their environmental and social performance. SABPP will drive this process and stay in close contact with the HR community in ensuring that they are involved in the generation of HR standards, as well as supporting them with the necessary capacity-building when applying these standards in practice. The HR Standards Project will kick-off in 2013 with 13 national standards being creates for each one of the building blocks of the SABPP HR System Standards Model (see figure).
The SABPP HR Standards and Metrics project will focus on the following five phases: 1. Creation of a Management System Standard to ensure that a sound framework is put in place to govern and manage the HR standards generation project; 2. Generation of HR functional standards covering all HR functions (from recruitment to training to employment relations); 3. Development of HR metrics to measure key performance areas of HR affecting the achievement of business goals; 4. Infusion of HR in integrated reporting frameworks to ensure that HR is sufficiently covered in integrated reporting standards; 5. Design of a new CPD system and support system in building the capacity of HR professionals to apply HR standards and metrics based on a national HR competency model. We are pretty sure that the successful completion of the first five phases as key building blocks for HR excellence will put us in a good position of lobbying that HR is integrated into the King IV Governance Code. Already there is sufficient evidence that people practices and sound human capital management drive business performance and good governance. Moreover, at most a companys labour cost is the biggest budget element in business, and it therefore makes business sense to optimise people performance in order to achieve a return on the people investment and achieve business sustainability. Dr Michael Robbins from the UK, an international expert on management system standard-setting and risk management has agreed to be the lead facilitator of this project. Michael, who was also involved in the Investors in People Standard in the UK, shared his excitement about this project: I am honored to be part of this process and I want to congratulate SABPP for driving this project in South Africa. If SABPP is successful with this project, they will become one of the top professional HR standards generating pioneers world-wide. I want to thank HR executives who already committed to this project. In particular, I acknowledge the HR leaders from Nedbank, First Rand Bank, Anglogold Ashanti and Fraser Alexander for their enthusiastic support during the conceptualisation phase of the project. HR Future will partner with SABPP in making this project a reality in order to set and drive HR standards for South Africa. HR Managers and Directors interested in the project can contact me on twitter @MariusSABPP or @SABPP1. More information about SABPP is available on www.sabpp.co.za.
This article was published in HR Future (www.hrfuture.net). We thank Alan Hosking of HR Future for his enthusiastic support of this project.