HR AUDIT ROAD-MAP CROWNE PLAZA HOTEL, ROSEBANK

5-6 SEPTEMBER 2013

CHARLES COTTER

2-DAY TRAINING PROGRAMME OVERVIEW

• INTRODUCTION

• THE FUNDAMENTALS OF HRM AUDITING

• THE SCOPE OF HRM AUDITING

• THE PROCESS OF HRM AUDITING

INTRODUCTION

• “How does a firm know if its human resource practices have an impact on business results?

• “..most professional service firms and organizations complete an extensive audit of their financial statements on an annual basis, but the programmes involving “people”, such as recruiting, training or pay-for-performance are seldom given the same scrutiny.”

• “..the starting point for enterprises wishing to manage their human capital successfully and seeking a labour competitive advantage is activities of the HR department.”

• COMPLETE THE INTRODUCTORY LEARNING ACTIVITY

THE FUNDAMENTALS OF HRM AUDITING

• DEFINING HRM AUDITING

• THE DRIVING FORCES OF HRM AUDITING

• THE PURPOSE AND OBJECTIVES OF HRM AUDITING

• THE BENEFITS OF HRM AUDITING

• POTENTIAL DRAWBACKS OF HRM AUDITS

• THE CRITICAL SUCCESS FACTORS OF HRM AUDITING

• THE PRINCIPLES OF EFFECTIVE HRM AUDITING

PURPOSES OF HRM AUDITING

•VALUE

•COMPLIANCE

•RISK

PURPOSES OF HRM AUDITING

• VALUE – STRATEGIC (ROI); OPERATIONAL (EFFECTIVENESS); ADMINISTRATIVE (EFFICIENCY) AND RESOURCE OPTIMIZATION (ECONOMICAL)

• COMPLIANCE – LEGISLATIVE AND ORGANIZATIONAL POLICY

• RISK – PEOPLE AND RELATED E.G. OHS

BENEFITS OF HRM AUDITING

THE PRINCIPLES OF EFFECTIVE HRM AUDITING

• NEED FOR INDEPENDENCE;

• AUDIT ACTIVITIES SHOULD BE BUDGETED FOR PROPERLY;

• ACKNOWLEDGEMENT THAT THERE ARE MANY TYPES OF AUDITS;

• EACH TYPE OF AN HR AUDIT HAS ITS OWN PURPOSE AND OBJECTIVES;

• ESTABLISH TIMEFRAMES FOR EVERY PHASE/STEP OF THE AUDIT;

• TRAINING OF AUDITORS IS A MUST;

• SET STANDARDS FOR THE HR AUDITS;

• AGREE ON REPORTING TEMPLATE;

• AUDITORS SHOULD SIGN A CONFIDENTIALITY AGREEMENT; AND

• AUDITORS SHOULD AGREE BEFOREHAND ON COMMUNICATION STRATEGY.

LEARNING ACTIVITY 1

• COMPLETE THIS ACTIVITY (PAGES 21-22) IN SYNDICATE GROUPS

COST-BENEFIT ANALYSIS OF HRM AUDITING

GAP ANALYSIS OF CURRENT HRM AUDITING PRACTICES

• NOMINATE A SPOKESPERSON TO PROVIDE A SUMMATION OF YOUR SYNDICATE GROUP DISCUSSION

THE SCOPE OF HRM AUDITING

• THE HR ELEMENTS/FOCAL POINTS WITHIN THE SCOPE OF HRM AUDITS

• TYPES OF AUDITS

• COMMON AREAS FOR HRM AUDITING

THE SCOPE OF HRM AUDITING

COMMON AREAS OF HRM AUDITING

• HRM AND RELATED

• HRD AND RELATED

• HR INFORMATION SYSTEMS

• THE SERVICE ROLE OF HR

• HR LEGISLATIVE COMPLIANCE

• THE STRATEGIC ROLE OF HR

HRM AUDIT MEASURES

• HR PLANNING

• RESOURCING – RECRUITMENT EFFICIENCY AND EFFECTIVENESS

• COMPENSATION AND BENEFITS MEASURES

• ORIENTATION/ON-BOARDING

• EMPLOYEE COUNSELING AND DISCIPLINARY COSTS

• LOST TIME COSTS

• EMPLOYEE TURNOVER RATES

• TRAINING AND DEVELOPMENT COSTS E.G. ROI

• ORGANIZATIONAL DEVELOPMENT AND CHANGE MANAGEMENT

SABPP NATIONAL HR STANDARDSREFER TO ANNEXURE:

• Strategic HR Management• Talent Management• HR Risk Management• Workforce Planning

• Learning & Development• Performance Management

• Reward• Employee Wellness

• Employment Relations Management• Organization Development• HR Service Delivery• HR Technology• HR Measurement

LEARNING ACTIVITY 2

• COMPLETE THIS ACTIVITY (PAGE 43) IN SYNDICATE GROUPS

IDENTIFY THE SCOPE (FOCAL AREAS) OF A HRM AUDIT

DEVELOP HRM AUDIT MEASURES FOR EACH OF THESE FOCAL AREAS

• NOMINATE A SPOKESPERSON TO PROVIDE A SUMMATION OF YOUR SYNDICATE GROUP DISCUSSION

HRM AUDITING PROCESS

• PHASE 1: FOUNDATIONAL/INITIATION

• PHASE 2: ASSESSMENT

• PHASE 3: CONCLUDING AND REPORTING

OVERVIEW OF THE GENERIC HRM AUDITING PROCESS

• DESIGN AND DEVELOP HR POLICIES, PROCEDURES AND PRACTICES FOR YOUR ORGANIZATION;

• ASSESS CURRENT HR POLICIES, PROCEDURES AND PRACTICES AGAINST SET CRITERIA;

• ANALYSE THE RESULTS FROM EVIDENCE; AND

• TAKE ACTION: TO CLOSE GAPS, MAKE RECOMMENDATIONS/ SET IMPROVEMENT GOALS.

HRM AUDITING PROCESS ILLUSTRATED

HRM AUDITING PROCESS ILLUSTRATED

PHASE 1: FOUNDATIONAL/INITIATION

• AUDIT SET-UP ACTIONS

• AUDIT PLANNING ACTIONS

Determine the purpose and objectives of the auditDetermine the scope of the auditDetermine the organizational components to be auditedDetermine the auditing tool to be usedDetermine costs and resources needed to perform the audit Determine audit team governance

LEARNING ACTIVITY 3

• COMPLETE THIS ACTIVITY (PAGES 56-57) IN SYNDICATE GROUPS

APPLY PHASE 1: FOUNDATIONAL/INITIATION OF THE 3-STEP HRM AUDIT CYCLE

• NOMINATE A SPOKESPERSON TO PROVIDE A SUMMATION OF YOUR SYNDICATE GROUP DISCUSSION

PHASE 2: ASSESSMENT

• GENERAL COMMENTS

• IDENTIFY KEY ORGANIZATIONAL METRICS - DETERMINE EMPLOYMENT ISSUES ACCOUNTABILITY

• DEVELOPING A CHECKLIST

REFER TO THE ATTACHED ANNEXURE: HUMAN RESOURCES BEST PRACTICE AUDIT AND NEEDS ASSESSMENT TOOL

• FORMULATING AUDITING METHODOLOGY AND TOOLS

LEARNING ACTIVITY 4

• COMPLETE THIS ACTIVITY (PAGES 60-61) IN SYNDICATE GROUPS

APPLY PHASE 2: ASSESSMENT OF THE 3-STEP HRM AUDIT CYCLE

• NOMINATE A SPOKESPERSON TO PROVIDE A SUMMATION OF YOUR SYNDICATE GROUP DISCUSSION

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

LEARNING ACTIVITY 5

• COMPLETE THIS ACTIVITY (PAGE 63) IN SYNDICATE GROUPS

APPLY PHASE 3: CONCLUDING AND REPORTING OF THE 3-STEP HRM AUDIT CYCLE

• NOMINATE A SPOKESPERSON TO PROVIDE A SUMMATION OF YOUR SYNDICATE GROUP DISCUSSION

CONCLUSION

• SUMMARY OF KEY LEARNING POINTS

• QUESTIONS

• FINALIZATION OF TRAINING ADMINISTRATION

• THANK YOU

• GOOD LUCK WITH YOUR ORGANIZATIONAL HRM AUDIT

CONTACT DETAILS

• CHARLES COTTER

• 084 562 9446

• charlescot@polka.co.za

• LINKED IN

• TWITTER: Charles_Cotter