Hr Audit Tool People in Aid 2007

8/9/2019 Hr Audit Tool People in Aid 2007

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Measuring HR Effectiveness A Toolkit. People In Aid Nov 2007

Measuring HR Effectiveness A Toolkit

What the Toolkit is for?The guiding principle in the People In Aid Code of Good Practice is that People are central to theachievement of the organisations mission. This Toolkit is designed to help managers evaluate theextent to which that is the case it enables an organisation to audit its HR and peoplemanagement systems, policies and practices, and identify priorities for action. It will work in mostcontexts, and has been designed specifically to be used in head office, regional office or local /field office environments.

It comprises a set of diagnostic questionnaires, guidelines and tips that enable organisationsinvolved in humanitarian relief and development programmes to measure and evaluate theeffectiveness of their HR / people management policies and practices, and address any gaps orshortcomings. In other words, its an HR audit.

The HR audit is built around six core categories of people management, namely:

Planning

Recruitment

Deployment

Management

Development

Transition

Why use the Toolkit?An HR audit enables an organisation to get an accurate and thorough picture of the effectivenessof its HR systems, policies and practices.Over time, audit data can be tracked and trends monitored. Where appropriate, benchmarking withpeers can help bring about performance improvements and facilitate organisational learning anddevelopment. The key benefits associated with this tool include:

Objective and systematic review of HR systems, policies and practices

Indicates levels of employee engagement

Highlights issues or gaps and identifies priorities for action

Encourages participation by managers on HR issues

Who would use it and when?

People In Aid encourages all organisations committed to good practice in the management andsupport of their staff and volunteers to measure the effectiveness of their HR systems, policies andpractices. Using this toolkit will help you gather the evidence you need to be awarded the firstPeople In Aid Quality Mark and it can also be used as part of the People In Aid Codeimplementation process. Further information on the Code implementation process can be found onour website www.peopleinaid.org/code

The toolkit can be used by individuals or teams, according to respective needs or drivers. Forexample:

an individual within the HR department might use it to provide a quick overview of theorganisations health

an HR team might use it to facilitate internal diagnosis, discussion and action planning

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the senior executive team might use it to assess how HR policies and practices impactindividual and organisational performance.

The toolkit can be used at any stage in an organisations life cycle; it is equally applicable to neworganisations in the start up phase and to mature well-established organisations.

How to use it

The real power behind the toolkit does not lie in the diagnostic instruments themselves, it is in thesubsequent discussion, prioritisation and action planning that results. The recommended approachis therefore as follows:

The HR audit can be carried out at 3 different levels (basic, full and enhanced), depending on thetime available, the particular needs of the organisation and the depth of insights that they wish toobtain.

Basic audit (Level 1)

The basic audit provides the organisation with an overview of HR effectiveness across the sixcategories and identifies the priority categories for attention.

Full audit (Level 2)

The full audit can either follow on from the basic audit (Level 1) and explore issues within prioritycategories in more detail, or it can be used in its own right as a stand-alone audit that provides agreater depth of insight. As before, priority areas for attention are highlighted.

Enhanced audit (Level 3)The enhanced audit is designed to be used in conjunction with the full audit and enables anorganisation to gain a deeper understanding of issues by identifying underlying causality in termsof capability, resource or infrastructure problems.

1. Conduct HRAudit using

Toolkit

2. Discussimplications /

findings andagree priorities

3. Create actionplans and engage

key stakeholders

4. Implementchanges andmonitor progressimpact ofchanges


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Basic Audit (Level 1)

This can be used on its own as a high level audit or can form a precursor to more detailed insightsthat can be obtained through moving to the full and enhanced audits.

Who Would Use It?HR Director / Manager, HR team or senior leadership team

When to Use It?

When a quick assessment is needed in order to assess the health of people practices at a highlevel

How to Use It?

The audit comprises two questionnaires / checklists:

The HR Policies, Processes and Practices Checklist (Appendix 1) provides insight into theextent to which key policies processes and practices exist, the level of understanding of themwithin the organisation and the extent to which they are up to date and fit for purpose.

The Basic HR Effectiveness Questionnaire(Appendix 2) comprises 6 statements that broadlyalign to the stages in the employee life cycle and provides an opportunity to rate the effectivenessof systems, policies and practices.

Step 1

The individual manager, or team, completes the HR Policies, Processes and Practices Checklist(Appendix 1) and the Basic HR Effectiveness Questionnaire (Appendix 2) by rating the extent to

which they agree with the statement (high level of agreement (H); moderate level of agreement(M); low level of agreement (L)). The more respondents that complete this process, the morerobust the data will be.

Step 2

Review the results from the completion of both the checklist and the questionnaire. If more thanone person is carrying out the diagnostic then collate results and compare similarities anddifferences in perceptions. A scoring sheet is provided in Appendix 3 to help summarise individualscores, if required.

Discuss the findings and:

Clarify why different perceptions exist

Review the gaps

Agree a collective rating

Undertake a risk assessment to determine the implications in terms of impact on servicedelivery i.e. which issues, if addressed, would have the greatest impact on theorganisations ability to recruit, retain and motivate staff and improve service delivery. Riskshould be categorised as high (H), medium (M) or low (L). The agreed risk assessmentshould be recorded on the questionnaire.


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Step 3

Determine the level of priority that should be attached to each statement. This can be doneby reviewing the perception and risk assessments and determining a priority rating foreach statement as follows: high priority (Red), medium priority (Amber), low priority(Green) and very low priority (Blue). The following table can be used to assist in this

categorisation:

Perception Risk Priority

High High Green

Medium High Amber

Low High Red

High Medium Green

Medium Medium Green

Low Medium Red

High Low Blue

Medium Low Green

Low Low Amber

Attention should be focussed firstly on those activities that fall into the red category andsecondly on those in the amber. It is also worth considering any activities that fall into theblue category in order to explore whether too much resource / focus is being given to theseactivities at the expense of others.

The results can be represented visually if desired by plotting a matrix on a flip chart asfollows:

H

M

L

L M H

Identify the top (no more than 5) issues to focus attention on. Develop and agree action plans, including how other key stakeholders will be engaged

Step 4

Implement changes and monitor progress a list of possible performance metrics is shownin Appendix 4.

In the course of carrying out the above exercise it is possible that specific business units, functions,locations and employee groups may be identified for particular attention or where the ratings wouldbe expected to differ from the norm, either because they are more strategically critical or becausethe perception of the impact on these groups might differ. Where this is the case the exercise

should be repeated for these specific groups.

Perception

Risk


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Outcomes

The above process will result in:

An understanding of how different members of the team view existing people managementpractices and the extent to which consensus exists

Where specific policies and procedures may be missing or where improvements incommunicating and implementing are required

Identification of priorities and where attention needs to be focussed

Insights into specific employee groups / locations / functions where attention may need tobe focussed

The formulation of action plans and a process for monitoring progress


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Full audit (Level 2)

The full audit can be used as a stand alone diagnostic tool or can follow on from the basic audit(Level 1) in order to gain greater insight into the priority areas for attention.

Who Would Use It?HR team or senior leadership team with the option to modify the approach in order to capturebroader stakeholder opinions.

When to Use It?

When a more detailed assessment is needed and more comprehensive insights into all or specificpeople practices are required.

How to Use It?

Step 1Complete the Full HR Effectiveness Questionnaire (Appendix 5). There are a set of 35 statementsgrouped into six categories. Respondents are required to provide perception (H,M,L) ratings andscore them as with the basic audit.

Step 2

As with the basic audit the distribution of responses from all respondents should be collated,discussed, differences in perception explored and a risk assessment carried out. A scoring sheet isprovided in Appendix 6 to help in the collation of responses, if required.

Step 3

Agree priorities, record on the diagnostic and develop action plans and how best to engage keystakeholders

Step 4

Implement changes and monitor progress

As before, the exercise can be repeated for specific employee groups, functions or locations

Outcomes

The above process will provide detailed insights into a wider range of people management

practices and as such will enable much more detailed prioritisation and action planning to takeplace.


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Enhanced audit (Level 3)

The enhanced audit enables managers to gain a deeper understanding of the issues that underpinthe high priority areas for attention

Who Would Use It?

HR team with an option to involve a broader range of stakeholder groups in the diagnosis

When to Use It?

When there is a need to understand the extent to which capability, resources and infrastructureissues are the limiting factors underlying priority areas for attention

How to Use It?

The enhanced audit focuses on the extent to which the HR function and Line Management havethe capability (skills, knowledge and expertise), resources (manpower, time money) andinfrastructure (information, processes, technology and support) to enable them to deliver.

Step 1Create a template comprising the statements that are the high priority (Red) areas for attention asidentified during the full audit (alternatively the exercise could be carried out on all 35 statements ifa more comprehensive analysis was required).

Example

Statement HR Function Line Management Risk PriorityCapability Resources Infra

structureCapability Resources Infra

structure

Planning

We have a clearlydefined, integratedpeople management

strategyOur people strategy isaligned to our mission,values and strategicobjectives

Our people strategyenables us to maximisethe return on ourinvestment in people.

Our people strategysupports a culture oflearning and continuousimprovement throughoutthe organisation

We provide people withgood careerdevelopmentopportunities

Step 2

Individuals rate perception on a H/M/L scale as before for each of the six areas: HR and linecapability, resources and infrastructure. Consolidate and review and discuss the distribution ofresponses. Undertake a risk assessment as before.

Step 3

Agree priorities and action plans and how best to engage key stakeholders

Step 4

Implement changes and monitor progress


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Appendix 1

HR Policies, Processes and Practices Checklist

Policy / Process / Practice

Responses: Yes / No / Dont Know

Does thisexist?

Is it / arethey up to

date?

Is it / are theyclearly

communicated?

Is it / arethey

consistentlyapplied?

Planning

Organisation charts which reflect thecurrent organisation

Contracts of different types andlengths which reflect the requirementsof the organisation

Terms and conditions of employment,including non cash and cash benefitsin local currencies

Policy governing annual,compassionate and home leaveentitlements

Policy covering working hours, thelength of the working week andstandards governing the workingenvironment

Policy covering living / accommodationarrangements including adequateprivacy provisions

Insurance arrangements

Rest and Recuperation policy

Expected standards of behaviour andcode of conduct

Understanding of labour laws in thecountries in which the organisationoperates

Recruitment

Job descriptions

Person specifications

Diversity and Equality policy

Application forms and selection / shortlisting processes

Testing and interviewing tools andprocedures

Procedures for obtaining references,conducting health checks and carryingout criminal records checks

Deployment

Travel arrangements inc vaccinations,visas, insurance, work permits etc

Induction programmeTraining needs analysis for newstarters


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Policy / Process / Practice

Responses: Yes / No / Dont Know

Does thisexist?

Is it / arethey up to

date?

Is it / are theyclearly

communicated?

Is it / arethey

consistentlyapplied?

Probationary period and review

Mentoring / support for new starters

Management

Grievance, disciplinary and whistleblowing procedures

Performance management / appraisalprocess

Periodic salary reviews andbenchmarking against relevant localorganisations

Health and Safety policy includingsecurity, stress and individual

counselling supportConfidential and secure personalrecords

Development

Training needs analysis for all staff

Availability of range of differentlearning methodologies including selfhelp, training courses, mentoring,shadowing etc

Articulated career paths and periodiccareer development discussions

Methodologies /approaches forcommunicating and managing change

Transition

Policies for handling resignation,redeployment and redundancy

Evacuation / suspension of operationsprocedures

Dismissal procedure

Exit procedures including exitinterviews, hand over, references,

health checks, ongoing support,payments


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Appendix 2

Basic Audit - Level 1HR Effectiveness Questionnaire

Category Perception(H, M, L) Risk(H.M,L) Priority(R,A,G,B)

Planning

We have a clearly defined, integrated people managementstrategy, aligned to our mission, values and strategicobjectives, which enables us to maximise the return onour investment in people and which supports a culture oflearning and continuous improvement throughout theorganisation.

Recruitment

We are able to attract and select a diverse workforce withthe skills and capabilities we need to meet our current and

future needsDeployment

We rapidly assimilate new starters into the organisation inorder to make them feel part of the family, help themunderstand how the organisation, and the sector works,clarify organisational values and cultural norms, andidentify and provide on-going support during theirprobationary period

Management

We manage our people in a way that energises andmotivates them to perform to the best of their ability andprovide rewards and recognition that are fair and equitable

and where appropriate, reflective of individual contribution.Development

We actively help our people to realise their full potentialthrough by enabling appropriate training and learninginterventions and through the provision of careerdevelopment opportunities

Transition

We manage the exit of people from the organisation in ahumane and sensitive manner that reinforces ourreputation as a good employer and which enables us tolearn how best to adapt existing people managementpractices.


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Appendix 3 Basic Audit - Level 1

HR Effectiveness Questionnaire Scoring Sheet

IndividualPerceptions

OverallPerception

IndividualRisk

Assessments

OverallRisk

PriorityCategory

H M L H M L

Planning

We have a clearly defined, integrated peoplemanagement strategy, aligned to our mission,values and strategic objectives, which enables usto maximise the return on our investment inpeople and which supports a culture of learningand continuous improvement throughout theorganisation.

Recruitment

We are able to attract and select a diverseworkforce with the skills and capabilities we need

to meet our current and future needs

Deployment

We rapidly assimilate new starters into theorganisation in order to make them feel part of thefamily, help them understand how theorganisation, and the sector works, clarifyorganisational values and cultural norms, andidentify and provide on-going support during theirprobationary period

Management

We manage our people in a way that energisesand motivates them to perform to the best of theirability and provide rewards and recognition thatare fair and equitable and where appropriate,

reflective of individual contribution.Development

We actively help our people to realise their fullpotential through by enabling appropriate trainingand learning interventions and through theprovision of career development opportunities

Transition

We manage the exit of people from theorganisation in a humane and sensitive mannerthat reinforces our reputation as a good employerand which enables us to learn how best to adaptexisting people management practices.


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Appendix 4

People Metrics

Category Measure

Planning Segmentation of workforce and the extent to which HR practices are tailored to suitdifferent needs

Key people measures regarding recruitment, retention and motivation analysed bykey talent group

% of senior leadership time devoted to people issues and reviewing people metrics

% of senior management time spent in identifying key talent and in planningappropriate deployment and development

Retention rates overall and for key employee groups

Engagement scores - overall and for key employee groups

Recruitment Reputation as an employer from external surveys

Elapsed time to fill vacancies

Number of failed recruitments (& reasons)% offers accepted

% candidates retained after 1 year

Diversity mix of applicants

Induction % new starters receiving full induction within specified timescale

% new starters receiving mentoring and coaching

Perception of new starters after first 3 months

% of new starters whose training and development needs have been met withinspecified timescale

Deployment Accuracy and relevance of person specifications

% of employees who feel that their role plays to their strengths

% of employees who feel that they are trusted to use their judgement

% of employees who feel that their role is stretching and challenging

Capture and sharing of information regarding individual strengths across theorganisation

Management % of employees who trust and respect their manager

% of employees who have had motivational performance review discussions withtheir manager

% of employees who are clear about what is expected of them

% of employees who receive prompt recognition and praise

% of employees who receive regular constructive feedback

% of employees who believe they are treated fairly

Level of investment in employee welfare and heath and safety

Number of flexible working and work / life balance initiatives

% of employees fully engaged within team

Development Level of training and development investment

% of employees who have individual training and development plans

% of employees who have had a meaningful career planning discussion with theirmanager

% of employees who feel that their manager understands their aspirations andneeds

Transition % of leavers who feel that they have been well treated

Level of time spent analysing and taking action on exit interview dataNumber of referrals generated by former employees


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Appendix 5

Full Audit - Level 2HR Effectiveness Questionnaire

Statement Perception(H,M,L)

Risk(H,M,L)

Priority(R,A,G,B)

Planning

We have a clearly defined, integrated people management strategy

Our people strategy is aligned to our mission, values and strategic objectives

Our people strategy enables us to maximise the return on our investment inpeople.

Our people strategy supports a culture of learning and continuousimprovement throughout the organisation

We know where the key talent which is critical to our success is and how bestto retain and motivate them

Recruitment

We have a strong employer brand that attracts high quality applicants

Our recruitment & selection processes enable us to respond rapidly whenvacancies arise

Person specifications for jobs define the correct levels of skills, competenciesand experience required

Our recruitment & selection processes effectively sift candidates and enable usto select the best person for the job

Our recruitment & selection processes enables us to attract a diverse range ofcandidates

Our employment offer is attractive and enables us to recruit the calibre ofpeople we require

Deployment

New starters are provided with a comprehensive induction programme

The individual needs of new starters are rapidly assessed and addressed

Our induction programme enables new starters to rapidly assimilate into theorganisation and become part of the family

New starters are provided with coaching and mentoring support during theirprobationary period

New starters are provided with the equipment, information and guidancenecessary to prepare them for their role

Management

We provide individuals with roles that are stretching and challenging

We delegate authority appropriately and trust individuals to use theirjudgement

Our managers build individual capability and confidence and enable others tobe successful

Managers are good at identifying what motivates individuals and in bringing thebest out of them

Individuals have a clear understanding of what they need to do and whatconstitutes success in their role

Individuals receive regular constructive feedback which helps them to improvetheir performance

Our managers provide prompt praise and recognition where it is merited

Our treatment of people is fair, equitable and even handed

We take employee health, welfare and safety seriously and strive to helpindividuals achieve a meaningful work / life balance


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Statement Perception(H,M,L)

Risk

(H,M,L)

Priority

(R,A,G,B)

We have a comprehensive understanding about how people feel aboutworking for us and take prompt action to address issues

Development

We have a comprehensive understanding of individual training anddevelopment needs

Individual training and development needs are promptly and appropriatelyaddressed

We provide people with the scope to grow and fulfil their potential

People are clear about how they can progress their career within theorganisation

We provide people with good career development opportunities

Transition

We manage the exit of people from the organisation in a humane and sensitivemanner

We adapt our people management policies and practices based on insightsprovided by those that have left

We help build peoples capabilities for their future careers

People invariably speak well of this organisation after they have left


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Appendix 6 Full Audit - Level 2HR Effectiveness Questionnaire Scoring Sheet


IndividualRisk Assessments

Statement

H M L

OverallPerception

H M L

OverallRisk

Priority(R,A,G,B)

Planning

We have a clearly defined,integrated peoplemanagement strategy

Our people strategy is alignedto our mission, values andstrategic objectives

Our people strategy enablesus to maximise the return onour investment in people.

Our people strategy supportsa culture of learning andcontinuous improvementthroughout the organisation

We know where the key talentwhich is critical to our successis and how best to retain andmotivate them

Recruitment

We have a strong employerbrand that attracts high qualityapplicants

Our recruitment & selectionprocesses enable us torespond rapidly whenvacancies arise

Person specifications for jobsdefine the correct levels ofskills, competencies andexperience required

Our recruitment & selectionprocesses effectively siftcandidates and enable us toselect the best person for the

job

Our recruitment & selectionprocesses enables us toattract a diverse range ofcandidates

Our employment offer isattractive and enables us to

recruit the calibre of peoplewe require

Deployment

New starters are provided witha comprehensive inductionprogramme

The individual needs of newstarters are rapidly assessedand addressed

Our induction programmeenables new starters torapidly assimilate into theorganisation and become partof the family


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Statement

H M L

OverallPerception

H M L

OverallRisk

Priority(R,A,G,B)

New starters are provided withcoaching and mentoringsupport during theirprobationary period

New starters are provided withthe equipment, informationand guidance necessary toprepare them for their role

Management

We provide individuals withroles that are stretching andchallenging

We delegate authorityappropriately and trustindividuals to use their

judgement

Our managers build individual

capability and confidence andenable others to be successful

Managers are good atidentifying what motivatesindividuals and in bringing thebest out of them

Individuals have a clearunderstanding of what theyneed to do and whatconstitutes success in theirrole

Individuals receive regularconstructive feedback whichhelps them to improve theirperformance

Our managers provide promptpraise and recognition whereit is merited

Our treatment of people is fair,equitable and even handed

We take employee health,welfare and safety seriouslyand strive to help individualsachieve a meaningful work /life balance

We have a comprehensiveunderstanding about howpeople feel about working forus and take prompt action to

address issues

Development

We have a comprehensiveunderstanding of individualtraining and developmentneeds

Individual training anddevelopment needs arepromptly and appropriatelyaddressed

We provide people with thescope to grow and fulfil theirpotential

People are clear about howthey can progress their careerwithin the organisation


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Measuring HR Effectiveness A Toolkit People In Aid Nov 2007



Statement

H M L

OverallPerception

H M L

OverallRisk

Priority(R,A,G,B)

We provide people with goodcareer developmentopportunities

Transition

We manage the exit of peoplefrom the organisation in ahumane and sensitive manner

We adapt our peoplemanagement policies andpractices based on insightsprovided by those that haveleft

We help build peoplescapabilities for their futurecareers

People invariably speak wellof this organisation after they

have left

Documents

Hr Audit Tool People in Aid 2007