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Christine Botha, Head: SABPP Audit Unit

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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?

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Why do we continue to manage

people and govern the most

precious part of our organisations

(i.e. people) without standards?

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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.

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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%.

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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.

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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

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Standards

Boost

Business

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Unit standards / Curriculum standards

Service delivery standards

Competence standards

Metrics/benchmarking standards

Professional practice standards

Business/industry/process/system standards - ISO

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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

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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).

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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

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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

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“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.

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Comprehensive audit manual and tools

Quality assurance and system

Auditor competency profile

Training manual

Selection and training of the first 48 auditors

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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

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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

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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

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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

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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

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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

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All 13 elements of the Standards will be audited

Each element must receive a score of 60%

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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

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hraudit@sabpp.co.za