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The South African Human Capital Scorecard:
3 levels of HR Metrics Reporting
Marius Meyer
SABPP
Measure-
ment
model
HR Bottom
line
“There are two radical changes in the HR space that are coming from entirely different
directions but are destined to collide: HR Standards and Big Data. They are radical
because they will fundamentally change the performance evaluation of HR, the
teaching of the profession, and the standing and credibility of practitioners.”
Neil McCormick & Chris Andrews
HR Advisory Bond University
1. What is your current approach to human capital
analytics?
2. Does it enable you to make better decisions about
people?
3. Does it help you optimise people in achieving
strategic business objectives?
4. What are the obstacles you currently face regarding
human capital analytics?
5. How would you like to improve your current approach
to human capital analytics?
Key
Questions
SOUTH AFRICAN HR COMPETENCY MODEL
STRATEGY
TALENT
MANAGEMENT
HR GOVERNANCE, RISK,
COMPLIANCE
ANALYTICS & MEASUREMENT
HR SERVICE DELIVERY
5 HR
CAPABILITIES
LEADERSHIP & PERSONAL CREDIBILITY
ORGANISATIONAL CAPABILITY
SOLUTION CREATION & IMPLEMENTATION
INTERPERSONAL & COMMUNICATION
CITIZENSHIP FOR FUTURE: INNOVATION, TECHNOLOGY, SUSTAINABILITY
CORE
COMPETENCIES
HR & BUSINESS KNOWLEDGE
DUTY TO SOCIETY
ETHICS
PROFESSIONALISM
4
PILLARS
HR Audit
Evidence
Our
commit-
ment
What is HR Measurement?
HR measurement is a continuous process of gathering,
analysing, interpreting, evaluating and presenting
quantitative and qualitative data to measure, align and
benchmark the impact of HR practices on organisational
objectives, including facilitating internal and external
auditing of HR policies, processes, practices and
outcomes.
SABPP (2014)
Why do we need the HR Measurement
standard?
Poor business decisions can be attributed to inconsistent
measurement, flawed data or irrelevant measures.
This Standard will guide the decision-making process and will enable
an efficient, effective and consistent assessment of the people
measures critical to business success.
Our socio-
economic
realities
How are we doing as a country?
• 71st on Corruption Perceptions Index (TI)
• 100th on availability of scientists & engineers (Spectator Index)
• 119th on Human Development Index (UN)
• 6th on Infant Deaths (UN)
• 15th on most PhD graduates (OECD)
• 138th on education (WEF)
• 32th on work-life balance (OECD)
A sound framework to improve human capital decision-
making at national, board and operational levels has been
developed using a consistent set of 5 dimensions of HR
metrics.
The ultimate goal is to leverage and report on human
capital data in making better decisions aligned to
business objectives and socio-economic indicators.
Human capital
cycle
Human Capital Availability
• What is the match of supply and demand of economically
active people (skilled and unskilled) in the country?
• Where are specific under supply and over supply situations?
Human Capital Contribution
• How productive is the employed population?
• What is the level of innovation in the country?
Human Capital Wellbeing
• What health and wellbeing issues impact on the general
productivity potential of the economically active population?
Human Capital Wealth Creation
• How do different sectors of the employed population share in
the wealth created in the country?
• How attractive is the country to international talent?
Human Capital Cost, Investment and Growth
• What are we doing in terms of learning and development in
the school and post-school education system?
• How much are we spending on whom for what in the post-
school education system?
• What are we doing and how much are we spending on job
creation efforts?
• What health and wellbeing interventions are having positive
impacts on productivity?
SOUTH AFRICAN
HUMAN CAPITAL
CONFIDENCE INDEX
Human
capital
metrics
Next steps
• Finalise proposed content of the 3 levels with key
experts and stakeholders
• Package for easy communication and consult widely
• Operationalise including building data collection and
benchmarking capability
• Sign-off by key stakeholders, e.g. SAICA
• Implementation and capacity-building
A final thought
“HR departments can gather rich data about the
business and use it to analyse skills gaps,
performance, costs, and more.”
Sandra Swanepoel
MD: Sage HR & Payroll
Conclusion
The National HR Standards Initiative has opened the
door for a more professional and systematic
approach towards HR analytics and measurement.
Phase 3 (HR Metrics) is in its 4th year, and we invite
more participation from HR Leaders. Let us build a
sound framework to improve workforce decision-
making at national, board and operational level.
marius@sabpp.co.za
+27 82 8593593
@MariusSABPP @SABPP1
Linkedin.com/in/MariusMeyer
+27 010 007 5906

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The South African Human Capital Scorecard: 3 levels of HR Metrics Reporting by Marius Meyer, CEO of SABPP

  • 1. The South African Human Capital Scorecard: 3 levels of HR Metrics Reporting Marius Meyer SABPP
  • 2.
  • 4.
  • 5.
  • 7. “There are two radical changes in the HR space that are coming from entirely different directions but are destined to collide: HR Standards and Big Data. They are radical because they will fundamentally change the performance evaluation of HR, the teaching of the profession, and the standing and credibility of practitioners.” Neil McCormick & Chris Andrews HR Advisory Bond University
  • 8. 1. What is your current approach to human capital analytics? 2. Does it enable you to make better decisions about people? 3. Does it help you optimise people in achieving strategic business objectives? 4. What are the obstacles you currently face regarding human capital analytics? 5. How would you like to improve your current approach to human capital analytics? Key Questions
  • 9.
  • 10. SOUTH AFRICAN HR COMPETENCY MODEL STRATEGY TALENT MANAGEMENT HR GOVERNANCE, RISK, COMPLIANCE ANALYTICS & MEASUREMENT HR SERVICE DELIVERY 5 HR CAPABILITIES LEADERSHIP & PERSONAL CREDIBILITY ORGANISATIONAL CAPABILITY SOLUTION CREATION & IMPLEMENTATION INTERPERSONAL & COMMUNICATION CITIZENSHIP FOR FUTURE: INNOVATION, TECHNOLOGY, SUSTAINABILITY CORE COMPETENCIES HR & BUSINESS KNOWLEDGE DUTY TO SOCIETY ETHICS PROFESSIONALISM 4 PILLARS
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  • 16. What is HR Measurement? HR measurement is a continuous process of gathering, analysing, interpreting, evaluating and presenting quantitative and qualitative data to measure, align and benchmark the impact of HR practices on organisational objectives, including facilitating internal and external auditing of HR policies, processes, practices and outcomes. SABPP (2014)
  • 17. Why do we need the HR Measurement standard? Poor business decisions can be attributed to inconsistent measurement, flawed data or irrelevant measures. This Standard will guide the decision-making process and will enable an efficient, effective and consistent assessment of the people measures critical to business success.
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  • 21. How are we doing as a country? • 71st on Corruption Perceptions Index (TI) • 100th on availability of scientists & engineers (Spectator Index) • 119th on Human Development Index (UN) • 6th on Infant Deaths (UN) • 15th on most PhD graduates (OECD) • 138th on education (WEF) • 32th on work-life balance (OECD)
  • 22.
  • 23. A sound framework to improve human capital decision- making at national, board and operational levels has been developed using a consistent set of 5 dimensions of HR metrics. The ultimate goal is to leverage and report on human capital data in making better decisions aligned to business objectives and socio-economic indicators.
  • 25. Human Capital Availability • What is the match of supply and demand of economically active people (skilled and unskilled) in the country? • Where are specific under supply and over supply situations? Human Capital Contribution • How productive is the employed population? • What is the level of innovation in the country? Human Capital Wellbeing • What health and wellbeing issues impact on the general productivity potential of the economically active population? Human Capital Wealth Creation • How do different sectors of the employed population share in the wealth created in the country? • How attractive is the country to international talent? Human Capital Cost, Investment and Growth • What are we doing in terms of learning and development in the school and post-school education system? • How much are we spending on whom for what in the post- school education system? • What are we doing and how much are we spending on job creation efforts? • What health and wellbeing interventions are having positive impacts on productivity? SOUTH AFRICAN HUMAN CAPITAL CONFIDENCE INDEX
  • 27.
  • 28. Next steps • Finalise proposed content of the 3 levels with key experts and stakeholders • Package for easy communication and consult widely • Operationalise including building data collection and benchmarking capability • Sign-off by key stakeholders, e.g. SAICA • Implementation and capacity-building
  • 29. A final thought “HR departments can gather rich data about the business and use it to analyse skills gaps, performance, costs, and more.” Sandra Swanepoel MD: Sage HR & Payroll
  • 30. Conclusion The National HR Standards Initiative has opened the door for a more professional and systematic approach towards HR analytics and measurement. Phase 3 (HR Metrics) is in its 4th year, and we invite more participation from HR Leaders. Let us build a sound framework to improve workforce decision- making at national, board and operational level.
  • 31. marius@sabpp.co.za +27 82 8593593 @MariusSABPP @SABPP1 Linkedin.com/in/MariusMeyer +27 010 007 5906