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Prepared by Industrial Psychology Consultants © 2014

HUMAN

RESOURCES BEST

PRACTICE SURVEY

2014

Industrial Psychology Consultants (Pvt) Ltd

“maximizing returns on human Capital”

Head Office: 1 Grosvenor Road, Highlands, Harare

Tel: (04) 481946-8, 481950, 2900276, 2900966

Email: [email protected]

Website: www.ipcconsultants.com

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Table of Contents Introduction ............................................................................................................................................... 2

Research Methodology ..................................................................................................................... 5

Participants Profile ........................................................................................................................... 7

Results .......................................................................................................................................................... 10

Critical Human Resources Indicators........................................................................................ 10

Recruitment and Selection .......................................................................................................... 12

Induction......................................................................................................................................... 14

Performance Management .......................................................................................................... 14

Performance Related Pay ............................................................................................................. 17

Industrial Relations ...................................................................................................................... 18

Rewards Systems .......................................................................................................................... 21

Training .......................................................................................................................................... 23

Employee Engagement ................................................................................................................. 25

Succession Planning ..................................................................................................................... 26

Human Resource Impact.............................................................................................................. 26

Human Resources Technology ................................................................................................... 28

Comments .................................................................................................................................................... 29

Appendix 1: Correlations ............................................................................................................. 30

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Introduction

This is a report on the Human Resources Best Practice Survey that we undertook between July

and August 2014. Our primary research objective was to better understand the current state

of Human Resources practices and organisational capacity in the Zimbabwean organisations.

We also attempted to assist Zimbabwean organisations to define what constitutes best practice

in Human Resources Management and what measures organisations may take to implement

this best practice. This is a self-assessment report where participating HR Practitioners rated

themselves against areas of Human Resources Best Practice. We are in the process of carrying

out a field audit of the same in organisations taking part in our Best Employers Survey 2014.

We will publish the findings in the first quarter (Q1) of 2015.

Figure 1: Areas assessed for Best Practice

Despite several declarations by senior executives that their human resource is their greatest

asset, the situation on the ground in most organisations does not portray this scenario. With

the exception of those organisations where best practice policies have been crafted and are

Human Resources

Best Practice

HR Performance Indicators

Recruitment and Selection

Induction

Performance Management

Staff Training and Development

Succession Planning

Rewards Systems

Industrial Relations

Performance Related Pay Employee Engagement

Human Resources Impact Human Resources Technology

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implemented professionally, the majority of organisations have no human resources practices

to talk about.

One of the greatest challenges that HR practitioners are facing as they seek to implement HR

best practice is the lack of information on what really constitutes best practice. Unlike their

colleagues in other functions, Finance for example, HR practitioners often lack the kind of

local data, process support and industry-level standards that help them identify and

implement best practice. We have noted that in crafting internal transformations for their

departments, too many HR practitioners essentially develop a new vision with few examples

of excellence for guidance.

The result can be well-intentioned but poorly executed change initiatives. At best, this sort of

change can achieve excellence but at the cost of always having to provide “support services”

and “fire fighting” to other

departments. At worst, it

hurts the department more

than it helps, especially in the

eyes of the business partners

who often feel that the HR

function is focused more on

internal HR needs than on

business outcomes.

Traditionally, the HR

Department has been viewed

as an administrative

overhead. HR has been responsible for processing payroll, managing benefits administration,

maintaining personnel files, and other records, managing the hiring process, amongst others.

We believe those times are changing.

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If HR is going to increase its “value-add” and influence at the Executive table, with other

company top strategists and decisions makers, it must decide on what is core and non-core.

Administrative responsibilities such as getting payslips out on time are not core. There are

other critical strategic issues that must be addressed.

Figure 2: Some critical Human Resources issues that need attention now more than ever

The bottom-line is the role of Human Resources as we know it is changing. As the economy

resurges and begins to compete competitively, there are a number of management practices

and business fundamentals that will have to change with it. We believe that the positive result

of these changes is that HR professionals have the opportunity to play a more strategic role in

Many managers can tell you with

certainty the productivity ratios of

their capital and raw materials but a

few can do so for labour. Labour

productivity remains one of the most

neglected productivity ratios. By

neglecting labour productivity,

businesses are missing an opportunity

to optimize their labour availability,

performance and quality of output

using empirical data and benchmarks.

Increasing Labour Productivity

Businesses are struggling to contain

staff related costs. Whilst we agree

that cost containment is imperative,

businesses should become more

creative about how they determine pay

in the first place. For example, Total

Cost of Employment, Hybrid Pay

Model and Productivity Linked Wages

are some models of remuneration that

should be explored inorder to price

remuneration correctly.

Managing Staff Related Costs

The only way to sustain growth in

labour productivity is to increase

investment in ‘intangible’ capital, i.e.,

innovation, organisational change,

research and development, etc. This

can be done through strategic training

and development initiatives that are

linked to key business objectives.

Zimbabwe is behind with regards to

even the simplest best practice.

Significant investment is needed if we

really want to compete globally.

Employee Learning and Development

Many Zimbabwean companies are

suffering at the hands of an

entitlement mentality amongst both

managerial and non-managerial staff.

Employees seem to believe that as long

as they are employed they deserve to

be paid. They do not understand that

people must perform in order to be

paid. This situation is compounded by

our labour laws which make it difficult

to dismiss employees for poor

performance. The result is that we

have a lot of free riders.


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the business. The challenge for HR managers is to keep up to date with the latest HR

innovations, technological, legal, and otherwise.

There is a need to know about the current HR challenges, and how to most-effectively manage

them in your workplace. This report discusses some best HR practices that we believe are

critical in the success of Zimbabwean companies.

This report contributes to our goal to help leaders understand the forces transforming the local

and global economy, improve company performance, and work for better national policies.

The report is in-line with our mission of maximizing returns on human capital. As with all

our research, this work is independent and has neither been commissioned nor sponsored in

any way by any business, government, or other institution.

Research Methodology

A questionnaire with 62 questions was uploaded on SurveyMonkeyTM. SurveyMonkeyTM is an

on-line data collection tool. Participation in this survey was voluntary. A total of 57 Human

Resources Practitioners responded to this survey.

The questionnaire assessed Human Resources best practices with regards to:

i. Human Resources Department Performance Indicators

ii. Recruitment and Selection

iii. Induction and Orientation

iv. Performance Management and Performance Related Pay

v. Staff Training and Development

vi. Succession Planning

vii. Rewards Systems

viii. Industrial Relations

ix. Employee Engagement

x. Human Resources Impact

xi. Human Resources Technology

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In-order to ascertain the reliability of our questionnaire, we performed the Cronbach’s alpha

reliability test. The Cronbach’s alpha reliability test is an assessment of the degree of internal

consistency among a set of indicators (questionnaire items). These were the assessment

results:

Table 1: Questionnaire Reliability Statistics

Cronbach's Alpha N of Items

0.952 11

We performed an additional reliability assessment of the individual dimensions that

measured were measured by the instrument. These were the assessment results that we noted:

Table 2: Reliability Statistics per Dimension

Dimension Cronbach’s Alpha

Performance Management 0.944

Performance Related 0.949

Industrial Relations 0.949

Reward Systems 0.940

Recruitment and Selection 0.940

Training 0.942

Induction 0.956

Employee Engagement 0.950

Succession Planning 0.950

Human Resources 0.944

Human Resources Technology 0.956

The closer Cronbach’s alpha coefficient is to 1.0 the greater the internal consistency of the

items in the scale. George and Mallery (2003) provide the following rules: “_ > .9 – Excellent,

_ > .8 – Good, _ > .7 – Acceptable, _ > .6 – Questionable, _ > .5 – Poor, and _ < .5 – Unacceptable.”

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All sample surveys and polls, whether or not they use probability sampling, are subject to

multiple sources of error which are almost often not possible to quantify or estimate. Amongst

these are error associated with non-response, sampling error and error associated with

question wording. We therefore avoid the words ‘margin of error’ as they are misleading. All

that can be calculated are different possible sampling errors with different probabilities for

pure, un-weighted, random samples with 100% response rates. These are only theoretical

because no published researches have come close to this ideal.

Participants Profile

A total of 57 organisations participated in this survey. These organisations were drawn from

19 sectors of the economy.

Figure 3: % of participating organisation by sector

Other participants were from the Construction, Real Estate, Petro-chemicals, IT and Telecoms,

Tourism and Hospitality, Media, Marketing and Advertising, Law and Legal Services,

23%

18%

9%

7%

5%

5%

5%

5%

4%4%

Manufacturing Financial ServicesTransport and Logistics Public Service and local governmentMining Non Governmental OrganisationsAgro-processing and agriculture EngineeringEducation Automotive

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Medicine & Pharmaceuticals, Distribution AND Quasi Government. Participants from these

sectors were a combined, 15.3% of this survey sample.

Human Resources practitioners from participating organisations participated in the survey.

In terms of their job title, 10.3% are Human Resources Director, 12.1% are Head Human

Resources, 8.6% are Human Resources Executive, 32.8% are Human Resources Manager,

17.2% are Human Resources Officer, 3.2% are Human Resources Specialist, and 6.9% are

Human Resources Administrators.

The minimum number of employees in our sample was 5, the maximum was 2,800 and the

range 2,795. The average number of employees per participating organisation was 493, and

the standard deviation of the number of employees was 654.1.

The minimum number of employees in the Human Resources departments of participating

organisations was 1, the maximum was 58; the range was 57 employees. The average number

of employees in the Human Resources department was 7, and the standard deviation of the

number of employees was 11.7.

Summary Findings

Most organisations (53%) range from high level of practice to moderate level of

practice with regards to the Human Resources Management areas that we assessed.

The highest levels of best practice are being noted in recruitment & selection and

induction processes. 66% of the participants can say they have high to extremely high

levels of practice (comparable to international standards) in this area.

Low levels of best practice are being noted with regards to staff training and

development, succession planning and employee engagement.

Only 9% of the respondents said they have an extremely high levels of practice

(comparable to international standards) with regards to staff training and

development. 22% said they have a basic level of practice. 17% said they have no

evidence of best practice.

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The most formidable challenges being noted with regards to staff training and

development are measuring the return on investment on training initiatives (50% of

participants) and undertaking skills audits to identify skills gaps (45% of participants).


(comparable to international standards) with regards to succession planning. 20% said

they have a basic level of practice. 29% said they have no evidence of best practice.

50% of the participants expressed difficultly in strategically planning their talent and

leadership needs on a long term (more than five years) basis.


(comparable to international standards) with regards to managing employee

engagement. 27% said they have a basic level of practice. 18% said they have no

evidence of best practice.

Only 20.7% of the participants undertake employee engagement surveys regularly (at

least once a year) and have current data on employee engagement levels in their

organisation.

Only 15.5% of the participants undertake customer satisfaction surveys regularly (at

least once a year) and have current data on customer satisfaction levels with their

organisation.

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Figure 3: Best Practice summary for each area assessed

There is a strong correlation between performance management and industrial

relations (r=0.748).

There is a strong correlation between recruitment and selection practices and

performance management (r=0.733).

There is a strong correlation between employee engagement and performance

management (r=0.713), performance related pay (r=0.658), industrial relations

(r=0.724), reward management (r=0.853), recruitment and selection practices (r=0.901)

and training and development (r=0.891).

There is a strongly correlations between staff turnover and employee absenteeism

levels (r=0.703).

Results

Critical Human Resources Indicators

Extremely high

level of practice

(comparable to

international

standards)

High level of

practice

Moderate level

of practice is

evident

Basic level of

practice is

evident

No evidence of

this practice

Recruitment and Selection 25% 38% 23% 8% 6%

Induction 41% 33% 14% 10% 2%

Performance Management 17% 30% 29% 18% 11%

Performance Related Pay 12% 19% 26% 21% 21%

Staff Training and Development 9% 17% 35% 22% 17%

Succession Planning 8% 12% 31% 20% 29%

Reward Systems 19% 35% 20% 10% 17%

Industrial Relations 21% 37% 22% 9% 12%

Employee Engagement 8% 24% 23% 27% 18%

Human Resources Impact 15% 36% 23% 14% 13%

Human Resources Technology 10% 17% 38% 24% 12%

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The table below outlines our findings with regards to critical Human Resources Performance

indicators. There are 8 indicators that we have assessed in this survey. We have not analysed

the quantum of the wage bill and company revenue as they are a function of a number of

variables and are best interpreted relative to these variables. For example, the wage bill is a

function of your headcount, revenue, cost structure – amongst others – and cannot be

interpreted meaningfully in its’ singularity without considering these variables. The same can

be argued for revenue. We have therefore presented critical ratios that we believe every

business should monitor.

Table 4: Critical HR Indicators Statistics

Indicator

% of survey

participants

who

maintain

information

% of survey

participants

who do not

maintain

information

Mean Percentile

25th Median

Percentile

75th Min. Max.

Customer

Satisfaction Index 15.5% 84.5% 70% 60% 66% 80% 54% 88%

Employee

Engagement/ Staff

Satisfaction Index

20.7% 79.3% 61% 53% 65% 70% 5% 97%

Staff Costs To

Income Ratio 53.4% 46.6% 29% 8% 13% 43% 0.00 160%

Wage Bill 74.1% 25.9% - - - - - -

Company Revenue 53.4% 46.6% - - - - - -

Labour cases that

went to the Labour

Court since 2009

82.8% 17.2% 3 0 1 4 0 35

Disciplinary cases

that the company

handled since 2013

79.3% 20.7% 17 2 4 12 0 300

Number of work

stoppages since

2009

75.9% 24.1% 1 0 0 0 0 12

Staff Turnover 87.9% 12.1% 6% 1% 3% 6% 0% 66%

Days lost due to

unplanned

absenteeism since

2013

69.0% 31.0% 227 3 15 50 0 5000

Note: The 25th, 50th (median) and 75th percentile is the data values below and above which 25%, 50%

and 75% of the data fall. For example if the median staff turnover is 6%, it means 50% of the survey

participants have a median turnover of 6%.

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Our findings suggest that most organisations’ Human Resources Departments are succeeding

in measuring and monitoring the basic Human Resource Management indicators but they are

not so successful in measuring the strategic indicators. For instance,

Only 15.5% of the participants measure Customer Satisfaction and correlate this

statistic to other Human Resources interventions and indicators;

Only 20.7% of the participants measure Employee Engagement or Staff Satisfaction

and correlate this statistic to other Human Resources interventions and indicators;

Only 53.4% of the participants are measuring and monitoring Staff Costs to Income

Ratios.

In contrast, the same organisations are keeping track of labour cases that go to the Labour

Court (82.8%), disciplinary cases that the company handles (79.3%), number of work

stoppages (75.9%), staff turnover (87.9%) and days lost due to unplanned absenteeism (69.0%).

We are noting a huge information gap between the Human Resources department and other

functions in the organisation. For example, as indicated above, only 53.4% and 15.5% of the

participating Human Resources Practitioners, respectively, are aware of their staff costs to

income and their Customer Satisfaction Index. This is worrying.

We observed similar information gaps in a Job Evaluation and Pay Structure Design research

that we recently undertook. In that survey, only 65% of the HR professionals had access to the

full payroll (both executive and other employees).

Recruitment and Selection

16.7% of the participants said they have an extremely high level of practice with regards to a

clearly defined recruitment strategy for different candidate pools. These participants said this

strategy is adhered to religiously. 40.5% said they have high level of this practice; 31.0% said

they have a moderate level of this practice; 7.1% said they have a basic level of this practice;

4.8% said that there is no evidence of this practice.

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Figure 5: Recruitment and Selection Best Practice Summary Results


clear recruitment and selection policy and procedure which conforms to legal statutes, and

which they follow at all times. 51.2% said they have a high level of this practice; 17.1% said

they have a moderate level; 4.9% said a basic level of this practice is evident; whilst 2.4% said

that there is no evidence of this practice.

19.0% of the participants said they have an extremely high level of practice with regards to

the use of other recruitment and selection methods over and above the formal interview.

These participants also said they have a structured system for utilising the extra selection

methods. 33.3% said they have a high level of this practice; 14.3% said they have a moderate

level; 16.7% said they have a basic level of this practice; whilst 16.7% said that there is no

evidence of this practice in their organisation.

0% 20% 40% 60% 80% 100%

6. There is a clearly defined recruitment strategy for

different candidate pools and its followed religiously

5. My organisation has clear recruitment and selection

policies and procedures which conform to legal statutes,

and which we follow at all times

4. My organisation uses other recruitment and selection

methods over and above the formal interview and we have

a structured system for utilising the extra selection methods

3. My organisation conducts thorough and carefully

documented background checks on all its employees before

hiring

2. Internal candidates are given opportunities to fill

vacancies first, before they are advertised to outsiders

1. All employees have formal and current contracts which

are in line with labour statutes

Extremely high level of practice (comparable to international standards)

High level of practice

Moderate level of practice is evident

Basic level of practice is evident

No evidence of this practice

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thorough and carefully documented background checks on all its employees before hiring.

35.7% said they have a high level of this practice; 31.0% said they have a moderate level; 11.9%

said they have a basic level of this practice; 2.4% said that there is no evidence of this practice

in their organisation.


giving internal candidates first preference to fill vacancies before the vacancies are advertised

to outsiders. 31.0% said they have a high level of this practice; 33.3% said they have a moderate

level; 4.8% said they have a basic level of this practice; 7.1% said that there is no evidence of

this practice in their organisation.

47.6% of the participants said they have an extremely high level of practice with regards to all

employees having formal and current contracts which are in line with labour statutes. 38.1%

said they have a high level of this practice; 9.5% said they have a moderate level; 2.4% said

they have a basic level of this practice; 2.4% said that there is no evidence of this practice in

their organisation.

Induction


formal and informative induction systems that apply to all employees regardless of level.





10.9% of the participants said that they have an extremely high level of practice with regards

to well-developed, comprehensive system for measuring and tracking organisational

performance. 37.0% said they have a high level of this practice; 30.4% said they have a

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moderate level; 17.4% said they have a basic level of this practice; 4.3% said that there is no


13.0% of the participants said that they have an extremely high level of this practice with

regards to a well-structured system to measure individual employee performance. These

participants said performance assessments are objective and are done regularly (at least twice

a year). 37.0% said they have a high level of this practice; 30.4% said they have a moderate

level; 13.0% said they have a basic level of this practice; 6.5% said that there is no evidence of

this practice in their organisation.

Figure 6: Performance Management Best Practice Summary Results

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

7. We have a well – developed, comprehensive system

for measuring and tracking organisational performance

6. A well-structured system exists to measure individual

employee performance. The assessments are objective

and are regularly done (at least 2 times a year)

5. Performance follow up plans are clear, effective and

all aspects are followed up to ensure continuous

improvement

4. The organization has documented evidence of clear

guidelines and policies on performance management

and assessments which are continuously being…

3. Organisation wide performance is formally

communicated every month to all employees in a way

understood by the majority of employees

2. All senior managers and executives are on

performance contracts

1. There is documented evidence that performance

appraisals or reviews are done at least twice a year, with

staff being given ample time to prepare






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performance follow-up plans. These participants said their performance follow up plans are

clear, effective and all aspects are followed up to ensure continuous improvement. 30.4% said

they have a high level of this practice; 43.5% said they have a moderate level; 13.0% said they

have a basic level of this practice; 6.5% said that there is no evidence of this practice in their

organisation.

15.2% of the participants said they have an extremely high level of practice in their

organisation with regards to documented evidence of clear guidelines and polices on

performance management and assessment which are continuously being implemented, and

communicated to all staff. 39.1% said they have a high level of this practice; 23.9% said they

have a moderate level; 15.2% said they have a basic level of this practice; 6.5% said that there

is no evidence of this practice in their organisation.

6.7% of the participants said they have an extremely high level of practice with regards to the

communication of company performance. These participants said organisation wide

performance is formally communicated every month to all employees in a way understood

by the majority of employees. 24.4% said they have a high level of this practice; 35.6% said

they have a moderate level; 24.4% said they have a basic level of this practice; 8.9% said that

there is no evidence of this practice in their organisation.


managing performance goals for their executives. These participants said all their senior

managers and executives are on performance contracts. 8.7% said they have a high level of

this practice; 17.4% said they have a moderate level; 23.9% said they have a basic level of this

practice; 32.6% said that there is no evidence of this practice in their organisation.


documented evidence on performance appraisals. These participants said performance

appraisals are done at least twice a years and document evidence exists to support this. These

participants also said that with each review, employees are given ample time (2 – 3 weeks) to

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prepare. 30.4% said they have a high level of this practice; 19.6% said they have a moderate

level; 17.4% said they have a basic level of this practice; 13.0% said that there is no evidence

of this practice in their organisation.

Performance Related Pay


goals setting and performance incentives. These participants said their organisations strives

to outperform their competitors by providing ambitious stretch targets with clearly visible

performance related incentives. 15.2% said they have a high level of this practice; 30.4% said



Figure 7: Performance Based Pay Best Practice Summary Results

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

My organisation strives to outperform its

competitors by providing ambitious stretch

targets with clearly visible performance related

incentives

Documented evidence exists that all promotions

are based on performance

Performance rewards are linked to financial and

non-financial results






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promoting staff based on performance. These participants said documented evidence exists

that shows that all promotions in their organisation are based on performance. 22.2% said



organisation.


linking performance rewards to financial and non-financial results. 20.0% said they have a

high level of this practice; 24.4% said they have a moderate level; 13.3% said they have a basic

level of this practice; 28.9% said that there is no evidence of this practice in their organisation.

Industrial Relations


fully functional workers’ committee which regularly meets in line with the constitution as

evidenced by minutes from several meetings. 35.6% said they have a high level of this practice;

24.4% said they have a moderate level; 2.2% said they have a basic level of this practice; 15.6%

said that there is no evidence of this practice in their organisation.

17.8% of the participants said they have an extremely high level of this practice with regards

to the workers committee constitution. These participants said their organisation has a

workers’ committee constitution which is applied in practice. 31.1% said they have a high

level of this practice; 22.2% said they have a moderate level; 13.3% said they have a basic level

of this practice; 15.6% said that there is no evidence of this practice in their organisation.


Works Council membership and functionality. These participants said their organisation has

a fully functional Work’s Council which has a balanced membership (employer

representatives and worker representatives). 37.8% said they have a high level of this practice;

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the implementation of Works Council resolutions. These participants said there is evidence

that resolutions of the Works Council are implemented. 37.8% said they have a high level of



Figure 8: Industrial Relations Best Practice Summary Results

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

9. My organisation has a fully functional workers

committee which regularly meets in line with the

constitution as evidenced by minutes from several…

8. My organisation has a workers committee

constitution which is applied in practice

7. My organisation has a fully functional works council

which has a balanced membership (employer reps and

worker reps)

6. There is evidence that resolutions of the works

council are implemented

5. My organisation has a clear set of policies and

procedures for termination of employment, known and

understood by all employees

4. My organisation has a registered code of conduct

with clear disciplinary proceedings, having a stamp

from the Ministry of Labour, and known by all staff

3. Our Code of Conduct has a clear and fair structure in

place which facilitates smooth settlement of grievances,

disputes and complaints

2. Grievances are handled within the time stipulated in

the policy

1. In the past 3 years, all labour cases at my organisation

have been dealt with successfully internally






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policies and procedures governing termination of employment. These participants said their

organisation has a clear set of policies and procedures for termination of employment known

and understood by all employees. 47.7% said they have a high level of this practice; 18.2% said

they have a moderate level; 9.1% said they have a basic level of this practice in their

organisation.


the development, implementation and maintenance of their Code of Conduct. These

participants said their organisation has a registered Code of Conduct with clearly defined

rules of conduct and disciplinary procedure. The Code is registered as evidenced by a stamp

from the Ministry of Labour and all employees know the content of the Code. 26.7% said they

have a high level of this practice; 17.8% said they have a moderate level; 6.7% said they have

a basic level of this practice; 20.0% said that there is no evidence of this practice in their

organisation.

Similarly, 23.3% of the participants said they have an extremely high level of practice with

regards to structure and use of their Code of Conduct. These participants said that their Code

has a clear and fair structure in place which facilitates smooth settlement of grievances,

disputes and complaints. 41.9% said they have a high level of this practice; 20.9% said they

have a moderate level; 7.0% said they have a basic level of this practice; 7.0% said that there is

no evidence of this practice in their organisation.


the handling of grievances – grievances are handled within the time stipulated in the policy.




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management of labour cases. These participants said within the past 3 years, all labour cases

at their organisation have been dealt with successfully internally. 34.1% said they have a high



Rewards Systems


transparent and motivating reward systems that reward superior performance. 20.9% said



organisation.

Figure 9: Reward Systems Best Practice Summary Results

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

6. My organisation has transparent and motivating

reward systems in place to reward superior

performance

5. My organisation has a well-designed pay structure

which is understood by employees

4. My organisation has a clear and fully documented

grading structure understood by employees

3. My organisation periodically reviews salaries in

line with its ability to pay and market trends

2. Overtime as a percentage of wage bill is very low

and there are strategies to reduce overtime to the

minimum

1. My organisation is current on payment of salaries






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11.6% of the participants said they have an extremely high level of this practice with regards

to pay structure design and maintenance in their organisation. These participants said their

organisation has a well-designed pay structure which is understood by employees. 37.2% said



organisation.


job grading. These participants said their organisation has a clear and fully documented

grading structure that is understood by employees. 48.8% said they have a high level of this

practice; 18.6% said they have a moderate level; 2.3% said they have a basic level of this



the salary reviews. These participants said their organisation periodically reviews salaries in

line with ability to pay and market trends. 34.9% said they have a high level of this practice;




managing overtime. These participants said that overtime as a percentage of the wage bill is

very low in their organisation and there are strategies to reduce overtime to the minimum.




48.8% of the participants said they have an extremely high level of the practice with regards

to paying salaries on time. These participants said they are current on the payment of salaries.

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Training


the presence and implementation of a training policy. These participants said they have a

training policy which is consistently being applied throughout their organisation. 28.6% said



organisation.

Figure 10: Training Best Practice Summary Results

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

7. We have a training policy and it is consistently

being applied

6. Learning and development activities are used for

insights regarding strategy development and there is

clear evidence of this link

5. Strategic goals are translated into required staff

capabilities per job family and we have strategies in

place to bridge the gap

4. Training needs are scientifically derived and there

are plans to address them. There is a tracking

mechanism to check success and failures in line…

3. The impact of training on the business, department

or individual performance changes is assessed and is

documented

2. Detailed individual development plans are

available and regularly tracked for progress

1. A formal training budget exists and it is followed

religiously






P a g e | 24



linking learning and development to the business strategy. These participants said, in their

organisation, learning and development activities are used for insights regarding strategy

development and there is clear evidence of this link. 11.9% said they have a high level of this



Similarly, 7.3% of the participants said they have an extremely high level of practice with

regards to translating strategic goals into required staff capabilities per job family. These

participants affirmed that they have and are already implementing strategies to bridge gaps

that they have identified. 24.4% said they have a high level of this practice; 36.6% said they



2.4% of the participants said they have an extremely high level of practice with regard to

defining training needs. These participants said training needs are scientifically derived and

there are plans to address them. There is a tracking mechanism to check success and failures

in line with the training needs. 16.7% said they have a high level of this practice; 45.2% said



7.1% of the participants said they have an extremely high level of practice with regard to

monitoring the impact of training and development initiatives. These participants said they

assess the impact of training on business, department or individual performance and

document these changes. 7.1% said they have a high level of this practice; 35.7% said they




development and implementation of personal employee development plans. These

participants said detailed individual development plans are available and regularly tracked

P a g e | 25


for progress. 14.3% said they have a high level of this practice; 35.7% said they have a

moderate level; 23.8% said they have a basic level of this practice; 19.0% said that there is no



the development and use of a training budget. These participants said their organisations have

a formal training budget and they religiously follow it. 19.0% said they have a high level of



Employee Engagement


monitoring employee engagement levels and implementing actions to improve the same.

These participants said they do employee engagement surveys at least once annually and

action plans are developed and tracked for progress. 19.5% said they have a high level of this




understanding their organisational culture and implementing initiatives that ensure that their

culture supports business strategy. These participants said there is evidence in their

organisation that they invest significantly in developing their organisational culture through

initiatives such as performance orientation, team building, customer care training – amongst

others. 28.6% said they have a high level of this practice; 21.4% said they have a moderate

level; 31.0% said they have a basic level of this practice; 11.9% said that there is no evidence

of this practice in their organisation.

P a g e | 26


Succession Planning


succession planning. These participants said they have a succession policy that clearly linked

to key business objectives and the policy is consistently applied. 9.5% said they have a high




strategically planning their talent and leadership needs. These participants said they

strategically plan their talent and leadership needs with a long term view (more than 5 years)

and this is done by department and expertise (critical skills). 14.3% said they have a high level

of this practice; 26.2% said they have a moderate level; 23.8% said they have a basic level of

this practice; 26.2% said that there is no evidence of this practice in their organisation.

Human Resource Impact


involvement of their Human Resources business partner in strategic planning for the business.

These participants said their Human Resources business partner is accepted by the business

as a strategic partner for all people related issues. 36.6% said they have a high level of this



P a g e | 27


Figure 11: Human Resources Impact Best Practice Summary Results


to the involvement of their top Human Resources department representative in their

organisations’ Management Committee (MANCO). These participants said their top Human

Resources department representative is a member of their organisation’s Management

Committee (MANCO) and actively participates in the same. 42.5% said they have a high level

of this practice; 12.5% said they have a moderate level; 15.0% said they have a basic level of

this practice; 5.0% said that there is no evidence of this practice in their organisation.


to a Human Resources budget that is linked to and supports business strategy. 31.7% said



organisation.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

4. Our HR business partners are accepted by the

business as strategic partners for all people

related issues

3. Our top HR representative is a member of the

company’s top highest management committee

2. We have a manpower budget (people, numbers)

linked to the business strategy

1. We measure the value added to the business by

human capital






P a g e | 28



to the measurement and monitoring of the value added to the business by its human capital.




Human Resources Technology


integration of new Technology in their Human Resources function. These participants

affirmed that their Human Resources systems are driven by technology in all key areas in

support of the business. 16.7% said they have a high level of this practice; 38.1% said they



P a g e | 29


Comments

A lot of work still needs to be done with regards to implementing and maintaining best

practices in Human Resources Management. As mentioned in this report, if HR is going to

increase its “value-add” and influence at the Executive table, with other company top

strategists and decisions makers, it must decide on what is core and non-core. The bottom-

line is, the role of Human Resources as we know it is changing. As the economy begins to

resurge and compete competitively, there are a number of management practices and business

fundamentals that will have to change with it. We believe that the positive result of these

changes is that HR professionals have the opportunity to play a more strategic role in the

business. However this can only be achieved through implementation of the best practice

detailed in this report.

P a g e | 30


Appendix 1: Correlations

Number Of

Employees

Number Of

People In

HR

Department

Absenteeism Staff

Turnover

Work

Stoppages

Disciplinary

Cases

Disciplinary

Cases -

Labour

Court

Number of

Employees

Pearson Correlation 1 .316* .283* .224 .114 .191 -.006

Sig. (2-tailed) .020 .044 .111 .402 .158 .968

N 56 54 51 52 56 56 56

Number Of People In

HR Department

Pearson Correlation .316* 1 -.004 .325* .087 .479** .189

Sig. (2-tailed) .020 .976 .019 .534 .000 .172

N 54 54 51 52 54 54 54

Absenteeism Pearson Correlation .283* -.004 1 .703** .057 .090 -.131

Sig. (2-tailed) .044 .976 .000 .692 .531 .359

N 51 51 51 51 51 51 51

Staff Turnover Pearson Correlation .224 .325* .703** 1 .212 .462** .074

Sig. (2-tailed) .111 .019 .000 .132 .001 .604

N 52 52 51 52 52 52 52

Work Stoppages Pearson Correlation .114 .087 .057 .212 1 .097 .469**

Sig. (2-tailed) .402 .534 .692 .132 .475 .000

N 56 54 51 52 56 56 56

Disciplinary Cases Pearson Correlation .191 .479** .090 .462** .097 1 .267*

Sig. (2-tailed) .158 .000 .531 .001 .475 .047

N 56 54 51 52 56 56 56

Disciplinary Cases -

Labour Court

Pearson Correlation -.006 .189 -.131 .074 .469** .267* 1

Sig. (2-tailed) .968 .172 .359 .604 .000 .047

N 56 54 51 52 56 56 56

P a g e | 31


Number Of

Employees

Number Of

People In

HR

Department

Absenteeism Staff

Turnover

Work

Stoppages

Disciplinary

Cases

Disciplinary

Cases -

Labour

Court

Wage Bill Pearson Correlation .602** .338 -.057 .010 .132 .212 -.061

Sig. (2-tailed) .000 .068 .772 .959 .470 .245 .739

N 32 30 28 28 32 32 32

Revenue Pearson Correlation .571** .185 -.009 .132 .120 .025 -.121

Sig. (2-tailed) .000 .241 .955 .410 .438 .871 .435

N 44 42 41 41 44 44 44

Employee

Engagement Index

Pearson Correlation -.216 .053 .004 .109 .135 .105 .078

Sig. (2-tailed) .159 .737 .982 .498 .384 .499 .614

N 44 42 41 41 44 44 44

Customer

Satisfaction Index

Pearson Correlation -.222 .039 -.008 .081 .192 .068 .136

Sig. (2-tailed) .137 .801 .958 .599 .200 .655 .369

N 46 44 44 44 46 46 46

Performance

Management

Pearson Correlation .098 .306* -.085 .090 .073 .257 .365**

Sig. (2-tailed) .478 .026 .555 .527 .596 .059 .006

N 55 53 51 52 55 55 55

Performance Related

Pay

Pearson Correlation .009 .300* -.097 .140 .165 .275* .378**

Sig. (2-tailed) .948 .029 .500 .321 .229 .042 .004

N 55 53 51 52 55 55 55

Industrial Relations Pearson Correlation .162 .356** -.085 .078 .058 .237 .321*

Sig. (2-tailed) .237 .009 .555 .583 .675 .081 .017

N 55 53 51 52 55 55 55

Reward Management Pearson Correlation -.032 .248 -.108 .048 .143 .178 .389**

Sig. (2-tailed) .817 .073 .452 .736 .297 .194 .003

N 55 53 51 52 55 55 55

P a g e | 32


Number Of

Employees

Number Of

People In

HR

Department

Absenteeism Staff

Turnover

Work

Stoppages

Disciplinary

Cases

Disciplinary

Cases -

Labour

Court

Recruitment Pearson Correlation .006 .232 -.103 .046 .090 .169 .443**

Sig. (2-tailed) .963 .095 .471 .746 .512 .216 .001

N 55 53 51 52 55 55 55

Training Pearson Correlation -.017 .231 -.148 .088 .106 .190 .431**

Sig. (2-tailed) .901 .096 .300 .536 .439 .164 .001

N 55 53 51 52 55 55 55

Induction Pearson Correlation .001 .258 -.105 .077 .039 .225 .388**

Sig. (2-tailed) .994 .062 .465 .587 .778 .099 .003

N 55 53 51 52 55 55 55

Employee

Engagement Surveys

Pearson Correlation -.006 .253 -.114 .042 -.006 .194 .346**

Sig. (2-tailed) .964 .067 .426 .765 .968 .157 .010

N 55 53 51 52 55 55 55

Succession Planning

And Talent

Management

Pearson Correlation .005 .261 -.103 .075 .043 .232 .382**

Sig. (2-tailed) .973 .059 .470 .596 .753 .088 .004

N 55 53 51 52 55 55 55

H.R Impact Pearson Correlation -.028 .248 -.116 .180 .027 .187 .390**

Sig. (2-tailed) .842 .073 .419 .202 .846 .172 .003

N 55 53 51 52 55 55 55

H.R Technology Pearson Correlation .003 .259 -.097 .083 .041 .227 .386**

Sig. (2-tailed) .981 .061 .497 .561 .765 .095 .004

N 55 53 51 52 55 55 55

P a g e | 33


Revenue

Employee

Engagement

Index

Customer

Satisfaction

Index

Performance

Management

Performance

Related Pay

Industrial

Relations

Reward

Management

Number of

Employees

Pearson Correlation .571** -.216 -.222 .098 .009 .162 -.032

Sig. (2-tailed) .000 .159 .137 .478 .948 .237 .817

N 44 44 46 55 55 55 55

Number Of People In

HR Department

Pearson Correlation .185 .053 .039 .306* .300* .356** .248

Sig. (2-tailed) .241 .737 .801 .026 .029 .009 .073

N 42 42 44 53 53 53 53

Absenteeism Pearson Correlation -.009 .004 -.008 -.085 -.097 -.085 -.108

Sig. (2-tailed) .955 .982 .958 .555 .500 .555 .452

N 41 41 44 51 51 51 51

Staff Turnover Pearson Correlation .132 .109 .081 .090 .140 .078 .048

Sig. (2-tailed) .410 .498 .599 .527 .321 .583 .736

N 41 41 44 52 52 52 52

Work Stoppages Pearson Correlation .120 .135 .192 .073 .165 .058 .143

Sig. (2-tailed) .438 .384 .200 .596 .229 .675 .297

N 44 44 46 55 55 55 55

Disciplinary Cases Pearson Correlation .025 .105 .068 .257 .275* .237 .178

Sig. (2-tailed) .871 .499 .655 .059 .042 .081 .194

N 44 44 46 55 55 55 55


Labour Court

Pearson Correlation -.121 .078 .136 .365** .378** .321* .389**

Sig. (2-tailed) .435 .614 .369 .006 .004 .017 .003

N 44 44 46 55 55 55 55

Wage Bill Pearson Correlation -.026 -.157 -.179 -.126 -.149 .190 -.180

P a g e | 34


Revenue

Employee

Engagement

Index

Customer

Satisfaction

Index

Performance

Management

Performance

Related Pay

Industrial

Relations

Reward

Management

Sig. (2-tailed) .893 .452 .391 .500 .422 .306 .333

N 30 25 25 31 31 31 31

Revenue Pearson Correlation 1 .102 .090 -.068 -.085 -.092 -.099

Sig. (2-tailed) .559 .596 .661 .584 .555 .521

N 44 35 37 44 44 44 44

Employee

Engagement Index

Pearson Correlation .102 1 .936** -.200 .126 .095 .165

Sig. (2-tailed) .559 .000 .193 .415 .538 .285

N 35 44 43 44 44 44 44

Customer

Satisfaction Index

Pearson Correlation .090 .936** 1 -.262 .094 .058 .132

Sig. (2-tailed) .596 .000 .079 .533 .700 .383

N 37 43 46 46 46 46 46

Performance

Management

Pearson Correlation -.068 -.200 -.262 1 .796** .748** .754**

Sig. (2-tailed) .661 .193 .079 .000 .000 .000

N 44 44 46 55 55 55 55

Performance Related

Pay

Pearson Correlation -.085 .126 .094 .796** 1 .638** .703**

Sig. (2-tailed) .584 .415 .533 .000 .000 .000

N 44 44 46 55 55 55 55

Industrial Relations Pearson Correlation -.092 .095 .058 .748** .638** 1 .728**

Sig. (2-tailed) .555 .538 .700 .000 .000 .000

N 44 44 46 55 55 55 55

Reward Management Pearson Correlation -.099 .165 .132 .754** .703** .728** 1

Sig. (2-tailed) .521 .285 .383 .000 .000 .000

N 44 44 46 55 55 55 55

Recruitment Pearson Correlation -.106 .152 .125 .733** .758** .712** .860**

P a g e | 35


Revenue

Employee

Engagement

Index

Customer

Satisfaction

Index

Performance

Management

Performance

Related Pay

Industrial

Relations

Reward

Management

Sig. (2-tailed) .492 .323 .408 .000 .000 .000 .000

N 44 44 46 55 55 55 55

Training Pearson Correlation -.098 .160 .126 .716** .675** .686** .857**

Sig. (2-tailed) .527 .299 .406 .000 .000 .000 .000

N 44 44 46 55 55 55 55

Induction Pearson Correlation -.110 .140 .100 .761** .696** .725** .892**

Sig. (2-tailed) .476 .366 .508 .000 .000 .000 .000

N 44 44 46 55 55 55 55

Employee

Engagement Surveys

Pearson Correlation -.115 .149 .111 .713** .658** .778** .853**

Sig. (2-tailed) .455 .334 .464 .000 .000 .000 .000

N 44 44 46 55 55 55 55

Succession Planning

And Talent

Management

Pearson Correlation -.113 .142 .103 .763** .699** .724** .891**

Sig. (2-tailed) .464 .357 .494 .000 .000 .000 .000

N 44 44 46 55 55 55 55

H.R Impact Pearson Correlation -.115 .168 .128 .659** .622** .627** .799**

Sig. (2-tailed) .458 .274 .396 .000 .000 .000 .000

N 44 44 46 55 55 55 55

H.R Technology Pearson Correlation -.106 .141 .100 .762** .696** .724** .892**

Sig. (2-tailed) .493 .363 .510 .000 .000 .000 .000

N 44 44 46 55 55 55 55

P a g e | 36


Recruitment Training Induction

Employee

Engagement

Surveys

Succession

Planning and

Talent

Management

H.R Impact H.R

Technology

Number of

Employees

Pearson Correlation .006 -.017 .001 -.006 .005 -.028 .003

Sig. (2-tailed) .963 .901 .994 .964 .973 .842 .981

N 55 55 55 55 55 55 55

Number Of People In

HR Department

Pearson Correlation .232 .231 .258 .253 .261 .248 .259

Sig. (2-tailed) .095 .096 .062 .067 .059 .073 .061

N 53 53 53 53 53 53 53

Absenteeism Pearson Correlation -.103 -.148 -.105 -.114 -.103 -.116 -.097

Sig. (2-tailed) .471 .300 .465 .426 .470 .419 .497

N 51 51 51 51 51 51 51

Staff Turnover Pearson Correlation .046 .088 .077 .042 .075 .180 .083

Sig. (2-tailed) .746 .536 .587 .765 .596 .202 .561

N 52 52 52 52 52 52 52

Work Stoppages Pearson Correlation .090 .106 .039 -.006 .043 .027 .041

Sig. (2-tailed) .512 .439 .778 .968 .753 .846 .765

N 55 55 55 55 55 55 55

Disciplinary Cases Pearson Correlation .169 .190 .225 .194 .232 .187 .227

Sig. (2-tailed) .216 .164 .099 .157 .088 .172 .095

N 55 55 55 55 55 55 55


Labour Court

Pearson Correlation .443** .431** .388** .346** .382** .390** .386**

Sig. (2-tailed) .001 .001 .003 .010 .004 .003 .004

N 55 55 55 55 55 55 55

Wage Bill Pearson Correlation -.155 -.156 -.167 -.174 -.152 -.177 -.166

Sig. (2-tailed) .406 .401 .370 .349 .414 .342 .373

N 31 31 31 31 31 31 31

Revenue Pearson Correlation -.106 -.098 -.110 -.115 -.113 -.115 -.106

Sig. (2-tailed) .492 .527 .476 .455 .464 .458 .493

P a g e | 37



Employee

Engagement

Surveys

Succession

Planning and

Talent

Management

H.R Impact H.R

Technology

N 44 44 44 44 44 44 44

Employee

Engagement Index


Sig. (2-tailed) .323 .299 .366 .334 .357 .274 .363

N 44 44 44 44 44 44 44

Customer

Satisfaction Index


Sig. (2-tailed) .408 .406 .508 .464 .494 .396 .510

N 46 46 46 46 46 46 46

Performance

Management


Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000

N 55 55 55 55 55 55 55

Performance Related

Pay


Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000

N 55 55 55 55 55 55 55

Industrial Relations Pearson Correlation .712** .686** .725** .778** .724** .627** .724**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000

N 55 55 55 55 55 55 55

Reward Management Pearson Correlation .860** .857** .892** .853** .891** .799** .892**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000

N 55 55 55 55 55 55 55

Recruitment Pearson Correlation 1 .917** .950** .901** .953** .853** .950**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

N 55 55 55 55 55 55 55

Training Pearson Correlation .917** 1 .944** .891** .946** .936** .943**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

N 55 55 55 55 55 55 55

Induction Pearson Correlation .950** .944** 1 .954** .999** .909** 1.000**

P a g e | 38



Employee

Engagement

Surveys

Succession

Planning and

Talent

Management

H.R Impact H.R

Technology

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

N 55 55 55 55 55 55 55

Employee

Engagement Surveys

Pearson Correlation .901** .891** .954** 1 .950** .854** .952**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

N 55 55 55 55 55 55 55

Succession Planning

And Talent

Management

Pearson Correlation .953** .946** .999** .950** 1 .907** .999**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

N 55 55 55 55 55 55 55

H.R Impact Pearson Correlation .853** .936** .909** .854** .907** 1 .908**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

N 55 55 55 55 55 55 55

H.R Technology Pearson Correlation .950** .943** 1.000** .952** .999** .908** 1

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

N 55 55 55 55 55 55 55

P a g e | 39


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