Delivering HR
Services in South Africa 2008 Survey Results
In September 2008
Workinfo.com invited approximately 20 000 South African
companies to participate in the first Workinfo.com annual
online survey on the delivery of HR services in South
Africa.
This survey, which
was sent mainly to HR professionals and explores the
following aspects of HR service delivery within and to South
African companies:
-
the ratio of HR professionals to
employees.
-
the top HR delivery issues facing
these companies.
-
which HR functions are outsourced and
the resultant effect on the HR workload?
-
which HR related self service
facilities do these companies offer?
-
which areas of HR do companies plan
to invest in during the coming year?
-
how many companies have Strategic HR
plans and Workforce / Succession Plans in place?
In our dynamic South
African labour market, business is becoming more deliberate
in its attempts to manage and measure people.
We are often
inundated with survey information and statistics indicating
trends in the USA and other market leading countries. We are
then tempted to use this information, applying the findings
directly into the South African labour market, and not
reaping the desired benefits. This leads HR professionals
back to reaction mode and future strategic opportunities are
lost.
The survey was
targeted at HR professionals with 56% of responses from
smaller companies (fewer than 500 employees).
The survey was
conducted across a full spectrum of industries with the
majority of responses from the manufacturing and trade
sector.
Great interest lies
in the top HR delivery issues facing SA companies as well as
the battle between outsourcing vs. in-house services.
The main area of
concern still lies with the lack of HR Strategy with
60% of respondents indicating that they had no strategy or
it was still being developed.
Self Service
being the way of the future
One of the pivotal
requirements of any HR strategy rests in the support that
Human Resource systems offer. The power of information and
the accuracy thereof, is primary when dealing with HR
strategy and defining future action paths. Human Resource
data is often questionable and lacking integrity.
Self service is
considered the way of the future but has been around for a
number of years. Yet in South Africa when asked about self
service facilities we found only 25.8% of companies offer
the policies and procedures through this mechanism. If
policies and procedures are not freely available through a
self service facility it shows a huge reliance on HR to
advise the business on the primary rules of operation. Not
only is this time consuming but indicates that HR is not
empowering the business through improved HR service.
The top three areas
that have been made available in terms of self service
are:
1.
Access to HR policies and procedures 25.8%
2.
Leave and claims procedures 18.8% and
3.
Job vacancies at 13.6%
|
Access to HR
policies and procedures |
25.8% |
|
Leave and claims
procedures |
18.8% |
|
Job vacancies |
13.6% |
|
Benefits
information |
12.1% |
|
Learning and
development |
10.3% |
|
Payroll
information |
9.9% |
|
Induction |
8.8% |
|
Other |
<1% |
Employee Self
Service Facilities
The automation of
induction is also an interesting point, how do you instil a
company culture and value system to a new employee? This is
the most important opportunity a business has to connect
with a new employee. This is the one area that I would
challenge HR people not to lose direct contact with their
employees, technology can assist but can never replace the
impact of face to face communication, storytelling and
experience.
The most obvious
area to automate is the leave and claims procedure having
only 18.8% usage begs the question of HR efficiency, as well
as system support.
HR professionals are
tired of acting as operators and not business partners, yet
we are not seeing strong enough steps to move away from
administrative responsibilities.
When asked if
employee or management self service facilities changed the
workload for HR professionals, 54% indicated that there had
been no change, whilst 23% indicated a reduction in
workload. Interestingly 11% indicated that self service
facilities have actually increased the workload pressures
experienced by HR.
|
Staff surveys |
13.2% |
|
Ad hoc HR related projects |
12.7% |
|
Industrial Relations |
12.1% |
|
IT Support |
12.1% |
|
Recruitment |
10.9% |
|
Learning and Development |
10.9% |
|
Benefits administration |
10.4% |
|
Payroll |
7.5% |
|
Compensation management |
3.4% |
|
Other |
2.8% |
|
HR Administration |
1.7% |
|
HR related marketing |
1.1% |
|
Employee and stakeholder
communication |
<1% |
|
Outsourced HR Services |
What HR
services are being outsourced?
HR is quite
obviously a specialised role; companies would not consider
outsourcing services to professional providers if the job did
not require expert commitment. The area most outsourced was
staff surveys at 13.2%; this makes sense as companies want to
create an opportunity of secure communication and
confidentiality. HR administration is still very keenly held in
house with 1.7% of respondents outsourcing this role. Only 3.2%
of respondents indicated that Employee or Management self
service formed part of their current HR Strategy.
Strategic HR
Planning
For years HR has been
willing the opportunity of business partnership, yet there is a
strong inclination to hold on to all the administrative
responsibilities. This leaves HR with a reactive platform in a
proactive environment. What is of most concern is that 60% of
companies have either no HR Strategy or are still
compiling one!
|
Do have an HR Strategy |
40.0% |
|
Do NOT have an HR Strategy |
30.0% |
|
Busy with an HR Strategy |
30.0% |
Until HR can produce
proactive business information there will never be a shift from
operational to strategic business partnerships.
Only 25% of companies
indicated that they have a clear workforce and succession plan.
Considering the frightening skills shortages that face the South
African economy, this lack of focus could potentially be lethal
to our businesses. The US Bureau of Labour Statistics projects a
shortfall of 10 million workers in the United States by 2010.
There is global competition for jobs, more businesses are
realising that the same concept about customers applies to
employees: it's easier to keep one than get a new one," says
managing director of PAG, Lawrence Wordon.
The shortage is further complicated by an
increase in HIV/AIDS related deaths amongst the 25-35 year olds,
which affects the development of future managers and business
leaders.
|
Are you busy with a
workforce and succession plan |
40.0% |
|
Do NOT have a
workforce and succession plan |
35.0% |
|
Do have a workforce
and succession plan |
25.0% |
The top 5 HR
Delivery Issues
This area of the survey
is certainly an area that indicates the focus of the HR mindset
and may assist some organisations with ideas around improving
the HR contribution and service delivery.
The top 5 HR focus areas
are:
1)
Performance Management
2)
Talent Management
3)
Recruitment and selection
4)
HR processes and systems
5)
Compensation and benefits
Top HR services
delivery issues
|
Performance management |
14.7% |
|
Talent management |
13.0% |
|
HR processes and
systems |
12.6% |
|
Recruitment and
selection |
12.8% |
|
Compensation and
benefits |
11.6% |
|
Skills availability |
10.5% |
|
Employment Equity |
8.5% |
|
Availability of
reliable HR data |
7.4% |
|
Implementing or
upgrading HR IT systems |
3.7% |
|
Employee self service |
2.0% |
|
Other |
1.4% |
|
Manager self service |
1.2% |
What is important to
note is that skills availability in South Africa did not make
the top 5 HR issues. Instead HR Departments seem to have a focus
on ensuring the workforce is well disciplined in its delivery
(seen through the high performance management, process control
and systems focus). Furthermore cultural value and
transformation is not seen as a focus area for HR in 2009.
HR Investment for
2009 Budget allocation
The two key areas of
investment for 2009 are talent management and learning and
development. The top 5 areas of investment show some
correlation to the 5 key focus areas. One of the interesting
focus areas is HR Technology where there is a noticeable
investment recorded. This investment will hopefully translate
into a change of focus in the future of the HR discipline.
Where are SA
companies planning to invest their money in 2009
|
Learning and
development |
21.3% |
|
Talent management |
21.3% |
|
Performance management |
19.6% |
|
HR technology |
15.0% |
|
HR process and
procedures |
12.9% |
|
Self service
technology |
8.7% |
|
Other |
<1% |
The above graph shows
a comparison between what has been identified as the key focus
areas for HR and the intended investment areas for HR in 2009.
Ratio of HR
professionals to number of people
In terms of an HR
service to people ratio, it would be hard to argue against a
simple equation of the more people you have offering a service,
the better the service offering can be.
>no of service
providers = the> service received
In the case of HR
offering a service to the company, it is difficult to measure
the actual number of HR people involved, especially since some
services are outsourced. However based on the information
received on average every 1 HR person in an organisation
services 90 employees.
A greater need to use
technology and self service models becomes evident.
Balancing work and
life
Working in a knowledge
based economy places pressures on employees to maintain a work
performance standard, as well as to recover from the stresses of
everyday challenges. Work life balance is a measure of finding
the equilibrium. The survey results indicate that 46% of
respondents do not believe that they have found this balance.
This indicates a high demand for delivery on performance, which
correlates directly to the number one focus area indicated as
performance management.
Conclusion HR
service offerings in RSA
The need for HR Strategy
and alignment to business goals is paramount. HR needs to
automate processes where technology can assist, at the same time
not lose the humanitarian touch that ensures that people stay
connected to organisations. Budgets are required to be well
thought out and aligned to the main focus areas for 2009. Key
focus areas include Talent Management and Performance Management
which highlights the need for the attraction and retention of
skills. However there is still evidence of a strong
administration focus remaining present in the HR portfolio.
More attention needs to
be given to development and the attraction of skills, as well as
the need for more individualised benefit packages.
Employment equity and
transformation have not attained a high level of focus, which
may require interventions to force the attention during the next
3- 5 years.
Workinfo.com will be
conducting a similar survey in 2009 in order to measure any
changes or trends in terms of HR service delivery in South
Africa. All participants received a detailed outline of the
survey results.
For in-house surveys
and climate studies contact:
Tracey Lander
Tel: 011 781 4228 (Office)
Fax: 086 6897210
Cell: 083 225 4846
Email: tracey@workinfo.com |