Application of Human Resources (HR) Risk Management, HRM Auditing and Skills Auditing best practice principles, processes, tools and techniques

1. HRM RISK MANAGEMENT, -AUDITING
AND SKILLS AUDITING
CHARLES COTTER Ph.D candidate, MBA, B.A (Hons), B.A
www.slideshare.net/CharlesCotter
ACCRA, GHANA
24-26 JULY 2017

2. 3-DAY, TRAINING PROGRAMME
OVERVIEW
• Introduction and Preview
• Day 1: HRM Risk Management
• Day 2: HRM Auditing
• Day 3: Skills Auditing
• Conclusion and Review

4. HR RISK MANAGEMENT

5. INTRODUCTORY LEARNING ACTIVITY
• Refer to page 10 of the Learner Manual
• Complete the following statement by inserting one (1) word. As
an HR Manager, in order to effectively identify and manage HR
risks, I need to/to be…………………………………………………………………..
• Jot this word down and find other learners who have written
down the same word.
• Write this word down on the flip-chart. Each learner will be
allowed the opportunity to elaborate on their respective choice
of words.

6. THE FUNDAMENTALS OF HRM RISK
MANAGEMENT
• Defining Risk and Risk Management
• Defining HR Risk Management
• The purpose and objectives of HRM Risk
Management
• Applying Risk Management to HRM
• Benefits of HR Risk Management

7. DEFINING HR RISK MANAGEMENT
• HR risk is thus any people, culture or governance factor causing
uncertainty in the business environment that could adversely
impact on the company’s operations.
What are the HR risks that could jeopardize management in achieving its
business objectives?
How serious are these risks, i.e. what are the impact of these HR risks?
What can we do about it, i.e. how can we mitigate the HR risks?
• HR Risk Management is a systematic approach of identifying and
addressing people factors (uncertainties and opportunities) that
can either have a positive or negative effect on the realization of
the objectives of an organization. (SABPP)

9. PURPOSE AND OBJECTIVES OF HR RISK
MANAGEMENT
• To increase the probability and impact of positive events and decrease the
probability and impact of negative events caused by people factors on the
achievement of organizational objectives
• To align HR and people management practices within the governance, risk
and compliance framework and integrated reporting model of the
organization
• To ensure appropriate risk assessment practices and procedures relating to
people factors are embedded within the organization
• To ensure appropriate risk controls are designed and applied to HR
activities and interventions
• To contribute in creating and sustaining a risk culture in an organization
which also encourages innovation and creativity

10. APPLYING RISK MANAGEMENT TO HRM
• “The role of HR is to decrease the HR risk profile of the
organization.” (Leon Steyn)
• “A key risk in future – just like today – is people risk. We live in a
country with a dearth of skills. So a key test of entrepreneurship
is how you develop people. One of the big lessons from Bidvest is
that you grow by growing people and working together. You
rarely find bad people in business. The problem is usually a bad
fit. Give people the right opportunity, the right tools and training,
and they will perform.” (Brian Joffe)
• “People represent a cause of operational risk that is as important
(if not more important than) other causes such as failed systems,
processes and information flows.” (Gilbert Renel)

11. BENEFITS OF HR RISK MANAGEMENT

12. BENEFITS OF HR RISK MANAGEMENT

13. LEARNING ACTIVITY 1
• Refer to page 13 in the Learner Manual
• By means of a cost-benefit analysis, build a
business case for efficient and effective HRM Risk
Management.
• Present a summary of group discussion

14. RESEARCH-BASED REALITY CHECK
• Human capital is the biggest business risk in South Africa (Human
Capital Institute Africa);
• Human Capital is the biggest concern for CEOs (Pwc CEO study);
• Only 18% of CEOs feel confident that they have the right people to
execute business strategy (Corporate Executive Board);
• Strikes cost South Africa R200 million a day;
• South Africa is losing R12 billion a year due to absenteeism;
• World-wide only 13% of employees are actively engaged (Gallup)

15. PROMINENT HR RISKS
• Compliance with legislation
• Understanding trends in the business environment
• People and corporate culture
• Implementing business strategy
• Carrying out operations

16. SABPP RESEARCH

17. HUMAN CAPITAL INSTITUTE RESEARCH

18. AON HEWITT EXPERIENCE

19. TRANSFORMING THE HR RISK
MANAGEMENT PROCESS

20. GUIDELINES FOR MANAGING HR RISK
• #1: Redesign your organization’s HR plan to include HR risk management.
• #2: Read more about risk management to gain a proper understanding of
the importance of risk management and governance in the workplace.
• #3: Arrange a meeting with your organization’s CRO or head of risk.
• #4: Ensure that key staff members in your organization have the proper
training and education for managing risk.
• #5: Liaise with line managers to explore opportunities where you can help
to create and nurture a risk management culture in your organization.

21. GUIDELINES FOR MANAGING HR RISK
• #6: Check whether your organization’s risk register has a record of HR risks
and assist the CRO and line managers to identify risk management
strategies to deal with these risks.
• #7: Excellent people and talent management are the best bulwarks
against HR risks.
• #8: Support the board by ensuring that the company appoints a highly
competent CRO and other risk managers for different business units.
• #9: Introduce robust HR risk controls, monitoring systems and respond
appropriately to any HR risks by using early warning systems before an HR
risk starts to threaten the sustainability of the organization.
• #10: Consider holding regular meetings with staff members to discuss HR
risk factors that may affect business operations.

22. LEARNING ACTIVITY 2
• Refer to page 25 in the Learner Manual
• Indicate whether you believe that people risk is a
serious/priority risk and a strategic imperative in your
organization. Substantiate your answer. If not a
priority/strategic imperative, describe how HRM can
transform this process.
• By referring to the guidelines to HR Risk Management (2.9),
critically review and evaluate current HRM Risk
Management practices. Identify gaps and recommend
improvement strategies.
• Present a summary of group discussion

23. STAKEHOLDERS INVOLVED IN THE RISK
MANAGEMENT PROCESS
• King IV Report on Corporate Governance
• Key Stakeholders – Professional Associations
• Implementation of the South African Board of
People Practice (SABPP) view and model of HRM
Risk Management

24. POWER-INTEREST STAKEHOLDER MATRIX

25. LEARNING ACTIVITY 3
• Refer to page 28 in the Learner Manual
• Perform a stakeholder analysis of internal and
external influencing forces compelling your
organization to effectively manage HR risks. Plot
this stakeholder analysis in the Power-Interest
Matrix.
• Present a summary of group discussion

26. A HR RISK MANAGEMENT CONCEPTUAL
FRAMEWORK

28. STEP 1: IDENTIFY HR RISKS
• The identified risks must be recorded and documented in a HR risk management
register.
• This process will be guided and defined by the organizational Risk Management
procedure.
 Identify the HR risks that you'll either need to manage or accept
 List all of the likely HR risks that your organization faces
• Every activity of an organization poses a risk so brainstorm and document the risks.
Consider both the general risks and the risks specific to your organization.
• Refer to list of typical risks
• Tip: Involving staff, volunteers and board members in the risk identification process
will give you a comprehensive picture of the risks based on different people's
involvement in different areas of the organization.

32. STEP 2: ANALYZE HR RISKS
• The chart allows HR Managers to rate potential risks on these two
dimensions.
The probability that a risk will occur is represented on one axis of the
chart
The impact of the risk, if it occurs, on the other.
• HR Managers can use these two measures to plot the risk on the
chart.
• HR Managers can then decide what resources they will allocate to
managing that particular risk.
• Risk Impact/Probability Chart.

34. STEP 3: PRIORITIZE HR RISKS

35. LEARNING ACTIVITY 4
• Group Discussion:
• Apply steps 1-3 of the HR Risk Management
process to a selected organization.

36. STEP 4: RISK RESPONSE AND
IMPLEMENTATION

37. HR RISK MANAGEMENT ACTION PLAN
TEMPLATE

38. RISK RESPONSE IMPLEMENTATION
• When you have decided which risk management
strategies will be the most effective & affordable for
your organization, practically outline the steps and
who is responsible for each step in the risk
management plan.
• Provide training for all organizational staff and
volunteers so they understand the rationale of the risk
management plan as well as the expectations,
procedures, forms etc.
• Communicate the plan and ensure that there is buy-in
from all who are involved in the organization.

40. STEP 5: RISK EVALUATION
• Risk Monitoring
Is your plan working?
Have your risks changed?
Have you expanded or reduced your programs and services?
Are changes or updates required?
Are staff and volunteers following the risk management plan?
Do they need re-training on the details?
Do we need to better communicate the plan?
• Tip: Risk management is an evolving field. Therefore, it is a good
practice to keep current and re-evaluate your organization's risk
management system on an annual basis.
• Risk Control

41. HR RISK CONTROL PROCESS

42. LEARNING ACTIVITY 5
• Group Discussion:
• Apply steps 4-5 of the HR Risk Management
process to a selected organization.

43. CASE STUDY 1: HR RISK MANAGEMENT
NEDBANK

44. LEARNING ACTIVITY 6
• Refer to pages 41-42 in the Learner Manual.
Answer the three (3) case studies questions.
• Present a summary of group discussion

45. CASE STUDY 2: STREAMLINING HR RISK
MANAGEMENT (24 HOUR FITNESS)
• Refer to and review pages 43-45
Timeliness of the reports
Accuracy of the information
Customer Service
Compliance
• “By working closely with our new partner, we finally
achieved what every HR team longs for: more time to
devote to meaningful strategic human resource
initiatives.”

46. LEARNING ACTIVITY 7
• Refer to page 46 in the Learner Manual. Answer
the two (2) case studies questions.
• Present a summary of group discussion

47. HRM AUDITING

48. THE FUNDAMENTALS OF HRM
AUDITING
• Defining a HRM Audit
• The driving forces of HRM Auditing
• The purpose, objectives and functions of HRM
Auditing
• Benefits and costs (drawbacks) of HRM Auditing

49. DEFINING HRM AUDIT
• An HR Audit as “an intensely objective look at the company’s HR policies,
practices, procedures and strategies in order to protect the company,
establish best practices and identify opportunities for improvement.”
(SHRM)
• A Human Resources Audit is a review of current Human Resources
practices, policies, procedures, documentation and systems and will assist
you to identify strengths and needs for improvement. It will provide
direction and recommend the courses of action to be taken to ensure
compliance with ever-changing laws, rules and regulations.
• A HR audit is a way to diagnose problems in a company’s HR department.
• Auditing is evidence based.

50. DRIVING FORCES OF HRM AUDITING
• Alignment of HR strategies and practices with strategic objectives of the
organization;
• Managing employment practice liability risks;
• Government compliance (skills audit);
• Understanding and determining the impact of HR policies, procedures and
practices;
• People investments need to be quantified to demonstrate a return on
investment; and
• Roughly, over two-thirds of an organization’s money is spent on people.

52. MAIN GOALS OF HRM AUDIT
• The goal is the independent and objective evaluation
of the efficiency and quality of a company´s HR
management, including its compliance with the legal
requirements of employment.
• Determine whether company's employment-related
materials and practices are complying with the law
and the employer's own policies; and
• Identify and bring into compliance, any area that may
not be in compliance. An audit should identify what the
employer is doing right or wrong, as well as grey areas
that could use improvement.

54. 8 CRITICAL SUCCESS FACTORS OF HRM
AUDITING
• Organizational readiness for HRM Auditing
• Adequate resources
• The right people
• The audit requires the support of all trade unions and key role players in the SBU
• Guided by a policy
• Under the supervision of a subject matter expert.
• The auditing of HR should be put in the HR calendar and should synchronise
properly with other business processes in the organization
• Senior management commitment and support and the general co-operation of key
stakeholders

55. 10 KEY PRINCIPLES OF HR AUDITING
• #1: Need for independence;
• #2: Audit activities should be budgeted for properly;
• #3: Acknowledgement that there are many types of
audits;
• #4: Each type of an HR audit has its own purpose and
objectives;
• #5: Establish timeframes for every phase/step of the
audit;

56. 10 KEY PRINCIPLES OF HR AUDITING
• #6: Training of auditors is a must;
• #7: Set standards for the HR Audits;
• #8: Agreement on reporting template;
• #9: Auditors should sign a confidentiality agreement;
and
• #10: Auditors should agree beforehand on
communication strategy.

57. LEARNING ACTIVITY 8
• Build a business case for efficient and effective
HRM Auditing by performing a cost-benefit
analysis.
• By referring to the 8 CSF’s and 10 Key Principles,
critically review and evaluate current HRM
Auditing practices. Identify gaps and recommend
improvement strategies.
• Present a summary of group discussion

58. THE SCOPE OF HRM AUDITING
• Evaluation of the organization’s operational HR policies,
practices and processes and their effectiveness in achieving
strategic organizational goals.
• Assessment of current HR metrics for reasonableness and
results.
Efficient
Effective
Ethical
Economic use of talent to achieve organizational goals.

61. TYPES OF HR AUDITS
• Skills audits;
• Effectiveness audits;
• Performance audits;
• Value-add audit;
• Cultural audits;
• HR systems audit;
• Compliance;
• Best Practices;
• Strategic;
• Function-Specific

62. HR AUDIT MEASURES
• Planning and staffing
• Recruitment efficiency
• Recruitment effectiveness
• Compensation measures
• Benefits
• Orientation cost per employee

63. HR AUDIT MEASURES
• Counseling/disciplinary costs
• Lost time costs
• Turnover rates
• Training and development costs/measures
• Organization development measures

64. LEARNING ACTIVITY 9
• Design the scope of a generic HRM Audit.
• For each of the identified focal areas develop
appropriate HR Audit measures (i.e. baseline
indicators).
• Present a summary of group discussion

65. HRM AUDITING PROCESS

66. HRM AUDITING PROCESS
• Design and develop HR policies, procedures and
practices for your organization;
• Assess current HR policies, procedures and
practices against set criteria;
• Analyse the results from evidence; and
• Take action: to close gaps,
make recommendations/set improvement goals.

68. HRM AUDITING PROCESS ILLUSTRATED

69. HRM AUDIT ACTION PLAN
• Phase 1: Foundational/Initiation
• Phase 2: Assessment
• Phase 3: Concluding and Reporting

70. PHASE 1: FOUNDATIONAL/INITIATION
• Audit set-up actions
• Audit planning actions
 Determine the purpose and objectives of the audit
 Determine the scope of the audit
 Determine the organizational components to be audited
 Determine the auditing tool to be used
 Determine costs and resources needed to perform the audit
 Determine audit team governance

71. PHASE 2: ASSESSMENT
• General comments
• Identify key organizational metrics - determine
employment issues accountability
• Developing a checklist
• Formulating auditing methodology and tools

73. PHASE 3: CONCLUDING AND REPORTING
• Report preparation
• Report presentation
Quantify your results - start with outcomes
Include an executive summary
Identify risks
Identify and prioritize solutions to problems identify. Where
possible, frame your solutions from a bottom line perspective,
i.e., Calculate the benefits and costs of proposed solutions
Evaluate and discuss the organizational, financial and employee
relations impact of action or inaction
• Develop a HR improvement plan

74. LEARNING ACTIVITY 10
• Apply steps 1-3 of the HRM Audit cycle by
specifying the actions involved in the key
processes.
• Present a summary of group discussion

75. SKILLS AUDITING

77. FUNDAMENTALS OF SKILLS AUDITING
• Costs and Benefits of Skills Audits
• Understanding the concept, “competence”
 “Applied Competence is the union of practical, foundational and
reflexive competence”
• Types of evidence
• Techniques and Approaches for Conducting a Skills Audit
Panel approach
Consultant approach
One-on-one approach
Alternative approaches

78. INTRODUCTORY QUESTIONS
• Q1: For any business manager, what is their most
crucial financial and business risk mitigation tool?
• Q2: For any Learning & Development
Manager/Skills Development Facilitator, what is
their most under-utilized people/skills risk
mitigation tool?
• ANSWER: AUDITING

79. ORIGIN OF THE WORD, “AUDIT”
• The word audit originates from the Latin word
‘audire’ which means to “listen”.
• An audit is a systematic, objective risk
management tool for how well the workplace is
complying with regulatory and policy requirements.

80. PURPOSE/OUTCOME OF A SKILLS
AUDIT

81. DEFINITION, PURPOSE AND OUTCOME OF
SKILLS AUDITING
• A skills audit is a snapshot that allows an organization to determine the
level of skills and knowledge of the workforce.
• It is compared against the competencies that are required in order to
determine the gaps and to focus training and development accordingly.
• Skills audits are conducted to determine training needs within an
organization in order for that organization to improve its skills and
knowledge.
• A skills audit establishes an individual’s current competence against the
skills matrix for a particular position.
• A skills audit gathers more information than current qualifications levels.
• The outcome of the skills audit process is a skills gap analysis.

82. V-I-P SKILLS AUDITING
• Valid (accurate & correct
Measurement)
• Interrogative (3rd degree)
• Protective (against skills
& reputational risks)

84. LEARNING ACTIVITY 11
• Individual activity:
• Review and evaluate your organization’s current
skills audit process against the ten (10) best
practice criteria.
• Identify gaps and recommend improvement
strategies to address these process gaps.

85. BEST PRACTICE CRITERIA: SKILLS
AUDITING
• #1: A job analysis must be used as a basis for the skills audit
• #2: Definitive performance standards must be developed, written,
and provided to all stakeholders, regardless of the type of rating
• #3: Raters are trained to use the rating instrument properly
• #4: Formal appeal mechanisms must be in place and assessment
results need to be reviewed to ensure fairness and reliability
• #5: Multiple techniques/approaches are utilized and ratings are
supported with documented examples of behaviour

86. BEST PRACTICE CRITERIA: SKILLS
AUDITING
• #6: Employees are given a chance to improve their skills through targeted development
opportunities
• #7: The 7 E’s - the Skills Auditing process is efficient, effective, economical, educational,
ethical, empirical and evidentiary
• #8: Compliance with the following principles of Skills Audits:
 Fairness
 Validity
 Reliability
 Transparency/ Openness
 Constructive feedback
 Objective
• #9: The outcome of the skills audit generates predictive analytics and business intelligence,
providing the organization with a strategic competitive advantage
• #10: Skills Auditing must be a holistic, systematic, integrated and aligned approach

87. COST-BENEFIT ANALYSIS FOR SKILLS
AUDITS

88. STRATEGIC IMPERATIVE OF SKILLS
AUDITING
• The key piece of information an organization needs to improve and to
deliver to its Mission Statement and strategy is to know what skills and
knowledge the organization requires and what skills and knowledge the
organization currently has. This information is essential for a number of
reasons:
 Without this information you don't know where to improve.
 With this information your training and development will be better planned
and more focused.
 Recruiting needs are better defined and more likely to result in the most
appropriate candidate.
 Placement decisions are easier with knowledge of current competence levels.
 Career pathing and succession planning is assisted with accurate information
on individuals.
• Meyer, Mabaso & Lancaster (2001) recommend proactive needs
identification and a more futuristic approach to the assessment of training
needs.

89. KEY BENEFITS OF A SKILLS AUDIT
• Valid and valuable Workplace Skills Plans (WSP)
• Improved skills and knowledge
• Lower training and development costs because development
efforts are more focused
• Business intelligence - acquisition and use of information that can
be used for purposes such as internal employee selection and
placement
• Increased productivity as people are better matched to their
positions

90. KEY BENEFITS OF A SKILLS AUDIT
• The results of a skills audit can be reported for each division to show
individual and divisional competency gaps against competency needs.
• This assists with the collation of a WSP that complies with the provisions of
the Skills Development Act and Seta regulations.
• Lancaster, Mabaso & Meyer (2001) claim that “the skills plan can only be
produced after the organization has conducted a skills audit and a
comprehensive needs analysis”
• Certain SETA’s have included skills auditing as one of the requirements for
the discretionary grant.
• Organizations that conduct skills audits in a structured manner, may submit
levy claims against Grant D of the skills development regulations.

91. 5 C’S – THE KEY BENEFITS OF A SKILLS
AUDIT
• Compliance
+
• Competitive
+
• Cash
+
• Credibility
+
• Competence
= Clean Skills Audit

92. COSTS OF SKILLS AUDITS
• Training
• Time
• Administrative expenses (e.g. stationery)
• Information system/software
• Communication
• Use of consultants (where necessary)

93. POTENTIAL REPERCUSSIONS OF NOT CONDUCTING A
VALID SKILLS AUDIT
• Invalid and unreliable training plans
• Training plans that are not specific to individual,
departmental and organizational needs
• Little or no commitment to training & development by
management and staff, as plans are not seen as value-adding
• Little or no alignment of training and development to
organizational strategy and objectives
• Non-implementation of the Workplace Skills Plan and
therefore the organization will not be able to claim reporting
grants

94. LEARNING ACTIVITY 12
• Group activity:
• Develop a business case for Skills Auditing i.e.do
the benefits outweigh the costs?
• Do skills audits comply with:
Viability
Feasibility
Sustainability

95. SUB-COMPONENTS OF COMPETENCE

96. COMPETENCE
• “Applied Competence is the union of practical, foundational and reflexive
competence”
• Practical Competence - the demonstrated ability to perform a set of tasks in an
authentic context. A range of actions or possibilities is considered and decisions are
made about which actions to follow and to perform the chosen action.
• Foundational Competence - the demonstrated understanding of what the learner
is doing and why. This underpins the practical competence and therefore the
actions taken.
• Reflexive Competence - the learner demonstrates the ability to integrate or
connect performance with understanding so as to show that s/he is able to adapt
to changed circumstances appropriately and responsibly, and to explain the reason
behind an action.
• Thus competence is understood as including the individual’s learning,
understanding and ability to transfer and apply learned skills and knowledge across
a wide range of work contexts.

97. MEASURING COMPETENCE

98. PERFORMANCE-BASED TRAINING
PROGRAMMES

99. TECHNIQUES/APPROACHES TO A SKILLS
AUDIT
• Panel approach
• Consultant approach
• One-on-one approach
• Alternative approaches:
 Competence-based self-assessment with validation by direct manager or supervisor
 360 degree reviews
 Focus groups
 Assessment centres
 Assessment by subject matter experts

100. EVIDENCE
• Types of evidence:
Direct
Indirect
Historical
• Evaluation of evidence (VACCS):
Validity
Authenticity
Consistency
Currency
Sufficiency

101. LEARNING ACTIVITY 13
• Group Discussion:
• Review the different approaches to skills auditing
and indicate your preference. Substantiate your
reasoning.

102. SKILLS AUDITING PROCESS – ILLUSTRATED

103. SKILLS AUDITING PROCESS
• Step 1: Determine Skills Requirements
• Step 2: Audit actual skills
• Step 3: Determine development needs and plan for
training/restructuring

104. STEP 1: DETERMINE SKILLS
REQUIREMENTS
• In order to determine skills requirements, an organization should identify current
and future skills requirements per job.
• The end result is a skills matrix with related competency definitions. Definitions
can be allocated against various proficiency levels per job, such as basic,
intermediate and complex.
• Objective: Determine the critical or required skills (elicited from job profiles, your
strategy, or competency matrix).
• Skills matrix process:
 Step 1: Workshop with a project team (include Subject Matter Experts)
 Step 2: Use outcomes analysis to derive skills/knowledge factors and unit standard titles
 Step 3: Use results of outcomes analysis and value chain process to develop a skills
matrix and titles matrix
 Step 4: Verify matrices with SMEs and finalise

105. SAMPLE OF SKILLS MATRIX

106. SAMPLE OF SKILLS MATRIX

107. STEP 2: AUDIT ACTUAL SKILLS
• Step 2 involves an individual self-audit and skills audit
• Results are collated into reporting documents that may
include statistical graphs, qualitative reports and
recommendations
• A skills audit includes auditing qualifications,
experience and training (knowledge)
• Conducting a Skills Gap Analysis

108. HIERARCHY OF SKILLS

109. SKILLS AUDIT RATING SCALE
Rating Description Definition
0 No evidence of competence An individual does not currently display any form or level of competence in the
skill listed. He or she may require formal training and exposure to the skill in the
workplace.
0.25 Some evidence of competence The individual may demonstrate part competence, but definitely needs formal
training and exposure to the skill in the workplace.
0.5 Evidence of competence, needs further
training
An individual is competent, but needs to improve. Training is the most effective
solution. The individual may be at a lower level than the position requires, i.e. at
linear, instead of complex level.
0.75 Evidence of competence, needs more
exposure to the skill
The individual is competent and has undergone training. Further exposure in the
workplace would ensure improvement and full competence. The individual may
be at a lower level than the position requires, i.e. at linear, instead of
intermediate level.
1 Full evidence of competence The individual is competent in the skills at the level allocated to his/ her position.

110. STEP 3: DETERMINE DEVELOPMENT NEEDS AND PLAN FOR
TRAINING/RESTRUCTURING
• Once skills audit information has been collected, an analysis of the
results may be used for planning purposes relating to training and
development and other Human Resource interventions.
• Recommendations are then discussed and agreed actions are
implemented.
• This skill shortfall forms the basis of a Training Needs Analysis
(TNA) so that the company can reach the desired skill base
amongst its employees.
• A gap analysis is the outcome of the skills audit process.
• Information that is provided through the skills audit can be used
for the multiple HRM and business purposes.

111. REPORTING SKILLS AUDIT RESULTS
• The reporting framework is generated according to the purpose you want to use
the skills data for.
• These reports are vital as they may be used to inform organizational training and
development strategy, Workplace Skills Plans, individual development plans and
performance management interventions etc.
• These reports must be stored in a manner that respects the confidentiality of
individual employees.
• It is therefore important to agree on and communicate who has access to skills
audit results, and how these people may use the results upfront.
• Skills audit reports may take on a number of forms:
 Individual competency profiles
 Divisional radar report
 Organizational pie chart

112. INFORMATION EXTRACTION FROM
REPORTS
Individual name & employee number
0%
20%
40%
60%
80%
100%
120%
Com
m
unication
Interpersonal
Controlling
Adm
inistration
Planning
Com
puter
Drafting
legal docs
Property
law
Interviewing
Department name - Divisional Radar Report
0
20
40
60
80
100
Communication Skills (B)
Interpersonal Skills (B/E)
Administration skills (D)
Planning Skills (D)
Management Skills (G)
Marketing (B/C)
Loans Processing (A/B/C/D)
Computer skills (D)
Company name
ORGANISATIONAL
STRATEGIC COMPETENCY PROFILE
66%
73%
75%
69%
75%
71%69%
A. Strategic competency listing B. C. D. E. F. G.

113. LEARNING ACTIVITY 14
• Group Discussion:
• Apply steps 1-3 of the skills audit process, to a
defined organizational context.

114. CONCLUSION
• Key points
• Summary
• Questions

115. CONTACT DETAILS
• Charles Cotter
• (+27) 84 562 9446
• charlescot@polka.co.za
• LinkedIn
• Twitter: @Charles_Cotter
• http://www.slideshare.net/CharlesCotter