HomeMy WebLinkAboutCAO-10-023 - Human Resources Follow Up AuditREPORT
REPORT T0: Mayor Carl Zehr, Chair
and members of the Audit Committee
DATE OF MEETING: August 23, 2010
SUBMITTED BY: Corina Tasker, Internal Auditor
PREPARED BY: Corina Tasker, Internal Auditor
WARD(S) INVOLVED: All
DATE OF REPORT: May 26, 2010
REPORT NO.: CAO-10-023
SUBJECT: HUMAN RESOURCES FOLLOW UP AUDIT
RECOMMENDATION:
For information only.
BACKGROUND:
Each division which has been reviewed by Internal Audit in the past will participate in a follow up
audit at least one year following the completion of the original audit. The purpose is to assess
the outcome of the audit in terms of which recommendations have been implemented, what the
impact to the division has been, and to identify any new or existing challenges the division is
facing. This will help determine if a further in-depth review is required and will highlight any high
risk issues proactively.
A comprehensive audit of the Human Resources division was completed in October 2008. The
follow up audit was then completed in April 2010.
REPORT:
This staff report serves to inform the audit committee of the high level findings from the follow up
audit.
Methodology
The scope of the follow up audit consisted of a sample of staff and customer interviews as well
as observations of the auditor in relation to the status of the implementation of
recommendations.
The following research and analysis was undertaken for the follow up audit:
• 21 staff interviews, representing 100% of the division
2-1
15 customer interviews, including representation from all departments, staff and
management levels, new hires, and union executives
• Review of relevant literature, including the original audit report, employee culture survey
results, and output related to the original recommendations
Audit Statistics
May 2010
Total Aug 2010
Total HR Recruitment Attractive
Employer
# of Recommendations 61 61 25 33 3
# of Recommendations Complete 31 35 13 20 1
# of Recommendations In Progress 26 25 12 12 2
# of Recommendations Not Started 4 1 0 1 0
A list of the recommendations from the original audit can be found in AppendixA, including a
brief description of actions taken to date. Note that the original chart was created in May 2010
when this report was written. Updated status as of August 2010 has been added to the chart in
bold italics text. The status assigned to each is the judgment of the auditor based on input from
staff, customers, and their own observation.
Key Findings (based on the May 2010 data)
Overview
During the 1.5 years since the previous audit the HR team has met to prioritize and assign
ownership (individual or team) for each audit recommendation. The status of each
recommendation is being tracked in a spreadsheet stored on a shared drive which all staff have
access to and each item is displayed on the wall in HR with a status noted if complete. 67% of
the team feel that the team has taken a proactive approach to addressing the audit
recommendations, while the remaining 33% feel that more should have been completed or
started by this point.
As indicated below, several of the initiatives have moved forward and have created positive
impacts to both HR staff and customers.
Positive Impacts
The accomplishments highlighted below are simply the ones that were mentioned the most by
interview participants (staff and customers). Many other great accomplishments were achieved
and can be found in Appendix A.
The overarching benefit seen as a result of the original audit was that it helped to identify, clarify
and prioritize several long standing issues within the division that may not have otherwise
received the attention they required or deserved. Additionally, the audit served to provide
leverage and support to purchase much needed software for the recruitment process and for
training registration. The need for this software had been previously identified and the audit
recommendations supported that need in the attempt to secure funding through the budget
process.
The recommendation to move to an HR business partner organizational model, while not
adopted, served to highlight the need to change their approach to customer service. Processes
2-2
are now being looked at with an eye for providing more value to the customer and becoming
strategic partners with the areas they serve.
Specific comments were received from staff about the positive impacts realized through the
implementation of the following recommendations.
1. Reception coverage - a team consisting of the administrative staff met to create a
new coverage model and work out issues surrounding this task. This has helped to
ensure fairness, ease tensions among staff, and ensure adequate coverage of the
front reception desk. Morale surrounding this issue has improved.
2. Secondments -the opportunity for two staff to take secondment positions in labour
relations and one staff in recruitment is viewed by staff as a positive step towards
both succession planning and cross-training for the purposes of providing better
customer service.
3. Communications -the team has been working with the Communications division
to create a formal communications plan to effectively inform staff about HR
initiatives. Although not complete yet, the work is being seen as a positive output
that has resulted from the audit.
In addition to the accomplishments noted by staff, customers noted the work on the following
initiatives has had a positive impact for them:
1. HR Policies -all policies have been reviewed by HR staff to ensure they are
current, in support of corporate strategy and in compliance with current legislation.
All additions, changes, and deletions have been vetted through the Corporate
Management Team (CMT). CMT applauded the significant work done on this
project. Having up-to-date, relevant HR policies will help to support our People Plan
and the place we want to work.
2. Benefits tendering- research has been done regarding the value provided by our
current benefits providers. More than $100,000 in savings has been realized over
past 2 years with the current providers. Council supported a recommendation to
retain a consultant to audit the City's relationship with the current providers to
ensure service levels and competitiveness. The consultant will also look at the
appropriateness of tendering every 5 years. Council also approved extending the
current contract until 2012 while this work is undertaken.
3. Union relationships -following the audit, meetings were held with each of the
union executives to assess their needs and build a relationship with them.
Interactions with the various unions have improved according to HR staff. Although
not all of the union executives were interviewed for this follow up review, those who
were interviewed indicated they have seen improvements in the relationships and
they are much less adversarial in nature. There is more respect on both sides of the
table.
In general, the customers indicated that the individual service they receive from HR is prompt
and staff are knowledgeable about their areas of expertise.
Recruitment
Many of the recommendations have been implemented or are in progress. Some specific
positive impacts include:
1. The creation of a tick sheet to ensure that all steps in the recruitment process have
been completed for each candidate, including the transmission of testing results.
2-3
2. Procurement of recruitment software which will streamline the process, improve
accuracy, and provide a mechanism for tracking key performance indicators. Further
analysis regarding the impacts of the software should be done after it has been
installed to ensure it is delivering the desired benefits.
3. A decrease in the size of print ads with wording to drive the reader to the website
has decreased advertising costs by at least 44%. Of the 21 ads placed in 2010 (up
to the end of July) a savings of $3,906 has been realized.
4. The automation and standardization of employment letters is seen by staff as a
means to reduce the margin for errorwithinthese letters.
5. The re-launch of the City's HR web page has delivered a professional and
informative web page which will help in talent attraction.
Emerging Issues and New Recommendations
No new issues have emerged since the last audit.
However, two issues identified during the original audit are still present today and are impeding
the division from further success. In addition, although staff feel that some of the
recommendations are complete, the underlying issue still remains indicating that their approach
was not successful.
It is also the opinion of some staff, customers and the auditor that while many recommendations
are now either complete or in progress that progress overall has not been timely enough and
more should have been completed by now.
Strategic Focus
A lack of a strategic focus to guide the work of the division is impeding further success. The
original audit recommended that both a strategy and a business plan be created forthe division.
The intent of the strategy was to map out the direction of the division in relation to the City of
Kitchener Strategic Plan and the People Plan in order to support the corporation and act as a
strategic partner. The intent of the business plan was to then prioritize the actions and projects
to be undertaken in the short, medium and long term to achieve the strategy.
The division started out with good intentions on this front. The entire team attended "2009 and
Beyond" visioning sessions. Through these meetings staff voted on the priorities for the division.
Although this was a good attempt to create strategy and a business plan, the output of the
sessions was not clearly articulated as such or communicated, causing many staff to believe
that no strategy existed.
Senior management across the corporation expressed concern with HR's performance
corporately and feel that much more needs to be done in order for HR to become a strategic
partner with the rest of the corporation. In addition, they had the perception that HR had not
taken a proactive role in corporate projects such as the Employee Culture Survey, the CMF, and
the People Plan actions.
If HR expects to move towards being a true strategic partner to the rest of the corporation, it is
critical that the strategy and the business plan be mapped out more clearly AND communicated
both within the division and to the rest of the corporation. To be successful, the HR staff all
need to make the connection between the work they do and the strategy, and adopt the vision
into everything that they do.
2-4
Organizational structure
Customers were disappointed that the generalist model had not been adopted or explored
further and senior management in particular expressed concern that this has not taken place.
Customers are keenly interested to see an improved service delivery model which would be
supported by HR staff pursuing knowledge in a broader spectrum of topics.
The Executive Director of the division made the decision to not immediately adopt the proposed
organizational structure for two reasons. First, the director wanted time to assess the current
situation and structure, allowing her to become acquainted with the organization's strengths and
weaknesses and determine the best structure to serve the organization. Second, it was felt
that moving to an HR business partner model would be a huge transition which would require
careful planning and preparation, not the least of which being staff development and business
process change, which requires a significant commitment of time and resources.
Instead, it was decided that within their current roles staff would start to focus on providing
value-added strategic service to their customers although it is unclearwhetherthis was formally
documented or planned out. A strategic partnership was established between HR and Fire with
one staff providing service on location. It is also planned that once the CMF is operational that
HR will have a presence there in the form of an HR consultant role. This will be the test ground
for implementing HR consultants on a larger scale. The details of what this will entail have not
yet been determined, however, work has begun on this.
One final note on the organizational structure; many staff did not know what was happening with
this recommendation and were either curious or stressed about what this might mean.
Communication from the director should be provided to all staff as plans unfold.
Next Steps
Given that many of the recommendations are still in progress, a status update to the auditor is
required within 6 months of receipt of this report. Further, the CAO has requested that status
updates be given to her on a monthly basis by the Executive Director of HR.
FINANCIAL IMPLICATIONS:
None
ACKNOWLEDGED BY: Carla Ladd, CAO
2-5
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