Auditing the Management of People

A. Introduction

A sustainable, competent work force is one that, among other qualities, has a proper mix of people in a variety of employment relationships (i.e. permanent, temporary, contract personnel or partnerships) to meet variations in demand for products or services, or to meet special needs on an ad hoc basis. It is also one that possesses the competencies and behaviours—such as knowledge, aptitudes, skills, values, attitudes, and mindset needed to achieve expected results in a timely and cost-effective way.

Toward that end, employees must meet all the current and future requirements and other related standards associated with the performance of their job or function. Exhibit 7 provides a list of global competencies and can help auditors determine which competencies are critical to the audited program or activity.

It must be noted however that the possession of the right knowledge, aptitudes and skills is not, in itself, sufficient to produce high performance. Other factors may also play an important role. For example, achieving high performance requires that employees be committed to the organization and its work and motivated to perform their tasks and achieve results.

B. Criterion

The work force has the mix profile (i.e. permanent, temporary or contract personnel), and the knowledge, skills, aptitudes and attitudes necessary to accomplish the various tasks needed to achieve results in a timely and cost-effective way.

C. Indicators of Potential Problems

Service expectations not met, or not likely to be met in the future; inability to perform certain key tasks; inappropriate mix of staff for duties performed; high termination costs; significant mistakes, errors or omissions in the performance of duties; high level of user complaints or dissatisfaction with service or product; significant number of perceived poor performers; absence of competency profiles; absence of strategic human resource planning; absence of training or development strategies; little or no training opportunities; statements of qualifications used for recruitment and hiring either too general or too specific in relation to needs; inadequate compensation levels compared with similar organizations; efforts to acquire business-related knowledge and skills not recognized or rewarded.

D. Questions for Consideration

Have core competencies needed for the timely and cost-effective achievement of results been adequately defined in terms of knowledge, attributes, skills, attitudes, values and behaviours?

• Are there periodic assessments/reviews of the actual work force profile in relation to the desired profile? Are gaps being addressed?
• Is the work force managed in a way to ensure that the organization will have the work force profile it will need in the future? For example:
• Are recruitment and hiring strategies adequate to ensure that the people hired by the organization will have the desired competencies, values and motivation to perform and to achieve desired results in the short and long terms?
• Do the recruitment and employment strategies provide for an adequate and continuous mix of various categories of workers (permanent, temporary, casual or contract, etc.)?
• Are appropriate strategies—such as recruitment, hiring and termination/retirement strategies— in place to create a flow and turnover of staff appropriate for the nature of the work to be performed now and for the organization's future requirements?
• Are the potential talents of the work force identified and developed in a way that takes into consideration the organization's long-term needs, as well as the needs and aspirations of employees?

Do workers currently employed have the necessary competencies to accomplish their tasks efficiently and effectively and to achieve desired results?

Do terms and conditions of employment—including compensation and other benefits—allow for the nurturing and the maintenance of overall work force competency?

Do the corporate culture and the performance recognition and reward systems (intrinsic and extrinsic) recognize competency and personal development initiative as factors to be encouraged and promoted?