Guide for Performance Audits and Special Examinations on Strategic Human Resource Planning (November 2018)

Audit criterion: The organization conducts strategic human resource planning to ensure it has the right people, in the right place, at the right time to meet its immediate and future business goals.

Sources:

Financial Administration Act, last amended 2016 (http://laws-lois.justice.gc.ca/eng/acts/f-11/)

“Powers of the Treasury Board”

(…)

“11.1 (1) In the exercise of its human resources management responsibilities under paragraph 7(1)(e), the Treasury Board may

(a) determine the human resources requirements of the public service and provide for the allocation and effective utilization of human resources in the public service;”

Public Service Employment Act, last amended 2015 (http://laws.justice.gc.ca/eng/acts/P-33.01/)

“Needs of public service”

(…)

“(3) The current and future needs of the organization referred to in subparagraph (2)(b)(iii) may include current and future needs of the public service, as identified by the employer, that the deputy head determines to be relevant to the organization.”

Guidance for Deputy Ministers, 2003 https://www.canada.ca/en/privy-council/services/publications/guidance-deputy-ministers.html)

(ii) Human Resources Management

“A major element of the Deputy Minister's job as departmental manager involves the management of human resources.”
(…)
“Effective departmental management requires careful integration of human resources management planning with the planning of departmental activities. It also requires that employees be properly trained to carry out the duties of their position, including in particular their financial responsibilities. In the same way that a Deputy Minister must ensure arrangements for proper delegation and accountability for financial authorities, he or she must promote responsibility and accountability for good human resources management in the department so that the necessary staff with an appropriate balance of skills is maintained.”

Treasury Board of Canada Secretariat Integrated Planning Guide, 2007 (https://www.tbs-sct.gc.ca/gui/plannpr-eng.asp)

Defining HR planning
“HR planning is defined as follows: Human resources planning is a process that identifies current and future human resources needs for an organization to achieve its goals. Human resources planning should serve as a link between human resources management and the overall strategic plan of an organization.”

Ultimate HR Manual, 2015

Human Resources Planning, section 2100—Overview
“Human resources planning is the process wherein the organization forecasts its human resources needs in order to ensure that the necessary quantity and quality of people are available at a given time to ensure the organization is able to achieve its objectives.”

Q1—Does the organization have a strategic HR planning policy, directive, guideline(s), and/or procedure(s) in place?

Key interview questions

• Does the organization clearly define the roles and responsibilities for strategic HR planning?

• Are roles and responsibilities for strategic HR planning communicated to those responsible for strategic HR planning, and if so, how?

Key documentation

• Strategic HR planning policy, directive, guidelines, and procedures

• Communications to staff about and responsibilities for strategic HR planning

Request and review documentation.

Interview officials responsible for strategic HR planning; e.g., HR officials, senior management, line managers.

Assess whether the organization has documented strategic HR planning systems and practices in place and whether roles and responsibilities are communicated to staff responsible for strategic HR planning.

Document observations and respond to audit question.

Q2—Is the organization’s HR planning integrated with its business planning systems and practices?

Key interview questions

• Does the organization integrate HR and business planning?

• Specifically, how do business planning systems and practices identify and incorporate human resource requirements?

• Are these business requirements accurately reflected in the organization’s HR plan?

• Are HR plans approved, periodically reviewed by senior management, and updated regularly (at least annually)?

Key documentation

• Strategic business plans for the last two fiscal years

• Strategic HR plans for the last two fiscal years

• Documentation that describes both the strategic business and HR planning systems and practices

• Other relevant documentation, e.g.

  • senior management committee documentation (agendas, minutes, presentations and reports discussed, records of decisions);

  • HR committee meeting documentation;

  • relevant internal audits or evaluations of the organization’s HR planning process.

Request and review documentation.

Interview officials responsible for strategic HR and business planning; e.g., senior management, line managers, HR officials.

Assess whether the organization’s HR and business planning systems and practices are integrated, and whether HR plans are approved, periodically reviewed by senior management, and updated annually.

Document observations and respond to audit question.

Q3—Does the organization collect and analyze information to determine whether it has the right people, in the right place, at the right time to meet immediate and future business goals?

Key interview questions

• How do organization officials understand whether they have the right people, in the right place, at the right time to meet immediate and future business goals?

• What are the organization’s relevant HR information systems (electronic or paper-based) and what type of information is in those systems?

• Does the organization have data quality systems and practices in place to ensure the integrity of HR data?

• Does the organization analyze the information contained in its HR information systems to understand its current workforce and for planning and decision-making? If yes, what type of analyses are conducted (e.g., demographics, employment characteristics, employment equity goals, training and learning data, performance management data, language competencies, and internal workforce trends such as retention, retirement eligibility, leave usage, overtime, absenteeism)?

• Does the organization analyze internal and external factors that could affect its workforce capacity (e.g., potential changes in program and service delivery, changes in funding levels and/or organizational priorities, impending retirements, and supply and demand of employees with the skills needed by the organization)?

• Does the organization identify its key functions and positions?

• Are the results of these analyses reported to senior management?

Key documentation

• Strategic HR plans for the last two fiscal years

• Strategic business plans for the last two fiscal years

• Employment equity plans

• Documentation that describes both the business and HR planning systems and practices

• Corporate risk profile and associated corporate risk register (to determine whether HR risks have been identified at the corporate level, and how these risks are being managed)

• HR information system documentation (e.g., user manuals, guides, and data quality reports)

• Reports that analyze the organization’s HR information, and any that include analyses of internal and external environmental factors (as described in the questions above)

• Other relevant documentation, e.g.

  • senior management committee documentation (agendas, minutes, presentations and reports discussed, records of decisions);

  • HR committee meeting documentation;

  • relevant internal audits or evaluations of the organization’s HR planning process.

Request and review documentation.

Interview officials responsible for HR planning and workforce analytics.

Perform a walkthrough of key HR information systems (electronic or paper-based) to determine what information exists, its quality, and how it is used and reported on, if this was not already done in the planning phase.

Assess whether the organization collects and analyzes information on its current workforce and its internal and external environment, and if so, whether it uses this information to help identify current and future workforce gaps.

Document observations and respond to audit question.

Q4—How does the organization identify and prioritize its current (one-year) and future (two-to-three-year) workforce needs?

Key interview questions

• What information does the organization use to identify its current (one-year) and future (two-to-three-year) workforce needs? For example, does the organization use the results from business planning and workforce analyses (Q2 and Q3 above) to identify the number of positions and skills needed over time? If not, what information does it use to identify workforce gaps?

• Does the organization prioritize what needs should be addressed in the short- vs. long-term?

• Once identified and prioritized, are the current and future workforce needs documented in the strategic HR plan?

Key documentation

• Strategic HR plans for the last two fiscal years.

• Strategic business plans for the last two fiscal years.

• Documentation that describes both the business and HR planning systems and practices.

• Analyses used to identify and prioritize current and future workforce needs.

• Other relevant documentation, e.g.

  • senior management committee documentation (agendas, minutes, presentations and reports discussed, records of decisions);

  • HR committee meeting documentation;

  • relevant internal audits or evaluations of the organization’s HR planning process.

Request and review documentation.

Interview officials responsible for strategic HR and business and HR planning; e.g., senior and line managers, HR officials.

Assess whether the organization identifies its current and future workforce gaps based on the information collected and analyzed in Q2 and Q3, and prioritizes and documents them in quantitative terms in its HR plan. If the organization does not use this information to identify workforce gaps, determine how it identifies them.

Document observations and respond to audit question.

Q5—Does the organization develop strategies and plans to ensure it has the right people, in the right place, at the right time?

Key interview questions

• Once priorities are identified, how does the organization develop strategies and plans to address the workforce needs identified (e.g., recruitment and staffing, training and development, mobility and redeployment, and succession planning)?

• Are the strategies reviewed and approved by senior management?

• Are accountabilities, timelines, activities, and deliverables included in the plans?

Key documentation

• Strategic HR plans for the last two fiscal years.

• Strategic business plans for the last two fiscal years.

• Documentation that describes both the business and HR planning systems and practices.

• Documentation related to the strategy(ies) to address workforce needs, including work plans.

• Other relevant documentation, e.g.

  • senior management committee documentation (agendas, minutes, presentations and reports discussed, records of decisions)

  • HR committee meeting documentation

  • relevant internal audits or evaluations of the organization’s HR planning process

Request and review documentation.

Interview officials responsible for strategic/business and HR planning; e.g., senior and line managers, HR officials.

Assess whether strategies are in line with HR priorities identified and will address the workforce gaps identified.

Document observations and respond to audit question.

Q6—Does the organization monitor whether it has the right people, in the right place, at the right time, and make course corrections as required?

Key interview questions

• Has the organization implemented systems and practices to monitor strategic HR planning activities and results?

• Does the organization review (at least annually) what needs have and have not been met?

• Are strategies implemented as intended?

• Are adjustments to strategies made as required?

• Are results reported on regularly to senior management?

Key documentation

• Documentation that describes the systems and practices in place to monitor strategic HR planning.

• Analyses and/or related documentation that show the results of strategies used to ensure the right people with the right skills are in place at the right time.

• Reports to senior management on the results of strategic HR planning.

Request and review documentation.

Interview officials responsible for HR planning and members of senior management.

Assess whether the organization monitors its strategic HR planning activities and results, makes adjustments as needed, and regularly reports results to senior management.

Document observations and respond to audit question.