Audit of Human Resources Planning – Final Report

(September 24, 2012)

Table of contents

Executive summary

Context

To address the numerous changes affecting the public service, greater attention has been placed on integrated business and human resources (HR) planning. This is seen in the Clerk of the Privy Council's call for better integration of these two key elements of management and in the Office of the Chief Human Resource Officer's recent introduction of Common Human Resource Business Processes.

Integrated planning is central to the successful implementation of the Public Service Modernization Act. As such, the Public Service Commission (PSC)’s corporate priorities established by the Executive Management Committee in the fall of 2010 served as a starting point for the development of the integrated resources and budgeting plan.

Rationale

The PSC currently faces a number of HR challenges, which include management of workforce adjustment and impending retirements, as well as significant budgetary pressures. These, along with past Departmental Staffing Accountability Report assessment results, have emphasized the need for an effective integrated planning process that clearly aligns human capital needs with organizational goals and priorities.

No previous audit has been conducted of HR planning for the PSC.

The PSC’s Internal Audit Committee approved the Audit of HR Planning in February 2010, as part of the 2010-2011 risk-based internal audit plan.

Objective

The objective of the audit was to determine whether the PSC has an adequate, effective and rigorous HR planning process that is integrated with business planning, including compliance with government guidance instruments and expectations.

Conclusion

The audit concluded that, overall, the PSC’s integrated HR planning process is partially in line with good management practices and government expectations on integrated planning.

A basic governance structure for integrated planning is in place. Senior management’s commitment to the development of integrated HR planning as a key component in the achievement of its business goals is demonstrated.

Similarly, the PSC has in place elements of a governance structure for integrated HR/business planning. However, a number of opportunities for improvement were noted. For instance, integrated planning roles and responsibilities are not clearly and formally identified, nor are existing structures leveraged for improved co‑ordination. Alignment of HR planning with strategic and business planning is a clear objective of senior management, but supporting mechanisms are only partly in place.

The absence of a clear definition of, and model for, “integration” brings about the risk of not having an effective corporate plan. We found that the PSC’s HR operations are supported by a broad suite of policies. Furthermore, the Corporate HR Plan covers most of the risk factors affecting the next few years. However, the processes of developing corporate HR and business plans are not well connected, nor have the branch-level plans been fully considered.

The current context characterized by budgetary pressures makes planning for the long term more challenging. In order to help achieve desired outcomes, and to address the resulting uncertainties and limitations, the PSC would require a combination of HR strategies supported by enhanced communication with stakeholders, a more corporate-level environmental scan and consistent succession planning approaches.

HR plans are monitored on a regular basis by branches and Corporate and are reported through established mechanisms. However, the existing monitoring process does not include an assessment of planning results to ensure that the Integrated Corporate HR Plan is used to inform future plans.

Management has worked in co-operation with the Internal Audit Directorate and has provided comments and information. Management has also developed action plans that will address the risks noted.

1. Introduction

The Audit of Human Resources (HR) Planning was approved as part of the Public Service Commission (PSC)’s risk-based audit plan for 2010-2011, which was tabled at the Internal Audit Committee meeting in February 2010. This is the first time that an internal audit of HR planning has been conducted for the Commission.

2. Background

The PSC currently faces a number of HR challenges, including management of workforce adjustment and impending retirements, as well as budgetary pressures from the Deficit Reduction Action Plan and previous strategic reviews. These, along with past Departmental Staffing Accountability Report (DSAR) assessment results, have emphasized the need for an effective integrated planning process that clearly articulates the alignment of human capital needs with organizational goals and priorities. To this end, integrated planning, including HR planning, was identified as a PSC management priority for 2011-2012.

The Clerk of the Privy Council has continued to focus on the need to identify integrated business and HR planning as a corporate priority. In the latest annual report to the Prime Minister, the Clerk emphasized the value of collaboration as involving “network builders, facilitators and partners.” This is supported by the 2008 Report of the Expert Panel on Integrated Business and Human Resources Planning in the Federal Public Service.

Recently, the Office of the Chief Human Resources Officer has introduced the Common Human Resource Business Processes (CHRBP) as a key enabler for public service renewal. These comprise structured activities and tasks meant to be applied in a common manner across government. They have been designed to bring consistency to the delivery of effective and efficient HR services, including HR planning, while at the same time maximizing the use of existing and innovative methods and tools; they are intended to generate savings and reduce the reporting burden. The PSC will submit a project charter by November 2012 in order to pursue the implementation of CHRBP, within the PSC, in 2014. This initiative was undertaken after this audit’s examination phase was completed.

Within the PSC, the Corporate Management Branch (CMB) is responsible for providing a variety of corporate services, including both corporate planning and HR. All of the PSC’s branches have an integral role to play in the integrated planning process, as they provide the raw data and information that form the basis of integrated business and HR planning. The PSC’s HR planning is part of the operational planning process, with the Human Resources Management Directorate (HRMD) responsible for functional leadership.

At the time the examination phase was conducted, the Chief, HR Planning who had been interviewed was appointed on an interim basis. Since then, the incumbent Chief has returned to the position.

Corporate priorities, established in the Executive Management Committee (EMC)’s fall strategic planning process, provide a starting point for developing an Integrated Resource and Budgeting Plan (IRBP). Branches review their activities and resource needs, and the HR information gathered in specialized templates is used to establish HR priorities. This, along with information on organizational risks and mitigation strategies and workforce analysis, as well as employee engagement survey and exit interview results, is used to develop the Integrated HR Plan. The plan is submitted for EMC approval after being reviewed by the HR Committee (HRC). The PSC’s branches may also develop their own separate plans, which are provided to inform HRMD’s planning. The 2011-2014 plan, approved by EMC on March 21, 2011, provided a revised HR planning approach intended to address opportunities for improvement identified in the DSAR and Management Accountability Framework (MAF) assessments.

HR planning at the PSC, as with any organization, must respond to the organization’s context. For example, 27% of PSC employees are classified in the PE – Personnel Administration group. Furthermore, given the PSC’s moderate size, a fair amount of employee movement between the PSC and other federal organizations is likely, and often necessary, to ensure skill development. Finally, HRMD’s planning work relies on information exchanges with the HRC and EMC, which have advisory and executive roles, respectively.

3. Risks

As one component of operational planning within the PSC, HR planning supports the PSC’s major priorities and contributes to carrying out its mandate. This is a crucial role, especially at this juncture, when reductions in the workforce attributable to a number of rounds of budgetary constraints are compounded by internal factors affecting HR. Key factors include employment equity representation; the fact that, over the next five years, almost half of the PSC’s Executive community will be eligible for retirement; and challenges in maintaining employee engagement.

Specifically, the PSC’s imminent move to new headquarters in Gatineau, the lack of resources in some occupational categories and the need to develop new analytical skills in the wake of a change in the new Commission’s vision are just a few of the issues that the PSC will have to tackle adeptly if it is to meet its objectives.

In the planning of this audit, the following key challenges were also identified:

  • Mechanisms and plans to align and integrate HR with business planning and to guide efforts in meeting the PSC’s objectives;
  • The integration of HR planning into the corporate planning framework and function;
  • The effectiveness and usefulness of the Integrated HR Plan; and
  • The monitoring and reporting of the Integrated HR Plans and the results of planned actions.

4. Objective

The objective of the audit was to determine whether the PSC has an adequate, effective and rigorous HR planning process that is integrated with business planning, including compliance with government guidance instruments and expectations.

5. Scope

The audit included review of the following:

  • The CMB as functional lead for HR planning and all PSC branches, including the CMB, in the context of their specific HR planning functions;
  • The development, implementation and monitoring and reporting of corporate and branch HR plans; and
  • The integration of HR planning with other corporate business planning.

The integration of other resources, such as information technology or communication, is excluded.

6. Statement of conformance

This internal audit engagement was conducted in accordance with the Internal Auditing Standards of the Government of Canada.

Audit work was planned to provide a reasonable level of assurance for the conclusions drawn.

7. Methodology

The PSC Standard Audit process includes three principal phases:

  • Planning;
  • Detailed examination; and
  • Reporting.

All deliverables are reviewed and signed off by the Director, Internal Audit. As part of the audit process, briefings and validations of observations were shared with the Vice-President (VP) of CMB, the Director General (DG) of HRMD and their representatives. CMB has provided all requested documents and access to employees.

The planning phase began in March 2011, during which a preliminary risk assessment was used to identify lines of enquiry. The Internal Audit Directorate (IAD) developed audit criteria based on good management practices, such as the Treasury Board of Canada Secretariat (TBS) Integrated Planning Guide, relevant elements of the Office of the Comptroller General’s Audit Criteria Related to the MAF, the “CoCo” control model of the Canadian Institute of Chartered Accountants and the Report of the Expert Panel on Integrated Business and Human Resources Planning in the Federal Public Service published by the Privy Council Office in 2008. These were complemented by the review of existing procedures and reports, along with interviews of key management and operational staff, including branch executives and functional specialists. Following a risk assessment, the draft criteria were provided to the management for their review and comments.

Audit methodologies included interviews with management and staff, as well as review and analysis of key processes and supporting documentation. Preliminary findings were developed and presented to CMB in April 2012.

8. Observations and recommendations

The following section presents the key observations of this audit. In line with the scope of this audit, the auditors’ focus was on HR planning. However, as noted earlier in the report, the key issue examined was the extent to which this element of business planning was integrated with other elements. The gaps in integration that were observed with respect to HR planning therefore are indicative of gaps in PSC’s overall business planning process.

The impact and recommendations are also presented. Some recommendations touch on actions that were already initiated. For instance, management has indicated that the Corporate Management Practices and Evaluation Directorate (CMPED) had launched an exercise to review and streamline the planning and reporting process. When applicable, relevant management initiatives already underway are noted.

As advised by the Internal Audit Committee, the audit recommendations are aimed at strengthening the overall business planning processes. These recommendations are consistent with government priorities and expectations for integration of HR planning with other business planning components.

Control objective 1

Mechanisms and plans to guide efforts in achieving the Public Service Commission’s objectives are established and communicated.

The internal auditors expected the PSC to have a governance structure for integrated HR and business planning in place to oversee the achievement of its strategic objectives.

The audit found references to HR planning in the PSC’s strategic documents; notably, both the 2010-2011 and 2011-2012 Reports on Plans and Priorities identified the importance to further strengthen integrated HR planning. In doing so, management has identified as a corporate priority the need to enhance leveraging of all of the elements of operational planning already in place in order to improve the setting the PSC’s strategic direction. This is indicative of the commitment of the PSC’s senior management to the development of integrated HR planning as a key component in the achievement of its business goals.

The PSC has in place elements of a governance structure for integrated HR/business planning. These include the corporate HR planning unit and branch planning co-ordinators, the HRC (a sub-committee of the EMC) and the Branch Management Forum (BMF). The HRC, chaired by the Senior VP, is composed of the VPs and four senior management representatives, along with the DG, HRMD. It offers guidance and support in pursuing the planning process, namely through discussing HR strategies, reviewing the HR work plan or providing strategic advice to EMC. EMC, for its part, ultimately approves the HR plan. Under the co‑ordination of CMPED, the BMF’s mandate is to establish a horizontal communication strategy among planning stakeholders to discuss resource management and service delivery at the operational level. The evidence gathered suggests that some of these governance components could be improved. For instance, branch representatives mentioned that roles and responsibilities for integrated HR/business planning are neither clear nor formalized. This led to their perceptions of branches all working in silos, without a corporate view.

The auditors noted that co-ordination of efforts by planning parties is only partial. For example, the governance structure does not appear to reach beyond HR planning to incorporate the full range of CMPED’s integrated planning. In CMPED’s view, their role is to support the planning function through the development of reporting tools. They consider that they are not responsible, nor do they have the expertise, for challenging the content of input into the reports or the validity of strategic decisions. At the same time, branch co‑ordinators mentioned that the role played by Corporate HR Planning did not fully meet their needs. They expected, for instance, greater involvement on the part of HR Planning in validating and challenging their input or feedback on the plans they submitted.

The internal auditors noted that, among other shortcomings within the existing structures, there is no challenge function in the HR planning process. There is a consensus that BMF’s mandate could be expanded beyond just co-ordination, for better leverage. The auditors found that existing communication channels provided through BMF are not used to their full potential. This body is seen by many to be an appropriate vehicle to offer a challenge function, provide more targeted information relating to planning and help exchange views between corporate and branch levels regarding their respective needs, roles and responsibilities or sharing best practices. There are also possible complementary resources for the challenge function.

The auditors also noted that, while the DG, HRMD is often involved or consulted in strategic planning fora with senior management, neither HR Planning nor CMPED Planning and Reporting plays an active role in planning-related activities/committees at the strategic level. In the view of HR Planning and CMPED Planning and Reporting, this limits their capacity to add value to the process. HRMD reports that, since 2012, it has begun discussion with branches to discuss their HR plans.

Co-ordination of efforts between all stakeholders involved in the integration of HR/business planning needs to be enhanced in order for this key strategic exercise to be efficient and effective. Moreover, the absence of a designated function or mechanism with a clear and formal mandate to facilitate, co‑ordinate, communicate and, more importantly, integrate HR and business planning could prevent the PSC from developing an integrated corporate view and consistently prepared branch HR plans.

Recommendation

1. The VP-CMB should bring forward for EMC approval a proposal to establish, document and communicate roles and responsibilities for a fully-integrated business planning process, including HR planning at branch and corporate levels.

Management response

The VP-CMB will bring forward to EMC a proposal that will outline the integrated planning process, including the scope and approach for future planning cycles (starting with the coming fiscal year) and related definitions, roles and responsibilities. The details, such as timelines, governance, communications plan, and proposed operations of a new committee to deal with planning and resourcing issues will be included in the proposal. It will also clarify the relationship between corporate and branch level planning and identify how necessary information for HR planning purposes will be made available.

Responsibility: CMPED and HRMD
Completion date: December 30, 2012.

Control objective 2

Effective integrated human resources planning is implemented.

2.1 Integration and alignment of human resources with strategic and business planning

We expected HR considerations to be aligned with PSC strategic objectives and integrated into business activity.

A common understanding of “integration” is essential to ensure a seamless and comprehensive planning process. We found that a clear definition of, and a defined model for, “integration” are required and requested by many of the stakeholders. For instance, stakeholders mentioned that the diverging views for approaching integration among the corporate planning functions prevent them from getting a corporate view of the organization’s needs to allow it to achieve its goals. Integration is seen by CMPED’s Planning and Reporting as the incorporation, under one document, of corporate subject matter expert plans, including the Corporate HR Plan, into the Operational Plan / Quarterly Reporting cycle. In its view, the purpose of this juxtaposition of corporate data is to provide managers with a broad perspective on the relationships between the different components of the PSC. The objective of this approach is to allow managers to better understand the extent of their responsibilities and prevent them from working in isolation. To this end, CMPED has developed reporting tools. However, it does not consider its role to include challenge and guidance functions.

On the other hand, the HR Planning Unit have indicated their belief that integration goes beyond the collection of distinct elements of information. They suggest that an analysis of the corporate data should be prepared to provide users with a strategic overview. They consider it CMPED’s role to integrate the HR Plan into the Operational Plan and provide information on the appropriate integration model for the PSC.

Annual planning at the PSC is launched with the issuance of the Integrated Resources Planning and Budgeting (IRPB) call letter, along with various templates. Although HR planning is initiated by the branches completing templates for the IRPB exercise, the Chief, HR Planning and branch co‑ordinators expressed concerns that the process is too centered on financial resources. There is a consensus among interviewed stakeholders that, in order to assess and understand the PSC's current and future needs, HR planning needs to be driven by business activity rather than just identifying annual payroll requirements (“Finance’s” perspective), as is the case at present.

The audit found references to the PSC’s HR requirements and risks in the Reports on Plans and Priorities (RPP). IAD also noted that the HR management priorities are derived from a variety of sources, such as the Corporate Priorities (2011-2012) and the risks and challenges identified by branches during the IRPB annual exercises. The 2011-2012 IRPB exercise contained results of the Integrated Human Resources Plan process, including detailed information relating to business and HR requirements.

Although the PSC’s Integrated Human Resources Plan states that HR planning is part of the operational planning process, the PSC’s Integrated Planning Cycle Flowchart does not specifically mention the HR plan or provide details on how HR planning is integrated. Some branches expressed their need for further guidance and instruction on what is required to support an adequate level of integration.

The Internal Audit notes the existence of a broad suite of HR policies and procedures that are documented and communicated via the PSC Web site. These support effective administration of the PSC’s HR capacity.

During the examination phase, the auditors found that only two branch-level HR plans have been developed, as well as some at the directorate level. Evidence indicated that the alignment between corporate- and branch-level planning would be strengthened and some duplication avoided if branches had clear expectations about the content of their HR plans and input to IRPB templates.

Internal auditors noted that all branches have identified HR planning co‑ordinators, with the exception of CMB. HR planning for this branch is done by HRMD; however, as was mentioned to the auditors, the current situation could prevent the branch management from having a consolidated approach to branch planning.

Timing is a challenge for both corporate and branch HR planners. The Chief, HR Planning indicated that the schedule imposed by the IRPB process was problematic, especially for sequencing activities. Of note, when planning is initiated, HR planners do not have all of the information necessary to produce their plans, e.g. budget figures, number of full-time employees or intelligence from strategic retreats. Conversely, branches have indicated that the HR templates they receive as part of the IRPB process come in too late for their own planning needs.

The auditors examined the extent to which key risks factors, such as employee demographics and PSC activities, were considered in HR planning. It was found that HRMD produces environmental scans, workforce profiles and employee engagement survey results to help identify risks. This information is shared with branches annually and on an ad hoc basis. Overall, concerns were raised about the timeliness, nature and rigor of planning information. Lack of a strategic overview by CMPED was also noted.

Recommendations

2. The VP-CMB should bring forward for EMC approval a proposal to adjust the corporate planning process such that it:

  1. includes a fully integrated approach to all aspects of business planning including HR planning; and
  2. clarifies the relationship between corporate and branch level planning

3. The VP-CMB should:

  1. integrate environmental, workforce, business and financial information required for business planning, including HR planning; and
  2. arrange for such information to be made available on a timely basis.
Management response

2. Included in response for recommendation no. 1.

3.i. HRMD contributes to Business planning by developing and integrating the HR analysis, including demographics, into the environmental scan. This data will be taken into consideration in the development of the PSC Strategic Plan.

Responsibility: CMPED, HRMD
Completion date: September 2012

3.ii. The new corporate planning process will be designed to ensure information is made available on a timely basis.

Responsibility: HRMD, CMPED
Completion date: Q4 of 2012-2013 for fiscal 2013-2014 plan.

2.2 Effectiveness of the Integrated Human Resources Plan

The internal audit team expected an effective Integrated HR Plan to be developed, approved and communicated.

The Corporate HR Plan identifies high-level HR-related activities aimed at the PSC achieving its goals, as well as strategies to co-ordinate the staffing of certain positions across the organization in an environment of fiscal restraint. The plan outlines specific staffing mitigation strategies, including staffing approval. HRMD reports that it has recently adopted a more interactive communication approach with branches to more collectively address joint risks and opportunities. Similarly, HRMD is in the process of reviewing its templates and tools to improve the level of analysis.

The HR Plan also includes a gap analysis. Specifically, projected staffing requirements for 48 positions over the coming year were identified by group and level. Staffing strategies to address risks for some groups were then presented. Similar analyses for longer-term needs have not been performed, and no input has been requested of branches for this purpose. IAD found no indications that the Corporate HR Plan was used as input for future branch-level HR planning.

Branch representatives stated that the scope of corporate-level environmental scan information does not meet their needs. Some branches have produced their own gap analysis and environmental scans, which results in potential inefficiency. The Chief, HR Planning, in turn, believes that higher-level scans should be prepared at the corporate level.

Planning for the long term is challenging, according to HRMD, more so in the current context. The TBS Succession planning and management guide offers guidance on assessing the state of succession planning in organizations to build a more comprehensive leading approach to succession planning. According to the TBS guide, there is no “one size fits all” approach to succession planning. Evidence indicated that the PSC’s succession planning and management is limited to Executive levels, without considering risks at other levels. By following a replacement planning approach, the PSC is focusing on identifying immediate and short-term replacements rather than developing talent for the longer term. The PSC’s intranet pages on talent management are dated, and did not contain activities related to the framework, such as profiling competencies.

The branches also noted that not much long-term planning information is available, for example, to support two- to three-year branch plans. The 2011-2014 HR Plan itself notes the difficulty in predicting departures, retirements, etc. This lack of long-term planning information has meant that shorter-term HR decisions, such as those for mandated budget constraints, are made without clear long-term targets. EMC has partly compensated for this deficiency through staffing controls, involving its ad hoc approval of all long-term staffing actions.

In order to help achieve desired outcomes under the restraints affecting forecasting and planning exercises, some government departments and agencies use a combination of HR strategies, supported by a capacity to run simulations. For example, management succession, promotions or aging of the workforce would be looked at with the assistance of aggregate data and analysis software. Evidence gathered indicated that no such tools were being used at the PSC to support this, given the structure and size of the organization. However, the auditors have been informed that Statistical Package for Social Sciences software has recently been acquired.

The audit found that, at the operational level, planning-related communication was limited to the provision of templates from HR Planning to the branches as a primary source of branch-level HR input, which is rolled up into the Corporate HR Plan. Interviews indicated that, at the onset of the planning process, HRMD contacts branch co-ordinators and supports them by responding to their enquiries. However, branch co-ordinators mentioned that there was little feedback given on branch input, and no opportunity to collectively validate final corporate content and ensure that clear mitigation measures had been developed to address joint risks and opportunities.

The 2011-2014 HR Plan was reviewed by the HRC and approved by EMC in March 2011. However, it was communicated to PSC personnel via Intracom much later, in January 2012.

Since the completion of the examination, the auditors have been informed that HRMD has adopted a more interactive communication approach with PSC branches. Similarly, HRMD has indicated that it has developed a new Planned Staffing Tool and the use of demographic analysis has been replaced by a dashboard tool for better-quality and up-to-date information. The auditors have not assessed these.

IAD has attempted to identify users of the HR plan, as such, but has not been successful.

Recommendations

4. The VP-CMB should clarify the planning horizon, e.g. for gap analyses, for PSC’s HR plans, and identify how to most efficiently collect information and conduct the analysis needed.

5. The VP-CMB should bring forward for EMC approval a proposal to define the objectives of PSC’s succession planning and talent management, and establish consistent roles, accountabilities and communications for their incorporation into PSC’s business plan.

Management response

4. CMPED has a project underway to streamline and simplify the planning process and reporting process, to ensure better integration of all elements of planning across the PSC. The planning horizon has been identified and work is now underway to improve the process of input, integration and reporting. The first phase of this effort should be in place and operational by late fall.

Responsibility: CMPED, HRMD
Completion date: December 2012

5. The VP-CMB will bring forward to EMC a proposal for an organizational strategy related to succession planning and talent management. Roles and responsibilities will be determined. The strategy will be integrated in the organizational business plan.

Responsibility: HRMD
Completion date: Summer 2013

Control objective 3

The Integrated Human Resources Plan is regularly reviewed and renewed.

The auditors expected the Corporate HR Plan to be used to inform future plans, in addition to being regularly monitored and reported.

HR plans are monitored on a regular basis by branches and Corporate and are reported through various mechanisms, including quarterly reports. HRMD provides regular updates and reports to the HRC. Some branches also monitor their performance, mainly via variance reporting.

PSC management identified strengthening of integrated planning as a priority in 2010-2011 and 2011-2012. Consequently, a commitment for improved integrated plans was included as a performance indicator in the 2010-2011 RPP. The auditors did not find evidence of indicators relating to HR plans being monitored or reported in the 2009-2010 Departmental Performance Report (DPR), nor in that of the following years. The 2010-2011 DPR only comments on the progress made in integrated business and HR planning as part of the lessons learned.

In addition, PSC HR planning is monitored via the DSAR. This periodic report on the management and results of an organization’s staffing is prepared by the PSC in its capacity as a central agency. The PSC’s latest DSAR results were rated as acceptable. Given the narrow lens of DSAR, there is a risk that DSAR drives HR planning, to the neglect of other elements.

Recommendation

6. To ensure continuous utility of HR input into the business planning approaches, the VP-CMB should develop an indicator to measure its effectiveness.

Management response

The Management Accountability Framework (MAF) and the Departmental Staffing Accountability Report (DSAR) provide performance indicators related to strategies identified in HR planning. The PSC will also adopt, where relevant and measurable, the new TBS Internal Services indicators for Human Resources.

Responsibility: CMPED, HRMD
Completion date: Upon availability of indicators by TBS.

9. Conclusion

The audit concluded that, overall, the PSC’s integrated HR planning process is partially in line with good management practices and government expectations on integrated planning.

A basic governance structure for integrated planning is in place. Senior management’s commitment to the development of integrated HR planning as a key component in the achievement of its business goals is demonstrated. Similarly, the PSC has in place elements of a governance structure for integrated HR/business planning. However, a number of opportunities for improvement have been noted. For instance, integrated planning roles and responsibilities are neither clearly nor formally identified, nor are existing structures leveraged for improved co‑ordination. Alignment of HR planning with strategic and business planning is a clear objective of senior management, but supporting mechanisms are only partly in place.

The absence of a clear definition of, and model for, “integration” brings about the risk of not having an effective corporate plan. We found that the PSC’s HR operations are supported by a broad suite of policies. Furthermore, the Corporate HR Plan covers most of the risk factors that could affect the next few years. However, the processes of developing corporate HR and business plans are not well connected, nor have branch-level plans been fully considered yet.

The current context characterized by budgetary pressures makes planning for the long term more challenging. In order to help achieve desired outcomes, and to address the resulting uncertainties and limitations, the PSC would require a combination of HR strategies supported by enhanced communication with stakeholders, a more corporate-level environmental scan and consistent approaches to succession planning.

HR plans are monitored on a regular basis by branches and Corporate and are reported through established mechanisms. However, the existing monitoring process does not include an assessment of planning results to ensure that the Integrated Corporate HR Plan is used to inform future plans.

Management has worked in co-operation with IAD and has provided comments and information. Management has also developed action plans that will address the risks found.

Appendix A – List of audit criteria

Control objectives Audit criteria
Control objective 1

Mechanisms and plans to guide efforts in achieving the PSC’s objectives are established and communicated

1.1. A governance structure of integrated HR/business planning is in place.

  • 1.1.1. Senior management’s commitment to development of an Integrated HR Plan is demonstrated.
  • 1.1.2. Roles and responsibilities of line managers and HR planners are established and clearly communicated.
Control objective 2

Effective integrated HR planning is implemented.

2.1. HR planning is integrated and aligned with strategic and business planning

  • 2.1.1. Strategic and business plans clearly reference HR requirements.
  • 2.1.2. Processes and mechanisms are in place to support clear and effective communication and reporting between key stakeholders on strategic, business and HR planning activities.
  • 2.1.3. The HR planning process includes consideration of key risk factors such as employee demographics, labour relations and financial and operational results.
  • 2.1.4. An adequate suite of documented and communicated policies for enabling HR capacity is in place, including the following:
    • * Recruitment and hiring;
    • * Orientation of employees;
    • * Training and development of employees; and
    • * Performance management and evaluation.

2.2. An effective Integrated HR Plan is developed, approved and communicated.

  • 2.2.1. The Corporate HR Plan integrates branch-level HR planning input and addresses joint risks and opportunities.
  • 2.2.2. The Integrated HR Plan includes a gap analysis.
  • 2.2.3. HR strategies/actions (recruitment, promotion, mobility, training and development, succession consideration and knowledge transfer and, specifically, talent management) are developed and implemented to address the current and future HR and competency needs of the PSC.
  • 2.2.4. The costs of HR activities and resources identified in the Plan are integrated into the annual budget.
Control objective 3

The Integrated HR Plan is regularly reviewed and renewed.
  • 3.1. Results of integrated HR planning efforts are regularly monitored, measured and used to inform future plans.
  • 3.2. Results from the planned actions are regularly monitored and reported.

Appendix B – Glossary

  • BMF Branch Management Forum
  • CHRBP Common HR Business Process
  • CMB Corporate Management Branch
  • CMPED Corporate Management Practices and Evaluation Directorate
  • DSAR Departmental Staffing Accountability Report
  • EMC Executive Management Committee
  • HR Human Resources
  • HRC Human Resources Committee
  • HRMD Human Resources Management Directorate
  • IAD Internal Audit Directorate
  • IRBP Integrated Resources and Budgeting Plan
  • MAF Management Accountability Framework
  • PSC Public Service Commission
  • RPP Report on Plan and Priorities
  • TBS Treasury Board of Canada Secretariat

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