How to pass the war for talent: State of the art recruitment and qualification of Internal Auditors today

Transcription

1 How to pass the war for talent: State of the art recruitment and qualification of Internal Auditors today Bernd Schartmann EVP Corporate Audit & Security DPDHL Chairman of the of the Board of DIIR e.v

2 Agenda War for talents! High skills demanded for Internal Audit Recruiting Training / Education / Promotion 2

3 Importance of HR The Human Resources work for an audit function is of high importance This derives primarily from: the complex and challenging audit work the continuous changes in the company environment audited areas in scope turnover rate 3

4 Potential work force Germany -7% 42,627-11% 39,480 35,016 Potential work force in k Other scenarios show a decline of the potential work force of approx. 10 mill. people 4 Source: Statistische Ämter des Bundes und der Länder Demografischer Wandel in Deutschland

5 Reasons Talent Shortage Less employees on market due to demographical change (less young people, more older people) Candidates are looking for more pay than is offered (high competition between companies) Due to stronger globalization, candidates are taking job positions in foreign countries Lack of needed skills, experience No compatibility of private and working life 5

6 People Generation Profile People Boomers ( ) Characterized by social change and increasing affluence Generation X ( ) Characterized by the expansion of mass media and the advent of technology Generation Y ( ) Characterized by the rise in instant communication technologies Future Recruiting & Talents 6

7 Priorities at place of employment of the Y generation What do graduates want? Personal work environment: 85 percent of German "Gen Y" respondents expect having an own desk, which they can form personally. Flexible working time and mobility: Despite of the right to have an own permanent place of work in the office, 76 percent of the German survey attendees prefer flexible working time than the traditional 9 17h working time model. Access to newest technologies: To be equipped with newest technologies e.g. Laptops, allow the use of social networks during work is a main requirement for productivity in the eyes of the respondents 7

8 Due to the more and more complex working environment there is a war for talent! 8

9 Agenda War for talents! High skills demanded for Internal Audit Recruiting Training / Education / Promotion 9

10 Internal Audit is a significant element of Corporate Governance which serves in particular two major customer groups Senior Management/ Regional Management Consulting Internal Audit Assurance Executive Board/ Supervisory Board Detection of Process- and Control weaknesses Presentation of Optimization Potentials Monitoring Function Continuous Reporting Open Discussion with Management Implementation control regarding agreed Actions Continuous Support for the Optimization of Business Processes and the Internal Control System Adherence to statutory and internal Compliance Requirements Reliable and complete Information and hence effective Risk Minimization Clarity and Transparency through an objective Role Note: Especially the assurance of compliance gets more and more importance due the BilMoG 10

11 High Skill Profile 11

12 Requirements to Auditors The requirements to the HR work and the competition for talented staff have increased over the past years Professional Requirements Personal Requirements Theoretical and practical know how Fast and keen comprehension Organizational understanding Analytical skills Imagination, economical understanding and business thinking Empathy Linguistic agility, personal engagement, own initiative Ability to assert oneself Objectivity and Fairness Patience and ability to work under pressure Willingness to cooperate, team player, mobility 12 There must be an approach for the continuous recruitment of new, well-educated professionals for audit

13 Positive and negative aspects of working at Internal Audit Positive Challenging Auditors are used to heavy workload and many business trips Method oriented Auditors approach problems structured and method oriented Constant learning Auditors become acquainted with new circumstances Broad knowledge of company Auditors have a good knowledge about the audited area in the company Negative No/little operational experience Auditors do not gain any operational experience in the business No friends Auditors have rather a role of an outsider High claim at place of employment Auditors are used to work at high level in all respects 13

14 High Skill Profile DPDHL DIAMOND Audit Methods Audit Tool Interviewing etc. Mail-Processes Express-Processes Logistics-Processes etc. Audit Skills Soft Skills Skill Profile DPDHL Skills Functional Skills Customer Orientation Communication Conflict handling Flexibility etc. according to Audit Function IT Projects HR etc. 14

15 Agenda War for talents! High skills demanded for Internal Audit Recruiting Training / Education / Promotion 15

16 Challenges to the recruiting of talented staff Challenges Marketing AIDA Target group Internals and/or externals Selection procedure Which selection criteria? Collaboration with universities, confederations Universities, Colleges of higher education, DIIR, etc. Collaboration with internal talent pool Internal alignment 16

17 Marketing Concept AIDA Attention Interest o o o o o o Regular Roadshows Informative and attractive intranet presence (scope of work and targets of Internal Audit, opportunity to join, perspectives, etc.) External advertisements Case studies and workshops at selected universities Articles in university magazines Informative internet presence (opportunity to join, job description and requirements, perspectives, reports of professionally experienced people, etc.) Desire Action o Explain specific characteristic of the job Business trips, also international Responsibility from beginning, project oriented working Broad overview about the entire company 17

18 Agenda War for talents! High skills demanded for Internal Audit Recruiting Training / Education / Promotion 18

19 Internal Audit as a Talent Pool Clear defined personnel development concept Demand-oriented recruitment of career changer in Internal Audit Dedicated career development plan Extensive training concept 19 Transparent and systematical performance evaluation systems and Feedback

20 Starting point for Learning & Development Process? Training & development is an integral process of the motiv8 cycle. Performance and Evaluation: results in creation of a development plan based on needs, skills and competency driven Process is Continuous - After Panel Meeting Feedback session Managers and employee will review the training & development plans. 20

21 Identifying the Learning and Development Needs Job Description Career Aspirations motiv8 Performance Evaluation & Development Feedback Take stock of the aspirations, skills & competencies which should be developed! 21

22 All Auditors should have a detailed Individual Training Plan (ITP) Individual Training Plan Job related tasks Skill profile of employee Actual Documentation: what? when? costs? motiv8 Job Description GAPanalysis ITP Trainings / Development Opportunities personal skills functional skills education Skill profile of target function (current and future job) Target Individual Training and Development planning for each employee (short - middle - long term opportunities) 22

23 Strategic Approach to Learning & Development DPDHL When planning learning and development consider the following 70/20/10 development strategy and consider various learning styles: 10% 20% Formal Training internal & external training courses and development programs, e-learning, self-development, business reading. Direct feedback/ coaching & mentoring/ networking Constructive regular feedback, 360 Degree Feedback, having/being a coach/mentor, Networking. 70% On-the-job experience stretch assignments, job enrichment, project assignments, steering committees, short-term transfer to another country, job rotation & exchange, shadowing, volunteering, etc. 23 More information on CoIn about the Learning & Development Strategy

24 Training Activities Into the Job Actions to prepare the employee for his tasks at Internal Audit: - Trainee program - Internship Willingness to learn - Mentoring - Coaching Personnel Development at Internal Audit On the Job Action taking place at Internal Audit work Quality supporting work plan - Job enlargement - Job enrichment Off the Job Further training outside of working place - Workshops - Share of experiences, also within the company - Temporary employment outside of Internal Audit - Temporary employment in another department /company On-the-Job - To audit in team - Substitution - Project work 24

25 Training & Development within Corporate DPDHL With the implementation of the Internal Audit wide DPDHL Corporate Internal Audit Auditors Business School (ABS) the HR development within Internal Audit (incl. Marketing & Recruiting) has been optimized. Organizational Structure Processes Methods Human Resources Tools 25 DIAMOND Auditors Business School (ABS)

26 Internal Audit s Training Topics The Auditors Business School covers Methods (e.g. identification of individual training needs) Processes (e.g. approval processes - enrolment) Tools (e.g. databases for administration of HR measures) Quality Assurance (e.g. standardized reports about status of HR measures) The Auditors Business School defines HR development functions to the whole DPDHL Corporate Internal Audit department. HR development of auditors complies to following criteria: method-based (HR methods are consistent and aligned with CD HR) structured and controlled (planned and implemented according to plan) individual (according to functional and personal needs of auditors) 26

27 Internal Audit s Training Topics DPDHL Internal Auditors are required to gain a large variety of skills Functional Skills DPDHL Skills Internal Audit Skills Personal Skills Leadership Skills Business Units Functions Know How Business Units Know How Processoriented Auditing Interview Techniques Report Writing etc. Communication, Presentation & Moderation Leading Teams DPDHL Know How DIAMOND 27

28 Framework of the Auditors Business School The Auditors Business School is implemented in three phases Auditors Business School Career selective and targeted trainings within DPDHL Corporate Internal Audit Training Courses Training on the job Recruiting Onboarding / Mentoring Vocational Certificates Modules Continuing Education 28

29 Overview DPDHL Finance Development Programs Group Programs Top Executive Council Leadership Program X-Divisional / RCS B - C Top Executive Leadership Program X-Divisional / RCS B - D DPDHL Global Executive Leadership Program X-Divisional / RCS E - F GELP info TEC LP TELP EBS info GBS, Finance specific Programs Executive Business Skills Program(replacing ELP) GBS, Finance / RCS D - F (contents under development) Finance Development Program X-Divisional / RCS G - I FDP info PLDP info Professional Leadership Development Program GBS, Finance / RCS G - I EMSP info Essential Management Skills Program GBS, Finance / RCS I + Career Development / Active Leadership Mentoring Workshops Business Knowledge Curriculum GBS, Finance / all target groups GBS, Finance / all target groups 29 Foundation Foundation Plus Essential Logistics Skills Practitioner Advanced Logistics Mgmt Skills to elearning

30 Life Cycle of Auditors Phase 1: Recruitment Phase 2: Working at Internal Audit Phase 3: Next career move 30

31 Career Management Promotion Grade A Member of Corporate Board of Management Grade C Head of Corporate Department Grade A Member of Board Grade C e.g. Global CFO Grade E / F Grade E / F CC Department Head / Senior Professional Head of RAO / Head of Service Branch Dept. / Senior Expert 2) Grade I / J Grade G / H Manager 1) / Audit Expert 2) e.g. Region CFO Grade G / H e.g. Country CFO Grade I / J e.g. Manager Controlling within Corporate Audit within the Business Careerpath Grade K Senior Auditor 1) / 2) Grade L 31 Auditor 1) / 2) 1) in comparison to US Grading 2) not officially graded

32 Thank you!