HR Strategy & Human Capital Maturity Index
AIA's approach to HR/HCM strategy: cascading from internal/external context and mandate to a 5-year HCM strategy and annual implementation plan, assessed against a five-level HCM Maturity Index across Workforce Planning, Learning & Development, Performance Management, and Rewards & Recognition.
What it is
An HR strategy methodology that develops a 5-year HCM strategy from internal stakeholder requirements, internal environment, and external/operating environment (legislation, ILO standards, sectoral trends, PESTEL), cascaded into HR metrics; paired with an HCM Maturity Index rating Workforce Planning, Learning & Development, Performance Management, and Rewards & Recognition from Developing to Market Leading.
Problem it solves
Ensures HR strategy is grounded in both internal mandate/strategy alignment and external legislative/market context, and gives HR leaders a maturity benchmark to prioritise investment.
When to use
- A client needs a multi-year HCM/HR strategy
- HR capability needs to be benchmarked against a maturity standard before investment decisions are made
Key questions
- What internal stakeholder requirements and mandate must the HCM strategy satisfy?
- What external legislative, ILO and sectoral trends apply?
- What is the current HCM maturity level across Workforce Planning, L&D, Performance Management and Rewards & Recognition?
Inputs
- Internal stakeholder requirements and mandate
- SWOT and PESTEL analysis
- Sectoral and legislative context (ILO standards, SA/EC HR strategy)
Steps
- 1Situational analysisAssess internal stakeholder requirements, internal environment and external/operating environment (SWOT, PESTEL, legislation, sectoral trends).
- 2Develop the 5-year HCM strategyAlign HCM capability to organisational mandate and strategy.
- 3Cascade to HR metricsTranslate HCM strategy into HR service delivery, technology and metrics through a Prepare-Implement-Review cycle.
- 4Assess HCM maturityRate current maturity (Developing to Market Leading) across Workforce Planning, Learning & Development, Performance Management, and Rewards & Recognition.
Outputs
- 5-year HCM strategy and annual implementation plan
- HCM maturity assessment and improvement roadmap
Source visuals
