People Dynamics April-June 2018 by People Dynamics

WWW.IPM.CO.ZA APRIL-JUNE 2018 VOL37 NO.1

WE ARE AFRICA SEIZE THE DAY!

PROFESSIONAL

Development

GENDER

GAMECHANGERS

PAYGAP J O U R N A L

O F

T H E

Then & Now I N S T I T U T E

O F

P E O P L E

M A N A G E M E N T

CONTENTS 6

Leadership

HR Trends

HR Disruption

Corporate Branding & Human Rights

Leadership & Disruption

Leadership Challenge

Youth Employment

Professional Development

People Management Feature

Strategic HR Development

Diversity Management

Human Rights in HR

Remuneration

3rd HRDC Summit 2018

21 OFFICIAL PUBLICATION OF THE IPM

Ed’s Note

ED’S NOTE Where has all the time gone? We are half way there, which means if you are planning to take a year-end break there’s less than six months to deliver on those 2018 goals! How are you doing so far? Have you done enough to deliver for the shareholder; enough to deliver on your customer promise internally and externally? Have you helped your teams sharpen their professional weaponry by keeping up-to-date with what’s happening in the industry and equipping themselves with new skills to capitalise on opportunities brought about by the new digital dispensation and latest industry revolution? Have you done enough to inspire higher value-provision to your clients and eliminate superfluous processes and redundancy? Have you done enough to protect jobs through growing employees’ contribution and increasing propositions to the customer? In the face of overwhelming costs and fading profits, have you worked with the executive team to review the business model in an attempt to find better, more effective ways of using all the organisation’s resources? In this edition we encourage introspection

on many fronts: how you view people in a techno-centric era (page 8); how you embrace individuality and Africa-ness in your corporate branding (page10); leverage diversity for optimal team performance (page32); how you protect job security as you drive organisational performance (retrenchment rethink - page?), how you can contribute toward the alleviation of youth unemployment and poverty (page 18), how you can help bridge skills and make new recruits more relevant for the workplace (page21). We also inspire you to take leadership as a personal challenge as we share with you very different journeys demonstrating the persistence of an innovative spirit, one by a health business mogul (page 13), another by a valiant “verkrampte” Afrikaner HR executive who dared the system to bring about change (page 34), as well as examples of socialistic entrepreneurs who, for their people brought utopia to life, despite regime apathy or political indifference (page15). Finally, we put some spotlight on how close the human resource development fraternity might be to bringing the NDP 2030 goals to reality, with an opinion and update by “the veteran”, Rre Litheko (page 28) and a poignant address by the country’s deputy president at the 2018 HRD Summit (page 39). We hope this package helps move you towards turning your goals into impressive achievements and your dreams into astounding reality. It’s been put together to help you realise the opportunities that exist to make a difference for people in our charge, as well as to empower us as we whisper wisdom and warnings to ship captains, as we jointly steer organisations and our economy to success. Talking of success: it starts with pursuit of excellence! How has your team fared, and what remarkable achievement would you like to share and showcase from your organisation or circle of professionals? Your nominations for IPM Leader of the Year, HR Director of the Year acknowledge excellence by your executive team, while those for HR Practitioner and Emerging Practitioner showcase strides being made by your specialists. I would also encourage you to secure your seats for the 2018 IPM Convention, which promises to break records in comprehensiveness of topics relating to people management and driving organisational success through human capital.

People Dynamics is the monthly journal of the Institute of People Management (IPM). The IPM is dedicated to the effective development of human potential. In terms of fast-emerging global challenges, it is critical to champion the strategic role of human resources and to acknowledge that both development and management are catalysts for growth. In the spirit of progress and support, the IPM provides members with effective leadership and access to appropriate knowledge, information and the opportunity to network with key local and international players. People Dynamics provides a forum for debate and discussion on all issues affecting HR practitioners in South Africa, the African continent and beyond. People Dynamics is distributed to all members of the IPM and to other key decisionmakers in the industry. To receive People Dynamics regularly and enjoy additional benefits – including discounts on HR-related services and professional networking events - contact Welile Mabaso on welile@ipm. co.za. The views expressed in this publication do not necessarily reflect the views of the IPM. ISSN No - 1019-6196

It’s in our hands! Ed AFRICAN HUMAN RESOURCES CONFEDERATION

PEOPLE DYNAMICS | April - June 2018

Leadership

Seize the Day!

PEOPLE DYNAMICS | April - June 2018

Leadership

pool and exploit their individual strengths for mutual benefit. Known rivals and arch-enemies set differences and prejudices aside to find ways in which they could all thrive and sustain their respective businesses or economies. It is time you shook off your own pride, unlocked the vaults to roll out your trade secrets. Sharing them with someone - an objective, critical eye - will make them more valuable by the end of the exercise. This is time to synergise and achieve the smart arithmetic: 1+1=3. Some would come out with 11. Who knows where in the pendulum you really end up? Cyril Ramaphosa has clocked his 100 days in office. The markets have smiled at his ascent, and trade sentiment has turned positive with investors’ ears piqued with curiosity. In analysing progress made since he has taken office, one can get as many plusses as one gets minuses, but the weight of the plusses can be made more significant the more we add our own collective will and positive intent. While politicians might be on the lookout for someone to blame or praise come 2019, the rest of South Africa is simply looking for credible, ethical leadership that turns people’s hopes into real possibilities; and opportunities into tangible and meaningful jobs that feed and sustain decent lives. As an HR practitioner or Human Capital executive, you are what represents that credible, ethical leadership to whom your own people can look up, to lead positive change and implement meaningful transformation that shapes employees into meaningful contributors to the organisation and to the economy. You are expected to be the one who always sees the sunrays through the clouds, and drive people to continue with the plans to make their organisations a success. By driving our businesses and inspiring new growth strategies and initiatives, we give leaders something to support, to endorse or extend beyond our businesses’ borders. We give our businesses and communities something

Even behind the clouds, the sun still shines.

hether you predict failure or success for yourself, there is a big chance that your prediction will become your reality. Without burying heads into the sand, we can maintain a realistic outlook yet choose to pursue a positive disposition that will influence our fate. Success begins as we aim for a goal; continues as we chart a path towards it, and as we prepare ourselves to counter any obstacle that detracts from the goal. We notch up different rungs of success as we take advantage of any potential accelerators made available on the way. The changes that South Africa has experienced at the beginning of the year are best viewed as accelerators for our businesses to leverage, to move organisations more swiftly and with less cumber towards identified growth and sustainability goals. If there was any time to influence the system positively for organisational, community and economic growth, it is now. This time represents a window of opportunity, where the world is prepared to listen to South Africa. It is a time of piqued curiosity, and a time to flex our leadership and innovative muscle. Think of industry-wide initiatives and policies that favour emerging countries and business growth, and take advantage of collaborative platforms and summits to bring ideas to reality. While competitive strategies were the thing in the 80’s and 90’s, this is the era of cooperation and coopetition. Coopetition helps businesses and countries

to stay positive about and about which to hold country leadership accountable. There has been much talk and debate about land in the country, and before it’s over, you might want to test your personal relationship with this pervasive yet elusive ‘birth right’. The person who knows the most about land stands the best chance of making it to the head of the queue when the country looks at ways of exploiting this resource to benefit its communities. Without being a commercial farmer or an industrialist, you need to learn, in the very least, to grow your own herbs, consider a container garden, recycle your own refuse and know which vegetable grows best in which season. Even more importantly, success belongs to the one who has a credible plan for optimising its usage – making it productive and beneficial not only to themselves but for a broader community, providing gainful source of employment for people who otherwise might have no economic activity. You would think that putting the land to work would be as natural and automatic as breathing or brushing one’s teeth. And, who says it can’t be? Starting with the little we have at our disposal, lets learn to exploit our natural resources and show appreciation for our divine gift. Sharing with strangers or the destitute something from our garden is a better expression of caring than dropping them a one rand coin.

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HR Trends

THE GOOD CORPORATE CITIZENSHIP IMPERATIVE Human Resources is lumbered with common challenges locally and globally. Changes brought about by disruptive technologies, shifty economies and increasing activism call for exceptionally high business acumen and leadership dexterity.

he latest Deloitte Human Capital study shows that, increasingly, organisations are expected to play a much bigger role in society – beyond just as an employer and service provider. Organisations are expected to contribute in civic strategies working with local fora that bring together community leaders, business chambers, residents, law enforcement bodies, educational bodies, youth clubs and representatives of special interest groups. An organisation’s involvement serves, primarily, to safeguard its business interests. It ensures that the organisation remains relevant to the market it serves, as well as ensures that its operations contribute as expected or reasonably toward the wellbeing of citizens, causing no harm to the community and environment. Through this process, the organisation protects its employees and drives towards sustainability of local employment. It demonstrates good corporate citizenship. Deloitte identifies this kind of citizenship as: “everything an organisation does that impacts society,” and defines it as a company’s “ability to do social good and account for its actions—both externally, among customers, communities, and society, and internally, among employees and corporate stakeholders”. Deloitte suggests that for Corporate Citizenship to have greater significance or the effect expected by stakeholders, compared to what is currently delivered through CSR or CSI, it should be given prominence by being placed in the CEO’s office. Irrespective of PEOPLE DYNAMICS | April - June 2018

where a Corporate Citizenship programme is housed, of importance is that it is sponsored at the highest office and gains commitment across the organisation. Our observation has been that whether housed in Marketing, Stakeholder Relations or People Management office, CSR and CSI has always been a strategic programme for organisations, with CEO being the main sponsor. Whoever had day-to-day operational custody would be in a strategic advisory position to the entire executive committee, devising a strategy that considers the entire stakeholder map and all stakeholder expectations. The particular custodian would advise on the involvement and roles of all members within the organisation. If you have CSR or CSI in your portfolio, it may be worth your while to give attention to the latest shifts and determine what gap your own organisation might have in order to achieve a supreme corporate citizenship standing. Fresh spotlight drawn on CSI

Some of the reasons for the stronger focus on corporate social investment and the re-coining of the concept into Corporate Citizenship may not necessarily apply in your specific market. Nonetheless, something that certainly has universal application is the global swing towards transparency and increased activism, which plays itself out in social media. Thanks to this phenomenon, companies are forced to live more

HR Trends

Since charity begins at home, positive corporate citizenship starts with an appealing EVP, because employees then become partners in the drive toward good corporate citizenship. authentic corporate lives and walk their talk. Whatever policy or conduct that is out of kilter with the companyâ&#x20AC;&#x2122;s positioning or promise would be subjected to public scrutiny. Worse yet, would be the case where organisational behaviour threatens the environment, bends ethics or compromises the human rights of its customers or employees, then social media would erupt and the entire stakeholder community would be alerted with many immediately disassociating themselves - withdrawing business, scrapping contracts and cancelling endorsement or support.

Another reason determined from the survey has to do with the new generation of employees, who happen to seek out companies that have a strong socio-moral standing. American millennials, in particular, not just shun organisation with poor governance reputation and weak environmental and social policies, but prized talent elects companies with impeccable employer brand and exceptional employee value proposition. It should be borne in mind that EVP is measured against your corporate reputation which is influenced by various stakeholdersâ&#x20AC;&#x2122; perceptions and vocal assertions or feedback. It includes your organisational culture, people policies including rewards and benefits, advancement and self-development programmes. Since charity begins at home, positive corporate citizenship starts with an appealing EVP, because employees then become partners in the drive toward good corporate citizenship. They become ambassadors and representatives that bring credibility to the corporate brand and authenticity to the positioning of the organisation as a corporate citizen. Wherever Corporate Citizenship, CSR or CSI lies in the organisational structure, CHROâ&#x20AC;&#x2122;s and Human Resource executives ought to influence its strategy, drive its implementation, and monitor its impact on employees and on different communities. Through its resources, the organisation has to ensure that it effects positive transformation in society and contributes toward sustainability among the communities it serves. OFFICIAL PUBLICATION OF THE IPM

People First

PEOPLE FIRST:

The Way

Forward

As the impact of technology and a robot-takeover threat is being felt, there is fresh appreciation for “people”.

PEOPLE DYNAMICS | April - June 2018

People First

BY: GEORGINA BARRICK, MD, Cassel&Co, Insource IT Edge and The Working Earth

outh Africa has come full circle. The workplace is over the novelty of impersonal office gadgets and is re-imagining the optimisation of all things human. HR’s newest buzz phrase is ‘People First’; back to what government initiated back in 1997, when it encouraged its service users to provide it with honest feedback regarding the quality of work they receive from the different departments. This was used to empower the departments to streamline processes and focus its employees on improving service to the public. Significant strides were made, in particular at Home Affairs offices, Revenue Services, Labour offices, to count a few. Now the pressure is back, to recover what gains were made, and to raise standards that may have plateaued. With government’s initiative, Batho Pele concentrated on ones being served, whereas, the new people-focus is primarily on those who have to work alongside robots and high-tech systems to deliver service to the variety of customers who make up the South African consumer. So, who best to drive and impress this fresh sense of urgency but us – people managers and human resource executives! This means that how we see, manage and communicate with our employees is evolving. We’re moving from a more traditional HR view, where process drives efficiency, effectiveness and value (think Jack Welch’s infamous annual ‘rank and cull’) towards a world where people come first. Today, we regard our employees more as ‘‘whole human beings and understand the complexities, opportunities and abilities that come to work with them every day”, leading us towards an understanding that their well-being, success and growth are top priority.

Another key driver of this evolution is rising awareness

The greater social conscience of our younger generations, together with social media, is driving transparency – think #MeToo, #equalpayday and Wikileaks. As leaders, we understand that our actions and culture are no longer contained within the walls of our companies, but instead are visible for all – satisfied or disgruntled – to see. The knowledge that our treatment of people can easily become public (remember Vicki Momberg) and can impact our bottom line, is a contributing factor in this greater awareness. As I’ve alluded to already, the third driver is generational.

In 2008, we had two to three generations in the workplace. Today, we have five working together - (a first!) presenting HR with both unique challenges and opportunities. Technology, the very challenger of humans, can help HR to uncover generational differences and focus on inclusivity for all, through communication. ‘People First’ is impacting how we do business in interesting ways: Employee engagement is making way for employee experience or journey

For some time, we’ve been concerned with measuring engagement – or how emotionally committed our employees are to us, our companies and goals. We’ve also been outwardly focussed on strategies that drive ‘customer experience’ – but have finally evolved sufficiently to include employee experience in our arsenal. Technology now helps us to show commitment to our employees, by driving the delivery of more personalised ‘consumer-like’ experiences. This extends to supporting employees on their career journeys, either internally or externally. Tailored, flexible work solutions are gaining traction

As leaders, we’re realising that it’s people, and not only process, that create value and efficiency. Drivers of the new People First phenomenon

As leaders, we’re realising that it’s people, and not only process, that create value and efficiency. This may seem almost counter-intuitive in a world where robots are replacing humans in so many jobs, but indeed, one of the key drivers of this evolution is technology. In one of my recent articles, I talked about the impact of technologies like Artificial Intelligence (AI) and machine learning. Together with social media, HR analytics (aka People or Talent analytics) and human management tools, technology is driving instant access to information not available through traditional channels. This data allows HR to track employee sentiment, satisfaction and success – which, in turn, makes it possible to strategically innovate, make decisions, personalise the employee experience and create brand ambassadors out of our current and former employees. Or, put ‘People First’.

In the US, remote work increased 16% between 2008 and 2012, facilitated by technologies like Skype and Google Apps for Work. The resulting cost savings on office space and perks have been bolstered by the fact the flex has become a sought-after perk itself. And, one of the biggest benefactors of this shift are companies themselves who would otherwise lose workers – particularly women who may leave the workforce to take care of children. Office perks are becoming more individualised and relevant

From personalised wellness programmes to tailored concierge services, companies are using people analytics to personalise perks. Good examples include Bitco’s ‘token system’, where employees receive tokens for demonstrating knowledge sharing, communication and integrity, and MultiChoice’s MLife concierge service and rewards programme, aimed at supporting employee’s like a 24/7 personal assistant. Coaching is on the rise – at all levels

Once prevalent only at executive levels, coaches now help staff across the business to understand what they really want from careers and how to unlock value. Technology now allows coaching to be delivered on virtual platforms, which together with the increasing specialisation of coaches, makes the concept more accessible to all. ‘People First’ seems to be ushering in a kinder, more effective and productive way of managing human resources. As David Sikhosana, author of ‘Time Value of Money’, said: ‘Always put people first, for without them, there is no organisation’. OFFICIAL PUBLICATION OF THE IPM

Corporate Branding and Human Rights

We are Africa

Does your Corporate Brand infringe on Employeesâ&#x20AC;&#x2122; Human Rights? We Are Africa. Our continent is mostly sunny and warm. Our collective personality and character reflects our climate. We are a warm, friendly and relaxed people. And of course, we seek to express this in many ways, including how we dress. Do your corporate policies embrace this?

PEOPLE DYNAMICS | April - June 2018

Corporate Branding and Human Rights

t is always argued that a business enterprise is not founded around social or cultural premise, but rather on commercial principles which include a profit and sustainability rationale. But as human resource professionals we know that without people, enterprises would not stand, let alone succeed. Enterprises need people inside and outside. Inside, they need people to perform work, and outside they need people to consume products so that profits can be made. Historical consideration

When conceptualising its identity or a corporate brand, a business considers several things. First and foremost is something sentimental – usually about the history or founder of the business, hence his or her name may feature on the enterprise. Next, the enterprise will have technical considerations: the environment, type of business or industry it’s in and whatever symbols may be well recognised in the market it competes in. Finally and most importantly, there are people to be considered. While adopting the name of the founder(s) may not be negotiable, a caring enterprise will seek to embrace its people such that they can identify with the organisation and feel that they are an intrinsic part of it. In developing aspects of its corporate identity: the trading name, colours, logo, symbols, position statement and the like, an enterprise will consult quite extensively. Internally, it will solicit input from its employees, and externally consult a range of stakeholders, most important of whom are prospective customers and immediate civic community. Expression of Strategic Intent

It is the executive function to present a corporate identity that is inspirational and motivational to its people. As a people management or HR executive, this would be of prime importance to you in driving employee engagement and employer brand strategy. The process starts with the composite mission statement: the purpose, vision and strategic goals, which is to kindle a cohesive spirit, a sense of belonging and collaboration among employees. When the corporate identity captures the strategic and social intent of the organisation and every person sees his or her ‘name written in it’, then, all physical and tangible symbols could be developed in sync with this. Among corporate identity policies close to employee’s interest will be the dress code. The choice of colours, uniform styling and other aspects of deportment policy need to express the collective claim all employees have towards the enterprise. Expression of diversity

Opening up the range of styles in the dress code shows consideration and respect for the diverse profile representing the organisation along age, gender, size, religion and cultural lines. It would be sensible to consider different body frames, as would be the different operational needs depending on safety and security aspects of each job. While a small organisation may enjoy homogenous levels of affluence and living standards, larger companies need to be alert and sensitive to different economic standards and varying disposable income of their personnel. Thus, placing a burden on employees by having dry-clean-only garments would be unreasonable. In certain environments, even garments that need ironing might prove challenging if not everyone has easy access to electricity. Infusing Social and Business Imperative

Rather than being rigid about dress code, human resource executives should work with marketing or creative experts to design something that is representative of diversity in the organisation. We are Africa. We are warm and friendly people. We enjoy the sun and use it to time and pace ourselves. We relate well to this. Yet, we stay cognisant of where we play. We are in a global field where often we leave

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Corporate Branding and Human Rights

our place of comfort in search of opportunities: customers, partners, suppliers or investment. We also receive and host foreign stakeholders in our social home and commercial home-turf. So, we know international standards and we respect them. Still, we are Africa. Whenever we host visitors, we would be doing them and ourselves an injustice if we do not let them see who we are inside and out. Our natural warmth isn’t expected to show only in the courteous way in which we handle tough negotiations, it should permeate all the spaces we occupy. As Africans we inspire and assert ourselves in how we dress, carry ourselves, express ourselves in language and in the overall image that we project. Fusing professionalism with Ubuntu

While it might be tempting to just follow the sun, make loose appointments and settle on handshakes or gentlemen’s agreements, we subject ourselves to international standards that have universal recognition. In a unique way, we fuse our genteel charm with professional standards; we distinguish ourselves by living African values of Ubuntu while navigating the West-inspired codes and ways of doing business. As hospitable people, we want guests to feel at home while we engage in profitable discussions and pursue mutual business success. We also want our people to be comfortable and ever-assured when on business in foreign territory. Hence, in developing corporate branding and designing corporate identity symbols, including dress code, we never want to lose sight of the objectives of the enterprise, yet we never want to lose the warmth of Africa through expressing who we are in poise, language or dress. We work within the generous framework provided by our liberal legislation to design corporate identities, branding and corporate dress policies that allow us to proudly express who we are while delivering on the objectives of our corporate businesses. Do we get the corporate branding and self-expression balance right?

While generally, we get corporate branding right, there could be even more expression of African pride portrayed or displayed by local enterprises. A drive toward more conscious and responsible leadership challenges us to think of ways we might be more protective of the planet and be more in one with our indigenous heritage. The drive sends us to our respective companies and back to the design studios to see how our corporate brands can reflect more of Africa; contribute toward preservation of her natural resources and keep ourselves closer to nature. There is no limit to how an entity’s corporate identity can reflect its people, culture and origins. Aside from the formal corporate logo, identity might be expressed more overtly in a colour theme, textures, building architecture or facades, décor, fabrics, the type of accessories, art, gifts, and of course, the corporate dress code it chooses.

As hospitable people, we want guests to feel at home while we engage in profitable discussions and pursue mutual business success. sustainable our identity can be. In enhancing representativity of corporate symbols, an enterprise needs to be broad minded and open to suggestions. As long as principles of wholesomeness, hygiene, health and safety are preserved, any ‘expression of Africa’ should be able to find its way to an enterprise’s corporate identity, alongside the portrayal of the business’ mission, industry standards and the environment the entity operates in. The test of a successful corporate identity is in the credible representation and the harmonious reflection of its people and their diverse culture. The strength of any corporate brand is in the versatility and ease with which it embraces its diversity, while visual brand distinction sets it apart from a sea of competition locally and globally. While it is pretty understandable that an enterprise would adopt international codes or standards, any corporate policy that forbids Africa-wide culture and deportment is not realistic. For example, a dress code that forbids females from wearing headgear at work is not practical. It needs to go back to the drawing board - the same way as one that describes male formal wear as strictly suit and tie, without considering geographical location and seasons. Individual idiosyncrasies

While self-expression is encouraged, employees need to respect corporate formality and stay conscious of subtle or unintended messages their dress code sends. Being sloppy, clumsy or untidy is by no means an expression of Africa. On the contrary, African style and garb has always veered toward neatness and formality outside of one’s home – where every item of dress was well-thought out, had meaning and purpose. In modern office environment, we cannot pass childish behaviour or encourage disrespectful attitude to permeate in the name of African culture. If we want to emulate or depict our culture – let us do it properly and with dignity, so that it is authentic, and others can learn from it and understand the meaning behind the different elements. Show pride in your dress as you should show pride in your work and proper representation of your company. You are a professional. Act like one, whether in modern or African gear. For your own sake and that of your stakeholders’, stay within the corporate guidelines and follow appropriate measures to introduce or institute change where you find it due. There has been thought put into corporate policies, show due thought when you propose changes. Custom versus safety and social considerations

Local is Friendlier

The more local inspiration and derivatives a brand has, the more accessible and sustainable. In revisiting our corporate policies and manuals, we might find opportunities to simplify rules and move them away from Euro-centric stereotypes, but work our way to a mature, nature-friendly corporate code of conduct and a true African existence. The more we reflect Africa through use of indigenous artefacts and readily available natural fabrics and products, the more authentic and

PEOPLE DYNAMICS | April - June 2018

While a piece of goat skin on one’s wrist looks attractive and is wellrecognised in African customs, if an employee works in an environment that requires absolute sterility, a company might prohibit the wearing of this accessory. Also, although it is well acceptable or rather expected for African virgins to be bare chested, a company may bar this cultural dress code if it stands to detract from business operations. It might, however, open this dress privilege for national holiday celebrations or special team-building events - if at all.

Leadership & Disruption

A peek into the makings of a Leader

VISION, PURPOSE AND LEATHERTHICK SKIN BY: PEOPLE DYNAMICS CORRESPONDENT

Very few people Iâ&#x20AC;&#x2122;ve met are as passionate and hungry for a vision or goal they set themselves like a capitalist. Bible bashers might come second. But leading people towards a worthy vision takes more than capitalism or bashing.

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Leadership & Disruption

his article by no means intends for you to aspire to either of these types of leaders, assuming you are still uncaptured. It’s an expression of admiration for how much these types of people achieve, mainly by focusing on the positive and on the possible. These types of people ‘see’ the future they want, and spend every ounce of their energy and every moment of life chasing, living and inspiring this kind of future. They are dismissive of divergent cynicism, convinced of attainability of success and their special kind of utopia. They demonstrate strength of character through leading and influencing positive action, nurturing like-minded potential and muzzling detractors. Among capitalists who continue to make a strong impression on the South African economy - successfully disrupting the market; not just in his industry but shaking multiple industries and the traditional ways of defining markets, one has to admire the founder of Discovery Holdings, Adrian Gore. Gore claims that at the founding of Discovery, his purpose had been that of making people healthier, and enhancing and protecting their lives. In the pursuit of his purpose he has kept his eye and mind open to opportunities, picked the best of alliances and partnerships to help him deliver on his objectives and fulfil his purpose. In the process, he has made himself and a whole lot of people very rich. ‘He’ also, on a daily basis, leaves a lot of naïve people frustrated and bitter. I doubt that there would be any apology for this. After all, this is business. Some win, some lose. Or rather, everyone wins, just not at the same time. Trade-offs! As a business man, he capitalised on people’s fear and dread of the unknown, yet as an individual he advocates positivity and encourages people to have a positive outlook and carry such attitude into what they do, how they live their lives and how they impact their environment. In an opinion piece published by TopCo, he aptly points out and laments South Africans’ dwelling on the gloomy picture about the country, whereas time and time again the country has proven strong and resilient, overcoming seemingly unsurmountable challenges it faced through the years – from apartheid to AIDS. He might not have profited much from the former, but he may have a good rand to show for the dread associated with the latter. As a capitalist, he fuses his vision of making people healthier and proactive about protecting their lives with benefits coming from apparent failure of humans in achieving this, which results in insecurities about eventualities, fragility of health and the process of death. Discovery Health opens its members to the Vitality programme which focuses people on positive aspects of life. It encourages lifestyle experiences which serve to revitalise, refresh and give one’s system a break from the day-to-day stress of the grind, engaging the mind and soul to enhance wellness. Through sports membership, Discovery encourages people to stay fit and strong, helping bodies to become resilient, to fight disease and curb early onset of ailments emanating from muscle deterioration. The combination of water intake and high impact activity also helps with elimination of toxins in the body. It eases the kidney function, helps with healthy blood circulation and heart strength. Discovery has since evolved into a diversified and multinational financial services group, having successfully shattered the lines between medical aid, short-term insurance, banking, and life insurance. Gore receives wide recognition locally and globally as a pioneer and thought leader in wellness behavioural change and integration of multiple aspects of health. In the twenty years since its listing in 1997, Gore’s company has grown to contribute thousands of

PEOPLE DYNAMICS | April - June 2018

Gore receives wide recognition locally and globally as a pioneer and thought leader in wellness behavioural change and an integration of multiple aspects of health salaries in South Africa, United Kingdom, United States of America and China - providing employment access to youth at entry levels, right up to actuarial wizards, health witches and experts advising on national forums and multi-country think tanks. Typical of the ignorant or those at the bottom rung of the latter, I may have misgivings on how a medical aid will find any and all reasons not to provide medical support when one needs it most – particularly after years of good health and low claims. Yet, one has to give it to the capitalistic world, it has the customer where it wants her. With sacred commercial principles espoused, terms and contracts scrupulously crafted and legislation safely complied with, it will continue to put a sunny smile on its employee’s face and a healthy bulge on its investor’s pocket. Notwithstanding an odd misgiving, one has to give it to Adrian and his team: the vision is compelling. The proposition has magnetic appeal. The formula defines success. The corporate principles and values are admirable. Well-lived, this dream has positive impact on customers’ wellbeing as far as leading defensive and preventative lifestyles is concerned. It brings great benefits to shareholders and the 8000 employees who enjoy financial security in the face of a tough economy. Hence, on the whole, Gore’s vision carries a tremendous benefit to the country’s overall health and wellness. What’s not to admire? A Visionary, a leader, a disruptor and an entrepreneur extraordinaire!

Leadership Disruption

CHANGE THE GAME, NOW!

Who says you canâ&#x20AC;&#x2122;t? Leadership is everybodyâ&#x20AC;&#x2122;s challenge. Despite having appointed leaders in certain positions, nothing stops anyone in an organisation to take (initial) steps toward bringing about solutions to make the workplace safer, happier and more conducive to delivery, productivity and continuous growth.

s people managers, both line and human resource executives, we need to inspire and appeal to the imagination of every employee giving people confidence to stretch to whatever life horizons they aspire to. Leaders need to encourage people to dream well beyond the status quo. Starting with Self

Parents give their children education in a vision to attain better quality life and reach much higher social altitude than they have themselves. We need to guide employees in bringing these aspirations to reality. Draw yourself a picture of what success looks like, and take the first step to take that into reality. No two people think exactly alike or want the very same things. While we admire successful businesses and powerful leaders, we are acutely aware that not all businesses have upheld ethics or high moral standards to get there. Some cut corners and hope to get away with it, while others are blatant about prioritising profits, even at the expense OFFICIAL PUBLICATION OF THE IPM

Leadership Disruption

of age-old reputation, heritage, health, safety or even jobs - KPMG, Steinhoff and major SOE’s case in point. But, to be worthy citizens, we pursue personal goals and corporate ambition while protecting the wellbeing of stakeholders, especially our employees. We do not trample on human rights to get our way ‘at all costs’. The basis for an admiration of Adrian Gore is his enterprising spirit – how he upset the rigid and traditional applecart that built industries into cemented silos. He demonstrated how purpose should drive the shape of the organisation, rather than holding on to a business model that has served its purpose. His astute business principles and cunning for profitable strategies leave us gobsmacked. The fact that his business or the financial sector has risen to prop up an economy that is trying to recover from industrial losses that cost the country many industrial and manufacturing jobs, is admirable. Different Leadership Contexts

History, however, shines some light onto different contexts for leadership. On scouring the British Library, one gets to learn of leaders whose noble purpose and foresight seemed far-fetched for their time. In pretty much the same way as in the 90’s, when Discovery emerged, someone had to disrupt and redefine the business models of the time. Early pioneers got out of their comfort (or discomfort) zone and upset what was a revered applecart. Robert Owen

A Scottish factory worker, Robert Owen, decided to break into the unimaginable to resolve what he perceived to be workplace atrocities – his way. In contemporary commentary by Henry G. MacNab, “the great aim and ultimate end of the benevolent views of Mr Owen, were the employment, instruction and comfort of the labouring classes, and of the poor; the education of children, and the universal happiness of mankind”. Utopia, if ever one had heard of any! And yes, Owen who became the founder of New Lanark cotton mill created it. He first conceived it and articulated it in ‘A New View of Society: Essays on the Principle of the Formation of the Human Character (1813), but never stopped there. He went ahead and implemented what was acclaimed globally as a model utopian community. According to MacNab, Owen was not afraid of controversy and at times seemed to court it. He regarded New Lanark as a living demonstration of the ways in which the evils of poverty, social disadvantage and ignorance could be overcome through imaginative education, fair discipline, regular work, good housing and health care. He didn’t stop at writing and publishing views in an essay protesting against the condition of the British poor who made up three quarters of the population then. He didn’t merely sound a call for educational, industrial and social reform. He rolled his sleeves and made it happen. Personally. On the basis of a strong belief he held that a person’s character is formed by circumstances over which, in this particular case, a poor person had no control, he sought out ways to change the circumstances for those around him. He didn’t only believe that harsh conditions in factories were damaging to people, he went on to demonstrate that a different world can be created by ordinary people. On ascension to management of New Lanark around the 1800’s, he was determined to make it in every way an exemplary community, where he ensured that ‘machines served people rather than the other way around’. PEOPLE DYNAMICS | April - June 2018

He quickly introduced measures ‘to bring the greatest comfort and improvement to the numerous population to whom New Lanark afforded employment. He stopped child labour on its tracks. Parents were advised to allow children to acquire health and education until they were ten years old. They were taught reading, writing, and arithmetic in the village school, without expense to their parents. All modern improvements in education were adopted to put children’s education on par with those of higher income groups. He insisted on homes being cleaned weekly in order to improve housing and sanitation in the village. Just as he was generous and considerate, Owen was a strict disciplinarian and an astute businessman. He used his generosity to improve people’s quality of life, but recognised that the same measures served to improve the profitability of the business. He introduced random searches of workers to reduce theft, and regular notes were made of employees’ mistakes. Workers could be dismissed for being absent without leave. On the premises, he set up regular patrols to catch and fine drunks. Owen did much to promote the welfare of his employees. On top of regular monthly salaries, they could also obtain credit through a system of tin tokens. He introduced a contributory Sick Fund and Savings Bank, which by 1818 had deposits amounting to £3000. Before a nationwide welfare state, such social provision would only be found in utopian pockets of society. Owen’s New Lanark was a model village. Indeed, as envisioned and engineered by Owen, it became “a living demonstration of the ways in which the evils of poverty, social disadvantage and ignorance could be overcome through imaginative education, fair discipline, regular work, good housing and health care.” The community became a place of pilgrimage, drawing Owen’s followers from many countries. Sir Titus Salt

Aside from Owen’s, one picks up the account of Sir Titus Salt - a textile mill owner and one of the largest employers in Bradford. According to the British Library, industrial expansion had caused Bradford to grow massively in the first half of the 19th century. Industry also produced high levels of pollution which caused serious health problems in the local population. Unlike most industrialists Salt was concerned about this damage to health. In 1848 Salt became mayor of Bradford, and attempted to persuade the council to force local factory owners to take measures against the damage they were causing to local health. The council was unwilling to take action and Salt decided to leave Bradford. In 1850 he announced plans to build a model industrial community called Saltaire at a nearby beauty spot. Saltaire was built in twenty years. Its textile mill was the largest and most modern in Europe. Measures were taken to reduce noise, dust and dirt from the factory floor. Non-polluting smoke burners were used to protect the air quality in the neighbourhood. The workers were provided with housing, a park, church, school, hospital, library and a range of shops for the workers. Homes were supplied with fresh water and gas and each had an outside toilet. Public baths and wash-houses were built to ensure good sanitation levels. Comments James Hole in his report on Saltaire, “there are scarcely ever any arrears of rent. Infant mortality is very low compared with that in Bradford, from which place the majority of the hands have come. Illegitimate births are rare. The tone and sense of self-respect of the workpeople is much greater than that of factory hands generally. Their wages are not high, but they enable them to secure more of the comforts and decencies of life than they could elsewhere.” Together with like-minded pioneers, these leaders inspired a new

Vision is not something that ends up in the head. It is something everyone can pursue.

human-focused regime in Britain, ushering a new era that placed employees at the centre of the business, recognising them as the greatest asset in the workplace, as well as an essential player in the wellbeing of society. It’s our Turn!

Vision is not something that ends up in the head. It is something everyone can pursue. With the right amount of passion and compassion, we can initiate and drive programmes that can continuously improve the conditions of employment in the workplace, as well as help equip our employees for better contribution to the company’s bottom-line. South Africa needs HR and its leadership to play its Role

Anyone who thinks of Owen’s and Salt’s initiatives as extreme has to shake himself or herself to the reality of South Africa. As was the case for Britain during the 19th century, where two-thirds of that country languished in poverty, South Africa has great levels of poverty in the bottom three-quarters of the population. As HR executives, we sometimes perpetuate this situation by encouraging a wide schism between executive salaries and the labour wage. What happens in society is likely a reflection of what we plot on our remuneration spreadsheets. While some confusion might reign, and whilst high level political solutions are being constructed, there is no stopping your organisation from conjuring up strategies and implementing projects that uplift and secure the future and continued success of the organisation and its employees. As encouraged by government and seen in several initiatives, industries can collaborate among themselves and rope in labour, education structures and civic society to implement large-scale projects that drive the country away from poverty, unemployment and inequality.

those towns are at the brink of collapse. The service economy took over and has since been displaced by a digital disruption, thanks to the Fourth Industrial Revolution. New economies might not lend themselves to the establishment of a physical community or village that can live the idealistic values that Owen and Salt subscribed to. But opportunities abound, still. Villages have now gone virtual. One can argue that what Discovery has created for the 8000 strong people it employs is a village where people share common values, are driven by the same passion and purpose. It could be reasoned that this village has even greater potential impact as it positively touches and influences more people beyond Discovery employment. The 8000 people have dependants they look after and cater for; have neighbourhoods they support and communities they contribute in. Similarly, your organisation can shape a village or create its own virtual village; ensure that the spirit of humanity lives, people thrive and that the dignity of life and respect of people as individuals is maintained. Leadership has no boundaries or ideological confines

On the topic of leadership and admiration, it would be a grave mistake to assume that the pursuit of purpose and success is the exclusive privilege of capitalistic minds. In fact, as could be seen with the examples cited, it would be short-sighted to confine people to a single ideology. People are complex species, influenced by different circumstances, affected by different situations at different stages of their lives. There are many capitalists with socialistic behaviour and vice versa. Let your own circumstance inspire you and your own situation incite you into leadership that improves those around you, as well as benefit several generations after you. Who says you can’t?

Build your virtual Village

During the mining boom, mining communities did this successfully – establishing small towns that provided for needs of employees. Most of

References: Henry Gray MacNab, 1819, W. Davidson 1828, James Hole, 1866, Abraham Holroyd, 1871. Courtesy of the British Library Board

OFFICIAL PUBLICATION OF THE IPM

Youth Employment

Work-Integrated-Learning

A solid bridge out of youth unemployment?

Many companies are opening their doors to give youth access to work experience with multi-colour results. South Africa’s newly launched ‘YES’ initiative is another WIL version, and it raises hope even higher for unemployed youth. BY: LITHA MOKOENA, Development Coach and Founder, WaslalInsights

Why would the Youth Employment Service initiative raise high hopes?

With a new president and a new dawn breaking in the country, even dull tarnished silver might start looking like polished gold. This is a good thing. Food consumption starts with the eyes. Colourful food stimulates appetite and to a great extent, enhances the eating experience. Having a President-endorsed WIL initiative has already brought in more players from private sector, with the Thuma Mina train attracting more people who seek recognition for social activism, community development and corporate social responsibility. Low-risk empowerment gesture

Several financial institutions have participated in the initiative, likely to divert criticism for not opening their big savings kitty to stimulate

PEOPLE DYNAMICS | April - June 2018

economy through providing support to commercial business, in particular the SMME sector in which SA pins its economic turnaround hopes. WIL provides a sweetener, and takes a couple of youth off the streets and off employment queues for a while. Long-term Solution

While YES has absorbed a commendable number of graduates, the country needs to be ready with employers who will absorb these graduates once they have the requisite work experience to be in formal employment. The questions remain: Who will these employers be? Where will they come from? Does the rate of start-ups plus vacancies in existing companies match the graduate churn – let alone the YES graduates plus existing inactive job-seekers? Positive answers to these questions will provide long-term solution to youth employment issues.

Youth Employment

A Hosts’ Dilemma

Appreciation of WIL Value

Earlier in the year, an HR Director from one government department hosted a ceremony for a 1000-strong WIL graduates – part of the provincial office’s youth development initiative. “I am haunted by the kids’ pleas for permanent employment. Knowing their plight, some of whom had been using the stipend to support families, I find myself at a loss. While a couple have been absorbed by provincial departments and a few hired by private companies, over 70% of the intake has nowhere to go. I even get parents calling me, as though there is anything I can do. It is heart-breaking.” The lady shuddered at the thought of another intake, knowing that at the end of the programme, hopelessness looms, and hers is the face they look up to.

The internship has done ‘enough’ to set participating graduates apart from their inactive counterparts staying at home. They have learnt practical skills. They have observed how the industry works. They have learned what skills are valued more than others and what services are more critical. They have identified gaps in the market - that can either be filled through fresh innovation or a tweaking of existing innovation to make it fit-for-purpose. They have learnt business communication and know how to put together a pitch and a report. They have experienced budget proposals, approval processes, meetings and debate that facilitate decision-making, leading to budget allocation, prioritisation of programmes and tasks. They have learnt business language and etiquette. They have been exposed to continuing professional development through a variety of CPD-earning activity, whether seminars, workshops, short-term courses, online self-study programmes, or project-based exercises.

“Band-Aid” Fix

At the seminar, fellow HR directors shared similar experiences, albeit with less intimidating numbers. Strong recommendation was given to focus the graduates on entrepreneurial training within their respective professions and related fields. We encouraged them to compile a list of different services required by the several value chains in different departments. This is to give graduates ideas of how they may go on to become sole- or partner- suppliers to the host company and the industry at large, providing unique products or specialised services. If not qualified immediately as a supplier, a graduate may further volunteer as an understudy in an area of specialisation as he/she hones skills required to make him or her more marketable.

Further Value emanating from WIL involvement

Outside of the work environment, they have been exposed to informal learning opportunities, such as personal time management, dress and grooming, managing and stretching a budget to last a month, emotional maturity – learning to prioritise and resist debt induced by persuasive advertising that encourages one to spend more than one is earning! They would have learned to manage the ambiguous life of being an employee and a student at the same time; of humbling yourself to do menial work one day and contributing to exciting boardroom debate the next. They will have known how to learn by observation, and perfect the

OFFICIAL PUBLICATION OF THE IPM

Youth Employment

act of simulation and emulation – whether it is leadership behaviour, management styles, industry jargon, office lingo or social adult-speak. With the right kind of mentor, they would have constantly been taking notes and reviewing the value of each day, in terms of new learnings, how they relate to theoretical concepts studied at university or college. They would have been exposed to scenarios, case studies and real life projects that required them to turn knowledge into practical skill. Coupling critical thinking and reasoning ability and higher awareness levels and engagement as they navigate daily lives, they build on acquired knowledge by analysing situations and finding application of solutions similar to what they have been exposed. With time, they are able to think out of the box and devise a fresh set of solutions. Always think of the glass as half-full

What WIL offers is much more than what a person sitting at home can boast about. Although it is an accepted fact that not everybody is born an entrepreneur, the need to become an economically active citizen compels graduates to join the ranks of stop-gap entrepreneurs, otherwise known as survivalist entrepreneurs. Survivalist entrepreneurship is engaging in an income-bearing exercise in order to subsist, no matter how minimal the money made, while hoping to get a break through a better-paying venture or a formal job. Any experience in entrepreneurship gives one an advantage when they join formal employment, in that one can spot opportunities to improve company processes to save time and cost, or to make more money for the company. And, of course, should the economy hit a deep, where companies are forced to downsize, the experience as an entrepreneur serves as an advantage when exploring alternative ways to make a living. Managing Cost of Living

Graduates involved in WIL programmes have listed accommodation, transport and food as their top three expenses, in that order. We encourage them to keep these in check, or avoid the first two as much as possible by either staying at home to eliminate accommodation cost, or by sharing digs with family or colleagues close to work, which will eliminate transport costs. Food wise: cooking jointly would save substantially. However, if take outs are preferred, one should do some homework to know where to find special offers daily. Some of our students find that supermarket chains offer heavy discounts on pre-cooked meals at a specific time of the day – rather than let the food go to waste or get thrown out. Be wise, learn to be thrifty. While the workplace may expect formal dress and neatness daily, graduates are not expected to waste money on expensive, high maintenance hairstyles. Neat plaits generally do well both formally and informally, giving students versatility. While dress codes may differ depending on the specific role assigned at a company, donning a neat, attractive head-scarf may help you get away with your bad hair day blues. Make sure that the rest of your outfits are always muted and neat so as not to detract from the company’s own culture – unless, of course, you work in a creative environment or in the arts. Dark colours and neutrals make it less obvious when you wear the same outfit repeatedly. Urban, Rural, Home Best

The myth that jobs are in the urban areas remains exactly that. There is as much need to consume services in the rural areas as there is in the cities. A recent search for my old rural schoolmates amazed me when I realised how diversely employed they are. Most have built successful careers in small towns. I discovered that some are retailers, some in fuel distribution, farming, irrigation equipment supply, pest-control, health

PEOPLE DYNAMICS | April - June 2018

management, fashion and styling, the arts (painting, photography, music and theatre), and so on. While medical doctors require specialisation or extended studies, a few of ex-colleagues have used undergrad qualifications to get into more accessible health related jobs such as weight-management, diet coaching, and holistic wellness programmes. A number of friends who studied humanities have an even wider scope, from offering auxiliary services for social development to running formal training programmes at all levels. I was impressed when I saw that an old primary school friend who started a fashion design business now runs a fully-fledged fashion house and a school to teach older women how to do patchwork and other creative work that feeds into her fashion designs. While she has recently received a boost from a 9-month entrepreneurship scholarship at a prestigious business school, all along she had pushed her rural business up to national recognition. The advent of technology has helped youth break significant barriers, hence the ability to market themselves nationally as well as beyond the borders. It’s in your hands!

We have to applaud the positive steps being taken towards giving youth access into the workplace. Even as little time as one’s winter vacation has proven helpful. A group of final students from Wits were hosted for as little as a week to as long as three weeks of vac-time, and they we amazed at how much they learnt within such a relatively short space of time. Even though a year-long programme seems ideal, the advantage of winter-vac exposure is that the host company lines up as much resources as possible for you to learn about the company, the industry, the market and a specific role you aspire to in your chosen profession. Even though it’s a “crash” course, the exposure helps you assess your own strengths against the requirements of the profession or job type. It allows you to consider deeply whether you have what it takes - highlighting skills you would have to polish, even outright warning you if you might be a poor fit. What you do with the WIL opportunity you have is in your hands. You can lament the lack of intensity, the lack of attention from hosts, the low stipends or total absence thereof, the fact that you were expected to do layman’s work with only limited exposure to executive discussions; you may lament that you have not made it into the company’s permanent employ or snatched by a competitor, or you can count it as a blessing and a leg-up that you could build on for your future.

Professional Development

Demystifying

Work Integrated Learning BY: WELILE MABASO, Professional Development Officer, Institute of People Management

Entrusted in our hands is the future of our youth. Professional bodies work in concert with institutions of higher learning, industry councils, individual businesses and development coaches. This is our calling, our responsibility, our commitment, our response to the presidential call: Thuma Mina! OFFICIAL PUBLICATION OF THE IPM

Professional Development

ork Integrated Learning is defined as learning through work and work like experience, where learners engage with a work experience; learn about professional work, possible careers and themselves as individuals. The WIL model allows students to gain workplace knowledge, skills and experience while industry partners get an opportunity to observe and shape emerging talent of future-fit leaders entering the world of work. According to international trends, WIL and education-industry partnerships are on the increase in higher education institutions due to the fact that classroom-based instruction alone does not produce future-fit graduates who are adequately equipped for the workplace. The role of WIL or learning for performance is essential in the development of the desired graduate profile. The competency profile of a graduate should include discipline-specific knowledge, skills and attitudes, as well as generic cognitive, behavioural and technical skills and attributes. The higher education institutions offer different types of qualifications at different levels of the HEQF while work-integrated learning bridges theoretical, research based education and make it relevant for practical application in the workplace. WIL comes in various forms, some more formal and rigid than others, depending on the type of industry or profession, and what percentage component of theory versus practice happens at university or college in the first place. The medical field tends to have much of the tuition integrated since practicals take place at real hospitals at third year as a way into the formal studies already. For the HR field, there are numerous feeder routes to get to the professional qualification. Several undergraduate degrees have one or more components relevant to people management. Humanities: social science, sociology, anthropology, employee

PEOPLE DYNAMICS | April - June 2018

wellbeing, industrial psychology, psychometric testing, performance assessment, organisational culture, diversity management, change management; Law: labour law or employment law, skills-based immigration legislation, organisational policies, employment contracts; Education: training, learning and development, competence assessment; Commerce: organisational design, performance management, employee communication, procedure manuals, remuneration and performance-based reward, human capital risk management, employer brand management, employee value proposition; Engineering & IT: digital HR, HR admin, attendance and leave record-keeping, approval processing, performance monitoring, performance evaluation, salary processing, etc. Several institutions had made HR a post-grad specialisation, while tuition in administrative aspects of HR is accessible from post-matric study level. More recently, HR undergraduate studies are more readily accessed, having been brought mainstream at most academic and business campuses including research-based universities as well as technical and business colleges. Professional Bodies role

Professional bodies, councils and associations serve to guide and support good practice in teaching and learning within their specific fields. Professional bodies support higher learning institutes with tuition support and facilitation of WIL, irrespective of HEQF level qualifications the university or college carries, from two-year diplomas to full 4-year bachelorâ&#x20AC;&#x2122;s degrees. WIL, in its various forms, plays an essential role to complement theoretical studies as part of technical, vocational and professional higher education. While Universities have an element of WIL they facilitate, particularly the engineering, agriculture and medical fields, but the

Professional Development

rest of the faculties such as humanities often exclude the physical placement of students at businesses. The very structure of their curriculum doesn’t weave this into the semesters spent at university. Professional bodies, therefore, are expected to work with business councils, trade guilds, associations and industry practitioners to facilitate student or graduate access to practical experience in the workplace. Professional Councils actively contribute to curriculum development by providing industryinformed trends that can be factored into the theory at universities. They also provide much of examples that bring theories to life, offering scenarios that help test the students’ appreciation of different concepts and how they may be applied. At post graduate or HEQF levels, professional bodies encourage more intensive use of case studies, augmenting this through workshops and different elements of WIL, where students are encouraged to solve real problems and participate in projects that resolve actual issues in the workplace. Professional bodies also provide support to host enterprises by providing assessment tools for WIL learners, to enable mentors to keep track of the learners’ progress regarding personal development as well as contribution being made to the host organisation. They also provide coaching facilitation for hosts, with the IPM specifically supporting hosts (supervisors, line managers and HR teams) with people management-related and development issues.

What distinguishes WIL from narrow conceptions of learning-forwork is the emphasis on the integrative aspects of such learning. Institutes of Higher Education role

At a recent collaboration meeting facilitated by the HRD Council, universities made it clear to the rest of the social partners that their resources and efforts are to be expended in research-based education while business councils and professional bodies need to step up in provision of WIL opportunities and host companies. Notwithstanding this emphasis by higher education institutes, in an attempt to address concerns about work readiness, there has been an attempt by universities to promote learning that is less didactic and more workplace oriented. For universities, WIL entails curricular, pedagogic and assessment practices, across a range of academic disciplines that integrate formal learning and workplace concerns. This integration of theory and practice occurs apart from formal or informal work placements.

Examples of WIL

WIL may be facilitated through action-learning, apprenticeships, cooperative education, experiential learning, inquiry learning, inter-professional learning, practicum placements, problem-based learning, project-based learning, scenario learning, service-learning, team-based learning, virtual or simulated WIL learning, work-based learning, work experience and workplace learning. The term WIL describes an approach to career-focussed education that includes classroom-based and workplace-based forms of learning that are appropriate for the professional qualification. What distinguishes WIL from narrow conceptions of learning-for-work is the emphasis on the integrative aspects of such learning. WIL could thus be described as an educational approach that aligns academic and workplace practices for the mutual benefit of students and workplaces. ‘YES’ Host role

Any enterprise participating in the YES initiative will be expected to give the young graduates maximum exposure to the organisation’s operations, affording them insights beyond the student’s specific area of interest – particularly for undergraduates. This will ensure that while catering to student’s interest, the enterprise equips them to be valuable and versatile contributors to fill any critical gap in the enterprise and in future organisation they may join. This will make resources available for where the country needs them the most and provide an overall lift to the economy with less risk of extended structural unemployment. Advantages of WIL to students

According to the Council for Higher Education, the significance of WIL in its various forms is widely accepted by both employers and the higher education sector internationally, and recognised to be crucial for students’ professional development and employability. The many advantages for students who engage in WIL include: • academic benefits, such as improved general academic performance, enhancement of interdisciplinary thinking, increased motivation to learn • personal benefits, such as increased communication skills, team work, leadership and co-operation • career benefits, for example, career clarification, professional identity, increased employment opportunities and salaries, development of positive work values and ethics; and • skills development, including increased competence and increased technical knowledge and skills. CHE warns that WIL does not offer a ‘quick fix’ solution to national industry’s lack of competitiveness; nor can it transform a ‘low skills’ society into a ‘high skills’ one overnight. WIL can, however, play a role with regard to the readiness of graduates to enter and contribute to society and the world of work. Universities are in the business of offering a broad and critical education: one that enables students to engage with both the world of science and the world of work, especially in the context of social justice, human health, and environmental sustainability. Programmes that include WIL offer opportunities for students to prepare for, and learn from, the workplace, to transfer discipline-based theory and a wide variety of skills learned in their formal education to an authentic context as a colleague and employee, with all the responsibilities and expectations that such a role entails. References: Coll & Zegwaard, 2006; Powell, Tindal & Millwood, 2008; Ishisaka, Farwell, Sohng, & Uehara, 2004 and CHE Online

OFFICIAL PUBLICATION OF THE IPM

People Management Feature

RETHINKING RETRENCHMENT

Applying strategies to show genuine interest in Organisational health PEOPLE DYNAMICS | April - June 2018

People Management Feature

Leaders are positioned to guide organisations to success through navigating volatile, uncertain, complex and ambiguous environments; organising, allocating and optimising resources, in particular, through unlocking human capital.

rue captaincy means recognising humans as the most important resource, one whose wellbeing is to be safeguarded and defended with all the organisation has. This starkly contrasts with the complacency displayed by leaders who allow the sacrifice of people at the altar of capitalistic self-preservation, earning themselves lucrative bonuses out of displacement of people. The Retrenchment Call

When costs drown income, most companies look at the biggest contributor to the budget and cut it. In most cases, this happens to be the salary budget. And this translates to letting people go. Responsible leaders, however, go out and raise funds to give the organisation another fighting chance. Whoever makes funds available to the organisation has expectation for a certain level of return. Granting the funds, therefore, expresses faith on the executives and the organisation to turn the situation around, and deliver the right return on the investment. Organisation-wide commitment

To honour the expectation, responsible executives ensure that the organisation not only is aware of the operation’s situation but has commitment to work with management to turn the company fortunes around. Strategy Options to Retrenchment

Adopting an Efficiency Strategy: Doing things right the first time and every time, and ensuring quicker, better quality for less costs makes an operation efficient. Efficiency strategy is a high-intelligence strategy which involves ensuring that processes are reviewed, evaluated and adjusted, resulting in a new approach or a new set of procedures. For efficiency strategy to be successfully implemented and sustained, the organisation needs to have full employee buy-in. This would mean that management needs to allay any apprehension that new procedures might reduce the employees’ earning ability or even cost them a job. And it has to be true to this commitment. In case the roll out of the strategy uncovers under-employment, remedial action is required. Should evaluations and analyses demonstrate wastage or inefficiencies - where certain jobs occupy less than 50 percent of an employee’s time and capacity - that would compel a company to identify and negotiate alternative ways of filling the employee’s time. This may involve assigning additional duties or added responsibility. Such changes may need additional training to help employees acquire necessary competency, unlock potential by honing latent skill that is applicable to new roles. The pursuit of efficiency in an organisation requires indepth analysis of the business model, an extensive exploration of methodologies, technology, processes and employee competencies. Not all organisations

would commit to go all the way – pursuing efficiency and preserving jobs or keeping head-count. Most organisations confine their view of Efficiency Strategy to opportunity to achieve maximum head cut. Pros and cons of pursuing an efficiency strategy

A company embarking on efficiency strategy generally enjoys a thorough evaluation of its business against industry best-practices, internal and external benchmarks. It adds critical insights about a wide range of strategies and enables it to select the best fit according to its unique position – considering all stakeholders. Successful execution of efficiency strategy assists the company to move towards a more sustainable position There are some serious challenges for companies pursuing this strategy. First of all, it relies on high competency levels and expertise within the organisation. In the absence of expertise internally, the company needs to have the ability to acquire the skill and hire specialists who may charge exorbitant costs without the guarantee of success particularly if the strategy isn’t perfectly suited for the specific company and its environment or stakeholder set. On the upside, where the change is spearheaded by internal experts supported by minimal external resources, there is a higher chance of success due to a shortened change management cycle. Savings Strategy: This is the usually the first avenue a company will pursue to save the company. For companies run by accountants, this may even be the only way considered before the company either sells or folds. It isn’t necessarily removed from the Efficiency Strategy. The difference is that Efficiency involves more creativity – an active pursuit of ways to simplify, modernise, automate or streamline operations in an attempt to eliminate inefficiency. On the other hand, a Savings Strategy occupies the executive with where to cut, by how much, and finding the barest minimum needed to run the operation. It is often referred to as ‘culling’ or ‘cutting the frills’ This strategy usually cuts perks, takes away employee privileges, and even raids the customer service offer. It gets rid of optional extras and any added value that doesn’t form part of the core service or core product. It may involve using cheaper components - which, sadly, may prove inferior in performance or longevity. It may also mean running with less-qualified people and letting vacancies go unfilled to stretch the remaining personnel, thereby “saving” on the salary bill. The pros and cons of savings strategy

On the pros side, this strategy forces a company to refocus all its departments and operations on its original purpose and key objectives. It challenges for productivity and resourcefulness, and helps shed off coasters who were there simply because they could get away with just showing up for the ride rather than for delivery. Revenue-unlocking Strategy

Value-Unlocking Strategy: when pursuing this strategy, also referred to as Revenue-Unlocking Strategy, an enterprise identifies critical services on offer, on which personnel expend significant energy or time without passing the ‘cost’ onto the final price tag. It uncovers hidden costs in all processes leading to delivery of the final product or service to customer. Part of the work involved in implementing Value-Unlocking strategy is activity-based costing, which breaks front-line activity and back-office processes into fine steps, to identify where the enterprise has been undermining value and can capitalise. The exercise requires some consumer research, to ascertain which services can be laden with costs without deterring sales. Success of the strategy is based on what customers perceive valuable enough that they would be prepared to pay for rather than switch or forgo the service. OFFICIAL PUBLICATION OF THE IPM

People Management Feature

Pros and cons of Revenue-Avenue Unlocking strategy

Pros and cons of growth and diversification

Unlocking revenue potential from current services can provide positive affirmation for employees. They will be made to realise how much value they offer customers – much more than was previously recognised. This could give them confidence boost when interacting with the customer and fielding challenging questions. This strategy will require a considerable dose of persuasive communication with customers, and some investment into stakeholder buy-in. The organisation would have to drive strong customer appreciation of the value its services offer and the human resource implication.

There’s hardly a long-term negative in growing and diversifying an operation to absorb employees threatened by redundancy. There will always be risks in the short-term. Initiating growth strategy may stretch some of the resources to the point of burn-out, if the organisation doesn’t pay close attention to the initiation and roll out of the growth programme. While enthusiasm and anticipation may buoy the organisation, insufficient communication, ‘unfair role allocation’ and any suggestion that executives are not holding their own through the implementation may dampen spirits over the change process. Owing to these, the organisation may lose some key resources before fully bedding the change.

Employee grudge

On the downside, this strategy may well sour some employees’ attitude. When they consider the “hard work” of preserving a customer base that is effectively being charged more for service they had always enjoyed, they may think they deserve more in the way of remuneration. This will be the case particularly when they didn’t fully appreciate the rationale, basis and implementation of the strategy in the first place. They might feel that they have to carry a disproportionate burden for the entire organisation – which is to save jobs and keep people in employment, not just for front-line, but everyone from factory floor to the executive in the corner office.

Astute executives are not overtaken by circumstances, they lead change

This strategy may also lead to an industry disruption or inflection point – turning an industry towards an entirely new price-packaging direction. While it would have been about survival for the initiating organisation, competition may simply be optimising earning potential, thus scoring a profit advantage. On the other hands, competition may use the move to woo the market by insinuating that it is being ‘exploited’, through unscrupulous means or even overt communication.

Finesse is needed when implementing change in an otherwise healthy and happy environment – so as not to throw the culture balance of the organisation or shock it so much as to alienate stakeholders, in particular employees and customers. It is often said that no demise happens overnight. It creeps up slowly, with executives either feigning ignorance or simply hoping for some ‘divine’ intervention. That is irresponsible for any organisation housing hundreds of employees and holding the fate of thousands of lives in its hands. Whatever the area of specialisation, every executive needs to sharpen his or her appreciation of business and master the imperatives of success. Human Resource executives need to understand that other than holding their counterparts to good governance, ethics and legislative compliance, they need to be conversant with every component that makes its way into the annual report. That way they place themselves in the best position to advise and help executives act proactively in protecting stakeholder interests, and in particular employee wellbeing.

Growth and diversification strategies: introducing new products

Value-erosion and Unintended Damage

or services provides opportunity for the organisation to leverage its resources and to re-absorb any human capital that might have exhausted career growth potential within the company. Aside from extending product lines or services, a company may grow through market extension or diversification. Market extension sends business-development and front-line teams looking for new consumers or potential users that can discover use for the existing product or service portfolio. Growth and diversification strategies make it an imperative that the company offers appropriate training to ensure that there is thorough understanding of the new clients’ needs and that the entire company is properly geared to accommodating the different set of desires. It could mean recruiting a few specialists in the identified markets. Poaching from competitors may well be worthwhile, to glean whatever insights are needed to put company’s team up to speed. Under certain circumstances, a company may “borrow” resources from among its stakeholders and get a special advisory group to help transfer skills and knowledge to its employees. An initial investment will be needed to build necessary capacity in one or all of the following areas: training of specialists, coalface, front line and back office. There may be money spent on facilities or equipment upgrade, or on an upside, the company may simply need to negotiate extended hours or more shifts with existing personnel. As long as this is for the short term while bedding the change, and does not overstretch resources, it is good for resource optimisation and taking advantage of economies of scale. Over time, efficiencies are expected to kick in as people master new processes and additional income affords the company some added resources.

Retrenchment has the potential of creating an unintended ‘us and them’ situation among those who leave the company and those who remain. Even when retrenchment criteria are clear, those who leave may feel betrayed by the company and by their colleagues who stay on. The retained employees may unjustifiably feel like traitors when considering difficulties their colleagues will be faced with outside. This is especially true when the severance pay is insignificant compared to responsibilities the retrenched people have, or if education levels make the released staff less attractive in the market, reducing their chances for new employment Where a company cuts heads in the roll-out of any strategy, it potentially throws away intrinsic knowledge that the organisation invested through employee training and development over the years. Some of this knowledge and skill may be unique to the company and industry, proving restrictive in retrenched employee job opportunities. On the other hand, ejected knowledge and skill through retrenchment could land in the competitor’s lap, potentially squandering whatever industry advantage the company held. Loss of industry leadership places a company at the risk of further losses, including loss of critical talent.

Industry disruption

PEOPLE DYNAMICS | April - June 2018

Getting it right

The only painless way out of this scenario, is the facilitation of natural attrition – where age or career retirees are not replaced as a result of operationally sound adjustments that nullify need to do so. Any strategy requires that the company communicates openly and honestly with its stakeholders, especially its employees. Bargaining structures may be the elected channel for employee engagement on matters impacting employment or job continuity, yet

People Management Feature

that doesn’t preclude direct communication and proper education of employees. This ensures that there is thorough understanding of the dilemmas facing the company and an appreciation of the choices the organisation can make to avoid job losses. It empowers employees and regards them as individuals deserving of human dignity. In handling the changes, the organisation needs to invest in the emotional buy-in of its employees, and help them see the necessity and benefits of the savings – particularly the ability to keep the organisation going. With right employee attitudes kindled, the company can minimise loss of customers and inspire alternative, less costly ways of keeping customers happy and ‘loyal’ to the company. Engagement as part of the Culture, not a change management process

Employee engagement should not only begin when confronted with a possible retrenchment call. Employee engagement is something to embed in company culture. Engaged employees make it their business to keep up to date with the business’ strategy, its external environmental factors, the market it operates in, industry best-practice in their areas of specialisation and whatever advantages competitor might be enjoying. They become a valuable source of intelligence and a pool for innovative strategies that can take the organisation to a higher level. Employee engagement is a critical area of investment in tough economic times, because your human resource is your best weapon and the best ally when confronted with difficult situations and hard choices. Never undermine or underestimate Employees

Notwithstanding different levels of employee education, properly unpacked and explained, economic principles can be understood sufficiently for employees to engage in meaningful debate among

themselves, with management and with those representing them in employment-related negotiations. Employees need to know that you respect them as humans and individuals first, then as breadwinners and members of a community, as well as valuable contributors to the organisation’s productivity and success. They need to be confident that their interests are always considered and taken care of, just as will be those of the customer who is responsible for keeping the business afloat and sustainable. When Retrenchment is Inevitable

Whether we like it or not, companies may reach the end of their useful lives, some having to divest sooner than expected. In this case, there is brilliant legislation that seeks to ensure that the process has been undertaken sensitively and properly – to make the process fair to all parties. Better, still, no retrenchment should take an organisation by total surprise. In anticipation, organisation should always keep their employees at their sharpest, by investing in training and development that keeps skills up to date and relevant, not just for the company but for the industry and the economy at large. Life Empowerment - Versatility and career diversification

Encourage versatility and diversification of employees’ skills to make sure that even if they should encounter a situation that takes away the ability for them to practice their trade, they have interests that make for viable fall-back options in case of tragedy. Interests regarded as hobbies can develop into an alternative career should they be needed. Other than operational issues, physical disability or limited capacity may compel a company to let go of a valuable resource. All employees need to be prepared for such eventuality and not end up with no choices. OFFICIAL PUBLICATION OF THE IPM

Strategic HR Development

Strategies

to Reduce Unemployment, Inequality and Poverty through Skills Development Initiatives It is imperative for South Africans to breathe life into the National Development Plan as we do with the Constitution, failing which it remains a sterling work of inspiration with no ground implementation to move us closer to our goals. BY: RRE ELIJAH LITHEKO, Visionary Leadership, HRD and People Management Advocate

t the launch of the National Development Plan (NDP) on 19 February 2013, the then Minister in the Presidency: National Planning Commission, Trevor Manuel stressed that the NDP aims to eliminate poverty, reduce unemployment and inequality by 2030. This strategic objective as stated in the NDP can be realised by doing the following: • Building capabilities • Drawing on the energies of the people of this country • Enhancing the capacity of the State • Growing an inclusive economy • Promoting leadership and partnerships throughout society. I would paraphrase this slightly and say, • Promoting ethical leadership as well as credible and sustainable partnerships throughout society Five years into the introduction of the NDP, progress made towards the attainment of its objectives needs serious interrogation. Let’s look at why this is necessary: • According to Oxfam’s Global Inequality Report as well as by the World’s Bank’s estimates, South Africa is the World’s Most Unequal Country. It is a country where extreme poverty live side by side with opulence • South Africa has been listed as the worst performing country in the area of labour relations in the 2017/2018 Global Competitive

PEOPLE DYNAMICS | April - June 2018

Strategic HR Development

Report. We are rock bottom from the 137 countries that have been assessed • The country has dropped 14 places to the 61st position in the overall global rankings and • Quality of primary education has been ranked at 116 • Quality of higher education at 114 • Quality of Maths and Science at 128 • Favouritism in decisions of government officials at 127 • HIV prevalence at 134 • Impact of TB on business at 137 • Given the above evaluation it is evident that as a country we need to do deep introspection regarding how effectively we work together as a system that will propel us towards a more globally competitive position. Our own Statistics SA has also published disturbing labour market data as reflected below: • Unemployment as at Quarter 1 in 2018 stands at 26.7% • Unemployment rate target for 2020 as per the National Development Plan is 14% - leaving the country with 2 years to achieve this target • Unemployment absorption rate currently stands at 43.1%, meaning that more than half of the working population (15 – 64 years) is unemployed. Yet, nobody wants to idle and spend days on end

doing nothing, including the readers of this article. The reports cited in this article demonstrate the dire socio-political environment that the country finds itself in and require deliberate strategic responses from all the social partners functioning within the South African economy. The collaborative approach in seeking solutions to a country’s socio-economic challenges advanced in the 2017/2018 Global Competitiveness Report where this salient point is made is the way to go: “The resolution of the socio-economic challenges facing any country across the globe requires collective effort from policy makers, business leaders, civil society, including organised labour, academics and the public at large” In addition, the report encourages Public-Private partnerships and asserts that “governments can resolve market failures more effectively if solutions emerge from an understanding between the public and private sector.” To further emphasise the importance of social partners working together collaboratively, the report cites the successes in the labour relations arena in countries that have high levels of both workers’ rights protection and flexibility - where unemployment is very low and inequalities hardly noticeable. These countries include, Denmark, Norway, Sweden, Switzerland, the Netherlands and Germany. The report stresses the fact that workers’ rights can be well protected in OFFICIAL PUBLICATION OF THE IPM

Strategic HR Development

flexible labour markets as well. This collaborative and partnership approach is endorsed in a study conducted by OECD in 2017, entitled: “Getting Skills Right – South Africa”. The focus of the report was on identifying effective strategies that would tackle skills imbalances in South Africa and thereby contribute to the reduction of unemployment, poverty and inequality – the silent killers of inclusive economic growth. Key recommendations from this report on areas which need serious attention from social partners collectively are summarised below: 1. Skills Development

• Develop a uniform method for Sector Education and Training Authorities (SETAS) to identify skills needs • Provide training and support to SETAS who lack the capacity to implement this method • Rather than relying purely on the information from the Workplace Skills Plans, obtain information from the employers on hard-to-fill vacancies • The list of occupations in high demand produced by the Department for Higher Education and Training (DHET) should be distributed widely to relevant stakeholders. A user-friendly dedicated webpage for these occupations could also be set-up 2. Quality Education

• Rebrand teaching as a profession of choice by making it more attractive, increasing the quality of teacher education and providing incentives for teachers to teach in historically disadvantaged communities • Provide tailored career advice to students early on in the schooling system to reduce dropout, increase throughput and improve labour market outcomes • Ensure sufficient and effective government spending on education. Private sector players should be encouraged to develop education funding initiatives both at the school and post school level • Assure quality education through regular school and class inspections, including teacher evaluations 3. Work-Based and Lifelong Learning

• Align the vocational education system to workplace practices and ever evolving skill needs in the workplace • Employers should be involved in every step of the TVET chain and they should provide more workplace training opportunities for vocational students and their existing employees • Employers providing workplace training opportunities should assign mentors to learners • Learnerships incentives could be used to encourage employers to open up their workplaces for learner training and subsidies could be made available to SMEs • Promote the Recognition of Prior Learning (RPL) among employees and employers, as well as the unemployed. Employers should support their employees during this process in terms of preparing their skills portfolio • Scale up existing measures for training the unemployed. Both the SETAS and the National Skills Fund (NSF) should allocate sufficient resources to the unemployed • Transform the Public Employment Service (PES) into a one-stopshop where the unemployed could also register for training that suits their needs. This service should also extend to first-time job seekers and re-entrants into the labour market such as youth and women PEOPLE DYNAMICS | April - June 2018

4. Coordination between Stakeholders

• Strengthen coordination across government departments. Strategies and policies should involve all relevant departments sharing efforts to reach agreed targets. Co-ownership of strategies and policies should be encouraged • Employers should be given the opportunity to voice their concerns on skills policies to policy makers. The input from employers should be taken on board early in the policy development process • The relationship between employers and training providers should be strengthened and improved, possibly by strengthening the role of the SETAS as intermediaries and by creating platforms for cooperation 5. Policy Implementation

• Set measurable targets in strategic documents to facilitate monitoring and evaluation • Stakeholders should be involved during each step of policy making in order to provide a sense of co-ownership • Policies and strategies should be crafted in such a manner that they are not too reliant on political cycles. Policies and strategies should not disappear or be changed dramatically every time there is a change of minister or government

Strategic HR Development

• Regular evaluation of measures put in place to ensure that they are delivering the intended results should be the norm Call to Action!

Whilst there has been positive media publicity with regard to the recent initiatives introduced by the government (Youth Employment Services, Investment Envoy, Africa – Japan Public Private Economic Forum, etc) in collaboration with its social partners, we need to start asking ourselves serious questions as a country: • Are these initiatives enough to assist the country to reach the NDP unemployment rate of 14% by 2020? • Are all the social partners on board, and what other initiatives are there that will facilitate the attainment of the above target? • What is required to mobilise the country around the attainment of this target for example? • To what extent has the social partners investigated the labour relations models implemented in the countries mentioned above • If the social partners are serious about tackling the triple challenges of unemployment, poverty and inequality why are they not adopting some of these models and refine them to suit our context • To what extent are the social partners committed to working

together to seek solutions to the South African market failures as published in the 2017/2018 Global Competitive Report Most of these questions in my view can be interrogated at the Human Resource Development Council of South Africa. The Human Resource Development Council (HRDC) has been established so that it could play a pivotal role in the facilitation human resource development in the country to ensure that its socioeconomic and development needs are adequately addressed by a competent and well-resourced workforce. The HRDC is chaired by the Deputy President of the country and administered by the Minister for Higher Education. It is a forum where social partners converge to deliberate on the human resource development challenges and opportunities facing the country and develop strategies to mitigate the challenges and maximise opportunities. In its 2018 Summit the HRDC did unpack some of the recommendations above and I reckon they will become part of its agenda items as they attempt to work collaboratively as social partners to find lasting solutions to the country’s triple challenges of unemployment, poverty and inequality from a human resource development perspective. People Dynamics and IPM de-briefs will keep you posted. OFFICIAL PUBLICATION OF THE IPM

Diversity Management

AVOID GROUPTHINK YOU’RE NOT LEADING SHEEP! BY: GEORGINA BARRICK, MD, Cassel&Co, Insource IT Edge and The Working Earth

With people spending most of their waking hours at work, conflict can be regarded as a ‘poison that drains creativity and eats away at productivity’. PEOPLE DYNAMICS | April - June 2018

n diversity there will always be some conflict, but a mature workplace knows how to manage it and use it to grow and transform rather than let it destroy and polarise a team. In one of my previous pieces I spoke about the temptation to hire in your own image and likeness. It’s a natural tendency. We tend to gravitate towards people who are similar to ourselves and who share our views and beliefs. Where such a culture pervades, cohesion is prized, teambuilding is geared towards strengthening friendships, everyone (mostly) agrees and, and this is what we regards as ‘good’ teams conflict is a swearword. Building a team of ‘clones’, with very similar backgrounds and thinking, can work – often very successfully. But there’s a potential downside: groupthink. Groupthink occurs when everyone thinks the same way. No-one challenges perceptions and there’s no space for alternative ideas. If someone has a different view, they’re swept along with the consensus and feel like they need to censor themselves to avoid conflict. This may lead to poor or badly made decisions, as ideas are simply embraced without debate and without really challenging the basis for making

Diversity Management

Bring in people who know more than you do in other areas – and get out of the way so that they can perform and excel. If you want to improve team effectiveness, surround yourself with dissimilar people who will help you to see all sides of issues and will enter into valuable, robust debate which, ultimately, will improve the decision making process Increase awareness.

Preventing groupthink starts with being able to identify the behaviour. Make sure that your team knows what it is, how it occurs and what to do if they think it’s setting in. There are also a number of thinking methods that teams can apply to ensure that an issue is examined from all appropriate sides. An old, but still very useful, method is the De Bono Six-Hat thinking method. Encourage debate.

Many Gen X leaders have been socialised to avoid conflict. ‘Respect your elders’ teaches us that it’s disrespectful or impolite to openly disagree or criticise. But, while dissent can be uncomfortable, it should be prized in team environments. Create a culture where team members are encouraged to voice opinions with respect, critically analyse problems and share feedback. To encourage debate, it’s a good idea to assign a ‘devil’s advocate’ to argue against the grain and to arrest criticism of any single person who dares to suggest an alternative perspective. However, don’t let disagreements get too heated or fester. Dissent needs to be healthy. Give everyone a voice.

them. So, while cohesion may initially boost team performance, being homogenous eventually hurts success – and the bottom line. Over the last twenty or more years, the rise in prominence of EQ, and more recently CQ has meant that we’ve come to understand that ego has no place in picking a great team. Getting the balance right between differing personalities is far more important – and successful in the long term. Today, when I’m looking to expand my team, I focus on the following: Make team diversity a priority.

Self-awareness – understanding your own strengths and weaknesses – is an important part of having the confidence to bring in different skill sets - and even people smarter than yourself. Look for different personalities. To set up a truly balanced team, you need a blend of personality types including the results-orientated organiser, the relationship-focused diplomat, the conscientious process/ rule follower, innovative and disruptive thinkers and pragmatists. To stimulate debate, seek out contrarians, critical thinkers and the naturally curious.

Sometimes, quieter team members can get lost in the noise. To overcome this, set up a suggestion box for anonymous input, or try ‘brainwriting’ where, rather than shouting out ideas, participants write their ideas down and pass the sheet to the next person, who adds their own ideas, leading to a group discussion. Bring in outsiders.

Whether it’s a subject matter expert or different team, get an outsider to review the situation and decisions made. Document the decision.

Once the team has debated a problem and reached a solution, it’s important to document the process. Try to include a detailed analysis of the situation, all possible solutions considered, a comprehensive breakdown of the recommended solution, why it was chosen, and a project plan, covering how to implement the solution. Selecting a team for high performance companies is about carefully identifying the sum of its parts. If you hire in own image, you’ll miss out on competencies that you need to be a truly high performance team. Bring in people who know more than you do in other areas – and get out of the way so that they can perform and excel. Paul Gibbons once said ’That which a team does not want to discuss, it most needs to discuss.’ OFFICIAL PUBLICATION OF THE IPM

Human Rights in HR

White involvement in black advancement PEOPLE DYNAMICS | April - June 2018

Human Rights in HR

“You are not an AFRIKANER like us. You are a liberal. You are fired!” BY: DR. JC VAN DER WALT, Richards Bay (1978)

t was 28 February 1978 - the worst day in my life. The Managing Director of Alusaf (Bayside Aluminium), at Richards Bay, Mr. DEJ van Vuuren, was furious. In his hand was a copy of a letter that I had addressed to the Minister of National Education, Dr. Piet Koornhof, together with the latest copy of our Company Magazine, Alusaf News. The offending paragraph in my letter, that Danie van Vuuren had discovered, simply requested Dr Piet Koornhof to write a message for the next issue of Alusaf News endorsing our human resources philosophy: “White Involvement in Black Advancement.” A number of previous issues of “Alusaf News” already contained messages of encouragement for this philosophy from: Our Swiss Director in Zurich, Mr. Walter Capitaine, Dr. RR Tusenius of the Graduate School of Business, University of Stellenbosch, Dr. Mangosuthu Buthelezi, Chief Executive KwaZulu, Frank E Bird, Executive Director of the International Loss Control Institute in America, Dr. C van der Pol, Group Managing Director of Huletts Corporation, our largest customer, to name a few. Mr Walter Capitaine wrote: ”I would like to congratulate you on this excellent brochure.” Dr Tusenius wrote: ”Dit is ‘n indrukwekkende dokument met ‘n baie indrukwekkende en inspirerende inhoud. Dit is amper ongelooflik wat alles bereik is in die korte periode van Alusaf se bestaan.” Dr Buthelezi wrote: ”I am deeply impressed by the giant “Alusaf”, and how it is moving, and in the process carrying our people up with its movement upwards. I must congratulate you for the comprehensive material and for the editing of it. I will treasure “Alusaf 1976” for giving me a bird’s eye view of the rapid progress you seem to have achieved at Alusaf. Congratulations.” Frank E Bird wrote: ”It has been nice in keeping in touch with you since my 1976 trip to South Africa. In reviewing your company’s publications on a regular basis, I remain firmly convinced that your organization is one of the world’s outstanding leaders in the whole field of human relations. My international lecture tours will have me in Chile, Venezuela, the Philippines, Australia, Ceylon, and Iran this coming year. I refer to your organization regularly as I travel and here in my courses at the university.” Dr. C van der Pol wrote: ”I am most impressed with the manner in which you succeeded in portraying your company, its people, its philosophies and its environment. You have produced a magazine which will be of interest to a wide spectrum of the community and overseas, and I would like to congratulate on a first-class production.” At the time the Apartheid Labour Laws reserved Apprentice training for whites only. Certain conservatives opposed the advancement of blacks and they claimed this would harm whites in the workplace. As Alusaf was situated in a so- called “Border Industry Area” where the Government would relax these labour law restrictions, I tried my level best to involve whites to uplift blacks in the work situation. The ordinary white workers were in support of this and they trained blacks as welders, hot metal handlers, crane drivers, etc. However, some of the Alusaf top management and the Broederbonders

Dr. JC van der Walt, the author and the first INDEPENDENT mayor of Richards Bay, 1981 to 1983.

in the Industrial Development Corporation (IDC) opposed black advancement. Despite objections from the IDC management, I personally obtained several exemptions from the repressive labour laws in order to accelerate the upward mobility of black workers at Alusaf. Fortunately I had the strong backing of Mr. Wessel Bornman, the leader of the Afrikaans Trade Union, “Staalwerkers Unie”. Together we worked out a strategy to pay white Alusaf artisans a special “Supervisory Allowance” if they train blacks to do artisan type tasks. This progressive man also supported the idea of a life-size all aluminium statue in Richards Bay to honour ALL white and black artisans in South Africa. The amount of the artisan allowance was equal to one month’s house rent. The scheme had the full support of the artisans, their foremen and the Section Engineers. Apparently Danie van Vuuren regarded my enthusiasm for black advancement as some political ploy that undermined his brand of AFRIKANERDOM. However, he never told me what his objection really was. The whole world crashed down on me when I was fired. I was summarily fired without a valid reason, without a disciplinary hearing and with no hope of an appeal. I was without a job at the age of 42 and even a doctorate in Industrial Psychology was of little help to a man who had been summarily dismissed! I simply could not understand why I was dismissed in such a brutal manner. The previous year Danie van Vuuren agreed to the request by the Institute of Personnel Management (IPM) for me to address their International “Quo Vadis” Conference in Johannesburg on the topic, “White Involvement in Black Advancement - a dynamic approach to Training and Development.” I illustrated my talk with slides to demonstrate how Alusaf regarded OFFICIAL PUBLICATION OF THE IPM

Human Rights in HR

training and development as part of the normal duties of everyone on the payroll and I also destroyed the myth of white trade union opposition to black advancement; that we welcome black trade unions as Alusaf was 97% unionized with NUMSA as the largest union; how the skills backlog in South Africa should be addressed; how we use the ladder of job opportunities at Alusaf to motivate people to exceed; how we used Dr. Mangosuthu Buthelezi’s book, “Management Responsibility and African Employment” to develop our own labour philosophy, etc. My concluding remarks were, “Get the whites involved in the advancement of blacks. The angry rock-throwing blacks in Soweto today must become productive business leaders tomorrow. There is sufficient goodwill in South Africa to achieve this.” The talk was well received. Dr. Piet Koornhof, the Minister of National Education, was a guest of honour at the IPM conference. After lunch he invited me to his table. The Minister was delighted with my talk and he asked me for a copy of the paper. He said that he wanted to distribute the paper to members of Government and to the South African Management and Development Foundation. The Foundation later distributed hundreds of copies of my talk to top opinion makers. I was pleased to be appreciated by my fellow personnel practitioners as well as the Minister of National Education. I was fired on 28 February 1978. The very next day I was scheduled to repeat my “White involvement in Black advancement” talk to members of the Natal Chamber of Industries in Durban. I was nervous. How the hell am I going to influence the Durban audience with a talk on the very philosophy that directly resulted in my instant dismissal? The President of the IPM flew from Johannesburg to listen to the talk AGAIN. The repeat of the talk was a success. Mr. J Pohl, the Executive Director of the Natal Chamber of Industries, thanked me most sincerely and several businesses invited me to repeat the talk to their managers. On my way back to Richards Bay I had a panic attack. What is right and what is wrong? Why am I not a REAL AFRIKANER like Danie van Vuuren despite the fact that my family comes from solid Afrikaner stock since 1727? My great grandfather’s gabled Cape Dutch residence in Middelburg Cape (today the Agricultural College) is a National Monument. The Cape Monthly Magazine of 1877 quotes Prof. John Murry, “The van der Walts may in some respects be considered the aristocracy of the district. These people are the backbone of the nation that is being formed in South Africa.” Why am I not a real Afrikaner despite the fact that I am an elder in the NG Church and a founder member of the Afrikaanse Sakekamer in Richards Bay? Is it really wrong for an ordinary Afrikaner like me to advance blacks? I simply refused to accept my dismissal and reported for work as usual. Danie van Vuuren ignored me for two weeks. Not a single word was exchanged between us. At night I had nightmares about van Vuuren. I often saw myself pumping three bullets into his body! After two weeks of extreme anxiety Danie van Vuuren summoned me to his office. He ordered two cups of coffee, lit his pipe and said, “I am not the type of man to say that I am sorry. The incident that happened between you and me never happened. Do you understand?” I meekly nodded in agreement. “Here is a letter for you from Piet Koornhof for Alusaf News. Take it and go,” he said. Dr. Piet Koornhof’s letter was dated 2 March 1978 (two days after my dismissal). The letter reads: Dear Dr. van der Walt, “I am of the opinion that Alusaf with its program under the slogan “White Involvement in Black Advancement” is busy solving the problem PEOPLE DYNAMICS | April - June 2018

Part of my Richards Bay mayoral theme 1981 to 1983: The life-size allaluminium statue is dedicated to all the white and black Artisans of South Africa. It is the only statue of its type in the world.

of White-Black relations in industry with courage and enthusiasm. It seems to me that the leaders of Alusaf are consumed with a new vision in our call to uplift the black man to enjoy the right to climb the path of progress. “May I assure you that every honest and well-meaning citizen in our country will watch your company with enthusiasm and high aspirations. May the flame that was kindled in Alusaf spread its light further and further.” Thanks to Dr. Piet Koornhof’s letter – strongly supporting black advancement, I got my job back! AFTERMATH

All hell broke loose in May 1982 when Danie van Vuuren called the management team together and announced, “God, chaps they appointed an Englishman as my successor. I am so very sorry.” Mr. Rob Barbour took over as Managing Director on 1 July 1982 and he introduced a new progressive management style to the Company. A new spirit of freedom prevailed and Alusaf expanded and transformed into Bayside and Hillside in Richards Bay and the Mozal Aluminium Smelter in Mozambique. The benefits of progressive management included my promotion to Senior Manager and to General Manager, Human Resources and later as General Manager, Business Development and Consultant on the Mozal Project. After 28 years’ service, I retired in 1998. Yesterday I cleared my study of a lifetime’s paperwork. Everything went into the dustbins except Dr. Koornhof’s letter. Sadly, soon after his retirement Danie van Vuuren was brutally attacked on his farm and died. He never told me what a REAL AFRIKANER is.

Remuneration

The Gender Pay Gap:

WILL THE TIDE FINALLY TURN? BY: GEORGINA BARRICK, MD, Cassel&Co, Insource IT Edge and The Working Earth

Ricky Gervais joked about it while hosting the Golden Globes. The BBC’s John Humphrys caused an outcry when comments he made to a producer about it were leaked. Northern Ireland has it reversed, while Iceland is making big strides. Syria and Pakistan? Not yet…

’m talking about the gender pay gap. #Fact: Men earn more, on average, than women. In 2017, global average earnings for women were $12 000, compared to $21 000 for men. This gap is evident across region, industry and age. Education makes little difference. Neither, seemingly at this point, does legislation. And, while the issue has been on the global agenda for decades – America’s Equal Pay Act was signed into law in 1963 – little real progress has been made. According to the World Economic Forum, at this rate, it will take 217 years before women universally earn the same as men. These facts have really shocked me. It’s 2018, for goodness sake. Either I’m horribly naive or have been fortunate to headhunt for clients, and work for companies, where salaries are related to the complexity of the role, rather than the gender of the employee filling it. I was equally shocked to hear how much more than Martina Navratilova, John McEnroe was paid for commentating at Wimbledon and that OFFICIAL PUBLICATION OF THE IPM

Remuneration

Claire Foy, who portrayed the bona fide leading role of Queen Elizabeth II in Netflix’s The Crown (which I loved, by the way ), was paid less than Matt Smith, who played the supporting role of Prince Philip. Locally, despite supportive legislation and better tertiary education attainment, South African women are more likely to be unemployed or work informally or part-time. We’re also more likely to work longer hours for less and do more unpaid work than men. All of this has contributed to South Africa’s ranking in the WEF’s Global Gender Gap Report dropping from 79 in 2006 to 89 in 2017. The IPSOS 2017 Pulse of the People Report supports these findings - South African women earn 27% less than their male counterparts. My blood boils. While we’ve made many encouraging moves in the right direction think ‘Equal Pay for Equal Work’ legislation in many countries - myths that reinforce unequal pay persist. Like the idea that women don’t need to earn as much as men because we work for ‘pin money’. In South Africa, most households are headed by women, and US statistics show that 49.4% of all American households with children under 18 have a breadwinner mother who contributes at least 40% to household income. Another myth is that we earn less because we don’t negotiate salary – when the reality is that, even when we do (and 12% of women have, compared to 51.5% of men), we may, in fact, be penalised for asking, while men are rewarded. And, perhaps most pervasive is one that women choose to be paid less – or choose lower-paying jobs – because we trade salary for flexibility. When the truth is that, rather than choice, women have constraints on choice – like the need to balance raising children with a career as, globally, women typically shoulder 75% of childcare responsibility. Or, the historical myth that biological differences keep women out of higher-paying jobs – the ‘men have superior mathematical ability’ argument! Together, these endemic myths impact the gender pay gap and prevent women from participating fully economically. As 21st Century leaders, role models and mentors – both men and women – what can we do to effect positive change on pay? Promote transparency.

Research shows that publishing pay raises earnings – and improves employee engagement. In some countries, legislation is pushing transparency. The UK has PEOPLE DYNAMICS | April - June 2018

enacted law that makes gender pay gap reporting mandatory, while the Scandinavian countries publish everyone’s income tax returns annually. The result – Sweden has only a 6% average pay gap between men and women doing the same job. In South Africa, the Basic Conditions of Employment Act allows employees to discuss employment conditions with co-workers – a provision designed to bypass the secretive approach to pay that contributes to the gender pay gap. Don’t rely on previous salary when making job offers.

Using previous salary as a base discriminates against women who have taken time out of the workplace to raise children, been working parttime or in low-paying employment. Rather, like Google, offer what the job is worth. Value negotiation.

Salary negotiation goes wrong for women more often than men. One possible solution to this problem is to coach women in the art of negotiation. Another is to raise awareness around the issue with your management team and encourage them to advocate for women during negotiations. Yet another solution is to ban salary negotiation entirely. Rather, set pay ranges for each of your roles and make non-negotiable offers to candidates. Create ‘family-friendly’ workplaces.

Many highly-skilled women leave the workplace when they start a family – which is a loss for all. Family-friendly policies – like childcare assistance, extended leave and proper flexibility – that support working mothers make it easier for them to stay in work. As people management and human resource executives, we must advocate for a system where everyone is rewarded fairly for their efforts and salaries relate to the role at hand. This means that, irrespective of gender or race, there should be a package range for each role where each company compensates people based on their knowledge, skills and experience. The time is now. Let’s stand together against all forms of inequality and discrimination. I know that I’m ready.

3rd HRDC Summit 2018

Address by

Deputy President David Mabuza at the 3rd Human Resource Development Council (HRDC) Summit, Emperors Palace, Kempton Park, 10 May 2018

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3rd HRDC Summit 2018

Programme Director, Adv. Richard Sizani, Minister of Home Affairs, Malusi Gigaba Minister of Science and Technology, Mmamoloko Kubayi-Ngubane Deputy Minister Inkosi Patekile Holomisa Head of the Secretariat of the HRDC, Ms Brenda Ntombela, Leaders of Labour, Business, and Civil Society, Distinguished Guests, Ladies and Gentlemen, Allow me to extend, on behalf of government, a special welcome to all of you including our guests from our continent and across the globe who are here to share with us their experiences on how best we can accelerate the development of our people’s capabilities. In coming weeks, the world will commemorate late president Nelson Mandela’s birthday on the 18th of July. Had he still been alive, he would have turned 100 years this year. Madiba was an ardent advocate for education and skills development because he saw these as best instruments to achieve equality. As we gather here, let us be inspired by his unshakable belief that it is in our hands to end the triple challenge of poverty, unemployment, and inequality that bedevils our country and many developing nations of Africa and the world. Speaking in the United Kingdom in 2005, Nelson Mandela reminded the world that, “Like slavery and apartheid, poverty is not natural. It is man-made and it can be overcome and eradicated by the actions of human beings. And overcoming poverty is not a gesture of charity. It is an act of justice. It is the protection of a fundamental human right, the right to dignity and a decent life. While poverty persists, there is no true freedom.” Our Summit on human resource development is essentially about a search for solutions on restoring the dignity of South Africans by empowering them through education and skills, thereby affording them an opportunity to make a decent living. This is also a gathering that yearns for leadership across all sectors of society. It yearns for leaders who will work tirelessly to lessen social tensions, unite our people, and transform their lives. If, as leaders, we fail to work together to improve the lives of our people as envisaged in our Constitution, we will be risking all our democratic gains since 1994. Through this summit, we seek to develop new networks, strengthen existing partnerships, and share the latest lessons on how through education and skills transfer, we can create a more humane and equitable world where each individual can realize his or her full development potential, and enjoy access to available opportunities for self-advancement. For the Human Resource Development Council, this Summit offers the promise that it will be remembered as a market place of innovative ideas on how we can urgently implement programmes that will succeed in massively skilling our people and absorbing them in their millions in employment initiatives. Therefore, this Summit must be remembered by the action plans that the HRDC and its social partners will adopt and implement to change the dominant narrative of poverty, unemployment, and inequality that confronts our nation. This Summit must also be remembered as a summit that ventured into solving the skills challenge of our time, and one that offered innovative solutions and concrete areas of collaboration. The key outcomes of this Summit must point us to practical and concrete programmes of implementation, and deepen collaborative

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partnerships that allow us to respond more directly to the shortage of critical skills in our economy. For us to develop capabilities to respond to global demands, we must innovate and embrace new approaches and models that fast track the acquisition and availability of critical skills. The pace of change over the last few years has largely been shaped by technological disruption and innovation. This means that the winners in the 21st Century will be those that quickly adapt to the changing environment and meet such change with the necessary set of skills. From the presentations and papers, we hope to be apprised on latest evidence-based research and credible data on what we are doing correctly and to hear where we are facing challenges.

3rd HRDC Summit 2018

We remain confident that the Summit will strengthen and sharpen our human resource strategy to substantially reduce unemployment and expand training. Among issues of focus, should be investment in early childhood development which lays the foundation for holistic development, whilst cultivating love for lifelong learning. Cognitive learning at the foundation stage of development is necessary for the achievement of better learning performance outcomes at later stages of development and skills acquisition. This is an important summit that cannot afford to be called another talk show. Our debates and sharing of best practices must ultimately result in clearly defined plans that will improve the lives of our people. We must never fall into the trap of meeting to lament on the state

of affairs without providing practical and actionable solutions. As we present statistics and diagrams depicting our challenges, let us always remember that our figures represent real people who have dreams and aspirations like all of us. After tomorrow, when young people read about this summit, they need to find hope that we see them as a resource for development. As a result of our history, our youth is made up of those whose prospects for employment are compounded by lack of education and requisite skills. Over the years, a combination of the sub-optimal performance of our education system and other socio-economic determinants of poverty have produced a large proportion of unemployed youth. This is the challenge that must be confronted directly.

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3rd HRDC Summit 2018

This summit must inspire hope and confidence in the millions of young people who are not in education and training that we are a country that never gives up on their dreams and potential. Our social compact between government, business, labour, and community must speedily create employment and training opportunities for the millions of these young people who are not in education, not in training, and not in employment. It must inspire our nation that as social partners, we are equal to the task of creating an inclusive society that prioritises the development of its youth and women. Our children at our institutions of higher education, must have the confidence that they will not complete their training only to roam the streets for years before they can get employed or start their own enterprises. It is only through collaboration and by agreeing on a social compact for skills and jobs that we can reverse the tide of unemployment and the deepening poverty. The theme for the Summit, â&#x20AC;&#x153;Partnerships that will revitalise work and learning for the 21st Centuryâ&#x20AC;? is thus appropriate. It is a theme that recognises the need for greater collaboration between the education sector and industry. This is also a partnership that calls on all society to play its part in creating training, employment, and business development opportunities for our people. Only an engaged, invested, and patriotic private sector has the key to unlock the full potential of the education and training sector.

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When the education sector and industry work together, we have a better chance of accelerating skills development and enhancing the employment opportunities of those that have undergone training. When the private sector understands that with all the training students can get, there is still no better place for refining training and acquiring experience than the work place itself. As we do so, we must not neglect the plight of those young people who are not in employment, education, or training. Our social compact between government, business, and labour must speedily reduce the unemployment among this category as well. We therefore wish to applaud a number of outstanding South African companies who are partnering with our education institutions to ensure that our graduates are better prepared for the demands of our economy. We applaud those companies that are supporting our initiative of Adopt-a-TVET College and ensuring that our curricula match the needs of industry. A number of South African business leaders and their companies are also actively involved in adopting some of our schools and investing in the training of our teachers in critical subjects like Maths and Science. We call on many more business leaders to make it their business to adequately skill our young people at educational institutions and at the work place through internships. Greater collaboration is also required between social partners to inform learners and expose them early about the various career options available and those careers that are set to be in demand for

3rd HRDC Summit 2018

many years in the future. To achieve a partnership that will revitalise work and learning for this century, means that teachers and lecturers need to approach their vocation with the greater commitment it demands. Our summit theme on partnerships, is also a clarion call on everyone in the public service to see their work as agents of change, entrusted with the responsibility to rebuild our nation by rendering ethical and quality services to our people at all times. It’s a call for Batho Pele and Ubuntu to be the defining ethos and cornerstone of the new society that we are seeking to build. It demands that all South Africans must be driven by the new consciousness of restoring the dignity of our people by empowering them with skills and affording them a chance to work for themselves and their families. It means we must all put shoulder to wheel to “realise a developmental, capable and ethical state that treats citizens with dignity” as envisaged in the National Development Plan. And in a world of rapid social change driven by technological disruptions and innovation, we must forge partnership across all sectors of society where we live by the truism that learning is a lifelong enterprise. As we continue to focus on skills development, it must not be lost on us that even jobs that were considered as vocational, are now becoming high tech and require specialised knowledge and skills. Therefore our training and skills development must be accelerated to keep up with the pace of change. By embracing education as a lifelong journey, we will be better prepared to adapt to this world changing at a high pace. At the heart of this journey to the South Africa of our desires, we must embed technology in our efforts of building the skills for the future. We must ensure that no one is left on the margins of a world that rewards e-literate and e-astute citizens. By embracing technology as a resource and as an integral part of our future, we will be better equipped to derive the benefits of a global economy that is increasingly shifting from being resource-based to becoming knowledge-based. By opening the eyes of our children to what has been termed the 4th Industrial Revolution, we stand a better chance to be at the forefront of these developments and to reap its benefits instead of being spectators and uncritical consumers of new technologies. And all our work, plans, and policies, must never leave our people behind. Instead, we must enable their full development and exposure to technology as means to leapfrog our country to higher levels of innovation and shared prosperity. We must also bear in mind that our shared history with the peoples of Africa and many developing nations must inform and shape our strategy in the 21st century global economy. This means recognising that our competitive advantage in the world of artificial intelligence, robotics, and knowledge economy lies in investing and mining our rich culture, heritage, languages, traditions, to shape the commodities and services that will give us an edge. Like other nations who moved to higher levels of development from a similar historical experience and position as ourselves, let us also work together to invest in skills revolution and training that factors our identity and aspirations. It was Nelson Mandela who said, “My country is rich in the minerals and gems that lie beneath its soil, but I have always known that its greatest wealth is its people, finer and truer than the purest diamonds.”

We have all the confidence that our scholars and researchers present here, will see our people in informal settlements, those living as beggars at the intersections of our roads, some in our correctional facilities as gems that we need to rescue and polish. We must see the young children who have to cross rivers in remote rural villages as the diamonds that will one day assume leadership of our country. It is in our hands! And this Summit dare not disappoint the dreams of our people who want to contribute to their own development and that of our nation. Ladies and Gentlemen, Today also marks an important milestone for the HRDC as we introduce the new Human Resource Development Strategy. Even though this comprehensive strategy is not a panacea to addressing all challenges of the moment, it is a tool that has as its pillars - the supply of adequate skills - especially scarce skills through our post school education system. Its approach is informed by vision 2030 of the National Development Plan. It puts our youth, our women, and people from rural areas at the centre of our skills revolution efforts. In line with the NDP, we seek to strengthen, improve, and expand the number of TVET colleges. We are working hard to improve the profile of our TVET colleges and qualifications in technical skills. However, we must not be oblivious to the reality that we have many students who enter our TVET colleges and universities whose lives are dependent on the state social grants. Access to education and skills training provides the best prospect for these millions of young people to escape poverty, help their families, and contribute to national development. The issue that needs to be addressed is the relationship between human resource development strategy and development. In other words, our human capital development initiatives must be linked to national aspirations of development. For the country to develop, we need a skilled workforce so that as a nation, we are able to raise our competitiveness and are able to respond to the dictates of a modern economy. This strategy addresses the increasing competition in the global economy while simultaneously addressing inequality and reducing poverty throughout our country. It is a strategy informed by our need to accelerate development, and match the supply and need for skilled workforce. Our demand strategy aligns with a large-scale employment growth supported through skills training at lower levels. It addresses the urgent need for large scale employment, especially for our young people and women who face the brunt and indignity of unemployment. Collaboration and partnerships between government, business, labour, and communities is the backbone of the plan. It is a plan that calls for human solidarity and action, starting today. I have no doubt that our conversations and discussions at this summit will be inspired by the urgent need to work together to give opportunities and new hope to our people, especially our youth. Equally, it should provide us with insights from elsewhere on what social innovations we can employ to address this challenge of youth unemployment. Let us together think, innovate, plan, act, and finally prosper. Once again, I wish you a fruitful summit and look forward to receiving your report and recommendations. I thank you.

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