Transcript HR’s Response to Issues of Strategic Skills Supply 3

3rd Annual Provincial Public Sector Human
Resources Management Convention:
15-17 September 2008
HR’s Response to Issues of
Strategic Skills Supply
Italia Boninelli
S. A. National Challenges
To halve official unemployment from 26% to 13%
by 2014
To increase current GDP growth from 4,5% to
6% per annum
2
What are the obstacles to achievement?
Asgisa has identified six factors that constrain growth in the
country.
The most critical of these is the shortage of skilled labour!
“In a period of growth, it is evident that we lack sufficient skilled
professionals, managers and artisans.”
Deputy President Phumzile Mlambo-Ngcuka
3
What do the following countries
have in common?
Algeria
Burkina Faso
France
Kuwait
Niger
Sweden
Angola
Canada
Germany
Lesotho
Nigeria
Switzerland
Argentina
Cayman Islands
Ghana
Madagascar
Niue
Taiwan
Australia
Central Africa
Gibraltar
Mali
Norfolk Island
Tanzania
Austria
Chad
Guernsey
Malta
Oman
Thailand
Bahrain
China
Guinea
Mauritania
Pakistan
Turkey
Belgium
Colombia
Hong Kong
Mauritius
Qatar
Uganda
Bermuda
Congo
Ireland
Mexico
Rwanda
Ukraine
Bhutan
Croatia
Israel
Morocco
Russian Fed.
U.A.E.
Bolivia
Cyprus
Italy
Mozambique
Saudi Arabia
U.K.
Botswana
Denmark
Japan
Namibia
Sierra Leone
U.S.A.
Brazil
D.R.C.
Kazakhstan
Netherlands
Surianame
Zambia
British
Indian
Ocean Territory
Finland
Kenya
New Zealand
Swaziland
Zimbabwe
4
ANSWER
They all had job ads in a Sunday Newspaper
on 30 March 2008 to recruit South African
skills to international locations
5
HR’s Traditional Response to skills shortages
● Conduct exit interviews and stay interviews
● Place more creative ads
● Do climate surveys
● Participate in Best Company to Work For
● Do employment branding
● Relaunch mentoring
● Ensure all staff have IDPs and development opportunities
● Design better retention bonuses
● Convince the Compensation Committee to move from paying at the
50th percentile of the market place to the 60th or the 70th
● Make sure we spend 3-5% of payroll in training (in the good times!)
6
GOLD FIELDS ACADEMY
●Training 20 857 participants for 187,399
man-days per annum
●Investment in training 4.2% of +/- R5,2
billion payroll
7
Most importantly …
Let’s see how we can poach from our competitors!
8
In the past executives had the luxury of
assuming that their business models
were immortal –
they just had to get better,
they didn’t have to get different.
Gary Hamel: Harvard Business Review
9
The game of musical chairs
10
How can HR ‘get different’?
Are we going to think out of the box?
11
A case study in the arena of
scarce skills
Factors influencing strategic skills
supply
Strategic analysis of turnover
● Looking at long-term trends
● Looking at vacancy factors
● Understanding future requirements
● Understanding market supply …
13
Identifying replacement dynamics in
the marketplace
●Higher salaries
●Unavailability of
skills – people moving to
other companies or countries
●Unattractiveness of industry – people moving
to other professions
●Insufficient
new entrants into fields – e.g.
mining not attractive to Generation X and Y
14
TRACKING PIPELINE DELAYS
FROM TRAINING
15
Student throughput to Registered Nurse
16
RE-ENGINEERING TO MAXIMISE
SKILLS UTILISATION
17
18
Leveraging strategic alliances
●For
example: What new alliances should be
forged with our competitors for skills?
19
Training for our competitors
Gauteng
Gautrain
DME
Simmer
& Jack
Ezilweni
MQA
ERPM
DRD
First Uranium
SASOL
ESKOM
Municipalities
South Africa
SA & Intern
North West Mpumalanga North Cape
Barplats
Sedibeng
Phokeng-inEducation
Northam
Kumba
SASOL Nitro
Murray &
Roberts
DoL
Lonmin
Uranium One
Samancor
-West
Limpopo
Free State
International
President
BECSA
DoL
De Beers
TracN4
Xstrata
Anglo Coal
UMK
Steyn
Hotazel
Harmony
Black
Eastern Plats Virginia
Dubai
Diamond
Mountain
Xstrata
Essakane
Fields
Diamond
Rio TInto
Star diamonds
Konkola
Core
Samancor Government
Copper
Resources
-East
Laundry
Company
SEDA
Sedibeng
- Zambia
Free state
water
Govt
De Beers
Sedibeng water
Xstrata
Barrick, Department of Labour
Rio Tinto
20
Leveraging strategic alliances
●What is HR’s role in influencing national policy?
●What other alliances could impact the skills
shortage?
21
Finally,
even if you have enough ‘bodies’ in roles,
does that mean you have the right supply
of skills?
22
Strategic Skilling is a complex issue with many variables;
we initially developed an approach logic to order our study
RESOURCE MODEL
ESTABLISH
NEED BASED
ON MINE
PLANS
(TONS)
ESTABLISH
BEST
OPERATING
PRACTICE
BY MINE
ESTABLISH
NORMS /
STANDARDS/
TARGETS
DEVELOP
NEEDS
BY MINE
ADJUST FOR
PRODUCTIVITY
& VACANCIES
HEALTH &
LIFESTYLE
AGE
EFFICIENCY
COMPETENCE
STRUCTURE
TRADITIONAL
VS
MECHANISED
RESOURCE PLAN
ATTRITION
VACANCIES
TRAINING
FALLOUT
DEVELOP
GLOBAL
NEEDS
TRAINING PLAN
DEVELOP
“REAL NEEDS”
BY MINE
DEVELOP
PIPELINE
MODEL
DEVELOP
“REAL NEEDS” GLOBAL
RESOURCE PIPELINE
23
We selected thirteen key roles for immediate
investigation
EXPLORATION
GEOLOGY /
EVALUATION /
PLANNING
MINING
METALLURGY
SALES &
DISTRBUTION
BENEFICIATION
SELECTION
DRIVERS
SUPPORT SERVICES
ENGINEERING
1.
ROCK DRILL OPERATOR
2.
MINER
3.
PRODUCTION SUPERVISOR
1.
Focus interviews
2.
Value Chain Assessment
4.
ROCK ENGINEER
3.
Labour turnover rates
5.
MINE OVERSEER
4.
Criticality assessment
6.
MINE MANAGER
5.
Vacancies and shortages (Scarcity)
7.
MECH MINE OPERATOR
8.
MRM – GEOLOGIST
6.
Complexity
9.
MRM - SURVEYOR
7.
HDSA
10.
ARTISAN – FITTER
11.
ARTISAN – ELECTRICIAN
12.
ARTISAN – RIGGER
13.
ARTISAN – DIESEL MECHANIC
To a large extent it is the front line that determines the bottom
line. This led to a focus on key mining and support designations.
24
Health considerations will have a 3%* negative
impact on productivity
AFFECTED STAFF BY MINE
MINE
RESOURCES*
HIV/AIDS
TB
SILICOSIS
MINE A
15684
4548
674
627
MINE B
4639
1345
199
185
MINE C
14588
4230
627
583
MINE D
10641
3085
457
425
KEY POINTS
APPROXIMATELY 13000 OF OUR PEOPLE HAVE HIV / AIDS
HIV AIDS
TB
SILICOSIS
29% OF OUR STAFF HAVE AIDS
4.3% OF OUR STAFF HAVE TB
4% OF OUR STAFF HAVE SILICOSIS
* Source: GFL HR Reports; Dr R.Hansia; 3% assumes the provision of ART.
WE WILL LOSE AN ESTIMATED 1000 MAN YEARS – PER YEAR
-TO HIV/AIDS-IMPAIRED PRODUCTIVITY (AT 10%)
ADMINISTRATION OF ANTI-RETROVIRALS CAN EXTEND
PRODUCTIVE LIFE BY 20 YEARS. WITHOUT ART THE IMPACT
WILL BE SIGNIFICANTLY HIGHER.
WE WILL LOSE A FURTHER ESTIMATED 1000 MAN YEARS IN
2008 TO TB AT CURRENT PREVALENCE RATES
25
There seems little option other than to continue to
educate, to administer ART and to actively manage TB
HIV / AIDS and Individual Productivity
Impact of TB on Individual Productivity
120
120
80
No ART
60
ART
40
Productivity
Productivity
100
100
80
60
Treated TB
40
20
20
0
0
1
3
5
7
9
11 13 15 17 19 21
Years
KEY POINTS
HIV / AIDS PREVALENCE TRENDS APPEAR TO HAVE
FLATTENED
PROVISION OF ART CAN EXTEND PRODUCTIVE LIFE BY
UP TO 20 YEARS
WITHOUT ART DECLINE IS RAPID AND DEATH LIKELY
WITHIN 8 – 10 YEARS
* Source: Dr R.Hansia
0
0.5
1
1.5
2
2.5
Years
KEY POINTS
THE SUCCESS RATE IN THE TREATMENT OF TB IS HIGH
(85%+)
TREATMENT TAKES 6 MONTHS, HOWEVER, AND OVER
THIS PERIOD RESULTS IN ZERO PRODUCTIVITY
THERE MAY BE A SMALL RESIDUAL AFTER-EFFECT
26
Enhancing employee’s lifestyle has a positive
impact on productivity
Cat 3-8: (Labourers)
KEY POINTS
•
•
•
•
WELLNESS STRATEGY IN PLACE BUT ONLY PARTIALLY
ROLLED-OUT
ADDRESSES TWO KEY COMPONENTS – BIO-MEDICAL
(NUTRITION, ETC.) AND PSYCHOLOGICAL
AN ACTUARIAL ESTIMATE OF THE COST BENEFITS HAS BEEN
CONDUCTED (SEE BELOW)
PREVENTION OF ISSUES IS BETTER THAN CURE – ON-MINE
ACCOMMODATION ALLOWS US TO BETTER MANAGE HEALTH,
NUTRITION AND SANITATION.
1 Living Out Allowance
2 High Density Accommodation
3 Nil LOA or HD Accommodation
Grand Total
15175
23035
1760
39970
Cat 9+:
%
37.97
57.63
4.40
100.00
(Supervisors etc.)
1 Living Out Allowance
2 Low Density Accommodation
3 Nil LOA or LD Accommodation
Grand Total
%
1753 21.06
5016 60.24
1557 18.70
8327 100.00
BUSINESS CASE - WELLNESS PROGRAMME
TOTAL
(All employees)
8000000
1 Living Out Allowance
2 Low Density Accommodation
3 Nil LOA or LD Accommodation
Net Benefit in Rands
6000000
4000000
2000000
Grand Total
%
16821 34.93
28064 58.28
3270
6.79
48156 100.00
0
KEY POINTS
-2000000
•
-4000000
-6000000
•
-8000000
-10000000
2007
2008
* Source: Dr R.Hansia
2009
2010
2011
2012
2013
•
ALCOHOL AND CANNABIS DEPENDENCE ARE
ESTIMATED TO BE IN THE REGION OF 15% AND 9%
RESPECTIVELY.
THE IMPACT OF ALCOHOL AND CANNABIS ABUSE
ON PRODUCTIVITY HAS NOT BEEN ESTIMATED.
TESTING IS BEING IMPLEMENTED.
27
Gold Fields has an ageing workforce; this
will progressively impact on productivity
PRIORITY
1
2
3
4
5
6
9
8
7
10
11
12
13
KEY ROLES
AVERAGE AGE *
Rock Drill Oper (St & Dev)
Miner (Blasting Cert.holders)
Production Supervisor
Rock Engineer
Mine Overseer
Mine Manager (Cert holders)
Mechanical Mine Operator (SD only)
Geologist
Survey
Artisan - Electrician (SF & UG)
Artisan - Fitter (SF & UG)
Artisan - Rigger (SF & UG)
Artisan - Diesel Mech (SF & UG)
CRITICALITY **
IMPACT OF AGE
HIGH
HIGH
HIGH
MODERATE
MODERATE
MODERATE
MODERATE
LOW
LOW
HIGH
HIGH
HIGH
HIGH
41
42
41
46
42
39
45
37
40
42
44
41
42
KEY POINTS
•
•
MOST OF OUR STAFF IN THE KEY MANUAL ROLES ARE BEYOND THEIR
PRODUCTIVE PEAK.
WE ANTICIPATE A DECLINE IN PRODUCTIVITY OF CIRCA 2.5% PER
ANNUM IN THE MANUAL ROLES
Source: * HR Data; **Casper van Zyl, Pieter Korf, Johan Klokow, Tim Rowland, HMC Analysis
28
Increasing average ages are a cause for
concern
Productivity - Non-Manual Roles
20
57
49
53
41
45
33
37
25
29
17
21
0
Age
Age
KEY POINTS
THE MORE MANUAL THE ROLE, THE GREATER THE
IMPACT OF AGE ON PRODUCTIVITY. RDOs, MINERS AND
PRODUCTION SUPERVISORS ARE HIGHLY SUSCEPTIBLE.
A RAPID AGE-RELATED DECLINE IS EXPECTED FROM
THE EARLY 40s.
57
40
Productivity
41
45
Productivity
33
37
60
x
25
29
x
80
140
120
100
80
60
40
20
0
17
21
100
Productivity
Productivity
120
49
53
Productivity - Manual Roles
KEY POINTS
AGE HAS NO MATERIAL EFFECT ON PRODUCTIVITY AS
ROLES TEND TO BECOME INCREASINGLY OFFICEBOUND. A SLOW AGE-RELATED DECLINE IS EXPECTED
FROM THE LATE 50s.
Source: HR Data; HMC Analysis, Pieter.Korf, Casper van Zyl, Johan Klokow, Tim Rowland
29
Workflow efficiencies
PRIORITY
KEY ROLES
WORKFLOW
EFFICIENCY %
IMPROVEMENT
POTENTIAL %
KEY POINTS
•
1
2
3
4
5
6
7
8
9
10
11
12
13
ROCK DRILL OPERATOR
MINER
PRODUCTION SUPERVISOR
ROCK ENGINEER
MINE OVERSEER
MINE MANAGER
MECH MINE OPERATOR
MRM - GEOLOGIST
MRM - SURVEYOR
ARTISAN - FITTER
ARTISAN - ELECTRICIAN
ARTISAN - RIGGER
ARTISAN - DIESEL MECHANIC
20
80
30
70
30
70
60
40
50
50
60
40
50
60
60
80
50
40
40
20
80
20
80
20
80
20
•
•
OPPORTUNITIES IN THE
MINING DESIGNATIONS
INCLUDE PROCESS REENGINEERING,
ERGONOMICS, CROSSSKILLING, SPANS OF
CONTROL AND
MECHANISATION
THE MRM OPPORTUNIIES
RESIDE MOSTLY IN THE
APPLICATION OF NEW
TECHNOLOGIES AND THE
REDUCTION OF TRAVEL
TIME
ARTISANS WOULD BENEFIT
FROM MORE FOCUSSED
TRAINING TO COMPLEMENT
GENERALIST SKILLS (NEW
ERA ARTISAN MODEL).
A 10% workflow improvement across the board would translate directly into improved productivity.
Process re-engineering will deliver quick productivity wins.
Source: Casper van Zyl, Deon Geyser, Eddie Sheppard, Johan de Beer, Johan Klokow, Tim Rowland
30
Competence levels
PRIORITY
KEY ROLES
COMPETENCE %
TRAINED /
QUALIFIED %
1
2
3
4
5
6
7
8
9
10
11
12
13
ROCK DRILL OPERATOR
MINER
PRODUCTION SUPERVISOR
ROCK ENGINEER
MINE OVERSEER
MINE MANAGER
MECH MINE OPERATOR
MRM - GEOLOGIST
MRM - SURVEYOR
ARTISAN - FITTER
ARTISAN - ELECTRICIAN
ARTISAN - RIGGER
ARTISAN - DIESEL MECHANIC
30%
30%
30%
75%
60%
60%
60%
75%
95%
80%
80%
80%
80%
80%
80%
80%
90%
80%
80%
80%
100%
100%
100%
100%
100%
100%
THIS GAP IS
LARGELY A
FUNCTION OF
THE LACK OF
FOLLOW-UP
BY LINE
CRITICALITY
KEY POINTS
•
•
•
•
MANY OF OUR STAFF ARE IN ACTING ROLES AND NOT APPROPRIATELY QUALIFIED FOR THOSE
ROLES
OUR PRIMARY FRONTLINE OPERATORS ARE – MOSTLY – NOT UP TO THE TASK AT HAND. THIS
LEADS TO STRUCTURAL ISSUES AND DIRECTLY IMPACTS PRODUCTIVITY.
A MULTI-LEVEL NEW ERA ARTISAN MODEL HAS BEEN PROPOSED.
A MINIMUM IMPROVEMENT OF 20% SHOULD BE MANDATED FOR THE MINING ROLES
* This is based on anecdote and perception rather than formal evaluation; Source: Casper van Zyl, Johan Klokow, Tim Rowland, Eddie Sheppard
31
The perfect labour storm is
upon us!
Life isn’t about waiting for the storm to pass.
It’s about learning how to dance in the rain.
32