HR

1
HRs Response to Issues of Strategic Skills Supply
3rd Annual Provincial Public Sector Human
Resources Management Convention 15-17 September
2008

• Italia Boninelli

2
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

3
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

4
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
5
ANSWER

• They all had job ads in a Sunday Newspaper on 30
  March 2008 to recruit South African skills to
  international locations

6
HRs 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!)

7
GOLD FIELDS ACADEMY

• Training 20 857 participants for 187,399 man-days
  per annum
• Investment in training 4.2 of /- R5,2 billion
  payroll

8
Most importantly

• Lets see how we can poach from our competitors!

9

• In the past executives had the luxury of assuming
  that their business models were immortal
• they just had to get better,
• they didnt have to get different.
• Gary Hamel Harvard Business Review

10
The game of musical chairs
11
How can HR get different?

• Are we going to think out of the box?

12
A case study in the arena of scarce skills
13
Factors influencing strategic skills supply

• Strategic analysis of turnover
• Looking at long-term trends
• Looking at vacancy factors
• Understanding future requirements
• Understanding market supply

14
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

15
TRACKING PIPELINE DELAYS FROM TRAINING
16
Student throughput to Registered Nurse
17
RE-ENGINEERING TO MAXIMISE SKILLS UTILISATION
18
(No Transcript)
19
Leveraging strategic alliances

• For example What new alliances should be forged
  with our competitors for skills?

20
Training for our competitors
Dubai Essakane Konkola Copper Company - Zambia
Gautrain DME Simmer Jack Ezilweni MQA ERPM DRD
First Uranium SASOL ESKOM Municipalities

• Barplats
• Sedibeng
• Phokeng-in-
• Education
• Northam
• Kumba
• SASOL Nitro
• Murray
• Roberts
• DoL
• Lonmin
• Uranium One
• Samancor
• West

BECSA DoL De Beers TracN4 Xstrata Anglo Coal
UMK Hotazel Black Mountain Diamond
Core Resources Sedibeng water De Beers

• Eastern Plats
• Xstrata
• Rio TInto
• Samancor
• East

President Steyn Harmony Virginia Diamond
Fields Star diamonds Government
Laundry SEDA Free state Govt Sedibeng
water Xstrata
Free State
International
Limpopo
North West
Mpumalanga
North Cape
Gauteng
South Africa
Barrick, Department of Labour
Rio Tinto
SA Intern
21
Leveraging strategic alliances

• What is HRs role in influencing national policy?
• What other alliances could impact the skills
  shortage?

22
Finally, even if you have enough bodies in
roles, does that mean you have the right supply
of skills?
23
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
TRADITIONAL VS MECHANISED
HEALTH LIFESTYLE AGE EFFICIENCY COMPETENCE STRUC
TURE
TRAINING PLAN
DEVELOP REAL NEEDS BY MINE
RESOURCE PLAN
ATTRITION VACANCIES TRAINING FALLOUT
DEVELOP PIPELINE MODEL
DEVELOP GLOBAL NEEDS
DEVELOP REAL NEEDS - GLOBAL
RESOURCE PIPELINE
24
We selected thirteen key roles for immediate
investigation
SUPPORT SERVICES ENGINEERING

1. ROCK DRILL OPERATOR
2. MINER
3. PRODUCTION SUPERVISOR
4. ROCK ENGINEER
5. MINE OVERSEER
6. MINE MANAGER
7. MECH MINE OPERATOR
8. MRM GEOLOGIST
9. MRM - SURVEYOR
10. ARTISAN FITTER
11. ARTISAN ELECTRICIAN
12. ARTISAN RIGGER
13. ARTISAN DIESEL MECHANIC

1. Focus interviews
2. Value Chain Assessment
3. Labour turnover rates
4. Criticality assessment
5. Vacancies and shortages (Scarcity)
6. Complexity
7. HDSA

SELECTION DRIVERS
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.
25
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 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
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.
26
There seems little option other than to continue
to educate, to administer ART and to actively
manage TB
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
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
27
Enhancing employees lifestyle has a positive
impact on productivity

• 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.

Net Benefit in Rands

• KEY POINTS
• 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.

Source Dr R.Hansia
28
Gold Fields has an ageing workforce this will
progressively impact on productivity

• 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
29
Increasing average ages are a cause for concern
KEY POINTS AGE HAS NO MATERIAL EFFECT ON
PRODUCTIVITY AS ROLES TEND TO BECOME INCREASINGLY
OFFICE-BOUND. A SLOW AGE-RELATED DECLINE IS
EXPECTED FROM THE LATE 50s.
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.
Source HR Data HMC Analysis, Pieter.Korf,
Casper van Zyl, Johan Klokow, Tim Rowland
30
Workflow efficiencies

• KEY POINTS
• OPPORTUNITIES IN THE MINING DESIGNATIONS INCLUDE
  PROCESS RE-ENGINEERING, ERGONOMICS,
  CROSS-SKILLING, 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
31
Competence levels
THIS GAP IS LARGELY A FUNCTION OF THE LACK OF
FOLLOW-UP BY LINE

• 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
32
The perfect labour storm is upon us!

• Life isnt about waiting for the storm to pass.
• Its about learning how to dance in the rain.