The private sector has to tackle the skills challenges head on

Gareth Stokes, FAnews Online Editor

A while back Eskom said it would be unable to recruit enough suitably qualified artisans to complete its Medupi and Kusile coal fired power stations on time. The power utility’s chief operating officer told the public enterprises portfolio committee that

South Africa is only now coming to grips with the unique skills challenges created by post-Apartheid hiring policies. Transnet recently revealed that apart from requiring R400 million for skills training it would struggle to fill its management gap as 6, 500 ‘old’ employees (55+) retire. The group has very few experienced workers in the 39 to 45-year age group with the requisite skills to take over the reins from senior management. This skills challenge replicates across all sectors of the domestic economy and could – funding aside – be the biggest single stumbling block to many of government’s grandiose social projects. The proposed National Health Insurance (NHI) solution is a perfect example of a project in jeopardy. As much money as government throws at the ailing public healthcare infrastructure it can never ‘buy’ the skilled doctors and nurses required to administer care.

Private sector has to step in

There are a number of reasons South Africa is unable to tackle the skills development problem. One of them was government’s reluctance to admit a skills shortage existed. Ex director general of labour and current government spin doctor Jimmy Manyi frequently dismissed the crisis as an “urban legend”. His view, shared by a number of politicians, was that the country could find these skills among the country’s numerous unemployed university graduates. Unfortunately converting BA graduates into finance, engineering and medicine professionals is not feasible. In recent months – as confirmed in the opening paragraphs – government has finally conceded skills are in short supply.

Government policy and the private sectors’ response to such policy have contributed to the skills problem too. Management upheaval at large public firms resulted in long-term planning strategies falling by the wayside. Staff requirements have to be viewed over periods of five to ten years, because it takes up to seven years to educate an engineer or medical professional and many more years for them to gather the requisite ‘on the job’ skills that book learning doesn’t cover. The good news is government and businesses are finally singing from the same hymn sheet. State-owned firms have acknowledged the need to train their own skilled staff, including artisans. And private firms know they will have to do the same.

If you cannot find skilled staff then ‘make’ your own

South Africa’s financial services companies are hard pressed to recruit appropriately skilled staff, with the problem more prevalent in un-sexy areas such as insurance… The solution is for companies to either train in-house or offer incentives to recruit suitable candidates from the labour market. The country’s largest short-term insurer, Santam Limited, stands out for its Graduate Accelerate Programme (GAP), now in its third year. This programme is an enabling and capacity building partnership that the organisation offers to 12 bright, driven and ambitious young graduates each year. The group has spent approximately R3.5 million on the project to date, and boasts 100% placement for the first group of graduates.

Santam recently kicked off a national road show to fill 12 slots for this year’s program, visiting universities countrywide. GAP’s aim is to create a pool of young professionals who will take short-term insurance into the future. It allows Santam to select young graduates with a strong academic record and offers them a unique partnership. “We are not only interested in academic records, but also in the individual’s initiative and their desire to be active in a dynamic organisation,” says Talent Resourcing manager at Santam, Chantal Syce.

The strategic recruitment programme is designed to put graduates in direct contact with Santam and give them access to the enormous pool of expertise and intellectual property domiciled at the insurer. It is hoped these graduates will eventually contribute to the future success of the organisation. The programme is not limited to insurance-only studies, with commerce, management, law, risk management, industrial engineering, IT, actuarial science, financial engineering and applied sciences graduates on the approved list!

Matching graduates to careers through work experience

Those graduates who make the grade will partake in an extensive development programme that includes formal training, projects, mentorship and access to further formal qualifications. The group offers six-month business rotations that are designed to teach specialist short-term insurance knowledge and skills. “Santam recruits graduates into specific business units, therefore opportunities available will vary. However the development, social and community activities in the program ensure that graduates will establish a network of peer relationships whilst simultaneously gaining solid experience,” says Syce. “At Santam we know that success comes through partnerships and through the collaboration of human relationships. We are fully invested in the GAP initiative and believe it will bring us the best and brightest minds in South Africa!

Other private companies lamenting the dearth of skills in the sector should take notes… If you need skills in your organisation you have to go out and find them. Human resources are just one of the many inputs making your business work. If you’re generating power then your inputs include coal, power infrastructure and skilled workers. In contrast, financial services companies rely almost entirely on human capital for profit. Neglecting this aspect of your business is an inexcusable oversight.

Editor’s thoughts: The first step in solving a problem is to acknowledge it. Now that state entities are admitting to serious skills shortages we can finally put the ‘what skills shortage” question to bed! Going forward both the public and private sector will have to train and develop existing staff and encourage new school-leavers and graduates to enter professions where skills are in short supply. Has the financial services industry been proactive in creating training and skills development opportunities? Please add your comment below, or send it to gareth@fanews.co.za