Human Resources Portfolio Committee Briefing

24 August 2005

Room G.26

water & forestry

DEPARTMENT OF WATER AFFAIRS AND FORESTRY REPULIC OF SOUTH AFRICA

Introduction and BackgroundThe Department of Water Affairs and Forestry must:

Firstly maintain its leadership role in the water and forest sectors in order to be an effective policy maker and regulator in order to achieve its public mandate;

Secondly maintain adequate technical capacity to manage the National Water Resources Infrastructure (the water equivalent of ESKOM)

Thirdly maintain the respect of stakeholders and institutions established through relevant water and forest legislation by developing and retaining a very high level skills and competency base, and

Fourthly visibly demonstrate a transformed Department in respect of skills and representivity

Introduction and Background•The Department should be the employer of choice and develop and maintain the status of a “learning” institution

•The Department faces many constraints with regard to technical skill supply attributed to the inability of the Public Sector to retain and attract scarce skills as well as the general shortage of technically skilled human resources in South Africa

•The ability of the Department to achieve its key strategic objectives depends heavily on its management and technical skills base.

•Despite these constraints the Department will continue to strengthen its resolve to contribute to the Governments skills development strategy and implementation of the Human Resources Strategy

Skills scarcity in the SA Labour Market

Research has shown the following:• In 1999, only 11% of South Africans above the age of 20 held

some form of post-matric qualification; 12% have received no education at all. (Statistics SA).

• In 2001, 3 million of the 10 million economically active labour force were regarded as ‘skilled’ or ‘highly skilled’; 7 million were semi-skilled and unskilled (DOL, 2001).

• The biggest skills shortage is in the areas of technical and artisan skills. As a result, technical and professional occupations (e.g. nurses, teachers, doctors, engineers, IT workers) can command well paid posts in areas of their choice. At the more advanced skills levels, the problem is even more severe: architects, doctors, engineers and scientists are very difficult to find and retain.

(Extract from Feb 2005 DPSA Presentation to Portfolio Committee)

Skills scarcity in the SA Public Service

•Both the private and public sectors in SA face major problems with regard to the availability of skilled human resources. •The public service faces particularly serious and multi-dimensional skills constraints that cannot be addressed by improving skills levels alone. •The context in which skills are used exacerbates shortages and focusing only on skills and technology transfer is a limiting perspective. •Lower-skilled workers comprise half of public service employment, while semi-skilled workers make up 40%.•Managers and skilled personnel make up just 2% and 8% respectively.•As seen by DPSA, the skill profile is at odds with the skills required by a developmental state

Business Report Online - 4 December 2003

•In its survey of June 2003, the SA Association of Consulting Engineers noted that 90% of its members reported increasing difficulties in recruiting good-quality engineering staff. New engineering entrants to the job market are at an all-time low.

•Graham Pirie, director of the Association, said “Since there is already a shortage of young engineers, the industry could find itself in a crisis and the capacity to develop new infrastructure will be severely inhibited. For some time the Association has been highlighting the fact that there is a shortage of black engineers, but the survey has shown that firms are now also finding it equally hard to recruit white engineers. Promisingly, for the industry’s efforts to transform, the survey showed that across all employment categories, African staff (excl. Asians & Coloureds) have risen from 22% of total staff employed in 2002 to 25% in June 2003.”

• Profile of employees with technical/ professional scarce skills

• Scare skills profile/shortages in labour market • Organisation of workplace to improve organisational

culture• Improvement of department and work environment to

encourage “employer of choice” scenario• Need to balance EE policies and AA measures with

service delivery imperatives and scarce skills• Stronger HRD focus on training, bursaries, mentoring,

internships, learnerships

• (Extract from Feb 2005 DPSA Presentation to Portfolio Committee)

The main challenges for DWAF

Personnel Expenditure R 1 443 071 000

PSP Expenditure R 198 280 000

% Comparison 13%

Personnel Expenditure vs PSP Expenditure (2004/05)

Areas of biggest Skills ShortageAreas of biggest Skills Shortage

• Engineering

• Information Technology

• Finance

• Science and

• General Technical

DWAF Competes with the Private Sector and other Public Service Departments like: DEAT/DLA/AGRICULTURE/PUBLIC WORKS as well as with Parastatals for the same skills

Pillars of the DWAF HR StrategyPillars of the DWAF HR Strategy• Human Resources

Planning• Recruitment and

Selection• Retention Management• Scarce Occupational

Skills Initiative• Skills Development

and Workplace Skills Plan /Skills Audit

• Bursaries• ABET• Internship • Learnerships• Staff Development• Mentorship/Coaching• Employment Equity• Utilisation of

Consultants

HR PlanningHR Planning• Its ObjectivesIts Objectives:To identify critical/scarce skills and talent to better

meet the departments objectives. It engenders proactive and timeous recruitment and forecasts the human resources needs of the departments against the availability in the labour market

• Addressing the HR needs of DwafAddressing the HR needs of Dwaf: The plan is predicated on the departments strategic plan and the current skills , competencies and capacities of the current staff. It is also an attempt to flush out risk areas and is driven by Affirmative Action , Skills Development and the impact of HIV/AIDS on sustainable human resources

• The HR Plan is underpinnedThe HR Plan is underpinned by: MTEF Budgetary provision / Planning of Recruitment / Planning for Retention and

Planning development and deployment

• Consolidated HR Plan and Review:Consolidated HR Plan and Review: The Departments consolidated HR Plan is under review in terms of a Manco decision of June 2005 and is due at the end of September. The methodology and project plan approved by Manco

Recruitment and SelectionRecruitment and Selection

• Principles:Principles: Recruitment is the prime instrument for obtaining skills necessary to meet the Departments strategic and operational Needs and for achieving employment equity goals - As compared with Skills Development. The stability of the Department largely depends on its human resources.

• Advertising Recruitment and Selection (including recruitment outside of RSA e.g Cuban Contract)

• Headhunting• Secondments• Internship/Learnership / Bursaries

Recruitment (reporting period 2004/05)

Occupational Bands Africa M F

Coloured M F

Indian M F

White M F

Top Management , Perm. 0 1 0 0 0 0 0 0

Senior Management , Perm

2 0 0 0 0 0 5 2

Professional Qualified/ Experienced Specialists/Mid Management

18 17 4 5 0 5 19 8

Skilled Technical/Academically Quailified Supervisors/Foreman , Perm

60 71 3 7 1 3 11 14

Semi Skilled / Discretionary Decision , Perm

79 84 5 5 1 3 10 9

Unskilled and defined decision making , Perm

111 61 5 1 0 0 2 2

TOTAL 270 234 17 18 2 11 47 35

Note: 634 appointments made

Retention ManagementRetention Management• The Department of Water Affairs and Forestry is

constantly looking to recruit and cultivate talent, not merely when a vacancy exists. This is the most effective strategy to attract the best available talent

• At strategic management level the Department actively supports the policy to attract and keep talent.

• Remuneration is not necessarily the only way in which Dwaf can retain staff, as a short term retention strategy it may work – until a ‘competitor’ outbid on salary alone.

• The Department seeks to ensure the existence of adequate motivators like – career fulfilment and development, personal recognition, growth opportunities, flexibility, incentives, selective secondment, foreign travel

Statistics of Retention in DWAFStatistics of Retention in DWAFRank Level Component Deputy Director Assistant Director Deputy Director Assistant Director Provisioning AO Assistant Director State Accountant Assistant Director Assistant Director Director Assistant Director Chief Engineer Director Deputy Director Principal Comm O Deputy Director Snr Prov AO Assistant Director Chief Engineer Director Chief Director

12 10 12 9 7 10 7 9 10 13 11 12 14 14 11 12 8 11 13 14 14

W R Planning Corp Services Corp Services Finance (Audit) Provisioning Finance Administration Region Macro Planning Water Services Civil Design Internat Liason Communications Human Resources Communications Region KZN Water Services Ins Administration Water Use & Cons Abstract & Stor Regional Coordination Cluster Manager

WM CF AM AF IF AM WM WF AM AM AM IM CM IF WF WF MW WF AF AM

Scarce Skills Allowance - as a Retention Intervention

• DWAF has identified a composite of scarce skills for submission to DPSA for purpose of scarce skills allowance

• A process to determine whether demand of these skills outweigh supply

• Determining the required advance knowledge , studies And specialisation and years of service

• A comparative analysis of remuneration packages with Private Sector undertaken

Note: Once approval by DPSA a non pensionable SOC allowance will be paid

Turnover Rate by Salary Band (reporting period 2004/05)

Salary Band Employment at begin

Appointments Terminations Turnover Rate

Lower Skilled (L1-2 P) 9874 182 806 8.2

Skilled (L3 – 5 P) 4398 196 256 5.8

Highly Skilled production (L 6 – 8 P)

2580 170 160 6.2

Highly Skilled production (L6 – 8 T)

5 0 0 0

Highly Skilled Supervision (L9-12 P)

693 76 58 8.4

Highly Skilled Supervision (L9-12 T)

2 0 0 0

Senior Management Band A

98 9 9 9.2

Senior Management Band B

18 0 5 27.8

Senior Management Band C

7 1 1 14.3

Senior Management Band D

1 0 0 0

TOTAL 17676 634 1295 7.3

Reasons why staff leave (reporting period 2004/05)

Termination Type No % Total Termination

% of Total Employment

Death 303 23.4 1.7

Resignation 351 27.1 2

Expiry of Contract 105 8.1 0.6

Dismissal – operational Changes

1 0.1 0

Discharge due to ill health, Permanent

49 3.8 0.3

Dismissal – Misconduct, 27 2.1 0.2

Retirement 402 31 2.3

Other 58 4.5 0.3

TOTAL 1296 100 7.3

Exit InterviewsExit Interviews

16 Exit Interviews were conducted 2004 (HO)

• 5 Resignation were of SOC – Engineers

Reasons advanced:

- Better remuneration in the Private Sector

- Better career prospects in private companies

- Starting of own business

- No Longer interested in the Public Service

DWAF HRD StrategyDWAF HRD Strategy

The Department of Water Affairs and Forestry by developing a Human Resources Development Strategy demonstrates its commitment to governments broader objectives of addressing the skills backlog in this country.

The Departmental Strategy is characterised and driven by four pillars of human development viz., Learnerships, Internship, Retention of Scarce Human Resources and Continiuos Training, Mentoring and Structured Short Courses.

Skills DevelopmentSkills Development• Imperatives of Skills Development:Imperatives of Skills Development:By developing the By developing the

skills of staff the Department places itself in a position to improve its efficacy relative skills of staff the Department places itself in a position to improve its efficacy relative to its business objectivesto its business objectives

• Workplace Skills Plan:Workplace Skills Plan:Compiled and submit on an annual basis in Compiled and submit on an annual basis in

terms of the Skills Development Act and provides a barometer of the composite skills terms of the Skills Development Act and provides a barometer of the composite skills in the Department - also a basis of overall HR interventions like PMDS / Retention in the Department - also a basis of overall HR interventions like PMDS / Retention Management/Succession Planning etcManagement/Succession Planning etc

• Skills Audit:Skills Audit: A dedicated process within the Department to obtain credible A dedicated process within the Department to obtain credible

baseline information of the skills profile of employees of the department. In baseline information of the skills profile of employees of the department. In comparing the skills profile with the basket of skills and competencies required by the comparing the skills profile with the basket of skills and competencies required by the Department the gap for intervention is ascertained. This provides for targeted Department the gap for intervention is ascertained. This provides for targeted

intervention and cost analysisintervention and cost analysis..

• DWAF Initiatives: DWAF Initiatives: Sector Collaboration (Setas and DOE) / Bursaries /Internship/Learnership/ABET/ Awareness making through exhibitions (Nasrec) /Collaboration with SABC

Workplace Skills Plan /Skills Audit

• Workplace Skills Plan for 1 July 2004 - 30 June 2005 duly submitted to LGWSETA

• Current reporting years WSP in progress together with a Secondary Skills Audit

Note: Skills and qualification profile of DWAF Staff outlined

Skills Audit for SMS due for completion end of September

Training Needs Identified

Occupational Categories

Skills Prog/Courses

Total

Male 20 20 Legislators , Senior Officials and Managers Female 7 7

Male 528 528 Professionals Female 476 476

Male 496 496 Technicians and Associate Professionals Female 318 318

Male 587 587 Clerks Female 598 598

Male Service and Sales Workers Female 53 53

DWAF Bursary SystemDWAF Bursary System

• Its ObjectivesIts Objectives: DWAF Bursaries are aimed at addressing the skills backlog and as a vehicle for addressing representivity in the Department and encourage entry to scarce occupational classes.

• Feeder of TalentFeeder of Talent: External and Internal bursaries is a means to acquire relevant scarce occupational skills in anticipation of future departmental needs and to develop current staff in line with their core functions in the department

• Statistical InformationStatistical Information:: At the end of 2004 the Department took over 7 study loans (5 males and 2 Females 1x white 6 x black)/ During 2004 21 students qualified and were placed in the Department 15 Males and 6 Females 16 Blacks and 5 Whites), 163 internal and 18 external bursaries where awarded for the 2005 academic year

Adult Basic Education and Adult Basic Education and TrainingTraining

• Its Objectives:Its Objectives: Abet is a transversal intervention in government to address levels of illiteracy and semi illiteracy. The thrust of the Departments intervention is based on accelerated development. To develop the potential of employees and for optimal utilisation of these employees. Also for employees to become part of the mainstream socially , economically etc.

• Feeder of Talent: Feeder of Talent: The challenge now is for this initiative to go beyond numeracy and literacy and to accelerate development for career development as a incentive for passing ABET levels

• Statistical Information:Statistical Information:Currently there are 2359 learners (1274 males and 1085 females) across levels 1 - 4 in the Department.

InternshipsInternships• Its ObjectivesIts Objectives: This is a direct response to address

governments drive against unemployment and job creation. It addresses the need for graduates to obtain experience tial and work training to enhance their ability to enter the formal employment market.

• Feeder of Talent: Feeder of Talent: 66 Interns recruited for 2004 / Currently (2005) there are 16 Interns employed in the DWAF system with a target of 100 / 5 Interns have been able to secure permanent appointment ( 3 in DWAF and 2 in the Department of Minerals and Energy) Note: 2 of the appointees in DWAF are black males appointed in Engineering related field and one a black female as a Forestry Scientist

• Statistical InformationStatistical Information: At the end of 2004 DWAF had 66 Interns ( 33 Females and 33 Males) Functions: in Finance/Forestry/HR/Civil Design/Mechanical and Electrical Engineering/Resources Directed Measures/Resources Quality Services/Water Abstraction/Strategic Planning/Water Resource Information/Water Use/Administration

LearnershipLearnership• Its objectivesIts objectives: Government initiative under DOL to address

imbalances of the past in areas of skills/competencies/educational qualifications.DWAFs learnership programme addresses the skills gap of DWAF employees in the lower occupational levels in the organisation

• Feeder of TalentFeeder of Talent: The Departments identified learnership programmes in Water Purification Process Operations NQF Level 2/Waste Water Process Operations NQF Level 2/Water Reticulation Services NQF Level 2 (Note: NQF Level 2 is equal to High School Grade 10)

• Statistical Information: Statistical Information: The NCWSTI is at present hosting 88 learners from Limpopo/Mpumalanga ( 76 Males and 12 Females)

Employment EquityEmployment EquityTargets Set by Cabinet

Targets Achieved by DWAF

75% At Senior Management Level 30% Women in Senior Management 2% People with Disabilities

55% Black / 45% White ( Gap of 20% to be made up) 32% Women employed in DWAF – 26% AT Senior Management Level Target not met. 2% of disabled people economically active hence revised to 2% to be achieved. DWAF actively interacts with DBSA. Adverts are channeld to the organisation. 42 People with dissabilties

Steps to address Employment Steps to address Employment EquityEquity

• DWAF Employment Equity PlanDWAF Employment Equity Plan:Undertakings duly made to address this situation in the next reporting cycle. Recruitment and selection targeted - also through headhunting provisions of the recruitment and selection process

• Monitoring and Evaluation ( EECF):Monitoring and Evaluation ( EECF):Departmental wide monitoring exist through the Directorate Transformation and the Employment Equity Consultative Forum. Unions also represented. Gender Focal Point establishment also imminent.

Note: Historically the jobs offered in the Department mostly attracted males e.g. Engineers , Geomatics etc.There is a move away from this stereotype. The Department encourages women to apply. Also its bursaries (internal and external) are focused on encouraging women.

Employment of WomenEmployment of Women

Occupational Level

Females ( Males) %

Legislators, senior officials and managers

15 (58 Males) 21%

Professionals 255 (563 Males) 31%

Technicians and Associated Professionals

329 (1041 Males) 24%

Totals 599 (1662 Males) 26%

Steps Undertaken to accelerate Steps Undertaken to accelerate Employment of WomenEmployment of Women

Given that only 26% women occupy nly 26% women occupy decision making positionsdecision making positions:

• Business Unit employment equity plans adjusted to address levels women representation in the Department

• Where formal recruitment and selection process do not succeed in appointing women , headhunting resorted to.

Employment of People with Employment of People with DisabilitiesDisabilities

Levels Number % Black White

Legislators , Senior Officials /Managers/professionals/Technicians/ Associate Professionals

5 12 1 4

Clerks 7 17 4 3

Entry Production Staff

30 71 29 1

Total 42 100 34 8

Steps taken to accelerate the Steps taken to accelerate the Employment of People with Employment of People with

DisabilitiesDisabilities

It is evident that most employees with disabilities are It is evident that most employees with disabilities are

employed at the lower level of the Departmentemployed at the lower level of the Department:• A Gap of 1.76% has to be filled by DWAF

• Accelerated Recruitment

• Prioritising and preference for disabled candidates

• In-house development of disabled in the employ

• More vigorous interaction with relevant disabled peoples organisations

Use of Consultants (1)Use of Consultants (1)• Appointment of consultants in line functions where post exist is

not encouraged

• However , where the labour market cannot supply such scarce skills consultant firms are appointed or alternatively arrangements are made for the secondment of identified staff with the intention of skills transfer

• Where projects require highly specialised skills which do not exist in the Department it is then expedient to appoint consultants, eg Special forensic audits, transaction advisors, specialist aquatic scientists, independent opinions such as technical reviews and legal opinions.

• Short term contractual appointment in terms of the Public Service Act are also possible. This with the proviso that the level approved are adequate to attract such short term talent. Provision for skills transfer also imperative in this instance

Use of Consultants (2)Use of Consultants (2)

• The Department will not reach a stage where it no longer appoints consultants

• It would not be cost effective for the Department to retain “all” the skills it may require to execute its mandate

• Given the challenges facing the Department and other institutions in the sector in competing from the same pool of expertise the Department will have to ensure that it retains sufficient capacity remain an “informed client” in terms of the management of consultants

• The Department has also taken steps to review the current guidelines/policies for the appointment of professional service providers to ensure that skills transfer is more effectively managed.

Use of Consultants (3)Use of Consultants (3)

2005/2006NUMBER OF CONTRACTS

57

TOTAL AMOUNT SPENT

R61 238 429.04

HDI AMOUNT R35 071 248.31NON HDI AMOUNT R26 167 180.73% CONTRACTS TO

HDI57.27%

% CONTRACTS TO NON HDI

42.73%

How does the HR Strategy How does the HR Strategy Address the Skills ShortageAddress the Skills Shortage• Sector Involvement• WSP/Skills Audit• Specific and Targeted

Interventions• Short Course/

Accelerated Development

• Mentoring and Coaching

• Collaboration with Institutions of Higher Learning

• Secondments and • Deployment

Employment and Vacancies Employment and Vacancies (reporting period 2004/05)

Branch No of Posts Posts Filled Vacancy Rate

No Post Add to Est

P1 Administration 856 706 17.5% 105

P2 Water Resources Management

2317

1839 20.6% 329

P3 Water Services 952 695 27% 7

P4 Forestry 7930 4371 44.89% 200

Water Trading Account 16007 9403 41.25% 355

TOTAL 28062* 17014 27% 996

* Due to implementastion of restructured organograms and transfer of structures from exchequerer to trading account duplicationa may occur

Vacancies by Critical Occupations (1)Vacancies by Critical Occupations (1)Vacancy No

Posts No Post Vac

Qualifications

Biochemistry/Zoology/Life Sciences/Tech

1 1 BSc – Research Naural Sciences

Biologist/Botanist/Zoology/Related Prof

29 7 BSc Research / Natural Sciences

Cartographic/ Surveying/ Related Technician

46 13 N.D – Cartographic / Surveying / Mathematics

Chemical and Physical Science/ Science / Technicians

7 1 ND – Laboratory Practise / Chemistry/Physics

Civil Engineering/Technicians

689 385 ND – Design /Construction/Operation of Civil Engineering Structure like Water Structure

Economist 6 5 B.Comm/ Economics/ Statistical Analyst

Vacancies by Critical Occupations (2)Vacancies by Critical Occupations (2)Vacancy No of Posts No of Post

Vacnt Qualification

Engineering Science Related

248 102 B.Eng/Engineering discipline Specific

Engineering and Related Professionals

290 162 B.Eng /Engineering Discipline Specific

Farming/Forestry Advsisors

215 119 High Level Forestry/ Gr 10/12

Finance and Economics Related

58 28 B.Comm Financial Economics Analysis

Finance and Related Professional

19 3 B.Comm High Level/Financial Bookeeping

Financial Clerks And Credit Controller

395 181 GR 10/12/ ND / entry level and financial bookeeping