The Challenges of Skills Retention faced by Netone Cellular Ltd Zimbabwe

1. The Challenges of Skills Retention faced by Netone Cellular Ltd Zimbabwe By Emmy Mapurisa

2. Presentation Outline Net*One Cellular Background Vision, Mission , Values Players in the Industry Market Share Push Factors Skills destination Labour Turnover Statistics Impact of Labour Turnover on the Business Current Measures New Measures

3. Net*One Background It is a government enterprise which commenced its operations in June 1996 Falls under Ministry of Transport and Communications Board of Directors to guide its operations

4. Vision To be the home of seamless communication solutions.

5. Mission To provide access to cutting edge communication solutions that unlock and maximise stakeholder value.

6. Values Dedication Responsible Innovation Vigour Excellence

7. Players In The Industry There are four players in the Telecommunications Industry: One Fixed telephone: Telone Three Mobile Operators: Econet Telecel Netone

8. Market Share

9. Market Share

10. Push Factors National Harsh macroeconomic conditions: Hyper Inflation Eroded disposable Incomes Severe Shortages High Unemployment

11. Push Factors Company Level Unmet Expectations: Employment contract Insufficient opportunities for Promotion/Career Advancement Uncompetitive Remuneration Inadequate Resources e.g. Cars, Tools Ageing Equipment Management Style Inadequate training and development

12. Skills Destination Locally Mostly to Competitors: Other Mobile Operators Regionally South Africa Namibia Internationally Middle East U.K.

13. Labour Turnover Statistics

14. Impact of Staff Turnover on the Business Loss of Key skills and Expertise Disruption of Operations Reduced productivity Quality of Service compromised Business Loss: As Account Relationship Manager takes customers to new employer Negative Effect on Staff Morale due to heavy loads as others leave No succession planning possible

15. Current Measures Sponsorship of Staff: Undergraduate Programmes Allow employees to register for long duration programmes relevant to work and sponsor them. The longer the programme the better. Employees unlikely to leave before completion of programme Sponsoring 1 full time and Three part time for undergraduate programmes for four years. Sponsoring 4 Managers for MBA with local university All on undergraduate scheme still with the company 1 left who was on MBA scheme

16. Current Measures Purchase of Residential Properties High Rentals and prices of houses. Netone purchased residential properties of choice for managers and key professional staff who then were to repay the mortgage over a period of 10 years. Not a long term measure in an inflationary environment. Most were able to fully repay the mortgage after 2 years. Of the 27, 11 have left Netone.

17. Current Measures Promotion from Within First Before Going Outside Consider internal eligible candidates before taking from outside Going outside first leaving internal candidates affected morale Assisted in keeping employees who would have otherwise left due to frustration However not a long term measure where conditions of work are not competitive.

18. Current Measures Company Cars Provide fashionable company cars to executives, managers and key professional staff. This measure not long term if remuneration is not competitive Lost some to better paying companies

19. Current Measures Purchase of Groceries for Staff Purchase of core basic commodities due to uncompetitive salaries offered and to cushion from the effects of hyper inflation.

20. New Measures These would allow leave without pay to take up fixed time contract employment outside Zimbabwe e.g. with MTN S.A. for three months, then come back to work for Netone at the end of the contract Had 1 candidate who has since resigned from the company. Took 3 months initially.

21. New Measures Offer Competitive Remuneration Currently awarding cost of living adjustments on a quarterly basis. Competitors awarding monthly. To benchmark against competitors locally and regionally. Consider pegging salary in forex and pay equivalent in local currency

22. New Measures Full Payment of School Fees for Children Assist with payment of school fees for primary and secondary education in full. Currently paying 40% per child Due to hyper inflation, school fees have become a heavy burden on most people. A company which is able to take most of this burden will retain employees with this need.

23. New Measures Sponsorship programs for Trainee Technicians and Undergraduates Students .Sponsor their studies. .Sign a bonding agreement to stay with Netone for three years after completion of programme. .Hold certificates until end of bonding period when they would be released.

24. New Measures Netone is Considering payment of external university fees Some people are leaving to get employment in the region in order to pay such university fees for their children.

25. New Measures Move from cash lump sum payment Offer more attractive awards such as gift vouchers for clothing, home decoration or family outings etc depending on the need of each employee

26. New Measures Full Payment of Medical Expenses Company to pay all shortfalls on treatment/hospitalisation for employee, spouse and three children direct to institution. Medical bills have escalated beyond the reach of many. Currently paying 80% medical aid contribution per month.

27. Thank you.