Presentation to Portfolio Committee on RECRUITMENT AND RETENTION OF EMPLOYEES WITH SCARCE SKILLS IN THE PUBLIC SERVICE

1. Presentation to Portfolio Committee on RECRUITMENT AND RETENTION OF EMPLOYEES WITH SCARCE SKILLS IN THE PUBLIC SERVICE 10 September 2004

2. OUTLINE • Introduction • Scarce Skills Policy Framework for the Public Service • Objectives of Scarce Skills Policy Framework • Distinction between types of scarce skills • Factors that influence scarce skills in the Public Service

3. OUTLINE • Monetary strategies • Non-monetary strategies • Initiatives in the health fraternity • Implementation strategy • Conclusion

4. INTRODUCTION • Problem with scarce skills: • historical in nature • under-developed human resources • Negative implications for service delivery • National Human Resource Development Strategy • “improve the supply of high-quality skills (particularly scarce skills); and ensure • response to societal and economic needs”.

5. INTRODUCTION… • Research • certain occupations (dwindling numbers in the labour market or need for redistribution) • Need to identify critical skills requiring attention • Skills shortage should be addressed in the South African context • The state as the employer need to: • portray itself as “employers of choice”.. • Right balance required in terms of supply and demand

6. DEFINITION SCARCE SKILLS • Long term scarceskills - • skills that are currently in short supply and will be in short supply for the next 10 – 20 years • Temporary scarce skills – • skills that are difficult to recruit in particular areas e.g. rural areas

7. SCARCE SKILLS POLICY FRAMEWORK FOR THE PUBLIC SERVICE • Policy framework (2002) - Objectives • Framework within which depts to manage challenges relating to scarce skills • accelerate development of departmental SSPs • contextualizes the challenges experienced • Globalisation • Public Service has served as a training ground • Cites compensation-related insufficiencies • Cautions that compensation should not be seen as a panacea • Development of short, medium to long term strategies

8. POSSIBLE STRATEGIES • Training and development • in-service • succession plans • Clear career paths • Work environment and career management • Review of recruitment and selection processes • Export or exchange programmes with international markets/organisations • Compensation-related incentives: • short-term solution to the problem;

9. POSSIBLE STRATEGIES • Collaboration with HED institutions • sustainable pools • Establishment of private/public partnerships • Partnerships with high schools • Grade 12 pupils with potential (bursaries/scholarships) • Partnerships with donor agencies

10. KEY CONSIDERATIONS • Element for consideration: • monetary and non-monetary strategies to facilitate recruitment and retention • promote the usage of bursaries & learnerships • Utilization of macro benefits as a mechanism to attract and retain scarce skills • Executing Authorities: • Identify occupations based on uniform set of criteria • Concurrence of the MPSA (monetary options)

11. MONETARY STRATEGIES • Incentive schemes • performance bonuses • Separate salary structures for identified categories • Review job content & evaluate • Clear competency framework • Development programme • Retention allowances (monthly basis) • Not linked to salary may be phased out depending on skills shortage • Linked to salary

12. MONETARY STRATEGIES • Revised percentage for merit awards • linked to performance, scarce skills and acquisition of competencies • a more progressive merit award system linked to the newly developed incentive policy • Define clear criteria e.g. • excellent performer (75% and above) • a scarce skill • obtained a particular competency level

13. NON-MONETARY STRATEGIES • Work environment • factors that either impact positively or negatively on an employee's working life • Encompasses such factors as • perception on being valued • safe and healthy working conditions • future opportunity for continued growth • adequate and fair compensation; and • equity among all employees

14. NON-MONETARY STRATEGIES • Sabbaticals • professionals who may take up lecture duties, research, visit foreign institutions, etc • The conditions to be determined by the relevant department with regard to salary and other benefits • Rotation • Movement of employees between the various offices/institutions • Clear policy should be developed to provide for the process and procedure

15. INITIATIVES IN THE HEALTH FRATERNITY • Introduction of incentive schemes to address the recruitment and retention of scarce skills occupations in the Health fraternity – R500 million for 2003/04, R750 million for the 2004/05 and R1 billion for the 2005/06 financial years) • Strategy developed by DPSA, Health (including provincial departments) and National Treasury

16. INITIATIVES IN THE HEALTH FRATERNITY • 2 Resolutions in the PHWSBC on the payment of non-pensionable scarce skills and rural allowances to identified occupations ) • Occupations are, inter alia, medical doctors, pharmacists, physiotherapists, certain categories of professional nurses (i.e. intensive care, oncology etc.) • 1st phase implemented with effect from 1 July 2003

17. IMPLEMENTATION STRATEGY • Proposed multi-term agreement 2004 – 2007 • Framework agreement tabled in PSCBC • Framework makes provision for- • Identification of scarce skills based on agreed criteria • Non-pensionable monthly allowance as % of basic salary • Subject to final determination by MPSA in consultation with MOF • Annual review by the employer

18. CONCLUSION • These initiatives would definitely strengthen the Employer’s ability to recruit and retain employees with the necessary skills and competencies at the correct places, which would have a positive effect on the delivery of quality services to the peoples of the land, as promised to them

19. THANK YOU!