1. 11 Progress of Employment of the South African National Defence Force Presentation to the Joint Standing Committee on Defence 24 November 2011 Presented by Chief Human Resources

2. 2 » Aim – To present an overview of progress of employment of the SANDF » Scope – Macro HR Overview  Full-time HR component evolution  HR expenditure evolution  Transformation progress ito race and gender  Progress of employment: MSDS  Rank-age improvement progress iro Privates – Scarce Skills Attrition Status and Management – Peace Keeping Deployment Training – Conclusion Aim & Scope

3. 33 Part 1 Macro HR Overview

4. 4 4 4 Note 1: Strengths are as on 1 April of each year except 31 Oct 11 Note 2: DOD attained peak strength in 1996 due to the integration process. Since 2002, average full-time strength = 76 640 Note 3: Average strengths for 2012 are planned DOD FULL-TIME EMPLOYMENT EVOLUTION PROGRESS The HR component underwent progressive downsizing, primarily due to funding constraints.

5. 5 5 5 PAST MTEF DOD HR (ITEM 10) EXPENDITURE EVOLUTION VS TOTAL DOD EXPENDITURE AND FY2011/12 ALLOCATION R27 801 285 512TOT EXPENDR30 313 774 467 R31 324 247 153 38,7% 55,1% 40,9% R34 349 087 000 (Adjustments Budget included) 51,1% Note: Other refers to Operating and Capital Expenditure

6. 6 DOD Macro HR Composition per Service System Component – (31 Oct 11) MILITARY REGULARS (LTS, MTS, CSS) CONVENTIONAL RESERVES TERRITORIAL RESERVES (BEING PHASED OUT) PSAP 12 671 (16%) 2 493 23 250 57 667 (73,1%) MSDS 8 439 (10,7%) Note 1: 12 interns on strength as at 31 Oct 11 Note 2: 66 Auxiliary Service as at 31 Oct 11 Note 3: Percentages indicate the percentage out of the full-time component TOTAL FULL-TIME COMPONENT = 78 855

7. 77 WHITES 37827 (45.7) INDIANS 842 (1.0) COLOUREDS 12983 (15.7) AFRICANS 31053 (37.5) WHITES 33455 (33.1%) AFRICANS 54718 (54.1%) COLOUREDS 11999 (11.9%) INDIANS 938 (0.9%) 1994 1996 31 OCT 11 TOTAL: 82 705 TOTAL: 101 110 WHITES 17045 (24.4%) AFRICANS 45276 (64.7%) INDIANS 525 (0.8%) COLOUREDS 7154 (10.2%) 1998 DEFENCE REVIEW GUIDELINE TOTAL: 70 000 TOTAL: 78 855 Employment Equity Progress: Race

8. 8 8 8 DOD TRANSFORMATION PROGRESS: RANK PER RACE AS AT 1 NOV 11 Note 1: Ranks include equivalent ranks for the SA Navy Note 2: Despite broad-based recruiting efforts, the recruitment of minorities remain challenging Note 3: Red dotted line represents 24,4% White representation guideline (Defence Review 1998)

9. 9 MALE 66361 (80.2%) FEMALE 16344 (19.8%) 1994 31 OCT 11 MALE 83210 (82.3%) FEMALE 17900 (17.7%) 1996 TOTAL: 82 705 TOTAL: 78 855 TOTAL: 101 110 Employment Equity Progress: Gender

10. 10 DOD TRANSFORMATION PROGRESS: RANK PER GENDER AS AT 1 NOV 11 Note: Ranks include equivalent ranks for the SA Navy

11. 11 1111 9,1% Note: Strengths are as on 1 April of each year except 31 Oct 11 21,0%14,7% 50,2% 8,2% 42,6% 34,1% MSDS & Rank-Age Improvement Progress 48,6% 52,7% 56% 53% MSDS INTAKE SYSTEM STARTS

12. 12 MSDS Status since Implementation in 2003 Strength% Total Number in All Intakes34,572- Currently in the System as MSDS8,439- Translations to the Regulars (Core Service System) that occurred up to now 19,10273% (as a % of members who completed MSDS successfully ) Number who exited the MSDS after two years’ service (available for Reserve service) 5,48821% (as a % of members who completed MSDS successfully) Resignations before completing MSDS service 1,640- FY 2012/13 MTEF planning (overlapping MSDS intakes in the system) 10,123-

13. 13 Part 2 Scarce Skills

14. 14 » The shortage of scarce/critical skills in Defence Forces is a universal phenomenon due to: – Private sector competition – International “job hopping” facilitated by globalisation » DOD scarce skills exits peaked in FY2006/07 when 1 370 scarce skills personnel left the DOD » Since then, the exit tempo has declined significantly due to – Improved salaries for SANDF members since July 2009 (Level 2 – 12); – The implementation and regular improvement of monetary incentives; and – Labour market conditions which lately offer fewer opportunities outside the DOD » The matter however remains a strategic issue and the DOD is developing a new Retention Strategy (due by March 2012) to manage this matter holistically Scarce Skills

15. 15 15 Scarce Skills Exits: Combined All Reason Codes FY2005/06 – 10/11 61% decline in exit rate from high point in FY2006/07 or a 31,5% exit decline from FY 2009/10 1 221 1 370 1 262 1 103 766 525 Note: Scarce skills indicated are Aircrew, Airspace Controllers, Naval Combat Officers, Engineers, Technical, Health Professionals & Nurses

16. 16 Priority Order of Exit Reason Codes:  Resignations -51%-3176  Contract Expiry -18.7%-1 174  MEM-10.6%- 670  Retirement-5.9%- 373  Deceased-4.9%- 309  Inter-Dept Transfer-3.8%- 239  Discharge-3.9%- 251  Medical Discharge-0.8%- 55 TOTAL6 247 Scarce Skills Exits: Combined All Reason Codes FY2005/06 – 10/11 Note: 767 contract expiries (65% of contract expiries) were medical interns and community service workers obtaining practical experience in SAMHS

17. 17 Scarce Skills Exits: Pilots & Navigators: FY2005/06 – 10/11 69% decline in exit rate from high point in FY2008/09 38 60 45 4036 18

18. Scarce Skills Exits: Airspace Controllers : FY2005/06 – 10/11 77% decline in exit rate from high point in FY2006/07 34 42 52 43 23 12

19. 19 Scarce Skills Exits: Naval Combat Officers: FY2005/06 – 10/11 76% decline in exit rate from high point in FY2008/09 39 42 29 33 19 10

20. 20 Scarce Skills Exits: Professional Engineers : FY2005/06 – 10/11 62% decline in exit rate from high point in FY2007/08 14 29 18 21 7 11

21. 21 Scarce Skills Exits: Technical : FY2005/06 – 10/11 71% decline in exit rate from high point in FY2007/08 512 636 606 610 355 185

22. 22 Scarce Skills Exits: Health Professionals (excluding Nurses): FY2005/06 – 10/11 27% decline in exit rate from high point in FY2006/07 296 235 326 255 240239 Note: contract expiries were medical interns and community service workers obtaining practical experience in SAMHS

23. 23 Scarce Skills Exits: Nurses: FY2005/06 – 10/11 49% decline in exit rate from high point in FY2006/07 104 72 112 74 86 57

24. 24 Total Approved MEM/ EISP: Scarce Skills compared to Other Skills FY 2005/06 – FY 2012/13 A TOTAL OF 3 868 APPLICATIONS WERE APPROVED OF WHOM 712 (18%) WERE SCARCE SKILLS Approved MEM’s facilitated the exit of members who reached a career plateau and improved mobility for junior ranks. The SANDF, like all militaries,grows its own timber from the bottom up.

25. 25  DescriptionNo of PersAmount (R)  Dentist Bonus 21 865 505  Pay Incentive Technical SAAF2 27098 967 503  Flexi Service Scheme Navy 45 7 517 549  Scare Skills Allowance Health Prof 329 5 567 473  Rural Allowance 47511 575 248  Technical Allowance (See Note) 1 81592 017 901  Overtime Med Practitioner 61 3 633 761  Instructor/Test Pilot Cat A1 44 1 272 956  Instructor Pilot Cat A 51 1 323 594  Instructor Pilot Cat B 94 2 003 296  Instructor Pilot Cat C 40 300 095  Flight Technician Allowance 94 1 154 520  MACIP 63187 975 087  Instructor Cat A1 5 54 883  Instructor Cat A 12 52 432  Instructor Cat B 7 64 767 Scarce Skills Retention Incentives Paid FY 2010/11 Note: includes backpay from 1 July 2009

26. 26  DescriptionNo of PersAmount (R)  Instructor Pilot Cat C PTF 1 10 787  Airspace Controller 133 28 854 752  ASC Instructors 88 2 931 751  Naval Tech Offr Production Bonus 20 3 400 054  Naval Tech Ratings Production Bonus 153 19 890 230  Spec Forces Enlistment Bonus 15 736 770  Airspace Controller All 3 11 398  Airspace Controller Instructors 13 166 552  Spec Forces Incentive Pay 241 31 380 502  Spec Forces Competency Allowance 20 243 737  Pharmacists Bonus 127 3 194 369  TOTAL PAID: 7 173469 517 600 Scarce Skills Retention Incentives Paid FY 2010/11 (continued…) - Payment = 2,8% of total DOD HR expenditure of R 16 717 624 125 - 9% of DOD employees (7 173 / 79 717) benefited

27. 27 Part 3 Peace Keeping Deployment Training

28. 28 » The inherent military developmental and specialist functional training courses (according to the requirements of the various Services/Divisions, corps and musterings) which SANDF members undergo also apply to members earmarked for participation in peace keeping operations » SANDF members’ specialist skills are utilised during peace keeping operations » However, prior to deploying on peace missions, or a personnel rotation, SANDF members forming part of a Mobilising Force also undergo dedicated pre- deployment preparation training at the DOD Mobilisation Centre in Bloemfontein to familiarise themselves with the type of mission, specific mission area and operational conditions to which they are to deploy Skills Required for Peace Keeping

29. 29 » The pre-deployment mission readiness training is conducted over a 3 week period and includes: – Mission-ready training lectures covering following topics:  Group Forming and Leadership  Defence intelligence country brief  UN Code of Conduct  Sexual abuse against women and children  Operational Health  Occupational Health and Safety  Criminality during External Operations  Field Postal System  Shared Values and Ethics  Counter-intelligence and force security  Command and Control  Operational Communication Skills Required for Peace Keeping

30. 30 – Mission-ready training lectures covering following topics (cont’d):  Mine Awareness  Religious Aspects  Corruption and Fraud Prevention  Environmental Management  Operational Law, Status of Forces Agreement, Rules of Engagement – Driver mission ready training / driver simulation training (eg Land Rovers and armoured personnel carriers) – Command Post Exercise Skills Required for Peace Keeping

31. 31 – Command Post Exercise involving:  Familiarisation with simulation tools  Tactical orientation iro mission specifics, terrain, security, parties to the conflict, UN forces and culture  Exercising in-theatre command and control  Practising joint planning and execution of procedures within a United Nations Peace Support Operations environment  Exercising decision making at the various command levels – Field Exercise involving:  Exercising and confirming deployment drills  Confirming understanding of support to NGOs  Exercising and confirming marry-up drills  Confirming standard of immediate action drills during offensive and defensive operations  Safety precautions  Confirming individual skills, driver skills and vehicle maintenance  Final Inspections » Upon returning from a deployment, a comprehensive de-briefing is conducted at the Mobilisation Centre Skills Required for Peace Keeping

32. 32 » Officers Selection & Appointment – Stage 1: Receive Application  Posts and funds must be available as per HR Plans  Medical and criminal record screening done – Stage 2: Interviews  Selection Boards convened  Minutes signed by Selection Board Chair and Service Chief – Stage 3: Approval  Submission signed by CHR, C SANDF and MOD&MV – Stage 4: Notify Successful Candidates  Allocate force numbers & issue appointment letters  One year interim contract for professionals (eg Doctors) while awaiting MOD&MV approval – Stage 5: On strength Actions  Receive acceptance letter  Activate salary – Officer commences with training – (Same process followed wrt NCOs except MOD&MV approval not required) DOD Employment Process

33. 33 » Public Service Act Personnel (PSAP) Selection & Appointment – Stage 1: Advertise Vacant Funded Posts  Receive applications  Conduct Staffing Boards – Stage 2: Approval  Salary Level 13 – 16 appointments to be approved by MOD&MV  Lower level appointments approved by CHR – Stage 3: Notify Candidates  Appointment letters forwarded to successful candidates  Candidate has 30 days to accept offer in writing – Stage 4: Salary Activation  Salary activated upon assuming appointment DOD Employment Process

34. 34 » Way Forward: – The current centralised appointment process (recruiting, selection and appointment) for Levels 1 to 10 is to be decentralised to Services during 2012 to be more efficient and shorten the employment process DOD Employment Process

35. 35 » Since 1994, the SANDF continues to make progress in various domains of employment: – Progress iro transformation – Progress iro rejuvenation – Progress in training and utilising the youth through the MSDS » The primary and most immediate challenges impacting on further progress of employment are: – Insufficient funding – The escalating of HR expenditure compared to the total budget allocation – Challenges to retain scarce skills, especially once the economy improves Conclusion

36. 36 Thank You Discussion / Questions