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

2. 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. 3 OUTLINE  Monetary strategies  Non-monetary strategies  Initiatives in the health fraternity  Implementation strategy  Conclusion

4. 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. 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. 6 DEFINITION SCARCE SKILLS  Long term scarce skills -  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. 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. 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. 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. 10  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) KEY CONSIDERATIONS

11. 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. 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. 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. 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. 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. 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.)  1 st phase implemented with effect from 1 July 2003

17. 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. 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. 19 THANK YOU!