Topics which we
will address in this series and which are covered in our workshops
and included in our consulting services focusing on developing
employment equity plans include:
The appropriate methodology for developing employment equity
plans should be workforce planning methodologies which go beyond
the limited variables required in EE Reports.
The confusion and poor wording in the current Employment Equity
General Administrative Regulations, 2009 must be amended.
The inordinate focus on HIV/AIDS should actually be a
broader focus on Employee Wellness.
Employment Equity Plans (or as we argue "Workforce Plans") should
incorporate the criteria used by the Labour Court when assessing
compliance.
Affirmative action measures are not consistently pursued and
not strategically aligned to business requirements in the long
term ... [complete]
Employers cannot fully comprehend their legal obligations
regarding employment equity without being fully appraised of how the
legislation is interpreted and applied by the Labour and Labour
Appeal Courts.
Employment equity committee members are frustrated participants
in the consultation process, have a poor comprehension of their
roles and their contribution is limited.
Every employer required to prepare and implement an employment
equity plan is faced with the challenge of determining the relevant
EAP data against which they should benchmark their numerical goals
and targets.
We are repeatedly informed by press releases from the Department
of Labour and Employment Equity Commission that organisations are
failing to implement employment equity. We fully accept that a vast
majority of organisations have in fact paid little regard to
transforming their workplaces as is evidenced by:
Failing to comply in part or at all with any of the
provisions of the Employment Equity Act;
Have failed to address gender and disability concerns within
their workplaces;
And so forth.
We do not intend addressing or supporting organisations who have
simply failed to apply their "minds" to their obvious legal
obligations. This article is certainly not intended to defend these
organisations. In fact we will demonstrate that their failure to
implement employment equity and affirmative action measures could
well be their undoing, not because they will be "fined" out of
existence, but simply because they would have failed to determine
their actual long term workforce (manpower) requirements, developed
future talent and competency requirements within their
organisations, and sourced potential future talent.
At the outset we need to be very clear about the objectives of
this article and the information provided therein.
We fully support the requirement for organisations to implement
affirmative action measures and transform their organisations, but
controversially not because it is simply a legislative requirement
(or that organisations may be "fined"), but because it is actually
economically necessary. There simply are not enough White, Indian
and Coloured persons available to meet the long term skill
requirements of the economy and organisations, especially amongst
the skilled professions and artisan trades.
Enforcing compliance from a purely penalty based approach, the
immature "name and shame" campaign which has previously backfired
the last time this was initiated, failure to recognise the limited
skills at professional and artisan levels and above all the failure
to focus in the early initiation phase on employment equity with
growing these skills and rewarding organisations which did so has of
course led to the obvious long term failings in employment equity.
Remonstrating Ministers, Commissioners and Director Generals have
not helped.
Whilst we do support the fact that organisations who have not
complied at all with the provisions of the Employment Equity Act
should be "fined" the Department of Labour and Employment Equity
Commission should learn from the excellent public relations
conducted by SARS requiring employees and employers to submit their
tax returns, in particular the "its the right thing to do" and "make
your contribution to RSA" campaigns. In fact we have nothing but
admiration for the manner in which SARS and National Treasury have
engaged the South African public to meet their income tax
obligations. It is certainly true that non-compliance with SARS
legislation does lead to penalties, fines, interest payments and
possibly imprisonment, yet thanks to the marketing initiatives
conducted by these entities, the "moral obligation" to meet income
tax obligations is often sufficient. We are all familiar with the
post filing season billboards produced by SARS thanking South
Africans for completing their income tax returns. There are clear
lessons here for DOL and the EE Commission. SARS captures this
philosophy most eloquently in its transformation agenda formulated
as long ago as 2000:
"To turn South African citizens into
partners rather than antagonists through communicating the noble
purpose behind the collection of tax, and by treating taxpayers
as customers"
It would have taken great courage in the earliest phases of this
shift in approach to persevere with this new "mindset", yet 10 years
later the results speak for themselves. And above all, SARS has
stayed its course, with its leadership achieving national and
international respect.
SARS and National Treasury are also prime examples of how
organisations can in fact transform and become representative of the
South African population, yet from a public perspective increasingly
become more efficient. In fact, they disprove the myth that
implementing employment equity results in lower standards of
performance and service delivery. Every tax payer is by now aware of
the substantial advancements made in filing tax returns and the
excellent customer service provided by these entities. Of course
these achievements can be attributed very simply to the calibre of
SARS and NT's "LEADERSHIP" of and "COMMITMENT" to transformation,
elements noticeably absent in so many other organisations. We have
no doubt that we will see similar developments in the Reserve
Bank and the emerging
Department of EconomicPlanning. Great leaders tend to
replicate their achievements consistently, regardless and often in
spite of the obvious hindrances - skills shortages, staff turnover,
lack of financial resources for human capital development and
acquisition etc.
SARS' transformation agenda eloquently sets out its strategic
objectives as follows:
Since South Africa's first democratic
elections in 1994, SARS has strived to live up to the
challenges of a changed and changing society. The
organisation has had to reassess its functions and how
it goes about its business.
A process of transformation was begun
in 2000 in a drive to make SARS work better as a
business. Called Siyakha ("we are building"), it has two
clear goals, which are:
to make SARS more effective through increased
operational efficiency, the creation of a more
streamlined and effective organisational
structure, and a re-engineering of underlying
business processes; and
to turn South African citizens into partners
rather than antagonists through communicating
the noble purpose behind the collection of tax,
and by treating taxpayers as customers.
The principles of Siyakha guide all
the work done by the divisions of SARS. The result of
these processes will be to broaden the tax base, to
encourage a culture of voluntary compliance and to
create a more efficient and effective business.
Technology has a vital role in
enhancing business processes and in permitting SARS to
becoming more customer-centric. For example, technology
has helped SARS to understand the risk profiles of
customers and industry segments.
Central to this vision are the people
of SARS. The creation of a culture of team-work and
learning, a vigorous programme to improve employee
competency and the provision of a supporting physical
infrastructure have been important features of Siyakha.
The implementation of Siyakha has
also improved employment equity and staff capability.
The results SARS has been able to achieve over the period from
1998 - 2010 are self-apparent: growing the tax base, coupled with
economic growth friendly policies, the appointment of excellent
leaders / Ministers and Director Generals, encouraging a culture of
"moral compliance", and most notably, substantially transforming its
workforce profile.
Achievements in the employment of persons with disabilities is
equally admirable.
Historical EE Profile 1998 - 2009
Percentage of Black Workforce from 1998 - 2009
Occupational Level
March-1998
March-1999
March-2000
March-2001
March-2004
March-2005
March-2006
March-2007
March-2008
March-2009
Management Staff
9%
18%
38%
40%
47%
51%
53%
54%
57%
59%
Supervisory Staff
10%
13%
19%
22%
44%
48%
57%
60%
61%
60%
General Staff
34%
38%
41%
42%
55%
58%
62%
65%
67%
69%
All Staff
32%
36%
38%
40%
53%
56%
61%
63%
65%
67%
Affirmative Action & Skills Development Initiatives
Equally the affirmative action measures adopted by SARS over this
period indicate a recognition of the underlying competency
requirements which needed to be developed as well as an appreciation
of the organisation's long term talent "demand" requirements (i.e.
developing the talent pool) whilst always actively pursuing its EE
transformation objectives (race, gender and disability):
Timeline
Affirmative
Action & Skills Development Initiatives
Workinfo.com
Analysis
1999/2000
Human resources practices are weak in some areas.
Significant progress has been made on this front, but much
work remains.
Retention of staff, especially in key functions such as
audit, is a cause for concern . Allocation of
employees is sub-optimal. A performance management
system is in the process of implementation. Training is not
adequately addressing the key skill shortages, and a
greater focus on on-the-job training is required .
A recently
completed skills audit will provide a comprehensive profile
of staff competencies and permit an assessment of the extent
to which SARS’ future needs can be met by existing
personnel. A substantial mismatch is anticipated, which
will oblige substantial retraining.
During1999/2000,
approximately 845 internal courses were attended by more
than11000 participants at SARS. In addition, about 1000
employees benefited from income tax training provided
through the Rand Afrikaans University. Other key training
initiatives included NITS and rules of origin courses. The
International Labour Organisation (ILO) sponsored
development of a labour relations training course for SARS,
which will be presented to all line managers and shop
stewards during 2000/2001.
An important
focus of activity is the development of new audit capacity.
A taxation auditor programme will be introduced later this
year, which will feed into the respected Master Taxation
Auditor (MTA) programme offered at SARS. A partnership with
the Association of Certified Chartered Accountants (ACCA) is
also on the cards.
An important
focus of activity is the development of new audit capacity.
A taxation auditor programme will be introduced later this
year, which will feed into the respected Master Taxation
Auditor (MTA) programme offered at SARS. A partnership with
the Association of Certified Chartered Accountants (ACCA) is
also on the cards.
Planning has
started on the establishment of a SARS college, which is
likely to take the form of a virtual and a residential
campus. Partners in this initiative will include Harvard
University and the Open University, in addition to local
tertiary institutions. In the longer term, SARS could
consider providing customs and revenue administration
courses to other countries in the region. Finally, SARS has
played a key role in the formation of a sector education and
training authority (SETA) for the financial and accounting
services industry.
Affirmative
Action
Relatively low
staff turnover-rate, coupled with efforts to freeze payroll
costs, constrained SARS’ ability to promote workforce
representation. During 1999/2000, the total headcount
declined by about 400.A moratorium was imposed on the
appointment of administrative personnel to support the
strategic shift to an audit focus.
Siyakha programme
Clear, simple &
communicated Vision statement
Impact analysis
Transformation goals identified
Problem identification
Competency profile gap analysis
Supply and demand analysis
Recognition of need for capacity development
Skills training & focused course development
Leadership:- Acknowledgement of constraints to
transformation coupled with commitment to overcome these
2000/2001
The past year has seen the groundwork laid
for a new approach to competency acquisition at SARS. A new
vision and strategy were developed, and preparatory work on
a proposed corporate university for SARS won the approval of
the Executive Committee. The year ahead will see a number of
plans coming to fruition, including:
partnerships with the Association of
Chartered Certified Accountants (ACCA) and the tax
departments of several universities, aimed at bolstering
SARS’s audit capacity;
the introduction of a combination of new
learning methodologies, such as distance learning
(including live interactive video broadcasts) and
structured on-the-job training;
accreditation of the SARS auditor
learnership by the South African Qualifications
Authority; and
the launch of a Southern African Tax
Institute by Harvard University in association with SARS
and various other institutions.
During 2000/2001:
bursaries worth R4,8 million were
allocated to 717 employees;
819 members of staff were enrolled for
the Rand Afrikaans University tax certificate
programmes;
45 “high potential” employees and branch
managers successfully completed year one of the Open
University MBA programme;
a total of 867 internal training
interventions attracted 10 214 participants;
a data base on the skills profile of SARS employees
was compiled;
labour relations training for managers
and shop stewards was presented countrywide;
training material was published on the
SARS Intranet;
courses were developed and presented on
collections policies and procedures, taxpayer service,
auditing, and change management;
SARS joined a consortium of South
African organisations which participate in an annual
executive development programme presented locally by the
top European management school, INSEAD; and
about 20 employees attended a 10-day
auditing course presented by officials from the German
tax administration.
Competency profile gap analysis
Follow through on earlier initiatives identified
Internal development - Bursaries, certificate programmes,
MBA's, internal training interventions
Identification & development of high potential employees
Engagement with SETA & SAQA & professional bodies
New learning technologies & platforms:
eLearning
Distance learning
Structured on-the-job training
Competency database
Strategic alliances with Higher Education entities and
best in the world INSEAD and Harvard
2001/2002
See SARS Annual Report
2002/2003
See SARS Annual Report
2003/2004
See SARS Annual Report
2004/2005
See SARS Annual Report
2005/2006
SARS continues to be passionate about
growing its people, both professionally and personally,
through targeted training initiatives and study
opportunities such as the Training Outside Public Practice (TOPP)
and Graduate Recruitment Programme. The SARS Academy plays a
key role in ensuring that the appropriate skills training is
provided for staff across all divisions. SARS also aims to
provide its employees with a caring, supportive environment
through the wellness programme.
Ensure the appropriately skilled people are
attracted to the organisation. Another is to ensure all
staff continue with their personal and professional
development while in the organisation. SARS commitment is
realised through the creation of a high performance tax and
customs administration work place where individuals and
teams are employed and rewarded for exemplary performance,
sharing knowledge, being team players and living SARS core
values
Focus employee performance and behaviour to
achieve sustainable improvements in operational ability and
to achieve organisational goals
Address the personal development needs
of staff and align this development to SARS’s immediate,
medium and long-term business needs
Attract and retain talent by providing
meaningful development and progression opportunities for
employees within critical job families
Encourage and reward good performance,
and manage and improve on poor performance
Address the chronic skills shortage
at all levels by developing employees internally
Develop constructive and open relationships between
managers and employees.
SARS has enlisted top South African business
schools to conduct management development programmes for
managers at all levels. At present, 25 senior managers are
enrolled with the Gordon Institute of Business Sciences (GIBS),
and two programmes are being run by the business schools of
UNISA and Stellenbosch University, with 15 middle managers
participating in each of the latter two.
UNISA and Stellenbosch business schools are
also running management development programmes for 30
managers at a junior level, and provision has been made for
15 executive managers to attend a GIBS programme. The
training and development programme “Fundamentals of
Management” was presented to Team Leaders to enhance their
skills.
A coaching programme was developed and 15
internal coaches were accredited and are currently rolling
out coaching classes countrywide. It is estimated that an
overall 19% improvement in management capability has been
achieved as a result of these initiatives.
To improve operational effi ciencies, the
School of Customs offered several key programmes. These
programmes included valuation, tariff, export, post
clearance inspection, risk management, excise, border
control enforcement, trade agreement the anti-smuggling and
programmes to administer the application of international
conventions such as, Customs Convention, Istanbul Convention
and the Admission Temporaire - Temporary Admission (ATA)
Convention. The needs-aligned programmes were offered
predominately to staff in customs and on a lesser scale to
employees in revenue.
These programmes have provided employees
with a deeper knowledge and understanding of key
interventions to facilitate security and border control.
The School of Assessment and Service offered
the following programmes including courses on Farming and
Retirements Tax, RBT, CGT, Income Tax and Trusts.
The School of Enforcement offered programmes
in audit at a basic and intermediate level, criminal risk
identifi cation at a basic and advanced level, electronic
evidence, law interpretation, introduction to collections
and fi nancial statements, tax updates and trusts.
SARS has in place a Memorandum of
Cooperation with the Lesotho Revenue Authority (LRA), that
details how the capacity building interventions provided to
the LRA by SARS are managed to ensure its sustainability and
effectiveness. A project plan is in place which highlights
the capacity building initiatives for LRA.
SARS is in the process of finalising similar
memoranda with Rwanda, DRC, and Malawi. Within the SACU
context SARS is providing training assistance to Botswana,
Namibia and Swaziland.
The SARS Academy has also established
partnerships with tertiary institutions and service
providers to ensure that the training they offer is relevant
to SARS business needs.
SARS has been accredited by the South
African Institute of Chartered Accountants (SAICA) as an
approved training organisation and is authorised to present
the Training Outside Public Practice (TOPP) programme under
the auspices of the SARS academy. The TOPP programme focuses
on training in fi nancial management and taxation. The
programme environment promotes the highest standards of
professional development and consists of a blend of
practical experience, simulations and other interventions,
in conformance with SAICA requirements.
Other focus areas included performance
management, reward management (Hay Job Grading) and salary
benchmarking with the general labour marker, incentive
bonus, and retention: The success of SARS’s labour retention
strategies is evidenced by the labour turnover rate for the
current financial year of 5,74%.
The graduate recruitment programme has
expanded since its inception in 2003 and continues to
receive priority. The aim of the programme is to help
alleviate the critical shortage of suitably qualified staff,
to contribute towards a representative workforce and to
reinforce SARS’s commitment to social responsibility.
Clear statement on its people
philosophy
Ongoing development of talent
Engagement with Higher Education institutions
Coaching programme
Regional engagement
Engagement with Higher Education institutions, locally
and abroad
Accreditation as a training provider
Retention
Ongoing graduate recruitment
2006/2007
SARS has implemented an integrated people
development strategy to ensure alignment between
organisational needs and staff skills and competencies. The
strategy aims to attract appropriately skilled people to the
organisation through programmes such as the Graduate
Recruitment and Development Programme and Training Outside
Public Practice (TOPP). A career and talent management
framework has been introduced in line with the career
development programme to ensure that we create growth
opportunities for staff.
The reward, recognition and compensation
strategy was reviewed and enhanced to support talent
retention. In line with the human capital plan, a number of
new talent intake initiatives were also successfully
completed, such as the intake of candidates into both TOPP
and the Graduate Recruitment and Development Programme.
TOPP focuses on training in financial
management, management accounting, financial accounting,
auditing and taxation. The internal Career Development
Programme has been essential in ensuring recognition for
competencies required, acquired and applied by staff in
different job categories as informed by operational
requirements.
SARS Academy has established partnerships
with institutions such as UNISA, the University of
Stellenbosch, the Gordon Institute of Business Science and
Franklin Covey SA, to ensure customised training for SARS
managers in line with business needs. In 2006/07, 111
staffers in managerial/leadership and specialist positions
graduated successfully from management development
programmes
The objective of the SARS Academy is to
provide and facilitate training across all SARS business
areas. In the review period the Academy concluded a
workplace skills plan, which met the requirements of the
sector education and training authority, and delivered a
total of 26 626 training interventions, exceeding its target
for training.
Following agreement with the World Customs
Organisation, work is currently underway to establish a
regional training centre for capacity building in Eastern
and Southern Africa
The scope of the Kulani no Hlayisa (grow
while caring) employee wellbeing programme was expanded in
the review period. New initiatives included incapacity and
disability management, specialised absenteeism management,
border post wellness, executive medical examinations and a
comprehensive HIV/AIDS management programme. This, together
with the counselling and support services and online health
and financial management support for employees, has created
an integrated and holistic approach to promoting wellness
among staff.
Ongoing competency alignment and
alignment of skills & competencies to organisational needs
Graduate development programmes (securing inflow of talent)
Career development programmes
Strategic alignment with Higher Education institutions
and regional engagement
"Corporate university" concept
Training in core competencies
Ongoing focus on EE goals (race, gender & disability)
along with capacity development of all personnel
Employee wellness initiatives (i.e. retention)
2007/2008
See SARS Annual Report
2008/2009
Performance Highlights
Repositioning SARS as a “value
proposition” for current and future employees in our
quest to become an “Employer of
Choice”;
A new recruitment process and service
level agreements were implemented with the aim to reduce
the Recruitment Cycle with up to 50%;
Our Employee Attitude levels, which we
measure through the Employee Engagement Survey were
determined with the successful
implementation of a programme of action to improve the
level of employee engagement;
Assisted the organisation to build
additional Capacity and Capability (numbers and skills)
especially for the Modernisation
Agenda aspirations. Progress is positive with a
recruitment rate of 11% year to date;
Enhanced and implemented the new
Individual Performance Management System. At the end of
March 2008, 85% of SARS employees
have signed-off individual performance contracts as part
of the implementation of the new Individual
Performance Management System;
Successful concluding of various
Collective Agreements with Organised Labour, especially
the multi-term Substantive (wage)
Agreement that was negotiated and signed with National
Education, Health and Allied Workers Union (NEHAWU);
Achieving Employment Equity Black Profile targets
(We achieved 65% Black representation within SARS);
Establishing Primary Health Care
Services at Customs land border posts; and
Building additional capacity and
capability in the HR Team to deliver. The HR
professionalism ratio has increased with 18%
from last year with specific focus on
improving the HR Business Partner Concept.
The SARS Employer Branding was aligned in the areas
of attracting, engaging and retaining talent.
The second SARS Employee Connexion survey
was conducted this year to measure the improvement in levels
of employee engagement. It
measured employee motivation and commitment and a
significant improvement was made compared to the
previous year, in other words employees
having a positive attitude towards the organisation and
showing business enhancing
behaviour. Based on the survey results a Programme of Action
with immediate short, medium and long term commitments,
emanating from the survey’s findings, was
implemented in July 2007. The
Programme of Action includes, among others:
New long service awards policy and
incentives;
New reward and recognition excellence
programme (Amakhwezi);
Leadership development programme;
Career development programmes and
opportunities; and
Revised performance management and
development systems.
The Kulani no Hlayisa (Grow while Caring)
Employee Wellbeing Programme continued to enhance the
wellbeing of SARS
employees by
providing counselling and support services and online health
and financial management support for employees,
has created an integrated and holistic
approach to promoting wellness among staff.
Activity Based Management (ABM) was adopted to support
business analysis and enable operational and strategic
decision making.
Training Outside Public Practice (TOPP) is
programme accredited by the South African Institute of
Chartered Accountants (SAICA) and is an alternative to the
conventional TIPP (Training Inside Public Practice) career
path.
SARS Modernisation programme
Conducted a Connexion survey which
enabled the identification of improvement areas;
Completed a SARS-wide awareness
campaigns together with Quick Wins to “Show We Care” and
launched the
“SARS 4 U”
lifestyle balance programme;
Demonstrated an increase in the annual
employee engagement Index measured in March – 4.8%
improvement;
Aligned the 360 degree behaviour review
to SARS values and automated model implemented for
mid-year reviews and
year-end
reviews;
Presented the total rewards philosophy
and variable pay principles to the remuneration
committee, which was approved;
and
Opened our National Recruitment Centre in February
with outsourced recruitment partners.
Communication strategy for Modernisation programme
Achievement of EE targets
Employer
of choice
Employer Branding
Focus on retention issues
Ongoing training and development
Modernisation campaign
2009/2010
Structures at executive and senior management levels were
realigned with the newly adopted operating and leadership
model. An initiative was implemented to find the best fit
between job requirements and the skills of senior managers
(the “goodness of fit”) initiative. A leadership development
programme at senior, middle management and team leader level
was piloted with 110 employees
A career
model has been designed and is representative of all the
roles required for SARS to deliver on its strategic
goals. This will help develop the required professional
skills of staff
Full
implementation of the Amakhwezi Formal Recognition
Programme for the enhanced recognition of exceptional
behaviour aligned to the SARS values. During 2008/2009,
662 team nominations and 3 671 individual nominations
were made
SARS was a
finalist at the South African Association Awards as a
result of its performance management and recognition
system
The uptake
of the core counselling and advisory services of the
SARS Wellness Programme increased to 22.2% for
2008/2009, a significant increase from the 15.7% uptake
of the previous year
The
employment equity target was reached (66.8%). The
disability profile also improved substantially to 2.4%
Phase I of
the SARS HR management system (SAP HR) was successfully
implemented, giving SARS sound employee and
organisational HR information
There has
been a marked improvement on the employee engagement
index through an integrated programme of action and
interventions
Business has
been supported through change management training and
placement protocols
Job fit compatibility
Leadership
development programme
Culture: employee engagement index (i.e. retention)
Employee wellness (i.e. retention)
Employee recognition (i.e. retention)
Sources: SARS Annual Reports 1998 - 2010
The efficiencies SARS achieved whilst aggressively pursuing its
transformation agenda are clearly evident from SARS 2010 annual
report:
By 31 March 2009, SARS had collected
R625.10 billion in revenue, which represents a
collection outcome of 99.59% against the revised revenue
target of R627.60 billion (original estimate R642.27
billion). This occurred against the backdrop of
rapidly-deteriorating global economic conditions, in
particular during the first quarter of 2009. During this
time SARS delivered on its mandate, transformed its
public image and is now widely regarded as a top
performing government agency.
These improvements and the release of
resources from manual backroom activities into service
and enforcement spheres, is having a significant impact
not only n compliance, but on the experience f taxpayers
and traders. The results can be seen in the recently
concluded 2009 Tax Season which resulted in a number of
new records for submissions and processing.
While we may need to invest in critical skills
available outside the organisation as well as focus on
building a skills inflow through our graduate and
youth recruitment programme, we do not envisage that our
staff numbers of approximately 15 000 will change
significantly over the medium term, as we will primarily
seek to develop our existing staff to meet changing
business requirements.
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