The Indigenisation and Economic Empowerment legislation which came into effect last week provides the rules and regulations that guide the economic empowerment of the communities and other special and disadvantaged groups such as youths, women, workers and war veterans. Among other things, the Indigenisation and Economic agenda seeks to have a 51 per cent indigenous shareholding in major and strategic companies and develop a broad-based domestic private sector which is critical to economic growth and development. To get clarity on aspects of this agenda, Anthony Jongwe (AJ) caught up with the custodian of the indigenisation and economic empowerment agenda in the inclusive government Minister Saviour Kasukuwere (SK) and the following is their discussion.
AJ: Good morning minister. The Indigenisation and Economic Empowerment Act is now operational. Could you please shed some light on how the processes (indigenisation and economic empowerment) will unravel going forward?
SK: Good morning Jongwe. As you have rightly pointed, the implementation of the legislation has started. Within the next 45 days, companies will be expected to complete the relevant forms. As a Ministry, we are putting in place adequate measures to ensure that these forms are readily available and that includes the option of downloading them from our website. The forms seek to elicit information pertaining to the current set-up obtaining in each relevant company. It is hoped that the information obtained will reflect the correct level of ownership. As a ministry, we intend to use the information to come up with comprehensive sector-by-sector plans on how best to enhance empowerment. The whole purpose of this initiative is to broaden the national cake by bringing more people into national economic participation and development.
AJ: But there are serious concerns about the timing of the whole process, minister.
SK: It is the same old argument used when we introduced the highly successful land reform programme
AJ: Another school of thought is arguing that this legislation is largely motivated by ZANU- PF’s need to have a strong bargaining weapon in the on-going sanctions issue since there was no unanimity on the need for the legislation in the inclusive government.
SK: It’s all nonsensical. Our approach to indigenisation is not a new phenomenon. We have always been clear on the need to empower the sons and daughters of Zimbabwe in the face of irrefutable historical imbalances created by colonialism. Almost three decades after the attainment of independence, the ownership of resources in most key sectors of the economy is still skewed in favour of foreigners, with indigenous Zimbabweans mainly employed as managers and workers. Recent assessment studies on the levels of indigenisation of the economy by Government reveal that critical sectors of the economy, notably manufacturing, mining, tourism, energy, financial, construction, transport and media production are still dominated by foreigners. This state of affairs is detrimental to the overall development of the economy and prosperity of indigenous Zimbabweans
AJ: Indigenisation and empowerment programmes are not new in Southern Africa. What is unique about Zimbabwe’s approach?
SK: You are correct Jongwe. Indeed, South Africa, Namibia and Botswana have all adopted and implemented indigenisation programmes. Our approach to indigenisation is based on the notion of broad-based participation by our people in indigenisation arrangements. As a resource-based economy, we need to use indigenisation to fight poverty and create more jobs. Our indigenisation and empowerment are anchored on the conviction that indigenous Zimbabweans must own and primarily benefit from the exploitation and utilization of their God given natural resources. This is a fundamental pre-requisite for sustainable economic growth, social and political stability and overall national development
AJ: How will these broad-based participation arrangements be funded?
SK: There are various structures critical to the successful implantation of the indigenisation and economic empowerment agenda. The National Indigenisation and Economic Empowerment Fund (arising from the transformation of the National Investment Trust) will provide loans for acquisition of shares, business start-up, rehabilitation and expansion. Another route will be listing on the Zimbabwe Stock Exchange. Listing on the bourse enables ordinary black Zimbabweans to acquire shareholding in listed companies.
AJ: How can employees participate in the indigenisation programme?
SK: Workers will be able to do so through Employee Share Ownership Programmes (ESOPS). These programmes shall enable employees of a company, through a Trust, to acquire, hold and manage a prescribed level of shares of the company concerned and receive dividends or incoming arising there from. Significantly, ESOPS will result in increased productivity, improved industrial relations and employee welfare, retirement security, and foster responsibility and commitment to the company by employees and reduce demand on social responsibility. In conclusion, let me say that the difference between rich and poor is opportunity. These broad-based participation arrangements give an opportunity to all Zimbabweans, including those in the Diaspora to create wealth for themselves, families and nation.
________________________________________
Anthony is principal consultant at Global Workforce Solutions (Pvt) Ltd- a management and human resources consulting company. For feedback/enquiries, send e-mail to: consultgws@gmail.com or phone/sms on 073 3 306 193
Tuesday, March 16, 2010
Interview with Hon Minister Saviour Kasukuwere
The Indigenisation and Economic Empowerment legislation which came into effect last week provides the rules and regulations that guide the economic empowerment of the communities and other special and disadvantaged groups such as youths, women, workers and war veterans. Among other things, the Indigenisation and Economic agenda seeks to have a 51 per cent indigenous shareholding in major and strategic companies and develop a broad-based domestic private sector which is critical to economic growth and development. To get clarity on aspects of this agenda, Anthony Jongwe (AJ) caught up with the custodian of the indigenisation and economic empowerment agenda in the inclusive government Minister Saviour Kasukuwere (SK) and the following is their discussion.
AJ:Good morning minister. The Indigenisation and Economic Empowerment Act is now operational. Could you please shed some light on how the processes (indigenisation and economic empowerment) will unravel going forward?
SK: Good morning Jongwe. As you have rightly pointed, the implementation of the legislation has started. Within the next 45 days, companies will be expected to complete the relevant forms. As a Ministry, we are putting in place adequate measures to ensure that these forms are readily available and that includes the option of downloading them from our website. The forms seek to elicit information pertaining to the current set-up obtaining in each relevant company. It is hoped that the information obtained will reflect the correct level of ownership. As a ministry, we intend to use the information to come up with comprehensive sector-by-sector plans on how best to enhance empowerment. The whole purpose of this initiative is to broaden the national cake by bringing more people into national economic participation and development.
AJ: But there are serious concerns about the timing of the whole process, minister.
SK: It is the same old argument used when we introduced the highly successful land reform programme
AJ: Another school of thought is arguing that this legislation is largely motivated by ZANU- PF’s need to have a strong bargaining weapon in the on-going sanctions issue since there was no unanimity on the need for the legislation in the inclusive government.
SK: It’s all nonsensical. Our approach to indigenisation is not a new phenomenon. We have always been clear on the need to empower the sons and daughters of Zimbabwe in the face of irrefutable historical imbalances created by colonialism. Almost three decades after the attainment of independence, the ownership of resources in most key sectors of the economy is still skewed in favour of foreigners, with indigenous Zimbabweans mainly employed as managers and workers. Recent assessment studies on the levels of indigenisation of the economy by Government reveal that critical sectors of the economy, notably manufacturing, mining, tourism, energy, financial, construction, transport and media production are still dominated by foreigners. This state of affairs is detrimental to the overall development of the economy and prosperity of indigenous Zimbabweans
AJ: Indigenisation and empowerment programmes are not new in Southern Africa. What is unique about Zimbabwe’s approach?
SK: You are correct Jongwe. Indeed, South Africa, Namibia and Botswana have all adopted and implemented indigenisation programmes. Our approach to indigenisation is based on the notion of broad-based participation by our people in indigenisation arrangements. As a resource-based economy, we need to use indigenisation to fight poverty and create more jobs. Our indigenisation and empowerment are anchored on the conviction that indigenous Zimbabweans must own and primarily benefit from the exploitation and utilization of their God given natural resources. This is a fundamental pre-requisite for sustainable economic growth, social and political stability and overall national development
AJ: How will these broad-based participation arrangements be funded?
SK: There are various structures critical to the successful implantation of the indigenisation and economic empowerment agenda. The National Indigenisation and Economic Empowerment Fund (arising from the transformation of the National Investment Trust) will provide loans for acquisition of shares, business start-up, rehabilitation and expansion. Another route will be listing on the Zimbabwe Stock Exchange. Listing on the bourse enables ordinary black Zimbabweans to acquire shareholding in listed companies.
AJ: How can employees participate in the indigenisation programme?
SK: Workers will be able to do so through Employee Share Ownership Programmes (ESOPS). These programmes shall enable employees of a company, through a Trust, to acquire, hold and manage a prescribed level of shares of the company concerned and receive dividends or incoming arising there from. Significantly, ESOPS will result in increased productivity, improved industrial relations and employee welfare, retirement security, and foster responsibility and commitment to the company by employees and reduce demand on social responsibility. In conclusion, let me say that the difference between rich and poor is opportunity. These broad-based participation arrangements give an opportunity to all Zimbabweans, including those in the Diaspora to create wealth for themselves, families and nation.
________________________________________
Anthony is principal consultant at Global Workforce Solutions (Pvt) Ltd- a management and human resources consulting company. For feedback/enquiries, send e-mail to: consultgws@gmail.com or phone/sms on 073 3 306 193
AJ:Good morning minister. The Indigenisation and Economic Empowerment Act is now operational. Could you please shed some light on how the processes (indigenisation and economic empowerment) will unravel going forward?
SK: Good morning Jongwe. As you have rightly pointed, the implementation of the legislation has started. Within the next 45 days, companies will be expected to complete the relevant forms. As a Ministry, we are putting in place adequate measures to ensure that these forms are readily available and that includes the option of downloading them from our website. The forms seek to elicit information pertaining to the current set-up obtaining in each relevant company. It is hoped that the information obtained will reflect the correct level of ownership. As a ministry, we intend to use the information to come up with comprehensive sector-by-sector plans on how best to enhance empowerment. The whole purpose of this initiative is to broaden the national cake by bringing more people into national economic participation and development.
AJ: But there are serious concerns about the timing of the whole process, minister.
SK: It is the same old argument used when we introduced the highly successful land reform programme
AJ: Another school of thought is arguing that this legislation is largely motivated by ZANU- PF’s need to have a strong bargaining weapon in the on-going sanctions issue since there was no unanimity on the need for the legislation in the inclusive government.
SK: It’s all nonsensical. Our approach to indigenisation is not a new phenomenon. We have always been clear on the need to empower the sons and daughters of Zimbabwe in the face of irrefutable historical imbalances created by colonialism. Almost three decades after the attainment of independence, the ownership of resources in most key sectors of the economy is still skewed in favour of foreigners, with indigenous Zimbabweans mainly employed as managers and workers. Recent assessment studies on the levels of indigenisation of the economy by Government reveal that critical sectors of the economy, notably manufacturing, mining, tourism, energy, financial, construction, transport and media production are still dominated by foreigners. This state of affairs is detrimental to the overall development of the economy and prosperity of indigenous Zimbabweans
AJ: Indigenisation and empowerment programmes are not new in Southern Africa. What is unique about Zimbabwe’s approach?
SK: You are correct Jongwe. Indeed, South Africa, Namibia and Botswana have all adopted and implemented indigenisation programmes. Our approach to indigenisation is based on the notion of broad-based participation by our people in indigenisation arrangements. As a resource-based economy, we need to use indigenisation to fight poverty and create more jobs. Our indigenisation and empowerment are anchored on the conviction that indigenous Zimbabweans must own and primarily benefit from the exploitation and utilization of their God given natural resources. This is a fundamental pre-requisite for sustainable economic growth, social and political stability and overall national development
AJ: How will these broad-based participation arrangements be funded?
SK: There are various structures critical to the successful implantation of the indigenisation and economic empowerment agenda. The National Indigenisation and Economic Empowerment Fund (arising from the transformation of the National Investment Trust) will provide loans for acquisition of shares, business start-up, rehabilitation and expansion. Another route will be listing on the Zimbabwe Stock Exchange. Listing on the bourse enables ordinary black Zimbabweans to acquire shareholding in listed companies.
AJ: How can employees participate in the indigenisation programme?
SK: Workers will be able to do so through Employee Share Ownership Programmes (ESOPS). These programmes shall enable employees of a company, through a Trust, to acquire, hold and manage a prescribed level of shares of the company concerned and receive dividends or incoming arising there from. Significantly, ESOPS will result in increased productivity, improved industrial relations and employee welfare, retirement security, and foster responsibility and commitment to the company by employees and reduce demand on social responsibility. In conclusion, let me say that the difference between rich and poor is opportunity. These broad-based participation arrangements give an opportunity to all Zimbabweans, including those in the Diaspora to create wealth for themselves, families and nation.
________________________________________
Anthony is principal consultant at Global Workforce Solutions (Pvt) Ltd- a management and human resources consulting company. For feedback/enquiries, send e-mail to: consultgws@gmail.com or phone/sms on 073 3 306 193
Friday, February 12, 2010
Interview with Apostle Charles Chiriseri of His Presence Ministries International
As Zimbabwe navigates this transitory period in its political history, a lot of hope has been reposed in the Church to play a leading role in national healing and cohesion. Historically, the Church has stood as the voice of justice. A fortnight ago, a local Church, His Presence Ministries International (HPMI) held its annual conference in Harare which was graced by various local and regional Men of God. The theme of the four-day spiritual event was ‘Restoring Lives, Raising Champions conference’ through a divine shift. The event also coincided with the graduation of over 79 leaders representing 25 denominations who graduated with a diploma in ministry and leadership through HPMI’s School of Ministry. Throughout the crusade, speaker after speaker had a prophetic message about the imminent and irreversible restoration of Zimbabwe to its rightful place in the global community of nations after a decade of economic, social and political challenges. Quoting relevant scriptures the speakers, who included the Founder and spiritual father of HPMI Apostle Charles Chiriseri, prophesised a restorative agenda for the Church. They challenged the Church to play a transformational leadership role in rebuilding Zimbabwe going forward. But for the Church to effectively execute this clear mandate, it has to be united. Shereni (SJ) had the opportunity to interview Apostle Chiriseri (AC) on the sidelines of the crusade to get to understand better how the Church can champion its stated agenda during these times and the following are excerpts from the interview.
SJ: Good Afternoon Apostle. I really appreciate you taking the time to share with us. Why don’t you start off by giving us some background about your life?
AC: Good afternoon and thank you for having me. Looking back, I have had a truly cosmopolitan upbringing. Our family is originally from Mt Darwin but my grandparents are now settled in Chiweshe. I was largely educated in Bulawayo, at Columbus Primary and Mzilikazi Secondary Schools and also attended the University of Zimbabwe where I graduated with a degree in agricultural production shortly after Independence. Prior to founding HPMI in 2006, I had an enriching work, business and spiritual experience. I worked in the private sector as a senior manager and had a hand at business where I ran a chain of butcheries in Harare together with a friend. From a spiritual perspective, I was born again in 1974 and have had the opportunity to serve in various capacities which include being president of the Christian Union at the university and pastor and senior pastor respectively at Faith Ministries. I also pioneered various churches in Zimbabwe and internationally. Significantly, I have also had the opportunity to play my small role as part of the Church towards national peace and healing while serving as acting General Secretary of the Evangelical Fellowship of Zimbabwe (EFZ) and as Peace building Chairperson in the Crisis Coalition of Zimbabwe. I am married to Petunia, who is herself a remarkable servant of God, accomplished businesswoman and mother to our four beautiful daughters and son, Yasha, Lisa, Zoe, and Nissi
SJ: I must admit Apostle that I was particularly impressed by the number of graduates that have come out through your School of Ministry. Tell us more about this ministry.
AC: The main thrust of the School is on leadership and disciple training. The school is intentional and purposeful with a clear mandate to produce people who are agents of transformation. Since 2007, we have produced over 300 such agents under our various curriculum programmes. This year’s graduation was remarkable in that it witnessed our first cohort of graduates under our truly international diploma in ministry and leadership. This particular programme is accredited by both the John Maxwell Equip leadership Institute in the US as well as the Bible Training Centre for pastors also based in the USA. The School of Ministry is our contribution to empowering the Church through the provision of transformational leaders that will make a difference in their spheres of influence
SJ: During the conference, the man of God from South Africa was very clear on the need for the Church in Zimbabwe to be at the coalface of the rebuilding process? Why is that so Apostle?
AC: You refer to the prophetic message from Pastor Xola Nzo. You see Shereni, the Church has always been the conscience of the nation. If we look at the scriptures you will notice that transformational leaders like Moses, Ezra and Zerubabel were all inspired by God. The foundation of any transformation in society must therefore be predicated on the spiritual realm. In Zimbabwe, we need to put God at the centre of all our efforts and be guided by Him. Education alone has not brought answers for Africa but God through the power of the Holy Spirit has the capability to restore the values that have been ravaged over the years. The word of God has been consistent and its values enduring so we need to bank on that in this rebuilding process.
SJ: What role do you see your Church playing in rebuilding Zimbabwe?
AC: Our approach is that we have a Vision “to restore lives and raise Champions to transform families, communities, cities and nations” and our purpose is to raise men and women of integrity who are willing to dream and think outside the box in search of solutions to problems bedevilling our generation. Our School of Ministry is very integral to the realisation of this goal through leadership training and development. For us to be able to achieve our mission we have identified seven key pillars of society that we need to partner with different organisations to shape our society and these are: the church, family, education, politics, business, and media. In all these key pillars, leadership development is critical. To that extent, we continue to identify and implement a number of initiatives aimed at strengthening our capacity to influence in the various pillars. HPMI strongly believes that the Church is well-placed to nurture transformational leaders who are not only influential, but also have a pioneering anointing ability. We believe from scripture that God is a God of all nations and speaks and influences nations from the Church. The Church is the place where the national agenda e.g constitution-making process is discussed because God has given it a mandate to restore nations (Matthew 28:18) Going forward, the Church in Zimbabwe is well-united and ready for healing, restoration and rebuilding of the nation.
Shereni is Principal Consultant at Global Workforce Solutions (Pvt) Ltd. He can be contacted via sms on 073 3 306 193/0913 002 275 or by e-mail: consultgws@gmail.com
SJ: Good Afternoon Apostle. I really appreciate you taking the time to share with us. Why don’t you start off by giving us some background about your life?
AC: Good afternoon and thank you for having me. Looking back, I have had a truly cosmopolitan upbringing. Our family is originally from Mt Darwin but my grandparents are now settled in Chiweshe. I was largely educated in Bulawayo, at Columbus Primary and Mzilikazi Secondary Schools and also attended the University of Zimbabwe where I graduated with a degree in agricultural production shortly after Independence. Prior to founding HPMI in 2006, I had an enriching work, business and spiritual experience. I worked in the private sector as a senior manager and had a hand at business where I ran a chain of butcheries in Harare together with a friend. From a spiritual perspective, I was born again in 1974 and have had the opportunity to serve in various capacities which include being president of the Christian Union at the university and pastor and senior pastor respectively at Faith Ministries. I also pioneered various churches in Zimbabwe and internationally. Significantly, I have also had the opportunity to play my small role as part of the Church towards national peace and healing while serving as acting General Secretary of the Evangelical Fellowship of Zimbabwe (EFZ) and as Peace building Chairperson in the Crisis Coalition of Zimbabwe. I am married to Petunia, who is herself a remarkable servant of God, accomplished businesswoman and mother to our four beautiful daughters and son, Yasha, Lisa, Zoe, and Nissi
SJ: I must admit Apostle that I was particularly impressed by the number of graduates that have come out through your School of Ministry. Tell us more about this ministry.
AC: The main thrust of the School is on leadership and disciple training. The school is intentional and purposeful with a clear mandate to produce people who are agents of transformation. Since 2007, we have produced over 300 such agents under our various curriculum programmes. This year’s graduation was remarkable in that it witnessed our first cohort of graduates under our truly international diploma in ministry and leadership. This particular programme is accredited by both the John Maxwell Equip leadership Institute in the US as well as the Bible Training Centre for pastors also based in the USA. The School of Ministry is our contribution to empowering the Church through the provision of transformational leaders that will make a difference in their spheres of influence
SJ: During the conference, the man of God from South Africa was very clear on the need for the Church in Zimbabwe to be at the coalface of the rebuilding process? Why is that so Apostle?
AC: You refer to the prophetic message from Pastor Xola Nzo. You see Shereni, the Church has always been the conscience of the nation. If we look at the scriptures you will notice that transformational leaders like Moses, Ezra and Zerubabel were all inspired by God. The foundation of any transformation in society must therefore be predicated on the spiritual realm. In Zimbabwe, we need to put God at the centre of all our efforts and be guided by Him. Education alone has not brought answers for Africa but God through the power of the Holy Spirit has the capability to restore the values that have been ravaged over the years. The word of God has been consistent and its values enduring so we need to bank on that in this rebuilding process.
SJ: What role do you see your Church playing in rebuilding Zimbabwe?
AC: Our approach is that we have a Vision “to restore lives and raise Champions to transform families, communities, cities and nations” and our purpose is to raise men and women of integrity who are willing to dream and think outside the box in search of solutions to problems bedevilling our generation. Our School of Ministry is very integral to the realisation of this goal through leadership training and development. For us to be able to achieve our mission we have identified seven key pillars of society that we need to partner with different organisations to shape our society and these are: the church, family, education, politics, business, and media. In all these key pillars, leadership development is critical. To that extent, we continue to identify and implement a number of initiatives aimed at strengthening our capacity to influence in the various pillars. HPMI strongly believes that the Church is well-placed to nurture transformational leaders who are not only influential, but also have a pioneering anointing ability. We believe from scripture that God is a God of all nations and speaks and influences nations from the Church. The Church is the place where the national agenda e.g constitution-making process is discussed because God has given it a mandate to restore nations (Matthew 28:18) Going forward, the Church in Zimbabwe is well-united and ready for healing, restoration and rebuilding of the nation.
Shereni is Principal Consultant at Global Workforce Solutions (Pvt) Ltd. He can be contacted via sms on 073 3 306 193/0913 002 275 or by e-mail: consultgws@gmail.com
Tuesday, February 9, 2010
Interview with Prof Carter of Leeds Business School
Last week Thursday, the British Council held a reception for visiting Leeds Business School Chair of African Business, Professor Steve Carter in Harare. Leeds Business School has partnered with Mananga Centre of Regional Integration and Management Development of Swaziland and Mandel Training Centre to offer a one year master’s degree in leadership and change management. An induction programme for the degree programme was also held at the weekend at Mandel and it is hoped that the first group of students under the degree programme will begin lessons early February. I had the opportunity to chat with Professor Carter on the sidelines of the reception and the following are excerpts from that discussion
Shereni Jongwe (SJ): Welcome to Zimbabwe Steve. I understand that this is not your first visit to the country. What are your impressions of Zimbabwe from your previous visit and this one?
Prof Steve Carter (SC): Thank you Shereni. I haven’t been in Zimbabwe since 2005. Prior to that, I was resident here working with the Food and Agricultural Organization (FAO) and the Zimbabwe Institute of Management. I have a number of impressions of this beautiful country. One thing that has always struck me is the indomitable spirit of Zimbabweans which continues to drive them notwithstanding the evident challenges that they have to contend with. The people of this country are naturally friendly and it is something that struck me on my recent visit last X-mas. I was met by friendly staff at the Airport and this seems true everywhere else that I have been to during this visit. My interactions with various local partners have also shown me a genuine desire for co-operation across the board. Looking at what needs to be done within the short and medium term, there is no denying the fact that the country is need of significant infrastructural development. Also, over the past decade, Zimbabwe has suffered significant ‘brain drain’ and there is need to address this issue urgently. All in all, it is quite evident that Zimbabwe is on the up and it will hold an attraction to those who have left but this will have serious implications for the host neighbouring countries.
SJ: What is the exact purpose of your visit to Zimbabwe?
SC: I am here to work with our partners, Mananga and Mandel, to bring the Leeds Metropolitan University’s MSc degree in Leadership and Change Management to Zimbabwe. In the fullness of time, it is our intention to bring other programmes in conjunction with different local partners. I must hasten to add that we view these initiatives as long-term in nature underpinning our commitment to their success.
SJ: Could you please shed some light on the degree programme.
SC: Firstly, the master’s degree in leadership and change management was not born in the UK context but is a product of contextual research into the leadership needs of Africa’s businesses. The degree is vocationally oriented in the sense that students will learn the latest concepts and techniques but these will have to be applied to the real work situation. The programme appeals to both middle and senior managers in the non-governmental, public and private sectors and is delivered in Assisted Distance Learning format. It is based on progressive problem solving and this is reflected in each module. A major attraction of this one-year programme is that it is truly international with students being able to transfer any credits obtained in the programme to any university globally offering a similar programme.
SJ: In what ways do you see your programme assisting Zimbabwe to deal with the deleterious effects of the ‘brain drain’ and contribute to national workforce development?
SC: There are three ways in which an economy can grow. Economies can grow on the basis of the stages of the development cycle or through strengthening primary and secondary education. Another way, which essentially informs our approach, is to develop masters’ degree programmes where you develop key skills in people with first degrees who will then deploy these skills to national development. Our programme develops the analytical, synthesis and problem-solving skills which are all vital in entrepreneurial development. There is potential for entrepreneurship in Zimbabwe as a route to achieving economic and social development
SJ: In May last year, I had the opportunity to interview your colleague Professor Lonnie Strickland on his views on the quality of strategic management in Zimbabwe and he had positive things to say about local managers. What are your perceptions on the quality of Zimbabwean managers?
SC: To answer this evidence-based question, I would like to draw your attention to the first law of management which states that effective managers are those that are able to steer their organizations during turbulent times. A lot of Zimbabwean companies have survived the tumultuous times of the past decade. That alone is sufficient evidence of the high pedigree of local managers. There are other sources of such evidence. A lot of Zimbabwean managers are serving and flourishing as top-notch managers in the Diasporas, including the UK. I have also noticed in interactions with local managers that they always tend to ask the right questions. This shows that they have a solid strategic orientation to management which is very critical in these highly fluid times of globalisation.
SJ: What are the key issues facing African managers in the new decade?
SC: Let me point out that the dominant African business leadership approach is one of collectivism and this tends to work extremely well across the continent. Now with specific reference to your question, I think the first challenge for African managers is on how to live in a global society. Africa needs to play its role in that society beyond being a source of cheap raw materials. A second challenge is how to create an enabling environment for investors, both foreign and local. There is need to create a stable environment underpinned by sound infrastructure, good governance, strong and stable supporting institutions and property rights. At organizational level, managers need to create the right conditions which nurture high levels of employee engagement. This will entail providing training opportunities to staff and generally showing a caring attitude to workforce needs by management.
--------------------------------------------------------------------------------
Shereni is Principal Consultant at Global Workforce Solutions (Pvt) Ltd- a human resources and training company. For feedback, sms 0913 002 275 or e-mail: consultgws@gmail.com
Shereni Jongwe (SJ): Welcome to Zimbabwe Steve. I understand that this is not your first visit to the country. What are your impressions of Zimbabwe from your previous visit and this one?
Prof Steve Carter (SC): Thank you Shereni. I haven’t been in Zimbabwe since 2005. Prior to that, I was resident here working with the Food and Agricultural Organization (FAO) and the Zimbabwe Institute of Management. I have a number of impressions of this beautiful country. One thing that has always struck me is the indomitable spirit of Zimbabweans which continues to drive them notwithstanding the evident challenges that they have to contend with. The people of this country are naturally friendly and it is something that struck me on my recent visit last X-mas. I was met by friendly staff at the Airport and this seems true everywhere else that I have been to during this visit. My interactions with various local partners have also shown me a genuine desire for co-operation across the board. Looking at what needs to be done within the short and medium term, there is no denying the fact that the country is need of significant infrastructural development. Also, over the past decade, Zimbabwe has suffered significant ‘brain drain’ and there is need to address this issue urgently. All in all, it is quite evident that Zimbabwe is on the up and it will hold an attraction to those who have left but this will have serious implications for the host neighbouring countries.
SJ: What is the exact purpose of your visit to Zimbabwe?
SC: I am here to work with our partners, Mananga and Mandel, to bring the Leeds Metropolitan University’s MSc degree in Leadership and Change Management to Zimbabwe. In the fullness of time, it is our intention to bring other programmes in conjunction with different local partners. I must hasten to add that we view these initiatives as long-term in nature underpinning our commitment to their success.
SJ: Could you please shed some light on the degree programme.
SC: Firstly, the master’s degree in leadership and change management was not born in the UK context but is a product of contextual research into the leadership needs of Africa’s businesses. The degree is vocationally oriented in the sense that students will learn the latest concepts and techniques but these will have to be applied to the real work situation. The programme appeals to both middle and senior managers in the non-governmental, public and private sectors and is delivered in Assisted Distance Learning format. It is based on progressive problem solving and this is reflected in each module. A major attraction of this one-year programme is that it is truly international with students being able to transfer any credits obtained in the programme to any university globally offering a similar programme.
SJ: In what ways do you see your programme assisting Zimbabwe to deal with the deleterious effects of the ‘brain drain’ and contribute to national workforce development?
SC: There are three ways in which an economy can grow. Economies can grow on the basis of the stages of the development cycle or through strengthening primary and secondary education. Another way, which essentially informs our approach, is to develop masters’ degree programmes where you develop key skills in people with first degrees who will then deploy these skills to national development. Our programme develops the analytical, synthesis and problem-solving skills which are all vital in entrepreneurial development. There is potential for entrepreneurship in Zimbabwe as a route to achieving economic and social development
SJ: In May last year, I had the opportunity to interview your colleague Professor Lonnie Strickland on his views on the quality of strategic management in Zimbabwe and he had positive things to say about local managers. What are your perceptions on the quality of Zimbabwean managers?
SC: To answer this evidence-based question, I would like to draw your attention to the first law of management which states that effective managers are those that are able to steer their organizations during turbulent times. A lot of Zimbabwean companies have survived the tumultuous times of the past decade. That alone is sufficient evidence of the high pedigree of local managers. There are other sources of such evidence. A lot of Zimbabwean managers are serving and flourishing as top-notch managers in the Diasporas, including the UK. I have also noticed in interactions with local managers that they always tend to ask the right questions. This shows that they have a solid strategic orientation to management which is very critical in these highly fluid times of globalisation.
SJ: What are the key issues facing African managers in the new decade?
SC: Let me point out that the dominant African business leadership approach is one of collectivism and this tends to work extremely well across the continent. Now with specific reference to your question, I think the first challenge for African managers is on how to live in a global society. Africa needs to play its role in that society beyond being a source of cheap raw materials. A second challenge is how to create an enabling environment for investors, both foreign and local. There is need to create a stable environment underpinned by sound infrastructure, good governance, strong and stable supporting institutions and property rights. At organizational level, managers need to create the right conditions which nurture high levels of employee engagement. This will entail providing training opportunities to staff and generally showing a caring attitude to workforce needs by management.
--------------------------------------------------------------------------------
Shereni is Principal Consultant at Global Workforce Solutions (Pvt) Ltd- a human resources and training company. For feedback, sms 0913 002 275 or e-mail: consultgws@gmail.com
Prof Chetsanga speaks on 'brain drain'
Zimbabwe has lost significant skills over the last decade. A number of studies have come up with different figures on the scale of the ‘brain drain’. One such study, the Zimbabwe Brain Drain Study Report (2003) which was directed by Professor Christopher Chetsanga, estimates that the country lost over 400, 000 professionals between 1990 and 2002. A recent study estimates that 25 per cent Zimbabweans are living outside the country. According to Wikipedia, ‘brain drain’ or human capital flight is a large emigration of individuals with technical skills or knowledge, normally due to conflict, lack of opportunity, political instability, or health risks. Brain drain is usually regarded as an economic cost, since emigrants usually take with them the fraction of value of their training sponsored by the government. Brain drain has largely been associated with developing countries where marketable skills are not financially rewarded. The inclusive government has since recognised the need to tap into the country’s immense human capital skills resident in the Diaspora for national development. A number of strategic policy options are being proffered along these lines. Earlier this week, Shereni Jongwe (SJ) interviewed Professor Chetsanga (CC) on his views on what needs to be done to deal with the issue of brain drain.
SJ: Good morning Chris. I would have wanted to interview you on the subject matter of nanotechnology as a follow-up to your presentation last Thursday at the British Council Management Express Forum, but that will have to wait for some other time! Now, Chris, you have been directly involved with the Zimbabwe Brain Drain Study Report which examined the issue of brain drain. Could you tell us the key findings of that study?
CC: Good morning Shereni. That study made a number of findings. The study concluded that brain drain in Zimbabwe was based on the global phenomenon associated with man’s quest for better opportunities in life. An examination of the professions of those who were leaving the country showed that a sizable share was made up of teachers and nurses. Indeed, according to the survey, the health care sector was the most affected. Many were leaving because health care and education spending cuts denied them reasonable salary levels in Zimbabwe. Proportionately, some professions then appeared to have small numbers of people who had emigrated, but these emigrants were highly skilled and therefore critical to Zimbabwe’s development agenda. The experience of Zimbabwean companies has been that most of the people they were losing to job offers elsewhere were the highest paid in the company. Their departure was therefore a major loss not only to Zimbabwean companies, but also as tax payers to the Zimbabwe government. Most Zimbabweans in the Diaspora informed the study team that they were not happy to leave Zimbabwe, but were forced to do so by economic factors.
SJ: It is now nearly a decade since the results of that study and the country remains blighted by the challenge of brain drain. What has worked and what has not worked in terms of the study’s recommendations?
CC: Our study was concluded around the time when economic decline was becoming manifest and it actually worsened thereafter. One recent study indicates that at least 25 per cent Zimbabweans are outside the country confirming the role of economic factors as a key push factor in the country’s emigration. There have been other push factors. For instance, 7 per cent of the respondents in our study had left for political reasons while others cited issues pertaining to media laws and property rights. Others, like scientists, left to work in countries where research and development (R&D) is actively done with the latest generation of equipment and support is guaranteed. Overall, we need to focus on improving the economic factors if we are to stem the brain drain or brain drain from other countries.
SJ: Globally, a number of policy initiatives have been proffered in response to the brain drain. In your own view, what needs to be done to deal with the brain drain?
CC: For Zimbabwe to counter the strong impact of the globalisation economic forces, the country needs to undertake a number of important measures. First, there is need to set up knowledge networks whereby our Diasporans can contribute solutions to the expertise needs of the country. Knowledge networks jointly deploy advanced information and distributed computing technologies. Already, the Ministry of Higher & Tertiary Education, in partnership with the International Organization for Migration has since launched a Zimbabwe Human Capital Website which will provide a platform for us to communicate with our Diasporan Zimbabweans. Second, there is need to enrich the work environment for employee development and career growth. At the core of this approach is the need to nurture high levels of employee engagement through regular training and sound career pathing. Third, some African leaders have proposed that a Diasporan destination country be made to pay a fee for each Diasporan that it gets from an African country. This fee will recompense the brain drained country for costs that it incurred in training the Diasporan under consideration.
SJ: The institutions of higher learning, particularly the universities and technical colleges, have borne the biggest brunt of the brain drain. What sort of strategies need to crafted to assure that the competitiveness of our educational systems
CC: The country’s universities must be provided with well-trained lecturing staff who are reasonably remunerated so as to ensure that they resist the pull factors of the Diaspora. This will provide Zimbabwe with a stable expertise base. Their teaching, research and development activities must be appropriately funded so as to enable them to effectively impart knowledge and skills to their trainees Universities need to ‘think outside the box’ and consider private-public partnerships in their quest to unlock funding. Knowledge is an unexcelled weapon for development as it enables mankind to exploit planet earth’s resources in a more sophisticated and sustainable way. This strategy will enable the country to produce a competent workforce. Furthermore, the provision of competitive remuneration packages, properly maintained research facilities and adequate research funding levels will enable the country to attract back the skills it has lost to the Diaspora.
Shereni is principal consultant at Global Workforce Solutions (Pvt) Ltd. He can be contacted via sms 073 3 306 193/0913 002 275 or by e-mail: consultgws@gmail.com
SJ: Good morning Chris. I would have wanted to interview you on the subject matter of nanotechnology as a follow-up to your presentation last Thursday at the British Council Management Express Forum, but that will have to wait for some other time! Now, Chris, you have been directly involved with the Zimbabwe Brain Drain Study Report which examined the issue of brain drain. Could you tell us the key findings of that study?
CC: Good morning Shereni. That study made a number of findings. The study concluded that brain drain in Zimbabwe was based on the global phenomenon associated with man’s quest for better opportunities in life. An examination of the professions of those who were leaving the country showed that a sizable share was made up of teachers and nurses. Indeed, according to the survey, the health care sector was the most affected. Many were leaving because health care and education spending cuts denied them reasonable salary levels in Zimbabwe. Proportionately, some professions then appeared to have small numbers of people who had emigrated, but these emigrants were highly skilled and therefore critical to Zimbabwe’s development agenda. The experience of Zimbabwean companies has been that most of the people they were losing to job offers elsewhere were the highest paid in the company. Their departure was therefore a major loss not only to Zimbabwean companies, but also as tax payers to the Zimbabwe government. Most Zimbabweans in the Diaspora informed the study team that they were not happy to leave Zimbabwe, but were forced to do so by economic factors.
SJ: It is now nearly a decade since the results of that study and the country remains blighted by the challenge of brain drain. What has worked and what has not worked in terms of the study’s recommendations?
CC: Our study was concluded around the time when economic decline was becoming manifest and it actually worsened thereafter. One recent study indicates that at least 25 per cent Zimbabweans are outside the country confirming the role of economic factors as a key push factor in the country’s emigration. There have been other push factors. For instance, 7 per cent of the respondents in our study had left for political reasons while others cited issues pertaining to media laws and property rights. Others, like scientists, left to work in countries where research and development (R&D) is actively done with the latest generation of equipment and support is guaranteed. Overall, we need to focus on improving the economic factors if we are to stem the brain drain or brain drain from other countries.
SJ: Globally, a number of policy initiatives have been proffered in response to the brain drain. In your own view, what needs to be done to deal with the brain drain?
CC: For Zimbabwe to counter the strong impact of the globalisation economic forces, the country needs to undertake a number of important measures. First, there is need to set up knowledge networks whereby our Diasporans can contribute solutions to the expertise needs of the country. Knowledge networks jointly deploy advanced information and distributed computing technologies. Already, the Ministry of Higher & Tertiary Education, in partnership with the International Organization for Migration has since launched a Zimbabwe Human Capital Website which will provide a platform for us to communicate with our Diasporan Zimbabweans. Second, there is need to enrich the work environment for employee development and career growth. At the core of this approach is the need to nurture high levels of employee engagement through regular training and sound career pathing. Third, some African leaders have proposed that a Diasporan destination country be made to pay a fee for each Diasporan that it gets from an African country. This fee will recompense the brain drained country for costs that it incurred in training the Diasporan under consideration.
SJ: The institutions of higher learning, particularly the universities and technical colleges, have borne the biggest brunt of the brain drain. What sort of strategies need to crafted to assure that the competitiveness of our educational systems
CC: The country’s universities must be provided with well-trained lecturing staff who are reasonably remunerated so as to ensure that they resist the pull factors of the Diaspora. This will provide Zimbabwe with a stable expertise base. Their teaching, research and development activities must be appropriately funded so as to enable them to effectively impart knowledge and skills to their trainees Universities need to ‘think outside the box’ and consider private-public partnerships in their quest to unlock funding. Knowledge is an unexcelled weapon for development as it enables mankind to exploit planet earth’s resources in a more sophisticated and sustainable way. This strategy will enable the country to produce a competent workforce. Furthermore, the provision of competitive remuneration packages, properly maintained research facilities and adequate research funding levels will enable the country to attract back the skills it has lost to the Diaspora.
Shereni is principal consultant at Global Workforce Solutions (Pvt) Ltd. He can be contacted via sms 073 3 306 193/0913 002 275 or by e-mail: consultgws@gmail.com
Thursday, August 13, 2009
Strategic Workforce Management
Since its inception in January 2005, this column has principally been focused on articulating a best-practice agenda for workforce management hence the term ‘Workforce Solutions’. The term ‘workforce management’ can be used interchangeably with ‘human capital management’ and or ‘human resources management’. In recent times, we have also noticed the growing preference for ‘people management’. Whichever term one has a penchant for, there can be no denying the centrality of ‘workforce’ or ‘human’ in modern-day management! It is precisely for this reason that we are also now talking about ‘strategic workforce management’ or ‘strategic human resource/capital management’.
This article focuses on the evolving subject of strategic workforce management. It gives a conceptual framework of the discipline and proceeds to articulate an agenda for the discipline in Zimbabwe going forward. The formation of an inclusive government has ushered a halcyon phase in Zimbabwe which requires a paradigmatic shift in workforce management from the uncontrollably exuberant days of the past. Indeed, this point was well-said recently by strategic guru Professor Lonnie Strickland when he urged local managers to learn to manage under normalcy.
Internationally, there is a growing body of research that explores the critical role of strategic workforce management in improving organizational outcomes with some evidence of a measurable and positive impact on organizational performance (see Financial Gazette of April 26- May 2 2007). This is happening at a time when workforce managers are calling for increased recognition within their companies.
Indeed, there are growing calls for a boardroom seat for workforce managers. In fact, in the United States of America, the C-level (board level) position of Chief Workforce Officer is now entrenched in most organizations. In Zimbabwe, it has been noted that while organizations are claiming to recognize the strategic role of workforce management, very few organizations actually have a workforce manager/director who has a boardroom seat (Global Workforce Solutions, 2007). A key reason for this sad state of affairs is that workforce management professionals are not doing enough in linking the overall firm performance to focused strategic workforce management initiatives that they would have adopted in their organizations. This takes us to the conceptual framework of strategic workforce management.
Strategic workforce management is all about linking workforce management practices to organizational performance. Its key mediating driver is employee commitment or engagement. The seminal work in this area was produced by Huselid (1995), who examined the relationship between workforce management practices and corporate turnover, profitability and market value. Huselid surveyed senior workforce management executives in a sample of 968 publicly traded corporations in the US regarding the percentage of employees who were covered by a set of workforce management practices generally considered representative of a High Performance Work System (HPWS). After controlling for a number of variables, he found that his workforce management index was significantly related to the gross rate of return on assets (a measure of profitability) and Tobin’s Q (the ratio of the market value of a firm to its book value).
A related study by Delery and Doty (1996) examined the relationship between workforce management practices and profitability in a sample of banks in the US and they found that, in general, workforce management practices were positively related to profitability. Similarly Guthrie (2001) examined the impact of workforce management practices on turnover and firm productivity among a sample of firms in New Zealand. He noted that workforce management practices had an impact on turnover, and that the relationship between retention and productivity was positive when firms implemented high-involvement workforce management practices, but negative when they did not.
Two major studies at the plant level have been conducted examining the relationship between HR practices and firm performance. MacDuffie (1995) found that the workforce management practice ‘bundles’ he measured were related to quality and productivity on auto assembly lines. Meanwhile, Youndt et al (1996) discovered that human-capital enhancing workforce management practices were related to operational performance among a sample of manufacturing plants.
Looking at Zimbabwe at this juncture, there are several areas of workforce management which call for a strategic orientation. Take for instance the aspect of performance management. Going forward, workforce management professionals have to identify those practices which support and reward a culture of high performance. Allied to this has to be a strategic orientation to training and development in organizations to deal with the issues of employee retention and motivation. Of the 27 High Performance Work Practices identified by Huselid in 1995, there is unlimited potential for their use and adoption by local workforce management professionals in championing this strategic orientation. Essentially, workforce management professionals need to come up with local empirical studies that confirm existing literature as part of justifying their role at boardroom level.
Armed with the kind of empirical evidence cited in the foregoing, it is no longer a matter of conjecture that organizations can achieve sustained competitive advantage through the adoption of focused and sustained strategic workforce management practices. Workforce management professionals have to demonstrate to top management how their actions today define corporate success tomorrow. Their ability to do that qualifies them for the so-called ‘C-level’ status or boardroom position alongside the Finance Directors and others.
This article focuses on the evolving subject of strategic workforce management. It gives a conceptual framework of the discipline and proceeds to articulate an agenda for the discipline in Zimbabwe going forward. The formation of an inclusive government has ushered a halcyon phase in Zimbabwe which requires a paradigmatic shift in workforce management from the uncontrollably exuberant days of the past. Indeed, this point was well-said recently by strategic guru Professor Lonnie Strickland when he urged local managers to learn to manage under normalcy.
Internationally, there is a growing body of research that explores the critical role of strategic workforce management in improving organizational outcomes with some evidence of a measurable and positive impact on organizational performance (see Financial Gazette of April 26- May 2 2007). This is happening at a time when workforce managers are calling for increased recognition within their companies.
Indeed, there are growing calls for a boardroom seat for workforce managers. In fact, in the United States of America, the C-level (board level) position of Chief Workforce Officer is now entrenched in most organizations. In Zimbabwe, it has been noted that while organizations are claiming to recognize the strategic role of workforce management, very few organizations actually have a workforce manager/director who has a boardroom seat (Global Workforce Solutions, 2007). A key reason for this sad state of affairs is that workforce management professionals are not doing enough in linking the overall firm performance to focused strategic workforce management initiatives that they would have adopted in their organizations. This takes us to the conceptual framework of strategic workforce management.
Strategic workforce management is all about linking workforce management practices to organizational performance. Its key mediating driver is employee commitment or engagement. The seminal work in this area was produced by Huselid (1995), who examined the relationship between workforce management practices and corporate turnover, profitability and market value. Huselid surveyed senior workforce management executives in a sample of 968 publicly traded corporations in the US regarding the percentage of employees who were covered by a set of workforce management practices generally considered representative of a High Performance Work System (HPWS). After controlling for a number of variables, he found that his workforce management index was significantly related to the gross rate of return on assets (a measure of profitability) and Tobin’s Q (the ratio of the market value of a firm to its book value).
A related study by Delery and Doty (1996) examined the relationship between workforce management practices and profitability in a sample of banks in the US and they found that, in general, workforce management practices were positively related to profitability. Similarly Guthrie (2001) examined the impact of workforce management practices on turnover and firm productivity among a sample of firms in New Zealand. He noted that workforce management practices had an impact on turnover, and that the relationship between retention and productivity was positive when firms implemented high-involvement workforce management practices, but negative when they did not.
Two major studies at the plant level have been conducted examining the relationship between HR practices and firm performance. MacDuffie (1995) found that the workforce management practice ‘bundles’ he measured were related to quality and productivity on auto assembly lines. Meanwhile, Youndt et al (1996) discovered that human-capital enhancing workforce management practices were related to operational performance among a sample of manufacturing plants.
Looking at Zimbabwe at this juncture, there are several areas of workforce management which call for a strategic orientation. Take for instance the aspect of performance management. Going forward, workforce management professionals have to identify those practices which support and reward a culture of high performance. Allied to this has to be a strategic orientation to training and development in organizations to deal with the issues of employee retention and motivation. Of the 27 High Performance Work Practices identified by Huselid in 1995, there is unlimited potential for their use and adoption by local workforce management professionals in championing this strategic orientation. Essentially, workforce management professionals need to come up with local empirical studies that confirm existing literature as part of justifying their role at boardroom level.
Armed with the kind of empirical evidence cited in the foregoing, it is no longer a matter of conjecture that organizations can achieve sustained competitive advantage through the adoption of focused and sustained strategic workforce management practices. Workforce management professionals have to demonstrate to top management how their actions today define corporate success tomorrow. Their ability to do that qualifies them for the so-called ‘C-level’ status or boardroom position alongside the Finance Directors and others.
Thursday, August 6, 2009
Zimbabwe: Africa Needs Own Brand To Retain Expertise
Harare — LAST week, the Herald Business carried an article in which we tried gaining access to public perception on ways of halving the problem of intellectual and technical skills flight, known otherwise as brain drain. From responses gained, one factor came out clear: Zimbabwe will not be able to stop brain drain, mostly notably in the medium term.
It would also be very difficult for an economy that has lost significant GDP in the past decade to try and stop expertise from seeking greener pastures elsewhere.The aggregate impact of the skills crisis on national economic development is adverse in the medium to long-term. Mukonitronics chief executive officer Mr Lovemore Mukono feels Africa has not done enough to create own brands to attract and retain expertise. And so, he predicts skills will continue flying away until such a time Africa has "something to call its own".
It would also be very difficult for an economy that has lost significant GDP in the past decade to try and stop expertise from seeking greener pastures elsewhere.The aggregate impact of the skills crisis on national economic development is adverse in the medium to long-term. Mukonitronics chief executive officer Mr Lovemore Mukono feels Africa has not done enough to create own brands to attract and retain expertise. And so, he predicts skills will continue flying away until such a time Africa has "something to call its own".
However, in trying to find answers to the skills flight problem, Herald Business applied a situation: In view of the skills crisis, what are the prospects Zimbabwe would be able to fulfil its Millennium, Development Goals by 2015? While we had a variety of possible solutions to brain drain on Zimbabwe's economy, this paper has selected a mini-question and answer conducted with a Harare-based human resource consultant, Mr Anthony Jongwe of Global Workforce Solutions.
From what you will notice in the following paragraphs, the problem of brain drain can be solved by adding new knowledge to existing employees. Additional training is key, according to Jongwe.
Higher incentive will help to stem brain drain, but this will not work in the long run.
Higher incentive will help to stem brain drain, but this will not work in the long run.
Below is an excerpt from the interview. Interviewer, Jeffrey Gogo is represented JG and Anthony Jongwe (AJ).
JG: What is your assessment of the human resources base in Zimbabwe at current? I mean, local industry and commerce has come under severe strain, as a result of brain drain, what impact does this have on economic performance?
AJ: There is no doubt that post-independent Zimbabwe invested significantly in human capital development. The phenomenal expansion in the higher and tertiary education sectors since 1980 and the correspondingly high input-output ratios of that expansion bear testimony to this fact. It is now common knowledge that a country's human resource base can be a major source of national competitive advantage. Sadly, post-2000 Zimbabwe has witnessed accelerated skills flight in a trend generally known as 'brain drain'. Although the loss of skills can also be attributed to the deleterious effects of the HIV/Aids pandemic, voluntary emigration by skilled professionals has largely been responsible for the 'brain drain'. This loss of valuable skills is a threat to national economic performance both in the medium to long-term. Already, many sectors of the economy are grappling with a skills crisis manifesting itself in the form of skills gaps and skills shortages. Skills gaps are defined when employers believe that their employees are not fully proficient to carry out the requirements of the job role. Skill shortages are defined as a lack of applicants for vacant posts with the right skills and qualifications. There is anecdotal evidence that skills shortages account for the majority of hard-to-fill vacancies among professional staff and skilled trades in various sectors of the economy. Although the skills crisis is not unique to Zimbabwe as other countries within Sadc are also grappling with the issue, it is imperative that all key stakeholders put their heads together and come up with a credible national response to what is now a national crisis.
Research shows that the impact of skill shortages and skill gaps reflects in increased workloads, customer service difficulties, loss of business, delay of new products, increased operating costs, quality problems, and difficulties in introducing new working practices.
The mining sector has been hardest hit by the skills crisis. RioZim and Bindura Nickel have each reported on the negative effects of the skills crunch on productivity and safety outcomes respectively in their financial statements.
Research shows that the impact of skill shortages and skill gaps reflects in increased workloads, customer service difficulties, loss of business, delay of new products, increased operating costs, quality problems, and difficulties in introducing new working practices.
The mining sector has been hardest hit by the skills crisis. RioZim and Bindura Nickel have each reported on the negative effects of the skills crunch on productivity and safety outcomes respectively in their financial statements.
JG: What can Zimbabwe do to stop, or at least halve rampant flight of skills?
AJ: An obvious response to this seemingly easy but difficult question would be to look at the so-called 'push and pull factors' associated with the brain drain in search of remedies. However, the reality of the situation is that there is a global war for talent and as companies increasingly become global in their operations, there is nothing that can stop them from traversing the globe in search of human capital. Similarly, skills will always go wherever they command a premium. Against this backdrop, we argue that the most credible and effective response to the skill shortages lies in increasing training given to existing workforce. Companies need to scale up their learning and development activities as part of dealing with the long-term deleterious effects of the skills crunch. Government needs to create an enabling environment for companies to come up with interventions that enable them to attract, retain and develop human capital. This obviously translates to long-term national economic competitiveness in an increasingly global environment. Let me reiterate that resolving the skills crisis requires a holistic response by all stakeholders i.e Government, business and labour and can never be solved through piecemeal or parochial interventions by individual actors.
JG: In your assessment, what strategies have companies adopted, if at all, adopted in stemming brain drain?
AJ: In a bid to combat the skill gaps and skill shortages in the economy, employers (who also include Government) have increased salaries and introduced retention allowances/perks for professional staff and there is also evidence of increased trainee programmes (Graduate Trainee Programmes and Apprenticeships). The Reserve Bank of Zimbabwe has also been supportive of the mining sector's efforts to stem the brain drain by introducing forex-denominated incentives for critical skills in the sector. We argue that the most credible and effective response to the skill shortages lies in increasing training given to existing workforce.
Companies need to scale up their learning and development activities as part of dealing with the long-term deleterious effects of the skills crunch. Clearly, this training involves two choices:
1 -- Employers can be encouraged to train for their own needs, in which case the emphasis must be on retention of staff and a less dynamic market for the skill,
Companies need to scale up their learning and development activities as part of dealing with the long-term deleterious effects of the skills crunch. Clearly, this training involves two choices:
1 -- Employers can be encouraged to train for their own needs, in which case the emphasis must be on retention of staff and a less dynamic market for the skill,
2 -- or employers can be encouraged to draw skills from the market, in which firms need to be encouraged to train beyond their own needs to supply skills to the marketplace.
There is need for an integrated approach to training at firm, enterprise, sector and national levels to deal with skill bottlenecks in internal and external labour markets.Organisations which invest in staff tend to be happier and more productive places to work and have lower employee turnover. In some companies, training programmes have reduced staff turnover by 70 per cent and led to a return on investment of 7,000 per cent. Such learning organisations produce more outputs and outcomes and pay attention to individual needs in clients as well as workers. Although training costs time and money, it is fundamental to a successful learning organisation.
Link to this story: http://allafrica.com/stories/200803120103.html
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