Supply and demand of skills in the public sector: key trends and implications for HRD and planning

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Supply and demand of skills in the public sector
key trends and implications for HRD and planning
HR Forum Workshop Emperors Palace 1-2 September
2005 Dr Andrew Paterson HSRC
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Introduction

• Labour market interactions
• Continuous flows what can we do?
• Scarce skills
• How we diagnose scarcity
• Approach to HRD
• How we put the elements together
• Potential in our internal environment?
• Public service regulations
• Financial information processes
• Bringing functions into closer interaction

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Flows of human resources overview
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Flows of human resources departmental view
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Complexity

• Limited control
• global flows
• individual autonomy (competition other
  employees)
• competition (other employers)
• Skills shortages (and over supply)
• Time-bounded (or continuous)
• Location specific (intensity) of skills
• Equity concerns
• How to manage this situation?

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Skills gaps and shortages

• Skills gap present incumbents do not possess the
  required skills (specific and or generic)
• Skills shortage vacant posts cannot be filled
  (Hard to fill vacancies)
• Supply of qualified personnel does not meet
  demand
• Working conditions (remuneration environment)
• ie scarce skills (critical skills) can be an
  occupation or a missing capability

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Diagnosing scarce skills

• Self evident (but numbers?)
• Identification in terms of unfilled posts based
  on current post structure
• NB
• Scarce skills defined in terms of a value chain
  leading to provision of
• a service or
• a product

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Public sector skills requirements scarcity

• Public policy issue
• Definition is a specification assumed to create
  the conditions for the delivery of a service of
  particular quality
• X practitioners per Y population
• Teacher-Learner ratio of 140(P) 135(S)
• Educational health equality
• Budget related issue
• Changed spec. can create a scarcity

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Criteria for identification of scarce skills
(sub)occupations

• (a) Turnover rate must be high resulting in a
  high vacancy rate
• (d) Vacancies difficult to fill
• (b) Demand should outweigh supply
• (c) Skill requires
• advanced knowledge in a field or
• prolonged course of study and/or
• specialised instruction and/or
• n years of service

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Criteria for identification of scarce skills
(sub)occupations

• (e) Demand in the private sector
• (f) Number of employees below national norm to
  serve X population
• Shall use all criteria
• May add additional criteria

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Application of SSA criteria

• Who applies it?
• How is it applied?
• Quantify criteria
• Weighting for each of the criteria
• Allocation to degree of scarcity table
• Open interpretation uneven application
• Potential competition between jurisdictions
• Lack of comparability for monitoring impact
• Advantages to bigger budget holders
• Multiple allowances SSA and RA in DoH

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Measuring impact

• Different impacts to be measured
• Retention of incumbents
• Attraction to newcomers
• Retention attraction to designated areas
• Must have comparable dosage to compare
• Unintended effects on other personnel
• Research on impact
• Eg R500m DoH in 2003 Implement 2004 (retro)
  Research inconclusive
• How is it applied? Other conditions NB

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Elements of an approach
Direct OR Indirect control over elements
potential impact

• Influence labour market demand
• Remuneration
• Work conditions
• Scarce skills rural skills allowance
• Marketing career information
• Raise retirement age
• Change post structure
• Influence retention AND increase human capital
• Recruitment selection
• Career pathing
• Skills development (training) mentoring
• Performance management
• Employment Equity

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Elements of an approach
Direct OR Indirect Control over elements and
potential impact

• Influence supply
• FET HET
• Learnerships
• Internships
• Bursaries
• International recruitment
• NB
• Timing of interventions
• Co-ordination of elements
• Selection of key levers

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Who really controls training?

• Levy-grant act (theoretically) drives
  expenditure.
• Dept of Labour cannot define practises
• DPSA does How?
• Public Service Acts of 1994 1998
• Line management, and
• Performance Agreements
• Personal Development Plans
• ie allocations- personnel vs unit needs vs
  other
• Challenges in supporting managers
• Line managers under pressure
• Management buy-in? HRD Support function
• Some Depts structure present difficulties

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The information challenge

• Skills Development Levies Act (1998) Exempted
• Low compliance with
• 1 ring-fenced
• 10 of 1 admin fee
• SETA does not reimburse on training spend
• No financial data on training expenditure
• Difficulties calculating training expenditure
• Agreement on what constitutes traing expenditure
• Dependent on Treasury to break cost categories up
  so as identify training related expenditure
• Information for monitoring evaluation
• Difficulties within Departments (NB Line
  managers)
• Difficulties between Departments (ie national)

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Fragmentation (silo) of functions and interaction
Human Resources (Management) Recruitment Work
Conditions
Finance
Human Resources Development Training
?
?
Skills Development
Employment Equity
Career Development
Performance Management
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What can we do?

• Are we in control?
• Each department can manage its response
• Define its own skills value chain
• Develop its own approach
• Concentrate on
• Information
• Line management involvement
• Bringing together functions

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Thank you
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Definitions

• Human Resources Management (HRM)
• mobilisation, motivation,development, and
  fulfilment of people in and through work
• Human Resources (HR)
• persons engaged in any capacity in the
  production and delivery of services
• Human Resources Development (HRD)
• planning, production and management of
  personnel
• Skills Development Training

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Fragmentation (silo) functions
Skills Development Levies Act (1998)
Govt exempt
?
Finance
Skills Development
Performance Management
Employment Equity
Career Development