HUMAN RESOURCE (HR) DIRECTORS, MANAGERS AND SKILLS DEVELOPMENT
PROFESSIONALS HAVE A DUTY TO FIGHT FOR TRAINING AND UPSKILLING OF
WORKERS AT THE HIGHEST LEVELS IN COMPANIES
“It’s not the product – but the Intellectual Property (IP) that provides the
long-term value.”
That’s the message from Economists such as Dr Martyn Davies who uses
the Apple i-Phone to demonstrate that “Designed in California” is much more
powerful than “Made in China” – as he quotes a study that confirms that for every
“i-Phone” made, only US3.50 stays in China, after manufacturing – the rest
accrues to parent company Apple back in the US.
The real “China” lesson is not the dollar value of China manufacturing the i-phone,
nor the street-level employment capability it creates, but the lesson is the
retention and leveraging of knowledge by companies such as Foxconn, which ends
up building companies such as Huawei. Manufacturing is always Stage 1;
Integration is Stage 2, and Entrepreneurship and Industrialization are Stage 3.
Manufacturing, therefore, is always the catalyst. As Dr Davies pointed out, there is
nothing like manufacturing that gives an economy a long-term and wide-reaching
impact within a country trying to free itself from the trappings of poverty and
unemployment.
Just as the phrase “it’s the economy, stupid” became part of the lexicon in the
nineties, the phrase “it’s the IP, stupid” should also become part of strategy, both
at policy level and company level, in preparation for the fourth industrial
revolution (4IR).
IP build skills; IP build businesses; IP builds entrepreneurs. The result is jobs –
sustainable jobs – because IP is “baked in” to the product itself. The process of
Intellectual Property being “baked” into the economy starts with those charged
with directing skills at companies. Continuing a Training regime is a decision –
made by people. Leaders must be persuaded, even though that decision may not
be popular at the time. It requires Human Resources Directors to speak “truth
to power”.
The truth: the context and history are clear – companies that curtail training in
times of difficulty find it difficult to retain their competitive advantage. Like
Eskom and South Africa’s Municipalities, delaying “maintenance”, for budgeting
purposes – the consequences have been dire. In industry, the lack of training, in
difficult times, will haunt companies when the economic landscape changes for
the better.
Decisions to delay or defer training erode the training eco-system itself. Many
private training companies feel the strain and eventually close their doors. This
capability takes time to build back up.
For years, Human Resources was tarred with the “un-strategic” tag and
consequently the reputation as being a “nice-to-have” or a “compliance” position.
As the fourth industrial revolution makes its presence felt, this can simple no
longer be the case. Human Resources leaders must act with courage and claim
their space around the Boardroom table – especially on the subject of skills.
Their role must now become be the linkage between skills providers and their
employers to ensure that workers are life-long learners and that the core
competencies, the building blocks, are achieved efficiently. Concurrently, their
reporting must demonstrate Return on Investment on a new set of measurables –
demonstrating long-term and short-term objectives.
In the current South African context, relinquishing the “fight” about training
expenses should be regarded as unacceptable. It could possibly demonstrate a
critical naivety, or even a lack of bravery about the role of inculcating core skills as
being part of business value, innovation and long-term sustainable success in the
competitive world. Accepting this fight continually and consistently is how and
when the Human Resources function becomes “strategic” and part of a company’s
culture around the Boardroom table.
SEIFSA wants companies which are members of is 21 affiliated employer
Associations, and the HR Directors and those responsible for skills development
within those companies, to “take the lead” and “become the heroes” on the skills
development battlefield. The facts are clear: statistics show that South Africa has a
shortfall of about 40 000 qualified artisans when measured against the annual
production rate of 13 000 qualified artisans. According to the 2014 Development
Indicators Report, artisans completing vocational training reached an average of
18 000. The skills shortage is a key obstacle to economic growth, job creation and
business expansion. The SEIFSA Training Centre is but one of the Artisan Training
Centres in South Africa that will help solve this crisis.
SEIFSA calls on its affiliated Associations and members companies to become the
heroes of the National Skills Accord by aligning their business practices to the
goals set out by government, namely:
- Expanding the level of training, using existing facilities to capacity
(The SEIFSA Training Centre can accommodate 250 students daily); - Making internships and placement opportunities available in workplaces;
- Setting guidelines of ratios of trainees to artisans, across technical
vocations, in order to improve the level of training, as outlined in the
relevant merSETA Policy; - Improving the funding of training and the use of funds available for training
and incentives to companies to train; - Setting annual targets for training in state-owned enterprises;
- Improving SETA governance and financial management, as well as
stakeholder involvement; - Aligning training to the New Growth Path, the New Development Plan and
improving Sector Skill Plans; and - Improving the role and performance of Further Education and Training (FET)
colleges.
