[VIDEO]Top black executives often find themselves becoming "derailed".
This is according to Dr Terence Sibiya, a principal at recruitment company Heidrick & Struggles, who spoke at the "How to BEE in IT" workshop hosted in Johannesburg yesterday by ITWeb and Sondeza Transformation Holdings.
Attended by over 100 delegates, the workshop offered practical advice on how to implement black economic empowerment (BEE) transformation strategies.
"Many black executives are getting derailed and distressed as their support systems are very weak. It`s lonely out there," said Sibiya, adding that although skilled and experienced black executives are in high demand, they are in short supply.
"By definition, the ICT sector is a rapidly changing environment. This makes the shortage of [black] skills [at executive level] even worse," he said. Migration or "job hopping" between companies aggravates the situation, as does the fact that companies do not always find it "easy to spend on the high level individuals that they want to attract and retain".
He said an increasing number of companies are "seeing the need to spend time and money on bringing in younger guys and building them up" into executive level positions. These companies also recognise the need for and importance of a mentoring approach.
"Your people really are your business," said Urmila Bhoola, executive director of human resources organisation The Resolve Group. Discussing human resources issues around BEE transformation, Bhoola said: "We have had five years of employment equity, and most fears the process raised have proved unfounded. There has been concern about how slow progress has been, though." Gender inequalities and the need to include disabled people in workforces are still being "largely ignored".
[VIDEO]"Eliminating discrimination," said Bhoola, "is not enough to create a level playing field; we have to do more." She told delegates that research has shown that effective employment equity "does have a positive impact on the bottom line".
As regards equity ownership, Brain Rainier, MD of Brainier Capital & Consulting, said there are four main strategies through which to address equity ownership, as defined by the fourth draft of the ICT charter. The "grow" strategy involved developing and/or recruiting employees with the aim of getting them to a point where they could exercise employee share options. The drawback is that this approach typically means companies would not "get the ability to address new markets," he said.
Expecting to implement the second type of strategy - acquiring, or merging with, a company and/or individuals who are actively in the buyer`s industry or are in a position to quickly become active - is a "bit like [finding] the Holy Grail at the moment", said Rainier. The third approach - selling shares in the business to a BEE partner - raises funding issues. He recommends companies look at a combination approach tailored to suit their businesses.
[VIDEO]He said those looking for a BEE partner should consider culture compatibility, a close look at the potential partner`s empowerment credentials and its ability to assist with business growth and transformation, whether an alignment of strategy between the two involved parties is possible, the track record of the individuals and supporting organisations involved, funding, the level of commitment and potential future conflicts.
"If you are not comfortable with your selected BEE partner, no matter what benefits are down the line, I would advise you against pursuing the partnership," said Rainier.
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