Almost a decade has passed since the introduction of the Skills Development Act in October 1998 and still the problem of producing and retaining the critical skills we need to drive our economy is not resolved.
Despite the numerous additional interventions of government, the stated goal of cutting the employment rate in half by 2014 looks like an impossible dream.
Meantime, with ICT, engineering, artisan and management skills, among others, in very short supply, businesses across industry verticals struggle to meet the world-class standards and performance South Africa needs to be competitive in a global economy. Is there a solution to this mounting crisis?
Says Cassim Parak, Director of Staffit, a subsidiary of e.com institute holdings: "Our economy is growing but unemployment and poverty remain dramatically high. Much of what is happening at present, from Eskom`s mismanagement of power generation and supply, to the failure to deliver sufficient maths and science graduates at school level, points to a failure to fully understand, and act on, priorities. We are treating the symptoms of the problem, not the cause. And with tactical solutions rather than strategic goals as our guide, this dilemma is perpetuated.
Key government initiatives:
The Accelerated and Shared Growth Initiative for South Africa (Asgisa) of which the Joint Initiative on Priority Skills Acquisition (JIPSA) is a key part; the Dinaledi Project, which aims to double the number of mathematics graduates from 24 000 in 2004 to 50 000 in 2008; and the recapitalisation programme for Further Education and Training (FET) colleges and Higher Education institutions.
JIPSA - critical areas:
High-level, world-class engineering and planning skills for the 'network industries' - transport, communications and energy - all at the core of our infrastructure programme city, urban and regional planning and engineering skills - desperately needed by our municipalities artisan and technical skills, with priority attention to those needs for infrastructure development management and planning skills in education, health and in municipalities teacher training for mathematics, science, information and communications technology (ICT) and language competence in public education specific skills needed by the Priority AsgiSA, sectors starting with tourism and BPO and cross-cutting skills needed by all sectors especially finance, project managers and managers in general skills relevant to local economic development needs of municipalities, especially developmental economists.
Key facts:
Youth constitute 70% of the unemployed in South Africa.
People are reaching the age of 35 without ever having worked.
In some provinces, people 35 and older are still illiterate.
Given the official 25% unemployment which we all know is closer to 30% or 40%, and the fact that our population now almost numbers 48 million, that's more than 14 million people unemployed - some of them graduates.
Sources:
Address by Phumzile Mlambo-Ngcuka, Deputy President of the Republic of South Africa at the Ministerial Skills Indaba, Clairwood Racecourse, KwaZulu-Natal - 21 May 2007
SA: Mdladlana: National Skills Development Conference - October 2007 National Skills Development Conference - speech given by Minister of Labour, MMS Mdladlana at The route to Economic Growth - October 2007
"Without the right skills, from the technician at the coal face of an operation to the executives driving strategies, a business can grind to a halt. Without a full appreciation of the long-term results of the prioritisation of pass rates over meeting critical skills demands (read maths and science graduates that can fill the yawning ICT, engineering, artisan and management gaps), our schooling system fails the individuals it is meant to assist. Where do we draw the line?"
The stakes for each individual are different. "We are business managers/owners, parents, experts in specialised fields. The higher goal in each instance is to drive excellence and growth, and maintain high standards of performance. But taking the easy way out is seductive," says Parak, "and once set in motion, the resulting degradation of opportunity, quality of outputs and the attainment of long-term sustainable success is hard to stop.
"Yes, we need to improve pass rates at school, but do we have to do it at the expense of the child`s (soon to be adult`s) future study and career options - and ultimately the expense of the country," he asks.
"Must all skills development in an organisation continue to simply meet the requirement of the Skills Act - ie, the right number of hours per employee - at an unrecoverable cost to the business? In short, do we continue to put tactical gain ahead of competitiveness, growth and development?"
There is a middle way. The solutions are not hard to fathom. "If, like me, you have a child that is predominantly right brained (inclined toward the arts) this does not mean he can`t do maths - he just needs to be taught in a different way. Similarly, business veterans can be employed as mentors, consultants and advisors. Skills programmes can be aimed at furthering the employability and advancement of the individual, so widening the employment pool and furthering the interests of the business - certainly an improvement on the goal of just regaining that meagre percentage of the Skills Levy."
All the buzzwords are there and public and private organisations, industry bodies, schools and FET institutions are going through the motions but, in many instances, the methods and approaches need to change. Parak explains: "For example, take the role of Sector Education & Training Authority (SETAs) and of the Skills Levy. These institutions and regulations are there to stimulate and encourage a focus on skills development and, like the BEE regulations, enforce policy. Companies cannot rely on the grants given for learnerships and the 50% return on Skills Levy that they can earn back to cover the cost of training, nor should they focus on merely regaining these costs. Capacity planning - having the right skills available at a reasonable cost when they are needed - is surely a better incentive.
"The still high demand for scarce skills and concomitant employee churn does not make such an investment a sure bet, however. As a result, we are instead seeing an increase in contracting and outsourcing of specialised skills. This is more than merely a business model that suits the environment - it`s a symptom of the times.
"Taking a long term strategic approach to skills development is only the first step for businesses in South Africa; the other half of the puzzle is finding new approaches that work. Our economy is growing at an enormous rate but we do not have the skills to sustain it. This, while 70% of our youth, some with degrees, remain unemployed and our unemployment rates are stagnating."
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