Yet again, there has been a significant reshuffling of companies in the skills development ranking of the 2008 Top Empowerment Companies (TEC) survey.
Only Mutual & Federal and African Rainbow Minerals (ARM) have remained in the Top 10 from the previous year. M&F has tumbled from first place to fifth place, while ARM moves up four places to second. The skills development star this year is Kumba Iron Ore, which tops the skills performers. Kumba's programme is regulated by the mining charter in conjunction with the Skills Development Act, which imposes a skills development levy of 1% of an enterprise's payroll across the economy.
Kumba head of human resources Fergus Marupen says though the skills development levy is set at 1% of payroll, which can be claimed back, Kumba spends 7% of its payroll on training alone.
Though the cash is allocated to different areas, 60%-70% of it is spent on the technical upgrading of staff. It is also focused on compliance training and direct leadership programmes for first-line managers and upwards.
Kumba is especially proud of its apprentice artisan programme, which boasts 700 learners out of a staff complement of 4 500.
Its forward looking programme is also developing skills for the future. Therefore, it has doubled the amount of its bursars from 40 to 80. It has also doubled its professional training programme, meaning new engineering graduates can receive on-the-job training. Additionally, Kumba has trained about 20% of SA's artisans. No mean feat in a country where the amount of skilled machine and technical workers falls alarmingly short.
Why is Kumba's programme so successful? Marupen says seeing the results provides motivation because it is clear the programme is working. But Kumba is also dedicated to developing its workforce from early on in their career journey. It begins with bursary schemes and continues through full-time employment. Part of its vision is to equip employees with skills that go beyond the scope of their jobs at Kumba. This is why it also invests in adult basic education & training.
But, overall, are companies doing enough? Yes and no. There should be more pressure on CEOs to pledge their collective assets on skills spend.
Another reality, however, is that the education system is simply not working. And with damage being created at the earliest level, the skills budgets of corporations are stretched further.
So given the situation, Kumba is a shining example of how it can be done.
Other pleasant surprises include Coronation Fund Managers and African Bank. Could this be a sign that the financial services sector is finally beginning to implement transformation and skills development with an increased level of seriousness? Last year's skills development Top 10 did not include a single company from financial services or a related industry.
