Status Update on the DOD Human Resource Strategy and Conditions of Service Improvement Since 2009Presentation to the Portfolio Committee on Defence and Military Veterans 11 November 2014 Presented by Chief Human Resources
Aim • To present a status update on the extent to which the DOD has succeeded in ensuring that it has human resources of appropriate quality, quantity, composition and cost, including progress made with improving soldiers’ conditions of service since 2009 and challenges experienced
Scope • Introduction • HR quality dimension • HR quantity dimension • HR composition dimension • HR cost dimension • Improvement in conditions of service since 2009 • Challenges • Conclusion
Introduction • The DOD Overarching HR Strategy was approved by the SecDef and C SANDF in August 2009 • The implementation of the strategy has been incorporated into the DOD HR Charter (“Cradle to Grave”) which was approved by the Military Command Council in February 2013 • The HR aspects of the Defence Review 2014 were informed by the provisions contained in the DOD Overarching HR Strategy and DOD HR Charter Implementation is on-going with a detailed Medium Term implementation framework up to Financial Year 2018/19 currently being finalised
Defence Strategic Trajectory: Required Corporate HR Evolution 45% HR Expenditure 40% HR Expenditure 40% HR Expenditure 54% HR Expenditure FY14/15 45% HR Expenditure Milestone 3 Milestone 4 31 Aug 14 Milestone 1 Milestone 2
DOD Overarching HR Strategy Apex Profile “THE DOD OVERARCHING HR STRATEGY” AIM “To ensure an appropriately composed, empowered and managed Defence HR complement to execute the Department’s mandate and mission” VISION “Mission-Ready Human Resources” MISSION “Ensuring well managed mission-ready human resources through the application of sound HR management practices” MISSION SUCCESS FACTORS Transformational Leadership Dedicated ownership of the objectives Excellent Communication Regular Performance Management & Corrective Interventions HR of Appropriate Quality, Quantity, Composition and Cost Excellent and Accountable Human Resource Administration Commitments Met in Pursuance of Government HR Policy & Strategy THEME 1 THEME 2 THEME 3
Overarching HR Strategy Theme 1 DOD BSC: APPROPRIATE DEFENCE CAPABILITIES HR of Appropriate Quality, Quantity, Composition and Cost THEME 1 STRATEGIC GOAL “Human Resources of the appropriate quality, quantity, composition and cost, enabling the optimal execution of the DOD’s mandate and mission” OBJECTIVE 1 “To ensure the achievement and maintenance of the appropriate QUALITY human resources to enable the optimal execution of the DOD’s mandate and mission” OBJECTIVE 2 “To ensure the achievement and maintenance of the appropriate QUANTITY human resources to enable the optimal execution of the DOD’s mandate and mission” OBJECTIVE 3 “To ensure the achievement and maintenance of the appropriate HR COMPOSITION to enable the optimal execution of the DOD’s mandate and mission” (mission- readiness & E3; functional ratios; diversity) OBJECTIVE 4 “To ensure appropriate HR COST & EXPENDITURE to enable the optimal execution of the DOD’s mandate and mission” + + = 59 22 TASKS + 5 TASKS 27 TASKS 5 TASKS
Two approved HR Strategic documents give HR functional Strategic direction to the DOD HR function • The DOD Overarching HR Strategy. • The DOD HR Charter in support of the Concept Cradle to Grave.
Envisaged end State • Human resources of appropriate quality, quantity, composition and cost. • Excellent and accountable HR management and administration. • A coherent HR development system for personnel where functional and developmental training is coordinated through learning pathways.
DOD HR Value Chain for HR Charter TRG CMD OHS HR Strategic Direction & Policy HR Functionaries, Cmdrs & Line Managers HR Expenditure (Direct HR Costs) HR Dev HRM HR Divisional Support HR Technology HR Policies & Processes Transformation (transversal in nature) PTSR
HR Charter (Cradle to Grave Implementation Priorities for 2014/15 MTEF Period to Address Main Priorities
Primary HR Priorities • HR budget and reduction in HR strength. • New Officers’ dispensation. • New Officers’ Development Programme. • New Military Career Model. • Decentralised HR acquisition capability within each Service. • Standardised career management system and process across Services. • Re-skilling & placement for a second career. • Exit benefits paid within 60 days. • New generation integrated HR IT system. • New approach in training HR functionaries. • Implementation of Defence Review 2014 to ensure excellent and accountable HR management.
Right Quality of Soldiers and Civilians • HR Acquisition. • The execution of Service-specific recruitment and, concomitantly, ensuring that each Service has a professional HR Acquisition capability that is well resourced. • Appropriate selection criteria and instruments. • Quality recruitment, driven by corps/mustering and post profiles. • Recruitment that focuses both on learners in high school as well as students at tertiary educational institutions. • MSD system that feed both Regulars and Reserves appropriately. • HR Development. • An integrated approach to ETD, aligning ETD opportunities to address both learning requirements and career paths, thereby promoting a learning organisation. • An effective ETD delivery system for all formal training, including infrastructure and capacity, to ensure professional development at all SANDF training institutions. • A new integrated and professional education and training model for Officers, Warrant Officers, Non-Commissioned Officers and civilians, in support of members’ careers and learning paths.
Right Quality of Soldiers and Civilians (Cont) • Career Management. • Career and succession planning that enhances continuity in the workplace, including focusing on talent management. • A standardised career management process that intersects with career paths, learning paths, corps/mustering and post profiles. This includes regularly updated individual career plans, in consultation with members, and succession plans that are available two years in advance. • HR Separation. • A pro-active approach in support of facilitating member exits. • Profiling of potential exits with preparation and matching of labour market requirements. • Career plans containing a formally informed exit stage three years in advance. • Seamless migration from Regulars to Reserves at exit stages.
MSDS Contribution to SANDF Rank-Age Improvement (Privates) 40% 56% 57% 50% 45% 50% 49% 53% 43% 34% 9% 8% 21% 15% Note 1: Strengths are as on 1 April of each year Note 2: Budget constraints and reduced MSDS intakes hamper rejuvenation
DOD Attrition Rate vs Strength FY 2008/09 – 13/14 (Uniformed Members and Civilian Employees) 5,1% 7,3% 3,8% 5,0% 4,3% 4,1% Note: percentages indicate the percentage of members and employees who exited compared to the total strength
DOD Attrition Rate vs Strength FY 2008/09 – 13/14 (Uniformed Members Only) 4,6% 6,7% 3,4% 4,7% 3,8% 3,3% Note: percentages indicate the percentage of uniformed members who exited compared to the total uniformed strength
DOD Attrition Rate vs Strength FY 2008/09 – 13/14 (Civilian Employees Only) 7,4% 8,2% 7,0% 6,2% 6,8% 6,8% Note: percentages indicate the percentage of civilian employees who exited compared to the total civilian employee strength
DOD Critical Occupation Attrition Rate vs Critical Occupation Strength FY 2008/09 – 13/14 11,4% 6,8% 5,5% 4,8% 5,1% 4,3% Note: percentages indicate the percentage of critical occupation members who exited compared to the total critical occupation strength
Scarce Skills Exits: FY2008/09 – 13/14 1 530 FY2013/14 exits indicate a 59% decline in exit rate from high point in FY2008/09 911 714 747 675 625 20 Note: Scarce skills indicated are Artillery, Air Defence Artillery, Aircrew, Airspace Controllers, Naval Combat Officers, Engineers, Technical, Health Professionals & Nurses
Diagram on Military Career Model New SANDF Salary (Fixed) dispensation Promotion Policy • Longer periods in rank • Decrease rank inflation • Enhance accrued experience • No further vertical mobility when • member reach exit stage • Promotion is driven by Individual • performance • Promotion is linked to succession • planning process • Remuneration dispensation must • support career model • Salary determined by years of • service • Proposal must support exit stages • Proposal must counter rank • inflation (mainly de-linked from • rank) Military Career Model PMDS New Career IT System PMDS Regulatory Framework • Entry Point through entry ranks • Mobility determine by means of exit stages for each rank based on age and years in rank according to career path for each corps/mustering New Career IT System Regulatory Framework SANDF Allowance/ Incentive Structure Exit Mechanism • Career Model informs exit stages • (three years in advance) • Multiple exit periods for each • rank • Up or out principle • Exit preparation during exit stage • Exit benefit design must promote • concept of compulsory preservation • TAP (Transition Assistance • programme) • Rationalise Allowances and simplify • Fix allowances • Allowances for specific occupations • and circumstances • Allowances must be uniquely • SANDF based • Reduce ratio between allowances • and fixed remuneration
Right Quantity of Soldiers and Civilians • A post establishment in support of the force design and force structure that drives the quantity dimension of both Regulars and Reserves (PET/WET). • A personnel feeder system that sustains the DOD’s required HR complement, focusing both on establishment requirements and attrition replacement. (Split between Reserves and Regulars entities) • An ETD delivery system that responds to throughput requirements and succession planning requirements.
DOD FULL-TIME HR COMPONENT EVOLUTION Note 1: Strengths are as on 1 April of each year Note 2: Since 2004, average full-time strength = 82 226 Note 3: Since 2009, average full-time strength = 77 771 23
The Right HR Composition. • Maintaining an optimal ratio between Regulars and Reserves. • Ensure a scientifically determined rank distribution driven by the post establishment. • Provide support to develop an exit plan for members who reached a career plateau
DOD Macro HR Composition per Service System (30 Sep 14) 61 329 61,4% TOTAL = 99 748 21 314 21,3% 12 112 12,1% 4 230 4,2% 763 0,7% MSDS MILITARY REGULARS (LTS, MTS, CSS) CONVENTIONAL RESERVES TERRITORIAL RESERVES (BEING PHASED OUT) PSAP Note 1: 50 Auxiliary Service as at 31 Jul 14 (being phased out) Note 2: Excludes Military Ombud and Dept of Military Veterans Affairs
Employment Equity: Race 1994 1996 WHITES 37827 WHITES 33455 (45.7) (33.1%) INDIANS 842 (1.0) INDIANS 938 COLOUREDS 12983 (0.9%) (15.7) COLOUREDS 11999 AFRICANS 54718 (11.9%) (54.1%) AFRICANS 31053 TOTAL: 101 110 (37.5) TOTAL: 82 705 1998 DEFENCE REVIEW GUIDELINE 30 SEP 14 WHITES 17045 (24.4%) COLOUREDS 7154 (10.2%) AFRICANS 45276 (64.7%) INDIANS 525 (0.8%) TOTAL: 70 000 TOTAL: 77 671
Employment Equity: Gender 1996 1994 MALE 83210 MALE 66361 (82.3%) (80.2%) FEMALE 17900 FEMALE 16344 (17.7%) (19.8%) TOTAL: 101 110 TOTAL: 82 705 30 SEP 14 TOTAL: 77 671
HR Cost • New structures/establishment tables that are based on sound organisational design principles that restrain rank inflation. • Maintain a healthy ratio between the HR, Operating and Capital budgets of the SANDF.
HR BUDGET AND STRENGTH FY2014/15 Actual Inflows 31 Aug 14 Planned Inflows Projected Expenditure 31 March 2015 Rb23,253 Projected HR Strength 31 March 2015 = 78,361 Inflows 2,202 724 140 160 19 57 MSDS MSDS Adhoc PSAP PSAP Adhoc PSAP MILITARY HR STRENGTH HR BUDGET Rb25 (Including current Res F utilisation 88,740 Approved posts NT Ceiling Rb23,094 (Res F kept to vote Rm917) Avg strength of 78,500 Unfunded Rb1,273 Shortfall as on 31 Aug 2014 Diff between NT Ceiling and FMS Rb1,114 Strength at 31 Aug 2014 – 77,845 FMS Rb21,980 77,606 DOD Avg funded strength (Legadima) • Assumptions included in projection • Jan 15 MSDS Intake • Dec 14 MSDS Translation to CSS • Current Res F utilisation • Perf Incentives Rm216 Outflows Attrition (All types) ±3,000 pa (250 pm) Actual until 31 Aug 14 – 1,170
Challenges • The DOD is facing a shortage of Rm 880 on its HR Budget for FY 2015/16, based on a planned full-time strength of 78 366 members and an annual improvement in conditions of service of 5,6% • Increased ordered commitments constrain force levels reduction • An appropriate exit mechanism is not yet approved
Theme 1 Tasks • HR COMPOSITION (27 tasks) • Maintain optimal ratio between Regulars & Reserves • Capability requirements must determine above ratio • Continue to implement a flexible service system • Reserves to attain critical mass by 2014 • Develop & implement a Reserve service system • Establish competencies for effective ResF administration • Assess possible decentralisation of L1-10 PSAP mngmnt • Annually determine the DOD’s HR requirements • The DOD funding allocation must determine HR strength • Continue to implement the MSDS • Continuously improve SANDF remuneration & benefits • Ensure the socially responsible exit of members • Participate to improve PSAP remuneration & benefits • Implement optimal separation processes • Allow seamless transfer of SANDF members to DefSec • Ensure a scientifcally determined rank/salary level distr • Ensure a sound combat vs support distribution • Ensure proportional Service representation in Divisions • Ensure person profiles match post profiles • Determine optimal turnover rates • Maintain a broadly representative HR composition • Address gaps ongoing • Gender mainstreaming imperatives to be central in all • organisational activities • Create conditions to promote mainstreaming • Streamline females in combat roles • Implement a DOD value system • Attract under-represented demographic groups • HR QUALITY (22 tasks) • Allocate sufficient resources for marketing • Execute Service-specific recruitment • Recruit tertiary qualified personnel • Marketing to address Regulars, Reserves, PSAP & interns • Develop & resource the URTU programme in all Services • Involve all stakeholders to market the DOD • Implement youth exposure programmes in all Services • Ensure remuneration appropriately aligned with the market • Implement focused measures to attract/retain scarce skills • Exploit resources outside the DOD to address scarce skills • Prioritise utilisation of scarce skills Reserves • Implement a comprehensive HRD strategy for all personnel • ETD to benefit all personnel / integrated into career paths • Ensure appropriate visibility into career planning • Ensure appointments ito mustering, post & person profiles • Implement sustained initiatives to maintain health standards • Implement a morale strategy • Promote employee suggestion schemes • Incorporate HR quality maintenance into HR planning • Select and appoint personnel with top quality leadership and • expertise, especially in senior posts (SMS & MMS) • Ensure effective transfer of competencies • Ensure effective archiving and access – institutional memory • HR QUANTITY (5 tasks) • Post establishment must reflect the evolving force structure • Manage the PET centrally (same norms & standards) • Personnel feeder systems to meet replenishment needs • Maintain balance between affordability & force requirements • Ensure optimal resourceing & utilisation of Reserves • HR COST (5 tasks) • New structures based on sound org design principles • Maintain HR expenditure within 45% of allocation • Exercise stringent governance & risk management • Implement all reasonable means to improve remuneration • Establish a Defence Remuneration Advisory Board