As an accredited “Best Company to Work For”, your organisationwill be able to attract more of the country’s top

talent enabling you to position your business above the competition

The Crisis

Introduction It is well proven that profitability is powered by the effective use of people. People issues are increasingly recognised as critical to the success of every organisation. In fact, more than half of the world’s Most Admired Companies (Fortune Magazine) are also rated among the Best Companies to Work For. Fortune’s 1998 list of the most admired global companies points to a single best predictor of overall excellence: the ability to attract, motivate and retain talented people (Charlton, 2000). Deloitte & Touche Human Capital Corporation (HCC) together with the Financial Mail launched an annual survey in South Africa to determine who the best employers are. The main purpose of the survey is to ascertain what attracts, motivates and retains talented people to an organisation. All companies are searching for the best people who will drive profitability, productivity, competitiveness and a dynamic organisation. The war for talent in South Africa is increasing as more and more highly qualified people are recruited by international companies. How do we retain our intellectual capital? According to Nicola Tyler (HR Future) a conservative estimate of 282 qualified South Africans are leaving the country every month. What irreplaceable knowledge and experience is leaving with them, and what are they leaving behind?

SA’s first Best Companies to Work for Survey

Critical Issues

The most critical people issues are “hiring the right people” and “retaining & motivating employees”. This factor has also been corroborated in a UK-basedsurvey conducted by DDI.

Calculation of staff turnover costs indicate that companies risk losing millionsof Rand, however many companies do not bother to calculate the cost of staffturnover.

The HCC Best Companies to Work For Survey in South Africa backs up thesefindings. The ranking which appears in Financial Mail’s November, 2000 issueis the much anticipated benchmark that lists those employers who consistentlyraise the bar on human resources programs and corporate culture improvementfor all employees.

Those companies listed amongst the Best to Work For typically initiate many new programs specifically designed to attract and retain the best and thebrightest professionals in an ever increasingly competitive job market. Inaddition, they represent the country's most forward-thinking firms that striveto help employees balance work and personal life.

SA’s first Best Companies to Work for Survey

The Solution

Determining the Best Companies to Work ForMethodology

Just as in the case of the Fortune 100 Best Companies to Work For in USA, this survey’s participation numberssuffered from a fear of organisations to expose themselves to the intensive scrutiny of the South African survey. Notwithstanding this fact, a total of 42 companies participated in the first cycle and now results summaries and benefitsare open for all participants to see, the survey will grow in its ability to influence decision making by talented individualsabout who in South Africa are amongst the Best Companies to Work For

Project Scoping Survey Launch First Panel Meeting

Diagnostic P

hase

Administer Survey

Survey Benchmarking Approach

Determine project FocusSelect Survey DimensionsCompile Questionnaires

Invite companies to participate

Panel of experts to provide face validity of Survey methodology

•CEO•Employees•Employee Representatives•Recruitment firms

Survey Analysis

Process, interpret andcompare data

AdjudicationFinal Announcement

Final Panel MeetingAnnouncement of Best Companies

Survey Inputs Utilised

HCC wanted to establish the comparative ability of South African organisationsto attract and retain talented employees, thereby identifying the BestCompanies to Work For. In order to differentiate the survey, both employerand employee perceptions as well as external market perceptions have beenanalysed. The role players in the project were: therefore,

Chief ExecutiveWeighted 30% of overall score

Randomly selected EmployeesWeighted 50% of overall score

Focus GroupsWeighted 10% of overall score

Leading Recruitment firms Weighted 10% of overall score

Ranking the Best Companies toWork For by a panel of experts

from business, employer representatives

and heads of Business Schools

SA

’s Best C

omp

any to W

ork F

or

The study focused on the following themes and their components:

FRAMEWORK FOR BEST COMPANIES TO WORK FOR

Attraction and Retention

Factors

Work Environment•Job Satisfaction•Environment•Diversity•Facilities•Trust & Relationships Job

•Meaning & Challenge•Performance Management•Recruitment

Company•Leadership•Diversity•Change•Management Information•Communication•Policies & ProceduresCareer

•Development•Training•Opportunities•Talent Management

Non-Financial Rewardsand Recognition•Benefits•Recognition Awards•Work/life balance

Financial Rewards•Base Salary•Incentives•Share Schemes•Performance Measures

General Trends of the SurveyIn total, one thousand nine hundred and fifty five (1955) employees from fortytwo (42) companies participated in the survey. The results of the survey providerevealing information on how to attract, motivate and retain the best talent. Theoverall results indicate that the most positive or highly ranked dimensions byChief Executives and employees are:

The areas that provide the most useful feedback for future companyattention are those that were measured as the most negative in theperceptions of employees in particular. Employer negatives arethose areas already recognised by CEO’s as in need of attention

•Recruitment•Training & Dev

•Management Info•Performance Mgmt

•Change

•Rewards & Recognition

•Change•Diversity

•Management Info

•Policies & procedures

•Change •Diversity

•Leadership

•Trust & Relationships

•Job Satisfaction•Leadership

Chief Executive Response Employee Response

Chief Executive Response Employee Response

The areas that provide the most useful feedback for future company attention are those that were measuredas the most negative in the perceptions of employees in particular. Employer negatives are those areas alreadyrecognised by CEOs as in need of attention

More detailed findings

A more detailed analysis of the results showed that more than 85% of all participating employees agreed that the following are POSITIVE in their companies:

1. The importance of their work (96% agreed)

2. Knowledge of what is expected in their jobs (93% agreed)

3. The internal e-mail as an effective communication source (93% agreed)

4. Proud to tell their friends where they work (91% agreed)

5. Their immediate manager trusts them (90% agreed)

6. The people they work with are committed to quality work (89% agreed)

7. A statement that they have friends among the people with whom they work (89% agreed)

8. Their immediate managers enjoy their trust (89% agreed)

9. A perception that people motivate and support each other in their departments (88% agreed)

10. A belief that the people in the company are willing to go the extra mile when needed (88% agreed)

These 10 components are hygiene factors with the main themes which score highly. These main themes are the most important reasons high calibre individuals are retained in companies.

More detailed findings continued...

It is also interesting to note that aspects like importance of work and the knowledge of what is expected of employees are rated very highly. The LOWEST RANKED reasons which may affect retention in companies are:

1. The non-recognition and mismanagement of the impact of change on employees.

2. The use of representative councils as a communication source.

3. Managers are not trained as mentors.

4. No feedback to employees over the last six months regarding their prospects.

5. No diversity training.

6. White males feel threatened by the Employment Equity process.

7. No information about what other departments are doing.

8. Overload of the internal systems with unnecessary paperwork, e-mails, reports, forms and memos.

9. Unfairness of the company’s promotion policies and procedures.

10. The level of the pay package does not reflect performance.

11. Salary does not match responsibilities and is not market related.

In summary, it appears as if the mismanagement of change, poor communication, poor management of remuneration and the way Employment Equity is implemented are some of the aspects that lower employee commitment.

Example of the type of Analysis carried out:

Example of the type of Analysis carried out:

Example of the type of Analysis carried out:

The Payoff

The implications for companies in S.A

The results of the audit indicate a clear difference between the BestCompanies to Work For and the traditionally orientated organisations

Attracting, developing and retaining talented people

GrowthBest CompaniesAttracting,developing,motivating,retainingcompetence

leadership change management performance

management relationships trust

Traditional organisations

Time(Adapted from Charlton, G. 2000)

The implications for companies in S.A

It appears that although the remuneration package, is as always, important to employees,factors like relationships, job satisfaction, trust and good leadership are very high on theirlists. The areas that employees perceive as important are the way change is managedand implemented as well as the effect on the employees and their future prospects in thecompany. Training and personal development is also still very high on the list ofprospective applicants and employees as well as the internal communication systems.

An interesting observation from the survey is that prospective employees already have agood perception of the quality of companies. What differentiates all these companiesfrom the rank and file is that none is satisfied with doing the expected. Some of thecompanies also recognised that despite best efforts, most talented people will move on.So, programmes exist in some companies to maintain relations with all ex-employees withthe idea that they can be re-recruited in future.

In summary, the 10 winners share prominent characteristics: each is highlysuccessful and radiates the energy and dynamism attractive to tomorrow’sleaders. Each is a rare breed (Financial Mail), more specifically, the culture of highperformance companies includes a commitment to quality work, trust betweenmanagers and employees, teamwork, positive relationship, job satisfaction and awillingness to go the extra mile.

Creating a Value Proposition

Bra

nd

Perform

ance

Products

Best CompanyBest Company Best BusinessBest BusinessPerformancePerformance

Best JobsBest Jobs

The top ten “Best Companies to

Work For” in 2000

No 1 Rand Merchant Bank No 2 M T N No 3 Eli Lilly No 4 Nedcor No 5 DAV No 6 Standard Bank No 7 Coronation No 8 Escher Group No 9 Liberty Life No 10 Discovery Health

After summarising all the results from the participating forty two (42) the panel of adjudicators ranked the companies. The 10 Best Companies to Work For are:

It must be taken into consideration that only forty two (42) companies participated due to a number of internal challenges, such as downsizing, mergers and acquisitions, restructuring etc.

Survey Participants of 2000

RMB Servest MTN DebtechEli Lilly BPNedcor Lyons FinancialDAV De BeersStandard Bank MerisolCoronation Rand WaterEscher Group Global TechnologyLiberty Life Marriott Corporate ServicesDiscovery PEPRennies Amalgamated HospitalsSiemens FaritecAtraxis Gensec Bank

Hollard Procter & GambleAirchefs

RelyantShoprite CheckersInvestecMidasASTMetrorailABSASANS FibresBarnard, Jacobs, MelletFOSKOROld MutualIDCKPMG