South Africa’s socio-economic realities in the workplace

External Contextual Framework Impacting the HR Department

Janine Baillie-Stewart

Rainbow nation or 50 shades of grey?

Our people

51,19 Million

Our pyramid

Our values

Corruption Perception Index 2013.

Est. R 650 B over last 18 years

Our economy0.6 % GDP Growth Q2 4014

Negative contributors : Mining and Manufacturing

Our inflation6.3 % CPI July 2014

At a 3 month low and slowing for the first time in 8 months due tolower Transport and Food Costs

Our jobs

25.5% Unemployment – All time high since July 2008 (5.2 million)Major job losses in Manufacturing and Agriculture

Our productivity

Labour Output per Unit of Capital has declined by 32,5 % since 1967Labour’s share all time low; Capital at an all time high

Our wage gap

73 times and 5th highest in the worldWho has the highest GAP?

Our poverty levels

Poverty levels have dropped by 7% from 2006 to 2011Winning the war on Poverty!

Our living standards

Lowest Living Standard improved by 10% from 2001 to 2011Difficulty remains in accessing Food - 21.1%

Our Employment equity

Our safety

The world average for murder is 7.6 per 100 000 people. Murder in South Africa is 36.5 per 100 000.

Quiz time• How many Police Stations do we have in SA?• Which country has a higher Murder Rate than

SA?• Where are the most crimes reported in SA?• In which area are the most murders

committed in SA?

Our health

6,070,800 Living with Aids

17.9% Prevalence

Our skills

Last out of 148 countries in Math's and ScienceIn 2010: 1million : 600k : 400k : 200k (estimated)

Our politics

Our unions

Our legislation

BCEA, LRA and Retirement Fund Reform – The Winds of Change

Tis’ the season

13 million workdays lost 2014

Our service delivery

Our clicks

Our social media

Our habits

47% of all drug related crime occurs in the Western Cape

Our savings habits

So what are the key trends?

• Decreasing Poverty and Increasing Inequality• De-industrialization and Automation• Technology• Education and Skills – Mind the GAP• Ethics, Values, Corporate Governance and

Leadership Accountability• Shifting Political Landscape

And?• Employers are faced with unprecedented

challenges• Employees feel lost and overwhelmed by the

challenges they face• Loss of credibility of people / parties /

structures in power• Change is inevitable• No direction

Our choices

Reframe our workplace

HR can make a real difference!

• Redefine the workplace – Find the AND’s!• Meaningful Engagement on all levels• Actively Bridge the Skills GAP• Build your organizational Resilience Capability• Remuneration Parity – REMCOM• Credible Activist for Change

It is our role

Thank you