South African ICT Sector Development Framework

Chapter 6
Human Resources Development

Goal 3: Knowledgeable and Growing ICT-Skilled Workforce

A key underpinning of information age success is world class infrastructure and products developed by a highly skilled workforce. The intent of goal Goal 3 is to substantively increase the pool of highly skilled individuals in the ICT sector to increase the base of world leading infrastructure and ICT products, and in other sectors in order to stimulate the adoption of ICTs in those sectors.

to substantively increase the pool of highly skilled individuals in and for the ICT sector in order to create a growing base of world class ICT products.

In a knowledge economy, we there is a need to be as concerned about the "learning market" and learning systems as we are about the business sector and labour market, because. This results, because we there is a need for the right skills are needed to continuously drive enterprise and help grow the economy. The responsibilities for delivering education and training at all levels (formal, informal and on-the-job) are shared among government, business, labour, education and training providers.

During the industrial era, educators collectively tried to meet the needs of children and young adults, with little attention paid to immigrants, historically disadvantaged groups and the incumbent workforce. In South Africa, the educational system was further crippled by the huge discrepancy in availability of teaching skills and job opportunities for the black, coloured and asian communities. Education was delivered mostly at public cost and at specific times and locations – which may or may not have been convenient for learners.

The supply and potential shortage of ICT skills, and the need for ICT workers including in the ICT Sector and in ICT-enabled sectors, redressing the Equity and Empowerment issues, and the Brain Drain are just some of the Human Resource issues faced by South Africa. Currently, South Africa is experiencing a high unemployment rate, and the labour market is finding it difficult to supply skilled ICT workers to meet the rising demand.

Figure 6.1 (The Human Resources View) presents a conceptual view of the essential factors in developing an effective ICT human resource environment.

This Human Resources View requires effective governance structures to guide and direct the implementation of activities necessary to provide trained ICT workers. South Africa requires new mechanisms and structures for decision making that will allow multiple stakeholders to come together quickly to co-ordinate and integrate efforts appropriate to keep South African enterprises and learners competitive in a global, knowledge-based economy.

The "supply" of learning must be continuously available, easily accessible and adaptive to the changing requirements of the ICT Sector and ICT-enabled sectors. Earlier learning has to be assessed and equivalencies accredited, or "bridge learning" provided to link to the next learning goal. Increasingly, and as the learner ages, more of the cost is shared by the individual or employer, as more informal lifelong learning occurs.

Figure 6.1: The Human Resources View

The demand for skilled learning will be generated by the ICT and non-ICT sectors, individuals and communities.

The "policy" must be flexible to permit the delivery of learning, so that learning can be delivered in a variety of modes and at times and locations that are convenient to learners, firms and other organisations. The rate of change in curriculum and equipment needs presents new challenges for both capital and operating resources to help ensure the adequacy of the required infrastructure. The delivery of learning will be jointly funded, developed and delivered by private firms and public education and training institutions based not only in South Africa but also abroad.

The Objectives for Goal 3 are presented in figure Figure 6.2 below. Each of these objectives is described below, and contains the strategies and associated actions needed to achieve the objectives.

Figure 6.2: The Objectives for HR Human Resources Development

 
Objective 3.1: Develop a Comprehensive Understanding of the South African ICT Labour Market to Support Effective ICT HR Development

The intent of this objective is to support individuals, employers, education and training providers, and other stakeholders who require current information on the ICT labour market to help cope with the growing complexity and increasing pace of the ICT Sector. By taking steps to audit determine the existing skills, and current and future needs of the market, a fundamental basis information base will be established to meet these needs. This audit information will also form the basis to measure performance and impact of this segment of the labour market on the economy and identify where improvements are required on an ongoing basis.

It is important to monitor labour markets and produce accurate, timely information because individuals and organisations make important decisions, often with significant cost implications, based on perceptions about work and employment trends, job vacancies, compensation levels and related factors. When they are effective, labour market information systems can continuously generate the information needed to link government policies in areas such as taxation, social payments insurance and immigration, to actual conditions in the labour market. Monitoring systems can deliver important signals to education and training institutions and help guide their decisions about enrolments, curriculum development, faculty recruitment and investment in physical infrastructures.

These systems also allow employers to adopt a more strategic approach to recruitment, retention, training and other human resource management challenges. Finally, accurate information about labour markets is vital for individuals, students and workers, who must plan their own learning and make realistic career choices.

Strategy 3.1.1: Strengthen the Capacity to Understand Labour Markets

There is a sense that current occupational classification systems are too slow in capturing and describing new occupations, many of which are connected to emerging technologies in newer sectors. Even with occupational titles that remain constant over time, the duties and skills required of individuals in these occupations are likely to be constantly changing. The statistics on these occupations may do not capture important skill changes unless the skill sets that are integral to various occupations are regularly monitored and updated.

The challenge facing our monitoring agencies is to improve data collection by incorporating uniform approaches to identifying and measuring the individual skill levels demanded in different occupations. This is particularly the case for non-technical skills such as management, and essential skill sets that are increasingly important to employers.

To maintain a uniform and coherent approach to labour market monitoring, central government, provincial and private sector stake-holders – including industry associations and sector councils – must approach the collection, analysis, and use of data with a stronger sense of common purpose. The key to this will be the development and sharing of common definitions, and of databases that can be integrated. In this regard, the ISETT SETA’s work in developing IT standards and qualifications will make a very significant contribution.

The purpose of this strategy is to strengthen the capacity to understand labour markets information, by developing the scope and use of labour market information to support the identification and acknowledgement of human resources requirements in the ICT Sector:

• Identify and document the skills required in science and technology occupations to assist in the redressing of unavailable skills;
• Encourage stakeholders to adopt standard definitions, measurements and terminology in relation to skills for successful monitoring of gaps and over supply in employment levels;
• Provide additional funding for graduate training and targeted research on labour market issues to fully comprehend the South African Labour market.

The actions required to support this strategy are summarised in Figure 6.3 below.

Action(s):

• Supporting SABS, Stats Statistics SA, HSRC, DoL and the ISETT SETA to encourage stakeholders to adopt standard definitions, standard measurements and standard terminology in the identification and documentation of the competencies required in science and technology occupations,. In order to clearly identify the labour market under and over supply areas.
• Mobilise funding mechanisms for graduate training and the creation of targeted research on labour market issues on at national and provincial level to fully comprehend the South African labour environment.

Strategy 3.1.2: Make Better Use of Labour Market Information

As important as it is to enhance the labour market monitoring systems, it is equally important to make better use of the data collected. Labour market variables are complex, and South Africa gathers a great deal of data. However, the remaining and perhaps more difficult challenge is to interpret these data and package them in ways that best support decisions and actions by individuals, educators, employers, governments and others in relation to the ICT labour market.

The purpose of this strategy is to enable a comprehensive understanding of ICT labour market statistics, to develop appropriate and effective skills in and for the ICT Sector, particularly as a means to provide accurate, timely information on trends and conditions in the labour market.

The actions required to support this strategy are summarised in Figure 6.4 overleaf.

Figure 6.4: Actions relating related to Making Better Use of Labour Market Information

• Provide a comprehensive understanding of labour market statistics, through the creation of a Labour Market Statistics and Research Centre under national/provincial direction, for the collection and dissemination of sector-specific labour market information, which is to be supported by employers, unions and sector councils.

Strategy 3.1.3: Improve the Ability to Compete for Highly Skilled Workers from Abroad

By improving South Africa’s ability to compete for highly skilled workers from abroad, the wider diffusion of ICT skills into the labour force can be speeded up. The Making the latest skills available in the international market being made more readily available in South Africa for technology transfer and diffusion into the local environs may will substantially increase our competitive posture.

The actions required to support this strategy are summarised in Figure 6.5 below.

• Involve employers in the selection of skilled immigrants to ensure the skills are not available locally.
• Make it easier for South African universities and technikons to recruit highly talented foreigners to faculty positions that contribute to the development of South African society.
• Make it easier for foreign nationals studying in South Africa to become permanent residents, particularly in areas that build competence for South Africa to be world leaders.
• Require professional regulatory bodies to "fast track" the accreditation of immigrants in regulated occupations that will leapfrog South Africa.
• Make Prior Learning Assessment and Recognition (PLAR) part of the review process for skilled workers applying to immigrate to South Africa, particularly where the prior learning contributes significantly to building local expertise.

Objective 3.2 Establish Employment Environment to Retain Skilled Workers

South African post-secondary institutions produce some of the most talented and sought-after graduates in the world. Unfortunately, many firms, especially SMMEs, have difficulty absorbing highly educated graduates, particularly in science and technology. In addition, investments in R&D remain small compared with most other nations. As a result of these factors, there is a shortage of opportunities for highly skilled R&D workers in South Africa, which is leading some of the most highly qualified people to seek employment elsewhere.

This objective sets out to establish means to retain skilled workers by taking steps to expand investments in basic and applied research, by directing part of these investments toward the most promising fields, and by helping knowledge-intensive SMMEs to grow. This will create new opportunities, reverse the "job drain" and allow highly skilled South Africans to apply their talents at home.

Strategy 3.2.1: Increase the Capacity of South Africa’s Universities and Technikons to do High Quality Basic and Applied Research

The right research opportunities, whether in government, the private sector or universities and technikons, will offer challenges that attract the best and brightest scientists, bio-medical researchers, engineers and other specialists, and offer an enormous potential commercial and social pay-off. By providing facilities and opportunities that will keep high skilled graduates in South Africa, we will maximise the return on our substantial investment in their education.

The purpose of this strategy is to increase the capacity of universities and technikons to do high quality basic and applied research, in order to succeed in generating innovations for the sustainable growth of the sector and retaining the high-skilled human resources, with special instructions for research that addresses and benefits the South African environment.

The actions required to support this strategy are summarised in Figure 6.6 below.

Figure 6.6: Action related to Increasing the Capacity to do High Quality Basic and Applied Research

Action(s):

Increase the funding for not only the direct, but also the indirect costs of the research that the national granting councilsy support in order to facilitate more research.

Strategy 3.2.2: Improve the Return on Investment in Science and Technology

Commercially exploitable advances in scientific knowledge are taking place across a broad range of disciplines and applications. The funds available for R&D in South Africa are limited, but even if the pool were significantly larger, we would still have to make choices in allocating resources to one area over another. In other words, we need to ensure that these choices are strategic and directed to where the highest returns are likely to be found. A mechanism is required to furnish information that will help individual researchers, private industry and governments to make good decisions, given trends in science and technology and our strengths and weaknesses in scientific research. In South Africa, the Foresight Project has started to provide this strategic advice. This project can help to cast a 5-, 10- or even 20-year vision for the human resources impact and needs for the ICT Sector.

The purpose of this strategy is to improve the return on public and private sector investments in science and technology, by providing a platform for the knowledge, skills, and values for innovation and growth to be identified, captured and disseminated into the country, particularly as a stimulus for future growth and development of appropriate science and technology. Consideration should be given to how the current Universities universities funding formula may be used to emphasise the necessity for ICT training across all disciplines.

The actions required to support this strategy are summarised in Figure 6.7 below.

Figure 6.7: Actions relating related to Improving the Return on Investment in Science and Technology

Action(s):

• Create a process through which the best science and business minds can project current science and technology trends into the future and identify high-return areas for current and future investments in research and development.

Strategy 3.2.3: Stimulate Growth among Small Knowledge-Intensive Firms

Studies have shown that enhancing the capacity of small firms to innovate and to use higher-order skills can be a powerful tool for encouraging growth. Many small enterprises are reluctant to hire highly skilled post-secondary graduates. Because they lack experience, recent graduates often cannot "hit the ground running" and do not quickly begin to generate revenues that offset their own salaries and add to the bottom line. This contrasts with other countries, where small employers are more likely to pay a premium for higher-order technical skills, even when not combined with much practical work experience. The fact that South African SMMEs appear to have less capacity to absorb highly skilled workers contributes to what may be called an opportunities shortage. It may also explain why some graduates, particularly in highly specialised fields, look to other countries to find their first job.

The purpose of this strategy is to stimulate growth among small knowledge-intensive firms to gain new knowledge, not only in the use of ICT, but also to see its relevance and potential in management, productivity, efficiency and contribution towards new development processes.

The actions required to support this strategy are summarised in Figure 6.8 below.

Figure 6 .8: Actions related to Stimulating Growth among Small Knowledge-Intensive Firms

Establish a program that builds upon current initiatives such as the DTI’s Centre for Small Business Promotions, NTSIKA, among others, to help knowledge-intensive SMMEs absorb recent graduates in science and technology while helping participants to acquire business management skills, .Thereby creating a local platform to mature students and SMMEs into the global arena.

Objective 3.3 Establish the HR development infrastructure to provide the pool of ICT skills to support the development of ICT and ICT-enabled industries

In the knowledge economy, the speed of economic and technological change demands increasingly higher and higher technical and scientific competence and a broad and evolving set of essential and management skills, often called "soft skills". The skills development process must start early in life and last for life, and everybody has to be a part of it. Employer-sponsored initiatives to upgrade the skills of the existing workforce must become increasingly significant within the overall skills picture.

The education and training systems are showing unmistakable signs of stress. Many high-school, college and university graduates lack the essential technical and management skills that most employers seek. The current intake of the training programs may not be adequate to counterbalance a wave of retirements and deaths from HIV/AIDS among skilled tradespeople over the coming decade. Moreover, budget restrictions have significantly weakened the colleges and universities. Although there is much talk about the importance of lifelong learning, South Africa is in fact only beginning to put theory into action. To succeed in the knowledge-based economy, relieving these points of stress and modernising the formal and informal learning systems are clear priorities.

Strategy 3.3.1: Develop the Skills for a Knowledge-Based Economy

ICT education, training, learning and competency are essential for the twenty first century. The future competitiveness and well being of the country will require the creation of a solid foundation for young people, for future learning and to acquire all of the skills that will be needed to succeed in the knowledge-based economy.

The purpose of this strategy is to develop ICT literacy and ICT skills across the student body and teachers/lectures of South Africa at the primary, secondary and tertiary levels, so that students can take full advantage of the information age.

The actions required to support this strategy are summarised in Figure 6.9 below.

Figure 6.9: Actions related to Developing the Skills for a Knowledge-Based Economy

• Improve the learning environment for young children to become participating contributors to the knowledge economy.
• Make "work studies" and other experience-with-work programs more widely available at the elementary and secondary school levels.
• Monitor the acquisition of essential skills by elementary, secondary and tertiary students to guide students with the required competencies into the knowledge economy.
• Ensure that teachers are well equipped to deliver essential ICT skills education to develop qualified ICT literate students.
• Build stronger linkages between schools and the world of work, potentially as a grooming process for Tertiary and employment opportunities.
• Ensure that there is a sufficient pool of qualified teachers of mathematics, science and technology at elementary and secondary levels.
• Attract more young people to apprenticeship programs and ensue that business and management skills are included as part of the skill curriculum.
• Create teacher support programme e.g. "adopt a teacher" to enliven the profession of teaching;
• Ensure that Labour relations, Business and Management skills are included in the curriculum with life skills.
• Leverage MNE’s to sponsor ICT skills education and training in a manner that captures excitement in ICT.
• Engage DoE’s TELI program in thinking about ICT skills deployment.
• Invite multi-national teams to come to South Africa and transfer skills to local communities of practise.
• Ensure that Technical Colleges and Training Centres are up to date with the latest technologies to breed students that will be immediately employable

Strategy 3.3.2: Improve the Capacity of Tertiary Institutions

Although skilled workers reach the labour force from a number of sources, the most critical channel is our schools. The number and quality of the graduates coming out of our schools will, in the simplest terms, depend upon enrolment and graduation rates in post-secondary education and the capacity of our technikons and universities to equip students with the skills needed in the knowledge-based economy.

The purpose of this strategy is to improve the capacity of tertiary institutions to co-operate with the public/private sectors to generate and meet the skill needs of students and employers required for the twenty first century.

The actions required to support this strategy are summarised in Figure 6.10 below.

Figure 6 .10: Actions relating to Improving the Capacity of Tertiary Institutions

Action(s)

• Increase operating funding to tertiary institutions to restore deteriorated facilities and equipment,to address strategic priorities and redress historical imbalances.
• Improve the recruitment of students and their retention through to graduation in science and technology programs, and enhancing the resources available to these programs to provide tools to for the successful retention of students.
• Develop appropriate planning tools to help avoid an under-supply of university and college professors for the next decade and beyond.
• Build stronger links between tertiary institutions and employers to better ensure a smooth transition of qualified students into the work environment and higher education levels.
• Develop an effective tertiary management information system to succeed in generating sustainable investment in ICT programmes.
• Provide dedicated ICT degrees at Universities.

Strategy 3.3.3: Upgrade the Skills of the Existing Work Force

The pace of change and its impact on skills is one of the defining differences between the industrial age and the new economy. Technical skills, in particular, must be continuously renewed. In addition, the labour market has become a turbulent place. The notion of "a job for life" or of a steady, orderly climb up the ladder of one organisation, have almost become relics of our industrial past. Today security comes from anticipating and adapting to new circumstances and from knowing how to acquire needed skills throughout one’s life. To effectively increase the volume and availability of workplace learning will require the co-operation of a number of players, including the ICT Sector, other employers, individual workers, trade unions, governments, and education and training providers. It will also require sector-specific leadership and direction.

The purpose of this strategy is to transform the role education and learning have to improve the capacity to upgrade the skills of the existing workforce and make lifelong learning desirable and accessible to all South Africans.

Figure 6 .11: Actions relating to Upgrading the Skills of the Existing Work Force

• Make lifelong learning a national priority and ensure that all policies related to education and training support that objective in order to close the gap that exists from the disparate educational system of the past;
• Help employers, government and particularly SMMEs to upgrade the skills of their employees and managers to compete effectively in the information age;
• Make South Africa a world leader in the development and use of learnware and other new learning technologies that bridge the digital divide; and
• Help disadvantaged communities address their special learning and skills development needs, particularly with respect to the knowledge-intensive areas of the economy.

In any economic change, there are a number of workers who do not have the necessary skills to retain their employment. These workers require special attention, since they represent human resource assets that will be casualties in the move to a knowledge-based economy. Many of these workers will need special programs to help them make the transition from their current skill sets to a skill set that is employable in the ICT Sector and the ICT-enabled sectors, or will enable them to be economically productive assets. These workers support the families whose children become the potential human resources for the knowledge economy. Without special attention, South Africa will lose these assets and potentially damage future human resource assets.

The purpose of this strategy is to put in place programs and initiatives that will assist retrenched workers to be re-skilled for the ICT or ICT-enabled sectors, or to assist them to become economically productive.

The actions required to support this strategy are summarised in Figure 6.12 below.

Objective 3.4: Make HR development an Integral part of ICT development in South Africa

For a country to prosper in the new economy, it must have decision-making structures through which all stakeholders can accept responsibility and work together as required to create the conditions necessary for growth and wealth creation. In particular, there is a need for decision-making structures that can integrate the national skills and enterprise development agendas. This reflects the necessity not only to improve the capacity to generate high-order skills, but also the capacity to deploy those skills among growing enterprises within South Africa. Many decision-making structures designed for the industrial age are simply not suited to the pace and complexity of the Information Age. New structures are required that both respect market forces and the democratic institutions, and provide the means for making country-level decisions quickly and effectively on issues connected with skills and enterprise development.

Strategy 3.4.1: Create Decision-Making Structures for a Knowledge-Based Economy

There must be the means for making decisions efficiently and effectively in order for a country or region to prosper. The current structures for action in South Africa, not only for government but also for business and for education and training providers, are structures inherited from the past. They were designed to support an industrial-era economy and, on the whole, they were effective. However, in the knowledge-based economy, many of these structures for action are inadequate, and we must find new mechanisms for making the co-operative and collaborative decisions necessary for South Africa to prosper from the benefits of a vibrant ICT Sector.

The purpose of this strategy is to use the tools of the information society, (Information and Communications Technology’s) to build the decision-making structures best suited to establish the knowledge-based economy that will evolve the South African economy into a regionally and globally competitive knowledge-based economy .

Figure 6.13: Actions relating to Creating Decision-Making Structures for a Knowledge-Based Economy

Action(s)

• Establish "Enterprise South Africa", a nationally funded, private-sector-led executive agency that will operate at arm’s length from government and work at the national, regional and local levels to integrate skills and enterprise development strategies towards knowledge based tools and systems.

Some options that could be considered for the implementation of Enterprise South Africa and its partners, would be to establish and fund the following:

• ongoing administrative support for sector councils and the start-up and development of new sector councils, as required and appropriate;
• ongoing core administrative support for a Sector Councils Steering Committee (to include their liaison with the SETAs and ETQAs) to undertake strategic planning and co-ordination of common initiatives and technical services for sector councils;
• ongoing core administrative support for the establishment and operation of approximately 20 enterprise incubators on university or college campuses across South Africa, particularly outside of the major metropolitan areas;
• ongoing support for a private sector-led employers’ human resource development initiative, i.e., the implementation and operation in South Africa of a program modelled on the British Investors in People program; and
• ongoing support for a program, similar to the British Teaching Company Scheme, to help SMMEs absorb recent graduates in science and technology.

Without such decision structures for action, it is doubtful that progress can be made on the urgent agenda for South Africa to build a prosperous and sustainable future as a peripheral, niche player in the global marketplace.

For Enterprise South Africa to become a reality, a senior member of the National Cabinet must be charged as its champion, and given the authority and accountability to accomplish the job.

The President should immediately designate a senior member of Cabinet to develop and lead the implementation of Enterprise South Africa at the National level, with the appropriate authority, resources, accountability and leadership support to accomplish that task by 2001.

Strategy 3.4.2: Keep Skills and Enterprise Development Front and Centre

There is a need to identify the mechanisms needed to move forward on the strategies and actions in developing the human resources required to support the development of the ICT Sector. Several of the strategies and actions cross stakeholder and jurisdictional boundaries, and responsibility for these is distributed among numerous departments and agencies at many levels of government. It is not clear what authority is responsible for 1) initiating processes for these changes, or 2) monitoring implementation and reporting progress to government and other stakeholders. It is important that an individual of stature and credibility to government, business and educational stakeholders be given the mandate by the principal government authorities and appointed and supported by the President, to assume these two tasks over the next few years.

In order for South Africa to embrace the growth and dissemination of knowledge and information, skills and enterprise development priorities must be kept front and centre on the agenda of South Africans and the governments.

The actions required to support this strategy are summarised in Figure 6.14 below.

Figure 6.14: Actions relating to Keeping Skills and Enterprise Development Front and Centre

Action(s)

• Appointing Partnership member for "Skilled Enterprise" for a defined term, to monitor and report on the response of all stakeholders to the conclusions and recommendations contained in the Human Resources Development Plan and their willingness to participate in its implementation.

The President should appoint, for a four-year term, a senior individual to serve as "Ambassador for Skilled Enterprise", with the mandate to initiate processes to implement this report’s recommendations and to report progress annually to governments and involved stakeholders.

The Ambassador for Skilled Enterprise should be selected conjointly by the Ministers’ of Industry, Education, and Labour, as well as by National Economic Development and Labour Council (NEDLAC), and the unions.

There should be close co-operation and co-ordination between the Ambassador for Skilled Enterprise and Enterprise South Africa and the ICT Sector Partnership.