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Equity Skills News & Views
Volume 6, Issue 2, 30 January 2007
Registered as an electronic newspaper: ISSN 1684-5722
For archived editions, please visit
http://www.equityskillsweb.com
 

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In this edition:

1. With Workforce Performance In The Spotlight, HR Is On The Hot Seat: Insights From The Accenture High-Performance Workforce Study 2006
2. Global City Regions: A Shift In Focus For How HR Views Its Work
3. Where Are You On The Talent Map?
4. Mentoring For Diversity
5. Book Reviews: The Employer Brand    
6. Case Law & Legislation Review: Automatically Unfair Dismissals
7. Unsubscribe & Moving Soon

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1. With Workforce Performance In The Spotlight, HR Is On The Hot Seat: Insights From The Accenture High-Performance Workforce Study 2006

By Ed Jensen who can be contacted at www.accenture.com

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In 2006, we find a global economy that is in dramatically better shape than in the past few years. Regardless of industry, most companies have emerged from the severe cost-cutting and bunker mentality that characterized the period from 2002 to 2004 and are looking once again

to grow their business. Along with this change in focus we once again see among companies a renewed emphasis on the workforce—specifically, how to reinvigorate, and in many cases rebuild, a corps of workers who were rocked by the economic downturn but whose skills once again are in demand. Of course, this challenge falls squarely on the shoulders of executives in charge of talent management. And as many of these individuals have discovered, divining the impact the aging workforce and other talent pool dynamics will have on their company’s ability to achieve high performance and market leadership is an extremely difficult proposition.

In the 2006 Accenture High Performance Workforce Study, Accenture explored this critical challenge, along with many other issues key to building and sustaining a workforce that delivers a positive, measurable impact on an organization’s bottom line—thus enabling the enterprise as a whole to achieve high performance. As part of the study, Accenture surveyed 251 senior executives globally whose responses painted an interesting—and, at times, concerning—picture of the state of talent management in organizations around the world. In particular, the survey revealed that a number of shortcomings in the HR function may be preventing companies from creating and sustaining stronger overall workforces that are key to competitive advantage, and highlighted some of the steps leading organizations have taken to address these shortcomings.

HR and Training Shortcomings Are Likely Behind the Workforce Challenges

For example, we asked respondents to rate the effectiveness of the HR and training support given to the top three workforces in their organization. In a majority of participating companies, support of the top three workforces was reported to be average to ineffective in a number of key areas of talent management. Knowledge management and knowledge capture and transfer appeared to be the areas in which most companies struggle, but change management, leadership development and career development also were problematic. Looking at the data another way, no more than 19 percent of respondents said their support of their top three workforces in any of the areas of talent management covered was highly effective.

Why did so few companies report high performance and superior skills among their workforces? Additional analyses of our survey data pinpointed shortcomings in human resource support as a major culprit.

To read more click on: http://www.workinfo.com/free/downloads/180.htm

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2. Global City Regions: A Shift In Focus For How HR Views Its Work

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Editors Note: I was completely and pleasantly taken aback by the feedback and positive comments from some subscribers about the ‘Ideapolis’ article reprinted in the previous edition, so much so that it got me thinking about whether there is any research findings relevant to Africa . And much to my surprise there is.

One web page (untitled) was found about research sponsored by the Volkswagen Foundation that has bearing on the huge transition facing HR in Africa as it grapples with having its role redefined under its very nose. Gone are the days when traditional HR functions such as recruitment, and selection amongst others operated in a vacuum. Gone are the days when government departments simply hobbled what HR needs to achieve for public and private sector organisations. Gone are the days when University HR courses are taught as if it’s business as usual. Makes you think doesn’t it!!

This comparative research project included a study of 4 City-Regions: Johannesburg , Mumbai Sao Paulo, and Shanghai . Whilest not strictly speaking not a Human Capital/HR article read on and ask yourself if you can remain hidden behind the walls of functional/administrative HR for much longer, or do you need to venture forth into the world of Strategic Human Capital and global Talent Management where regional economics will inform much of what you do in future as an HR professional.

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The character of our political environment is increasingly being defined as a global one. According to this view, borders and geography matter less and less while capital, information, entertainment, people, and services move swiftly around the globe in “spaces of flows”. While the general mechanisms and dynamics of globalization have been analysed rather extensively in the field of international relations, the study of their effects has concentrated mostly on the state level. However, research from neighboring disciplines such as geography and sociology has recently demonstrated how the dynamics of globalization tend to crystallize not only in states, but in specific city regions as well. [1] Global flows need to originate, to be channelled, and to arrive somewhere. Metropolitan areas function as the centers, nodes, hubs, and gateways of global business, culture, and social relations.

For at least three reasons, city regions constitute an increasingly important political sphere of their own:

1. As cities and city regions are affecting the lives of more and more people, the issue of urbanization has led to a growing volume of research devoted to urban development and governance.

2. Faced with the burden of adjusting to globalization, many central state governments respond, though not always voluntarily, with the devolution of political tasks and authority to sub-state levels.

3. Regions, and city regions in particular, are rapidly becoming centers of economic activity, innovation, and growth, independent from the national economic environment.

Click on http://www2.oei.fu-berlin.de/city-regions/_project/project_description_txt.htm to explore this issue and the implications it holds for you and your organisation. The GDP figures quoted for Johannesburg are already outdated (change at the speed of light). Gauteng now accounts for 30% of South Africa ’s GDP and all that this implies for the people side of business.

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3. Where Are You On The Talent Map?

By Bill Breen who can be contacted at www.fastcompany.com

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Want to get a quick take on how your city or region is faring in the all-out competition for talent? Start by determining the percentage of gays that are in your population. The "gay index" is the leading predictor of a city's ability to attract and retain knowledge workers, claims Richard Florida, founder and director of the Software Industry Center at Pittsburgh 's Carnegie Mellon University and professor of regional economic development. It's not that gay employees themselves are critical for building a tech-savvy base of operations. It's that a gay population is a dependable indicator of the environmental factors -- tolerance, openness to diversity, and lots of urban-oriented amenities -- that are critical for attracting world-class workers.

This is just one of several eye-opening insights from Florida , 43, a pioneering cartographer of talent. Using focus groups, interviews, and an eclectic array of demographic data, Florida is plotting the sociological factors that enable cities to attract human capital. Chief among his findings: In an insecure, temporary, free-agent-dominated world, the crusaders of the new economy increasingly take their professional identities from where they live, rather than from where they work. "Not so long ago you'd meet a guy on a plane, ask him what he does, and he'd tell you that he's a software programmer at Trilogy," says Florida . "Now it's, 'I write code and live in Austin .' "

In the battle for talent, Florida argues that location is supplanting the corporation. "We've shifted from a company-centric economy to a people-driven one," he says. "People are turning to community rather than to corporations to define themselves." When smart, skilled job candidates visit a company, they don't just take in the work space and the culture. Increasingly, they check out the surrounding streets, the parks, and the night spots. They look for audial and visual cues, such as active outdoor recreation, a thriving music scene, lots of amenities, and high energy, which signal that this is a place where they can live as well as work.

Florida has a similar message for people who work in high tech and other hyper-growth professions: Place is just as important as salary and career opportunity. In his focus groups and interviews, virtually every person who made a job-based decision to relocate but neglected lifestyle factors such as recreational and cultural amenities said that they moved again shortly thereafter.

Florida 's research is starting to yield compelling theories about what will draw talent to certain cities and about how companies that adapt to this change in the workforce will end up being big winners. In an interview, he mapped out the geography of talent -- and the realities that confront cities, companies, and people.

1. Virtual communities just aren't enough -- talent seeks out places with real assets.

Lots of Internet enthusiasts argue that the Web has made geography irrelevant, that people are finding their communities in cyberspace. In fact, in a talent-driven economy, place becomes even more important, because people still need to have lives. One of my students put it this way: "My work is a series of projects. My life is a series of moves. My parents had institutions that they were connected to. What can I connect to? My community."

"Community" can have different meanings. For some people, it's a neighborhood. For others, it's their network. But the bottom line is that people are finding community in the real world: places where the streets feel alive at 2 AM and where a dynamic music scene, all-night cafés, and extreme sports are easily accessible. People want to feel the energy that fuels creativity all around them.

Think about the "Organization Man" of the 1950s. He worked for a company for life, and his social behavior was defined by that vertical organization. If he moved, the company put him in an executive neighborhood. Now we're seeing the rise of plug-and-play communities, places like Austin , the Bay Area, and Boston , where you move in, plug in, and within three weeks you've built a network of friends and colleagues. When talented people think about relocating, they don't just consider the job offer; they weigh whether the place has a community that they can plug in to.

Geography is as critical for companies as it is for people. The CEO of an ASP who had just merged his company with an incubator in Seattle said it best: "If I'm launching a company, I can get started in Cleveland as easily as I can in Seattle . I just use my network to make my first 25 hires. But as soon as I need to ramp up from 25 to 100 people, or 100 to 200, I can add people much faster in Seattle than I can in Cleveland."

Think about the companies that have relocated to the talent meccas, such as Gateway Inc., which moved its headquarters from Sioux Falls , South Dakota to San Diego . Many of the startups that we incubate at Carnegie Mellon relocate because of the perceived talent shortage in Pittsburgh . The classic example is Lycos, which was a Carnegie Mellon spin-off that was acquired by CMGI Inc. and then moved to the Boston area. Talent-rich places such as Austin and Boston are talent magnets: They attract other talented people.

2. To become talent magnets, cities must have something for everyone.

Cities differ considerably in their ability to attract and retain great human capital, and the companies that those people power. And it turns out that talent hasn't spread evenly across the landscape. It has clustered in such areas as Atlanta , Austin , Boston , Denver , Minneapolis-St. Paul, San Francisco , Seattle , and Washington DC .

Talent is flocking to three types of new-economy hot spots. First, there's the traditional, high-tech industrial complex: Silicon Valley, Research Triangle, and northern Virginia . Then there's what author David Brooks calls the "latte town": high-energy places with easily accessible outdoor amenities, such as Austin and Boulder . Finally, there are new urban technology centers cropping up, such as Pioneer Square in Seattle .

So we're seeing a trend back to urban locations that have high amenities. But that's not the only trend. I would be remiss to say that every high-tech company is going to move into a Greenwich Village or a SoMa. In high tech, more of the hardware companies tend to be located in suburban areas, while the creative-content side is located in urban areas. In the end, the regions that provide the most options will be the most successful.

3. It's not just about stock options. Talent wants job options.

New-economy workers think of their careers as portfolios of experiences. When they size up a region, the first thing that they look for is a thick labor market -- a wide variety of employment opportunities that will sustain a career in the high-tech field.

These workers say to themselves, I want a place where there are lots of opportunities, because my experience will enable me to take on many different jobs and projects. I might decide to have a long tenure at one company, but my assumption going into the job is that my connection to work is insecure and temporary -- partly because that's the nature of the new economy, and partly because I have watched my family members get laid off, and I know that corporations aren't loyal.

4. Forget the country-club set.

Talent seeks inclusivity. Cities used to think about creating places that had low barriers to entry for firms so that those companies would relocate there. In a talent-driven economy, a place makes itself competitive by creating low barriers to entry for human capital. This is the type of place where talented people -- whether they're Indian, Korean, gay, or alternative -- can plug in and be accepted and not be looked upon as weird. We hear it all the time in our focus groups and in our interviews: Diversity is the surest sign that communities and companies really get it.

That's why there is such a high correlation between cities that are making it in the new economy and those that have a significant gay population. High-tech recruiters tell us that 8 out of 10 job candidates always ask a prospective employer whether the company offers domestic-partner benefits -- not because they need the benefit, but because it shows that the company is a true meritocracy that supports talented people from all walks of life.

The surest sign that a company or city doesn't get it is when you visit, and you're taken to a private club. It's like, "You just told me that this is the kind of place where I don't want to live."

5. In a world where time is the only nonrenewable resource, talent seeks out places that conserve time.

People look for the same things in a city that they look for in a company: energy, amenities, and a sense of fun. They want to see roller bladers and cyclists out on the streets. They want to have a place nearby where they can go rock climbing. Now, when we ask them if they mountain bike or rock climb, many times the answer is no. But they want those activities to be available, because someday they might want to do them.

There's another thing going on here that the data doesn't capture, but that's an important component of a new-economy region: A place that has all of these amenities is very efficient. You save time when you live there. A high-amenity place is one where you can get anything you need instantaneously. If you're pulling an all-nighter, you can get takeout at 2 AM. When your dry cleaning piles up, there's a place down the street that will take care of it. If you need to blow off steam, there's a rock-climbing wall nearby.

6. Cities are building sports stadiums, but talent wants bike paths. Business is not a spectator sport.

While professional sports are seen more and more as a way to achieve "major league" status and attract talent, our data suggests that there is little relationship between these big-ticket venues and high-tech workers. Many successful high-tech regions, notably Austin and Raleigh-Durham, have little or no professional-sports presence. The reason, I think, is that we're seeing the replacement of spectating with participating.

Knowledge workers don't want to devote an entire Sunday to watching football. These people are active. They want to participate. They don't want to stand on the sidelines. A lot of cities believe that they'll make it in the new economy if they get a professional sports team and build a downtown mall. They couldn't be more wrong.

It's almost like taking drugs away from an addict: No more stadiums. No more convention centers. What cities need to do is really simple: Make it fun. Create a music scene. Build bike lanes. Make sure that there are parks where people can play Ultimate Frisbee. Think about the city's historic assets -- the old buildings -- as cool spaces for hot companies.

Austin really gets it. Austin decided that it wanted to create a great place to work and a great place to live. So it leveraged its music scene and its independent-film community, and it launched strategies to preserve open spaces and control growth. Austin 's mayor, Kirk Watson, understands that in order for the city to be successful, it has to promote a convergence between technology, Austin 's music scene, and its unique, laid-back quality of life -- not one or the other.

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4. Mentoring For Diversity

By Prof. David Clutterbuck who can be contacted at www.clutterbuckassociates.co.uk

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Introduction

Formal mentoring programmes to support equal opportunities objectives have become an established element of the corporate development portfolio. In particular, many companies have experimented with “glass ceiling” programmes to support women in overcoming institutional and attitudinal barriers to advancement into middle and senior management. In recent years, however, a range of new diversity applications has emerged. Some enable ethnic groups in multicultural organisations to take redefine the balance between corporate culture and the cultural identities people bring with them into the organisation. Some attempt to capitalise on the inherent diversity of all employees, encouraging them to respect, value and learn from other people’s different perspectives. And some have found new ways to address the inequalities of power in organisational structures, for example by reversing the hierarchy.

The concept of mentoring for diversity is a relatively recent addition to the management lexicology. It’s not surprising, therefore, that it can be interpreted in a variety of ways, which reflect organisational or individual biases in the way it has been applied. Some of the practical programmes, which I have been involved with or observed, reflect the diversity of mentoring for diversity:

• At An Post, the Irish Post Office, women managers are taking part in an intriguing experiment where mentors are drawn from more senior levels not just within the postal service, but from large companies at either end of the supply chain – both customers and suppliers. The aim is to provide as many as possible different perspectives on the roles, to which the women aspire.

• At SAS, the Scandinavian air carrier, structured mentoring began with a programme for women leaders and rapidly diversified to meet the needs of a variety of other groups. People are encouraged to seek a mentor from a different nationality or culture, a different gender or someone younger than themselves. The vast majority (95%) of these relationships have found that the inbuilt diversity gives the relationship an extra dynamism and helps to sustain the interest of both parties.

• At World Bank, some 2,000 mentoring pairs have been set up, almost all at the instigation of groups of people from the same geographical regions. In each case, they have recognised the value in both networking together and creating close developmental relationships with people outside their natural groups.

• At Procter and Gamble, a planned traditional glass ceiling approach – in which powerful male executives would adopt more junior female managers, to “groom” them for promotion – was abandoned in favour of relationships where the executives became the mentees and the more junior women became the mentors. The programme had as one of its objectives overcoming a much higher labour turnover among women managers than among men – a goal which has now been achieved. The executive mentees have gained significant insights into diversity issues in general, and a greater empathy with the issues female employees face. Given that most of P&G’s customers are women, this empathy is inevitably reflected in marketing policy.

• At the Cabinet Office in the UK , an innovative programme of leadership develop provides mentors for civil servants with disabilities ranging from blindness, and loss of limbs and to schizophrenia.

Defining Mentoring

Even a brief skim through the academic and practitioner literature on mentoring throws up dozens of definitions of mentoring. These divide broadly into what can be called the US traditional or godfathering and the European or developmental. The former starts from an assumption that the focus of the relationship is the mentor’s extensive experience and willingness to exercise power and influence on behalf of the mentee (typically called a protégé). It is often characterised by long-term relationships that may involve a degree of mutual dependence. It is also often confused with line management roles.

To read more click on: http://www.workinfo.com/free/downloads/180.htm

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5. Book Reviews: The Employer Brand 

By Simon Barrow & Richard Moseley, Wiley, 2005

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Your most important brand relationship is unlikely to be your choice of breakfast cereal, car or even football team, but the brand you work for: your employer brand.

How people feel about their employer brand is increasingly significant to business success or failure. Companies are realising the importance of attracting and engaging the people they need to succeed and that creating a positive brand experience for employees requires the same degree of focus, care and coherence that has long characterised effective management of the customer brand experience.

For many companies, this means a radical shake-up of historical practices and a challenge to traditional ideas.

Written by the creator of the Employer Brand® concept and one of its most experienced practitioners, this book provides an inspirational and practical guide for professionals in HR, marketing and internal communications, to discover how managing their employer brand more effectively can improve company performance.

Starting with a review of the pressures which have generated current interest in employer branding, this book goes on to look at the historical roots of brand management and the practical steps necessary to achieve employer brand management success - including the business case, research, positioning, implementation, management and measurement.

Case studies of big-name employer brand stories include Tesco, Reuters, Microsoft and Compass Group.

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6. Case Law & Legislation Review: Automatically Unfair Dismissals

By Gary Watkins who can be contacted at www.workinfo.com and www.caselaw.co.za

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# Janda v First National Bank

Case No.           JS511/04
Judgment Date  1 September 2006
Jurisdiction       Labour Court , Johannesburg
Judge    D van Zyl, Acting Judge

Subject: Automatically Unfair Dismissals

Issue:  The Employee has an onus to prove the reason for the dismissal while the Employer has an onus to prove that the dismissal was fair.  While the court may grant absolution of the instance it will not do so when there is an onus on the Employer to the fairness of the dismissal.

Summary of Facts:  The Employee was a security guard who had been charged with assaulting a fellow employee and dismissed after a disciplinary hearing.  He claimed that the true reason for his dismissal had nothing to do with the alleged assault.  He claimed he was dismissed because he was instrumental in lodging a complaint with the Department of Labour arising out of the Employer’s failure to pay security officers overtime pay in respect of work performed by them on Public Holidays (except Christmas) and weekends.  He further alleged that had he been white, the Employer would not have dismissed him as the Employer treated white employees better that black employees. 

Summary of Judgement:  The court held that the test to be applied before granting absolution of the instance was whether there was such evidence, assuming it to be true, upon which a reasonable court might, not should, give judgment against the respondent.  In order to establish this, the onus had to be determined first.  Fairness relates to the reason for the dismissal.  The court held that when an automatically unfair dismissal was alleged, the sole enquiry was to establish the true reason for the dismissal, and the only legal issue was whether the reason so identified was covered by one or other of the provisions of section 187.  Section 192(2) of the LRA places the onus on the employer to show that the dismissal of an employee was for a permissible reason. Being an onus in its true sense, it remains on the employer throughout the course of the trial and cannot shift to the employee.  The court held that it was not for the employee to prove the reason for his dismissal, but merely to produce evidence sufficient to raise the issue or, to put it another way, that raised some doubt about the reason for the dismissal. Once this evidential burden was discharged, the onus remained upon the employer to prove the reason for the dismissal.  By reason of the fact that the overall onus remained with the Employer, the court held that it would be incorrect to accede to the application for absolution of the instance, either at this stage of the proceedings, or later. As a rule, absolution from the instance will not be granted where the onus rests on the defendant (the Employer in this matter) on one or more of the issues.  The application for absolution was dismissed.

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7. Unsubscribe & Moving Soon

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About the e-Journal/e-Newspaper

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Equity-Skills News & Views is a free bi-monthly newsletter for business owners, Line Managers, and Human Resource Professionals (who support Line Managers) with the implementation of fair and developmental people management systems and practices. The style of this e-Newspaper fits between the traditional email newsletters and printed professional trade journals & magazines. Subscribers will be kept up to date with the latest developments in the world of people management, receive handy people management tips, and feedback about labour court rulings that relate to the implementation of the key Labour Acts. Please add equity skills news & views to your list of approved senders if your Internet provider or server administrator filters incoming e-mail, to make sure you receive periodic e-mail alerts and this newsletter to which you are subscribed.

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Opinions expressed by contributors DO NOT NECESSARILY REPRESENT the standpoint of the publisher-editor of Equity-Skills News & Views. Information published here is for general information, and is not intended as legal advice. The authors, editors, and publishers do not accept responsibility for any act, omission, loss, or damage occasioned by any reliance upon the contents hereof.

This message is sent in compliance with the ELECTRONIC COMMUNICATIONS AND TRANSACTIONS ACT. 2002, Act No. 25, 2002 [ South Africa passed on 20 May 2003].

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Telephone: +27 011 485 4943

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Publisher-Editor: Equity-Skills News & Views 'A MUST TO PRINT & READ'

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Copyright (c) 2006 Registered electronic newspaper: 1SSN 1684-5714

   
© 2002 Equity Skills New & Views.  All Rights Reserved.                            ISSN 1684-5714