Rebuilding the Human Rebuilding the Human Resource Capital in the Road Resource Capital in the Road

SectorSector

RPFRPFE CapeE Cape

6/7 May 20086/7 May 2008

BackgroundBackground

CAPSA 07 CAPSA 07 (Summary paper; Jooste, Myburgh & Sampson)(Summary paper; Jooste, Myburgh & Sampson)

““Overall, the review of CAPSA 07 outcomes has shown Overall, the review of CAPSA 07 outcomes has shown that implementation of available knowledge and tools is that implementation of available knowledge and tools is the domain in which most challenges remain, and in the domain in which most challenges remain, and in which the least progress has been made. A key cause which the least progress has been made. A key cause of this is of this is the lack of appropriate growth in human the lack of appropriate growth in human resources, and the associated loss of experienced resources, and the associated loss of experienced practitionerspractitioners for various reasons. A clear conclusion of for various reasons. A clear conclusion of CAPSA 2007 is thus that CAPSA 2007 is thus that progress made with respect progress made with respect to asphalt pavements for southern Africa is to asphalt pavements for southern Africa is critically dependent on human resource critically dependent on human resource developmentdevelopment, and on the development of design tools , and on the development of design tools and technology transfer mechanisms that are suited to and technology transfer mechanisms that are suited to the current human resource realities of the region.the current human resource realities of the region.””

Sabita Digest paper on HRD, capacity building Sabita Digest paper on HRD, capacity building and skills developmentand skills development

Road Infrastructure Expenditure compared Road Infrastructure Expenditure compared with total infrastructure expenditurewith total infrastructure expenditure

0

20

40

60

80

100

120

R billions

Roads Total infrastructure

MTEF per Infrastructure sectorMTEF per Infrastructure sector(2007 – 2010 total)(2007 – 2010 total)

5%

21%

15%

5%

0%

1%

3% 9%

3%

10%

4%

24%

Water

Sanitation

Electricity

Housing

Education

Health

Roads

Rail

Ports

Justice

Police

Sport

QuestionsQuestions

Can the road sector deliver?

Do we have the human resources?

What can be done?

Other ChallengesOther Challenges

Acceleration of the transformation Acceleration of the transformation processprocess– Maths & Science legacyMaths & Science legacy

Increase in labour componentIncrease in labour component– EPWPEPWP

Generation gapGeneration gap

Professional profileProfessional profile

Management of deliveryManagement of delivery

Network owners/managers of 530 000 kms Network owners/managers of 530 000 kms of proclaimed roadsof proclaimed roads– SANRALSANRAL 16 000 km16 000 km– ProvincesProvinces 346 000 km346 000 km– MunicipalitiesMunicipalities 168 000 km168 000 km

220 000kms unproclaimed220 000kms unproclaimed

Public Sector CapacityPublic Sector Capacity(after RISFSA, 2006)(after RISFSA, 2006)

Skills categorySkills categoryProvincesProvinces MunicipalitiesMunicipalities

%% NoNo %% NoNoSenior Senior officials/managersofficials/managers 1.51.5 615615 0.30.3 126126

ProfessionalsProfessionals 1.11.1 451451 1.21.2 504504

Techs & Assoc ProfTechs & Assoc Prof 5.25.2 2 1322 132 7.07.0 2 940 2 940

ClerksClerks 8.18.1 3 3213 321 14.114.1 5 9225 922

Semi-skilled workersSemi-skilled workers 36.336.3 14 88314 883 22.822.8 9 5769 576

Elementary Elementary occupationsoccupations 47.847.8 19 59819 598 54.654.6 22 93222 932

TotalTotal 100100 41 00041 000 100100 42 00042 000

SANRAL – 149 (2007 annual report)

Provincial CapacityProvincial Capacity(Treasury Survey, August 2006)(Treasury Survey, August 2006)

Highlighted many problemsHighlighted many problems

SummarySummary– UnderstaffedUnderstaffed– Many of the staff are under-qualifiedMany of the staff are under-qualified– Top managers interfere rather than guideTop managers interfere rather than guide– Current legislation creates a negative Current legislation creates a negative

environmentenvironment– Departmental systems needs to be Departmental systems needs to be

streamlined to improve deliverystreamlined to improve delivery

Summary of RecommendationsSummary of Recommendations

PDOTs need to do more to attract and retain skilled PDOTs need to do more to attract and retain skilled personnelpersonnel– critically review organograms in terms of qualifications, skills & critically review organograms in terms of qualifications, skills &

salarysalary– Competitive salariesCompetitive salaries

Critical attention to skills deficitCritical attention to skills deficit– Training, bursaries, mentorship schemes, site experienceTraining, bursaries, mentorship schemes, site experience– Experience is time relatedExperience is time related– Discourage the practice of placing non-engineering staff in Discourage the practice of placing non-engineering staff in

engineering management rolesengineering management roles

Well maintained Asset Management Systems essentialWell maintained Asset Management Systems essentialStreamline admin systemsStreamline admin systemsMore emphasis on technical competence in procurementMore emphasis on technical competence in procurementConsultants should be members of SAACE where Consultants should be members of SAACE where possiblepossibleContracts awarded to established contractors who should Contracts awarded to established contractors who should retain sub-contractors based on training and competencyretain sub-contractors based on training and competency

Municipal/Local Government CapacityMunicipal/Local Government Capacity

SAICE “Numbers and Needs study” – Nov 2007 by SAICE “Numbers and Needs study” – Nov 2007 by Allison LawlessAllison Lawless

Similar situation to ProvincesSimilar situation to Provinces

5 to 10 year window to turn around the skills decline5 to 10 year window to turn around the skills decline

Concludes skills, leadership and a turnaround strategy Concludes skills, leadership and a turnaround strategy are urgently neededare urgently needed

To ensure sustainability:To ensure sustainability:– Long term plans – 10 to 20 year horizonsLong term plans – 10 to 20 year horizons– Leadership needs a paradigm shift (ideological agendas to Leadership needs a paradigm shift (ideological agendas to

sustainable service delivery)sustainable service delivery)– Relationship between Councils & AdministrationRelationship between Councils & Administration– Municipal managers should be visionary leadersMunicipal managers should be visionary leaders

Clear need for experience Clear need for experience – Different equity targets for different age groupsDifferent equity targets for different age groups

Municipal/Local Government Capacity Municipal/Local Government Capacity (cont ..)(cont ..)

Current civil engineering staff in local Current civil engineering staff in local government between 1 300 & 1 400government between 1 300 & 1 400Net loss 70 to 90 per year since late 80sNet loss 70 to 90 per year since late 80sCurrently 3 engineers per 100 000 populationCurrently 3 engineers per 100 000 populationPreviously 21 engineers/100 000Previously 21 engineers/100 000

If this decline continues service delivery at If this decline continues service delivery at local government level will all but come to a local government level will all but come to a standstillstandstill

Lawless Plan to Rebuild Capacity in Lawless Plan to Rebuild Capacity in Local GovernmentsLocal Governments

Municipalities (and Provinces) to step up technical Municipalities (and Provinces) to step up technical appointments and attract as many back into the sector appointments and attract as many back into the sector as possible.as possible.The public sector to offer and coordinate support and The public sector to offer and coordinate support and set conditions for sustainability.set conditions for sustainability.Deployment of students and graduates on long-term Deployment of students and graduates on long-term workplace training contracts.workplace training contracts.Consultants to second experienced municipal Consultants to second experienced municipal (provincial) staff to run departments and rebuild internal (provincial) staff to run departments and rebuild internal capacity.capacity.In some instances, an “adopt-a-town” strategy whereby In some instances, an “adopt-a-town” strategy whereby the private sector is appointed on a turnkey basis to the private sector is appointed on a turnkey basis to address backlogs, and refurbish and rebuild long-term address backlogs, and refurbish and rebuild long-term structures, systems and capacity per municipalitystructures, systems and capacity per municipality

The “Bottom Line” in the Public SectorThe “Bottom Line” in the Public Sector

Capacity to deliver essential services at Capacity to deliver essential services at Municipal and Provincial levels is critical and Municipal and Provincial levels is critical and needing urgent attentionneeding urgent attentionLeadership needs to be reviewed as current Leadership needs to be reviewed as current policies are not achieving the infrastructure policies are not achieving the infrastructure delivery goalsdelivery goalsStrong leadership required to manage the Strong leadership required to manage the changechangeTime to harness, optimise and build the scarce Time to harness, optimise and build the scarce resources available for infrastructure resources available for infrastructure development and maintenance (of which roads development and maintenance (of which roads is a major component) without the constraints is a major component) without the constraints of politics, age, gender and raceof politics, age, gender and race

Private Sector CapacityPrivate Sector Capacity(Roads & Bridges sector - after RISFSA, 2006)(Roads & Bridges sector - after RISFSA, 2006)

Skills categorySkills categoryConsultantsConsultants ContractorsContractors

%% NoNo %% NoNoSenior Senior officials/managersofficials/managers 12.212.2 760760 1.81.8 868868

ProfessionalsProfessionals 26.126.1 1 6261 626 1.91.9 916916

Techs & Assoc ProfTechs & Assoc Prof 20.720.7 1 2901 290 4.64.6 2 217 2 217

ClerksClerks 28.028.0 1 7441 744 4.24.2 2 0242 024

Semi-skilled workersSemi-skilled workers 00 00 44.544.5 21 44921 449

Elementary Elementary occupationsoccupations 13.013.0 810810 43.043.0 20 72620 726

TotalTotal 100100 6 2306 230 100100 48 20048 200

Supply of Civil Engineers, Technologists Supply of Civil Engineers, Technologists and Techniciansand Technicians

Supply chain from enrolment to professional Supply chain from enrolment to professional registration takes a minimum of 7 years and registration takes a minimum of 7 years and more than 10 years to have the required more than 10 years to have the required experienceexperience

Trends presented in RISFSA to 2002 with some Trends presented in RISFSA to 2002 with some only to 1997only to 1997

More up-to-date survey urgently required to More up-to-date survey urgently required to identify current trends and evaluate whether identify current trends and evaluate whether current supply will meet the needs for next 10 – current supply will meet the needs for next 10 – 15 years15 years

Observations from the RISFSA figuresObservations from the RISFSA figures

Students enrolling at universities between 1993 and Students enrolling at universities between 1993 and 1997 remained constant at 2 000/year1997 remained constant at 2 000/yearStudents who graduated declined from 1 500 to 1 200.Students who graduated declined from 1 500 to 1 200.Students enrolling at Technikons between 1993 and Students enrolling at Technikons between 1993 and 1997 doubled from 4 000 to 8 0001997 doubled from 4 000 to 8 000Students who graduated remained fairly constant at Students who graduated remained fairly constant at 3 000/year.3 000/year.Registered civil engineers was 6 900 in 1998 and had Registered civil engineers was 6 900 in 1998 and had decreased to 6 400 by 2002 of which 20 – 30 percent decreased to 6 400 by 2002 of which 20 – 30 percent (approximately 1 700) are active in the roads and bridges (approximately 1 700) are active in the roads and bridges sector.sector.Registered technicians were 1 595 in 1998, peaked at Registered technicians were 1 595 in 1998, peaked at 1615 in 2000 and fell back to about 1 595 in 2002.1615 in 2000 and fell back to about 1 595 in 2002.The gap between the number of white and black The gap between the number of white and black engineers registering has closed significantly.engineers registering has closed significantly.Between 1998 and 2001, the number of black registered Between 1998 and 2001, the number of black registered technicians increased significantly to a point where technicians increased significantly to a point where black registrations exceeded those of whites.black registrations exceeded those of whites.

International ComparisonsInternational Comparisons

0

2

4

6

8

Engineers as a proportion of population

Engineers/1000 population

SA’s rate is 0.33/1 000 population

Factor of 10 lower than most other countries

Suggests the road sector needs 17 000 engineers not 1 700

Estimated NeedsEstimated Needs

Current status quo in road sector is approximatelyCurrent status quo in road sector is approximately

138 000 employees138 000 employees– 1 300 to 1 900 are registered civil engineers1 300 to 1 900 are registered civil engineers

RISFSA considered 5 scenarios from 2003/04RISFSA considered 5 scenarios from 2003/04– Continue with the current investment levels;Continue with the current investment levels;– A gradual increase in investment in the road industry to R6 A gradual increase in investment in the road industry to R6

million per annum after 5 years;million per annum after 5 years;– An additional R6 billion invested within the 2003/04 financial An additional R6 billion invested within the 2003/04 financial

year;year;– A gradual increase in investment in the road industry to an A gradual increase in investment in the road industry to an

additional R12 million per annum after 5 years;additional R12 million per annum after 5 years;– An additional R12 billion invested within the 2003/04 financial An additional R12 billion invested within the 2003/04 financial

yearyear

MTEF suggests scenario 4 is the closestMTEF suggests scenario 4 is the closest

Road Infrastructure Expenditure compared Road Infrastructure Expenditure compared with total infrastructure expenditurewith total infrastructure expenditure

0

20

40

60

80

100

120

R billions

Roads Total infrastructure

R11.6bR22.6b

Forecast of number of employees for the Forecast of number of employees for the 5 year period5 year period

Skills categorySkills categoryYear 0Year 0 Year 1Year 1 Year 5Year 5

NoNo NoNo % inc% inc NoNo % inc% inc

Senior Senior officials/managersofficials/managers 2 4702 470 2 6502 650 7.37.3 3 4103 410 38.138.1

ProfessionalsProfessionals 3 4703 470 3 7203 720 7.27.2 4 7404 740 36.636.6

Techs & Assoc ProfTechs & Assoc Prof 8 6108 610 9 1309 130 6.06.0 11 27011 270 30.930.9

ClerksClerks 12 93012 930 13 56013 560 4.94.9 16 13016 130 24.724.7

Semi-skilled workersSemi-skilled workers 46 07046 070 49 67049 670 7.87.8 64 25064 250 39,539,5

Elementary Elementary occupationsoccupations 63 93063 930 67 98067 980 6.36.3 84 39084 390 32.032.0

TotalTotal 137 480137 480 146 710146 710 6.76.7 184 190184 190 34.034.0

Figures for public sector, consultants and contractors available

Observations from needs assessmentObservations from needs assessment

Current capacity cannot deliver on the MTEF Current capacity cannot deliver on the MTEF plansplans

An average 7% annual increase across the An average 7% annual increase across the skills level required in next 5 yearsskills level required in next 5 years– 9 230 in year 19 230 in year 1– 47 000 over the 5 year period47 000 over the 5 year period

General shortage of highly skilled professional General shortage of highly skilled professional with the majority over 45 years of agewith the majority over 45 years of age

Road sector requires 1000 additional skilled Road sector requires 1000 additional skilled professionals in year 1 increasing to 5 000 by professionals in year 1 increasing to 5 000 by year 5year 5

Realistic strategiesRealistic strategies

Short termShort term– Recruitment or secondment of foreign experts Recruitment or secondment of foreign experts

through competitive packagesthrough competitive packages– Development of a holistic sustainable skills Development of a holistic sustainable skills

development plandevelopment plan

Longer termLonger term– Implementation of the planImplementation of the plan– Improving the throughput at tertiary institutionsImproving the throughput at tertiary institutions– Mentorship towards professional registrationMentorship towards professional registration– Promotion of the industry at schools levelPromotion of the industry at schools level– Review of qualifications and training interventions Review of qualifications and training interventions

at all levels to meet industry needsat all levels to meet industry needs

Summary of the current situationIndustry in a growth phase after years after years of Industry in a growth phase after years after years of neglectneglectHuman resources and skills seriously depleted, Human resources and skills seriously depleted, especially in the public sectorespecially in the public sectorCannot realistic meet all the demands for deliveryCannot realistic meet all the demands for delivery– Too large fluctuation in fundingToo large fluctuation in funding

Limited leadership from DoTLimited leadership from DoT– RISFSA positiveRISFSA positive

Skills development and HR growth only a priority in the Skills development and HR growth only a priority in the last 2 yearslast 2 yearsInappropriate qualifications at all levelsInappropriate qualifications at all levels– CETA; Materials testing; Pavement EngineeringCETA; Materials testing; Pavement Engineering

No coordinated approach to HR capacity buildingNo coordinated approach to HR capacity building– Some positives (eg TRAC, SANRAL Chair, AsAc, SARF short Some positives (eg TRAC, SANRAL Chair, AsAc, SARF short

courses, Tcourses, T² Centres, CoDs)² Centres, CoDs)– Mainly CPD focusMainly CPD focus

Outdated documentation that form our skills baseOutdated documentation that form our skills base

What can we DO?What can we DO?

Not a quick fix situationNot a quick fix situationCoordinated approachCoordinated approachRISFSARISFSA““The shortcomings identified with road service The shortcomings identified with road service

delivery include to a large extent failure in delivery include to a large extent failure in coordination processes, structures and coordination processes, structures and mechanisms” (eg COLTO/COTO)mechanisms” (eg COLTO/COTO)

Roads Coordinating Body (RCB) Roads Coordinating Body (RCB) proposed as a critical element to proposed as a critical element to streamlining and coordinating service streamlining and coordinating service delivery across all spheres of delivery across all spheres of governmentgovernment

Functions of the RCBFunctions of the RCB

To oversee technical studies that are commissioned by the DOT in To oversee technical studies that are commissioned by the DOT in consultation with roads authorities, to determine the state of the road consultation with roads authorities, to determine the state of the road network, identify key challenges and backlogs and determine future network, identify key challenges and backlogs and determine future requirements;requirements;Identifying and scheduling key priority areas jointly with roads authorities Identifying and scheduling key priority areas jointly with roads authorities in order to allow the latter to prioritise the allocation of funds;in order to allow the latter to prioritise the allocation of funds;To collect information and oversee the development of policies and To collect information and oversee the development of policies and models in order to advise roads authorities on roads planning, models in order to advise roads authorities on roads planning, prioritisation and financing strategies and delivery management prioritisation and financing strategies and delivery management processes;processes;Facilitation, coordination and oversight of the development of strategies, Facilitation, coordination and oversight of the development of strategies, plans, standards and guidelines for road service delivery in line with plans, standards and guidelines for road service delivery in line with government priorities;government priorities;Coordination of road sector support, including other relevant Coordination of road sector support, including other relevant stakeholders eg: SALGA, DPLG and National Treasury, for the stakeholders eg: SALGA, DPLG and National Treasury, for the implementation of key government programmes;implementation of key government programmes;Monitoring and evaluation of roads service delivery in order to ensure Monitoring and evaluation of roads service delivery in order to ensure that investment achieves the desired impact; andthat investment achieves the desired impact; andTo promote the implementation of the recommendations of the strategic To promote the implementation of the recommendations of the strategic frameworkframework

How will this be achieved without building HR capacity

and skills?

Road Engineering Coordinating BodyRoad Engineering Coordinating Body(RECOB)(RECOB)

Strategic coordination of human capital development in Strategic coordination of human capital development in the road sector in line with the RISFSA document with the road sector in line with the RISFSA document with alignment of the road sector initiatives to the broader alignment of the road sector initiatives to the broader skills development initiatives driven by the skills development initiatives driven by the Government’s Joint Initiative in Priority Skills Government’s Joint Initiative in Priority Skills Acquisition (JIPSA);Acquisition (JIPSA);Coordination of education at tertiary institutions and Coordination of education at tertiary institutions and through the SAQA/CETA structures;through the SAQA/CETA structures;Information sharing and dissemination for continued Information sharing and dissemination for continued professional development;professional development;Coordination and management of best-practice Coordination and management of best-practice documentation, standards and specifications in support documentation, standards and specifications in support of RCB initiatives;of RCB initiatives;Coordination of research activities in support of best-Coordination of research activities in support of best-practice;practice;

RECOB Strategic Trust AreasRECOB Strategic Trust Areas

Road Engineering Coordinating

Body

Strategic Support & Coordination of

Skills Development

Education & Training

Coordination

Best-practice documentation

Research Coordination

Information sharing &

dissemination

RECOBRECOB

Support structure to RCB and RISFSASupport structure to RCB and RISFSAPrivate sector driven for quick implementationPrivate sector driven for quick implementation– Management Executive of sponsor organisationsManagement Executive of sponsor organisations– Public/Private Advisory BoardPublic/Private Advisory Board

Independent coordinating interface for road Independent coordinating interface for road engineeringengineeringShould not run courses in competition to Should not run courses in competition to current service providers (eg SARF, AsAc, current service providers (eg SARF, AsAc, C&CI, tertiary institutions)C&CI, tertiary institutions)Process driven by RPF sponsorsProcess driven by RPF sponsorsBusiness plan prepared for discussionBusiness plan prepared for discussionQuestionnaireQuestionnaire

ConclusionsConclusions

MTEF shows the road sector is entering a growth phaseMTEF shows the road sector is entering a growth phase15 years of a depressed industry allied alternative 15 years of a depressed industry allied alternative priorities and agendas has left the industry seriously priorities and agendas has left the industry seriously depleted in skills and capacity at all levelsdepleted in skills and capacity at all levelsCurrent capacity will not meet the delivery targetsCurrent capacity will not meet the delivery targets– Foreign recruitment a reality in short termForeign recruitment a reality in short term

There is no quick-fix solutionThere is no quick-fix solutionBased on a 5-year scenarioBased on a 5-year scenario– 7% annual increase across all skills levels7% annual increase across all skills levels– 9 230 extra in year 1 to 47 000 in year 59 230 extra in year 1 to 47 000 in year 5– 1 000 extra skilled professional increasing to 5 0001 000 extra skilled professional increasing to 5 000

15 year window to transfer knowledge and build a 15 year window to transfer knowledge and build a vibrant and experienced work forcevibrant and experienced work forceNeeds to be supported by a sustained road Needs to be supported by a sustained road infrastructure growth strategyinfrastructure growth strategy

Conclusions cont..Conclusions cont..

Large fluctuations in funding should be prevented for Large fluctuations in funding should be prevented for sustainabilitysustainability

Don’t pull the plug in 5 – 10 years!!Don’t pull the plug in 5 – 10 years!!

Capacity at Provincial and Municipal levels is a serious Capacity at Provincial and Municipal levels is a serious bottleneck to delivery and requires urgent attentionbottleneck to delivery and requires urgent attention

Coordinated approach to skills development and Coordinated approach to skills development and capacity building in the road sector is an essential capacity building in the road sector is an essential prerequisite to improving efficiency and effectiveness of prerequisite to improving efficiency and effectiveness of road sector deliveryroad sector delivery

RECOB established as a matter of urgency in support of RECOB established as a matter of urgency in support of the RCB to coordinate skills development and the RCB to coordinate skills development and associated best-practice support documentation to associated best-practice support documentation to facilitate the rebuilding of human capitalfacilitate the rebuilding of human capital

Increased Private sector involvementIncreased Private sector involvement