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Directors' report

2. Management of human resources

2.1 Human resources sustainability index

The human resources sustainability index is a measure of Eskom’s ongoing ability to achieve its human resources objectives. The index comprises 24 (2005: 26) people measures spanning employee satisfaction, employee competence, equity, and employee health and wellness. The measures are reviewed annually to ensure they remain appropriate. The index target of 80,0% was exceeded with an achievement of 86,3%¹ (2005: 84,5%).

2.2 Human resources shared services

The human resources shared services unit was piloted for corporate divisions in 2004 and roll-out began in February 2005 to the Enterprises, Transmission and Generation divisions, with the aim of integrating all divisions in Eskom by March 2007. The objectives of shared services are to:

achieve greater business efficiencies
allow more focus on core competencies
increase customer service and information levels

The unit handled over 5 000 requests per month and the service level agreement performance was 89%, ahead of the target of 80%.

Training and skills transfer at Eskom learning institutions

Eskom employees in the Palmiet pump storage scheme control room

2.3 Change management

An integral element of successfully driving organisational change is aligning employees’ behaviour to support Eskom’s strategic objectives. Accordingly, a permanent change management office provides relevant and strategic impetus to various business initiatives.

2.4 People development

Skills acquisitions
It is critical to the success of the capital expansion programme to ensure that Eskom has sufficient human resources with proven skills and abilities to fill the jobs created by the project.

Learnerships
Learnerships are structured learning programmes combined with practical work experience that enable employees to improve their skills for their own benefit and that of the organisation. Apar t from training current employees, learnerships also provide training for unemployed people who benefit by improving their prospects for future employability, employability, and assist in addressing critical skills shortages.

In 2006, Eskom indentured 595 (2005: 853) learnerships with the Energy Sector Education and Training Authority (Eseta).

Bursaries and scholarships
Bursaries are available for tertiary studies at university and university of technology levels, to talented young South Africans who could become employees in future. In addition, 217 Eskom employee dependants have been awarded scholarships from 2001 to 31 March 2006.

Training and development
Eskom is committed to training and developing all employees and contributing to skills development within the group and in the broader South African community through learnerships. Skills development is a prerequisite for all employees; it is managed through personal development plans, acquired competencies and associated training completed.

Training¹ and learnerships


	Actual	Actual	Actual
	2006	2005	2004
	(12 months)	(15 months)	(12 months)
Training
Total training cost, Rm	543	654	518
Learnerships
Bursary-holders and trainees, number	2 163²	1 568	1 447
Black bursary-holders and trainees, %	89	85	86
Women bursary-holders and trainees, %	55	55	54
¹. Training is focused on bridging the competency gap, rather than the absolute amount spent.
^2. Includes learnerships as reported by the Eseta.

Vision E
Vision E is a transformational leadership development programme that embraces the concept of African leadership and uses a blended (eLearning and classroom) learning approach to develop the competencies of Eskom leaders at managerial and professional levels. In Eskom 1 947 (66%) managers and professionals have completed both aspects of the programme, and 2 801 (95%) have completed the eLearning part.

Eskom Learning Institutions
Eskom Learning Institutions provide Eseta-accredited in-house technical and non-technical training. Technical training includes short courses, skills programmes and learnerships in specific disciplines as well as distribution (high voltage, medium voltage, low voltage, reticulation, maintenance and protection) training. In non-technical areas, training covered courses focused on business understanding workshops, practitioner skills enhancement, personal computer training, education and development. During the period, the institutions presented 61 396 (2005: 44 856) student training days of which 31 508 days were technical learnerships consisting of NQF levels 2 and 3 in the following disciplines: measurement – control and instrumentation, electrical, and mechanical and fabrication.

2.5 Employee relations

The decision-making process in Eskom includes employee input through a dual process: direct communication with managers and professionals, and consultation with employees in the bargaining unit through their recognised trade unions. Both approaches are based on the principle of encouraging employee participation for better cooperation in the workplace.

During the period, there were various provincial industrial actions against the high unemployment rate and job losses in South Africa. The industrial action had no significant impact on Eskom, with 51 man days lost this year (2005: 49). There was no industrial action against Eskom as an organisation.

Eskom concluded a two-year salary and conditions of service agreement with trade unions in 2005.

2.6 Remuneration and benefits

Incentives and performance management
A performance management system, linked to an incentive scheme, was rolled out throughout Eskom by March 2005. The online system for performance contracting (eContract) developed during 2004 went live during 2005. There were 5 029 employees identified to use the system of whom 4 023 (80%) have been trained. The roll-out and conversion from a paper-based system will continue in the new financial year.

Flexible benefits
The primary objectives of the flexible benefits package project were to give employees a choice in structuring their remuneration packages to attract and retain skills, and adopt best business practice. A process of consultation was concluded in July 2005 and the decision taken to adopt this approach for all management and professional employees.

2.7 Health and wellness

Eskom has a comprehensive health and wellness programme comprising psychosocial assistance, sports and recreation, biokinetics, spiritual wellness, occupational health and medicine, travel medicine, expatriate health, health education and promotion.

Managing the impact of HIV and Aids
Eskom is committed to managing the impact of HIV and Aids through integrated response strategies; to empower employees through knowledge and awareness, and enhance business sustainability. Special focus was given to voluntary counselling and testing. The 30,0% target for voluntary counselling and testing for HIV and Aids was exceeded with an achievement of 50,3%.

General footnotes
^1. Excludes Enterprises division as it was decided that the information relating to this division, except for the training cost, will be excluded from this
reporting cycle.

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