1.1 INTRODUCTION AND BACKGROUND
Talent is defined by the dictionary.com as the special ability that enables someone to perform the job very well. Talent Management is the term used to define sound and integrated human resource with the aim of attracting the correct people, with the right skills and expertise for the right positions at the right time. It can also be explained as the process of ensuring that the company attracts, retains, motivates and develops the talented people with the aptitude and abilities it requires in order to meet the current and future organizational needs.
Companies are run by people therefore the talent of these people will highly determine the success of the company. World class organisations succeed in today’s world because they know how to SCORE, because they employ people with the right skills. The modern workplace is changing rapidly with advances in technology changing the nature of the world’s economy from being predominantly product based towards a new knowledge paradigm. We live in a challenging competitive global business environment which is becoming intensive and organisations have increasing pressure to perform better than before. Formation and safeguarding of knowledge has become a key tool in accelerating competitiveness and enhancing organizational capabilities to respond to market charges (Bryan, 2004), wherein employees skills and personalities are appropriately deployed to optimize performance, is critical and difficult task. In addition identification and developing executives who have leadership abilities is a very demanding process that is equal parts of Arts and Science (Klein and Miles, 2003).
For any organization in order for it to carry out its mission successfully they need to develop as well as ensure that they deploy the right and talented employees and the right positions in order to articulate the passion and the vision of their organization. Therefore in order for the business strategy to make sense, the talent management needs to be linked to it.
Erongo RED is an abbreviation for Erongo Regional Electricity Distributor Company (PTY) LTD a company that is responsible for the supply and distribution of electricity in the Erongo Region in the Republic of Namibia. The company made its vision as its driving strategy. Erongo RED is having a staff compliment of 300 employees of which 108 are Female and 192 Male. The core business units are Network Operations and Network Engineering. These divisions employs the majority of employees which Electricians and Engineers. Erongo RED also has support divisions which are Supply Business unit responsible for Customer care, Billing and Metering, Finance and Corporate Services which is responsible for the financial administration of the company, Human Capital responsible for all human resources activities which includes talent management, Supply Business unit and last but not least the Office of the CEO which is responsible for Business strategy, Marketing and Public Relations and Auditing as well as for the overall management of the company.
Talent management at Erongo RED has a place at executive table and talent management is a key performance indicator for Erongo RED business strategy. Therefore talent management in Erongo RED is well aligned with the company’s strategy.
2.Literature Review
2.1 Definition of Talent
Most researchers defined talent from different perspectives. According to CIPD 2007, definition the way the specific company defines talent it depends on the strategy that is being used by the business as well as the nature of the organisation. Therefore there is no one single definition for the word talent, it basically depends on the language that is being shared in the specific company (Tansely 2011).
Talent is unique to organization as is particularly affected by factors like industry, its nature, individuals, implications and so on (CIPD 20 07). CIPD 2007 defined talented people as people who can make the potential difference in the company. According to Ready & Conger 2007 they defined talent as a group of employees with an average knowhow and skills and are prepared to be promoted to executive positions thus are regarded as best employees in the organization.
2.2 Definition of Talent Management
Different definitions are available for talent management however it remains unclear on what exactly what it really means (Lewis & Heckman 2006). Different researchers however put more emphasis on having the right number of people at the right place at the right time that have the necessary skills sets required and level of motivation are vital fundamental to talent management (Stephenson & Pandit 2008). Similarly others equally believes that talent management embraces all activities within the organization ranging from employee attraction, employee development, selection as well as retaining them in the suitable positions ( Stahl Et al, 2007).
According to Iles et al (2010) & Capelli (2008), there is a relationship between talent management and human resource management which presents a different analysis. As illustrated in the following points of view definitions of talent management:
1) Talent management is not essentially different from Human Resource Management (HRM). It includes HRM activities and hence can be said that talent management is a rebranding term of HRM, which has transformed from the traditional term of human resource management to the new concept of talent management. Therefore this new brand of HRM has focused on how to manage talents strategically.
2) Talent management includes human resources management and organizational development, but talent management highlights on talented people, accordingly, the focal point is talent pool, both internal and external of the organization.
3) Talent management focuses on proficiency development through managing the development of talents within the corporation. Their focus is on talents is on talent movements instead of talent pool. The theory has originated from operational and logical theories. Talent management programs are shaped to provide pools for providing certain job categories and focus on development of specific individuals who are qualified to make succession in the organization.
2.3 The Concept of Talent Management and its importance
The concept of talent management originated during World War II (Cappeli, 2008). Talent Management has become the most important component of corporate strategies in most of the organisations (Bano, Khan, Rehman & Humayoum, 2010). Talent Management is the additional management processes and opportunities that are made available to people who are considered to be talent (Blass, 2008). Talent management is directly linked to concept that includes human resource planning, strategic human resource management and employability (Brown and Hesketh, 2006).
The basic purpose behind talent management is mainly to improve the process of recruitment, selection, retention and employee development in order to meet current challenges faced by organisations as well as improving organizational performance by fulfilling organizational needs (Bhatnagar, 2007). Successful talent certifies the organisations to attract and retains essential talents and employee’s engagement who believes that talent management is fundamental to talent and is associated with a number of typical human resources management practices or functions like recruitment, training and development (Heinen 2004). Managers should develop their strategy for talent engagement, motivation as well as retention as per talent’s external and internal factors. Most organisations has started to capitalize in long term strategies to employ as well as develop management skills, in additions to employing integrated talent management development strategies, henceforth a well-developed strategy can benefit in overcoming organisations difficulties as well as enhancing business success Rowland (2011).
Literatures by researchers like Ulrich (1989, 1996, 2005), Pucick (1996, 2005) and Capelli (2008) indicates the importance of talent management as well as its benefits. The worldwide war for talent is becoming a serious driving force in corporate competitive and performance, the idea of talent management has become increasingly popular (Axelrod et al 2002).
2.4 Talent Management Practices
Talent Management approaches are meant at improving employee benefits, employee engagement, competence compensation, learning and development and Instrument for measuring the outcome of talent management are absenteeism, turnover and productivity (Mudoli, 2009).
Talent Management deals with the implementation of program and strategies to attach the unique talent of individual employees and translate their talent potential into optimum organizational performance. (UK Commission for Employment & skills, 2012) point out the various approaches for the management practices such as The “Inclusive approach, The Executive Talent pool approach, The Future Leaders approach, The Succession Planning approach, The Blended approach.
2.5 The need for talent management
Human resources (HR) work in order to obtain as well as retain manpower therefore talent management is on HR professional minds in today’s world. In order for talent management to be successful it is vital to employ people who are best suitable in the organization. According to Shravathi and Sumant, 2008 most employees also identify themselves with specific companies mostly in the light of forecasted labour shortage. Companies that officially decide to accomplish their talent commence a strategic analysis of their current human resources process (Shravathi and Sumant, 2008). This is done with the aim of ensuring that a coordinated performance oriented approach is adopted.
The need for talent management also resulted from the characteristics of the existing employees which are currently in the process of transformation and are capable and liable for significant changes. According to Sojka, 2010, changes are as follows:
o Changes in the workforce trends
Global organisations have notices the alarming reality that significant demographic, economic, social-political and technological changes dramatically transform the workforce too. Changes in the birthrate, in the age of retirement and the workers requirements reduce the volume of the workforce and cause significant skill shortage, while on the other hand removal of the business barrier, progress in communication and the latest economic findings highly prioritize the global and virtual workforce.
o Workforce smaller in numbers and insufficiently skillful
o Global dimensions of the workforce
o Vitality of the workforce
o Diversity of the workforce
o Autonomy and self-containment
2.6 Approaches to Talent management
2.6.1Talent Attraction
Talent attraction includes recruitment and selection, employer branding, employee value proposition and employer of choice (Armstrong, 2006). Recruitment and selection entails that companies utilize different methods and techniques of selecting the correct talent that reflects the culture as well as the value on the particular company (Armstrong, 2006). The first thing in talent management task strategy is the creation of the recruitment pool, which can either be an internal pool or an external pool. According to David et at 2007 the best way create a talent pool is an internal pool since the employees are already familiar with the business process and can be incorporated directly into the positions thus uplifts the morale of the workforce.
Employer branding includes development of the organisation’s image good enough such that it attract employees. In order to attract the best, organisations branding is a very useful strategy, therefore for a company to attract the best it need to have a good image (Tanuja 2007).
2.6.2 Talent Retention
Employee turnover can have a direct impact in any organization. Not only does it cost your company in terms of recruitment, on-boarding and training, it also affects your ability to continuously offer high-quality service to your client (Zikmund, 2000). Talent Management programs offers companies proven and practical way to meaningfully improve satisfaction and retention in order to reduce turnover and its associated costs (vol5). It also stated that the happier and productive employees deliver high level of customer service and help to deliver strong overall business results that will contribute to the overall productivity of the company. In order to attract as well as to retain talent for compatibility, there should be the fit between the employer and employee, Lockwood (n.d). This includes introduction of the different activities that will help in employee retention such as performance incentives, succession planning as well as performance management system.
2.6.2 Learning and Development
According to the CIPD (2006) leaning and development survey, the two main objectives of talent management are: developing individuals as well as growing future senior managers. This survey also reveals that about 94% of the respondents well-designed talent activities can have a positive impact on an organisation’s bottom line. According to Byhan et al (2002), if a company fails to have a well-defined profile of what it clearly needs from its future senior leadership then it will not be able to develop people for future management positions as well as clearly assess the readiness of high-potential individuals for leadership roles. In the same vein Byhan et al (2002) also states that the characteristics of the leaders who will carry it into the future should also be stated. In order to ensure readiness employees need to be constantly developed as well as ensure that there is a succession plan in place. All these have to be linked to the company’s strategy.
2.6.3 Career Management
According to Allen 2005, there are several element of career management, which includes career development and planning which focuses on planning of employee growth and progression, career path that involves creating established career paths and families of jobs inside a given area allowing employees have a vision of progression as well as goals and expectations, employees development consisting of programs and initiatives, learning and development initiatives, management coaching, competitive reward systems, career center, succession planning, performance management/ feedback and cross-functional development programs.
Career management has both formal and informal activities which include employee’s workshops, job rotations, job enrichment and career progression ladders for example organizationally planned programs or developmental stage theories (vol5). Companies also contribute to career identity by providing ample opportunities for self-development, opportunities for progression and mentors (Dagharm, 2013). According to Sturgeset al (2002), career management increases employee’s commitment and henceforth organisation’s performance. Van Dam (2004) has established that people who experience more support have high higher employability orientation.
2.6.4 Succession Planning Management
Succession planning and leadership development are very important business strategies to develop and retain people under talent management umbrella (Lockwood, n.d). The responsibility for executing successful planning differs, starting with Human capital, then senior management, CEO, Chief Operating Officer, (Lockwood, n.d).
According to Miller-Merrel 2014 the benefit of succession plan includes:
o Ensuring continuity in case a particular employee resigns retires or gets dismissed.
o It creates a foundation of qualified and capable individuals in the company
o It helps in maintaining the strategic plan
o It is a commitment from the company to develop a career path for individual employees
o It creates an external reputation that the company develops the employee
o It portrays the message that employees are important to the company.
2.7 Main factors affecting talent management
According to authors Hatum, 2010, Schuler, Jackson & Tarique 2011, the main factors affecting talent management are as follows
o Globalisation- this provides companies as well employees with new prospects and at the same time it makes more diverse and integrate, competition is more strong, complex and extremely widespread.
o The knowledge economy- knowledge is used as the greatest significant source of the company’s competitive advantage, it is against this background that knowledgeable workers are becoming strategically important for organization.
o Changing the world of work- this is described by creating new forms of work as well as new jobs, also by the imbalance between the required and available skills, by the scarcity of high-skilled worker, by the increase in the global and simulated workforce. In today work life is characterized by difficulty, randomness and uncertainty.
o Demographic changes- are accumulating in the age profile of the workforce (ageing staffs generation Y and younger generations) and in the structure of the staff (increasing diversity, different skill sets, varied expectation).
o Technology- makes the world faster and more connected and it has a significant effect on offices and the staff.
3. Findings
3.1 Inclusive vs Exclusive approach
Inclusive approach is an approach whereby everyone is regarded as a talented employee, this simply means that all employees have the right combinations of inborn abilities which are complemented by the knowledge, skills, experience and competencies that is required to give the sterling performance in a specific situation.
Exclusive approach is an approach whereby a talented employee represents an extra ordinary efficient employee with a high potential who can make a significant contribution to the organization.
Erongo RED is using both approaches inclusive and exclusive approaches of talent management. In terms of exclusive the company is making use performance management system as a practice whereby only employees from job grading C1 and above are introduced to performance management program which is aimed at assessing and evaluating employee’s performance in order to meet their targets. While on the other hand the company also applies inclusivity whereby it accords all its employees irregardless of job grading, skills, educational background etc. equal chances of training and development, study aids, mentoring and coaching.
The following table is a sample used by Erongo RED to assess employee performance.
Item Description
Key performance Area (KPA’S) Key functions that one need to perform
Measures/Performance Indicators Indicators that will show that the task is done
Baseline Baseline should also be indicated
Target Percentage that is being targeted
Actual achieved Actual percentage achieved
Weighting The weight allocated to the specific task
Rating Rating given by the person doing the assessment
Score Final score
Source: Erongo RED
3.2 Benefits of inclusive approach
Inclusive approach benefits Erongo RED in the following manner:
1) It gives an opportunity to employees show their potential through performance
2) Everyone is deeming to have talent of some sort and should therefore have access to programme that develops their talent.
3) Erongo RED targets a small group, focus on them and expose them to training in order to develop them.
3.3 Benefits of exclusive approach
Erongo RED decided to adopt exclusive approach due to the following benefits:
1) It gives the company the ability to focus on the succession plan for the company as well as ensuring that there are available future leaders for the company.
2) It helps the company to target resources and also be able to effectively monitor return on investment.
3) It helps the company promote as well development of the employees within the talent pools
3.4 Potential Barrier to exclusive approach
Potential barrier to inclusive approach that Erongo RED is currently facing especially to young generation is the fact in many instances people tent to leave the company the after they are trained.
3.5 Talent Management practices being applied by Erongo RED
Source: Erongo RED Talent management Policy Document
3.6 Effective the application of talent management practices in Erongo RED
Despite talent management being a new concept, the application and practice is becoming very effective in Erongo RED. Erongo RED has managed to develop talent for its employees in various ways and is still continuing. Initiatives by the company includes: Organisational Development initiatives when it comes to training, Performance management, Graduate programme, Levels upgrade for Electricians, the recent investment in renewable energy, Management Development Program for the middle management, succession planning etc.
3.7 Diversity consideration for talent management practices at Erongo RED
Erongo RED talent pool is diverse in terms of the following:
o Age
o Gender
o Education background
o Skills and expertise
o Culture
Erongo RED concentrates on age as well as gender in order to give them boost as well as exposure. In terms of gender Erongo RED employs a number of women in technical and electrical positions for example, 3 female electricians, 2 female Meter Readers and 2 female Control center technician’s positions which are traditionally known for male employees. The company has also developed quite a number of females and are now 6 female employees occupying senior management positions. In terms of age Erongo RED has managed to secure the employment of a young, visionary and ambitious 44 year old Chief Executive Officer with qualification in Electrical Engineering as well as Master of Business Leadership. The executive team is also diverse with different skills which are not only technical but those that relate to diversity, ethnicity as well as cultural diversity.
3.8 Drivers of Talent Management in Erongo RED
Talent Management in Erongo RED is driven by Executive management and the Board of Directors.
3.9 Stakeholders in the talent management practice and effectiness of their roles.
3.9.1 Executive management
The executive management (EXCO) of Erongo RED is the main driver of the talent management strategy. They ensure that talent management is aligned with the corporate strategy. They also approve strategies in terms of talent management e.g policies, provides finance as well as ensuring that there is correct technology sufficient to drive the initiatives.
3.9.2 Human Resource management
Human resource plays a very crucial role in talent management process ranging from talent seeking i.e. advertising, short listing, interviews, recruitments, promotions, Training and development etc. They facilitate most of talent management processes as well as policy formulation.
3.9.3 Line managers
Line managers in Erongo RED identify the need within their respective divisions as well as the skills and capabilities required from people in order to perform their duties. Line managers also motivate as well as give employee support.
3.9.4 Employees
Employees are the ones that are required to perform, they are key players. Employees are positioned into positions according to their level of experiences, education as level expertise. Employees take ownership and are responsible for their actions, seek out clear and frank interaction with other employees, show confidence through their performances, they learn how to be leaders and develop leadership capabilities for themselves.
3.10 Metrics being applied by Erongo RED
3.11 Erongo RED strategic approach toward talent management. Is talent management aligned with the business strategy?
Erongo RED follows a strategic approach toward talent management as illustrated in the table below:
Alignment of talent management with Business strategy at Erongo RED
Objectives KPI Measurement Critical task/ Strategic initiative Target date
P1 Transform the organizational culture % Achievement on annual Cultural value Survey
% Staff Achieving performance Targets
P1.1 Facilitate Annual Culture and implement improvement strategy
P1.2 Implemented and roll-out employee wellness plan
P1.2.1 Review and update IDP’s as per new targets
P1.2.2 Implementation 80% June 2016
June 2016
June 2016
P2 Implement Empowerment and Retention strategies for staff (5%) % Staff turnover
Implementation of HRDP/IDP P2.2 Attraction/Succession and Retention Policy
P2.2.1 Implement Annual competency Based Training & Development strategy
P2.2.2 IDP’s (Training & Development interventions aligned June 2016
June 2016
June 2016
Source: Erongo RED
4. Discussion
4.1 Inclusive and Exclusive approach
In terms in terms of inclusivity, the company values the contribution of all the employees in such a way that they all contribute to the objective of the overall objective of the organization. Erongo RED gives equal opportunities to all employees in terms of developing employee’s skills through various trainings. The company is also assisting those who do not perform by offering training as well as motivation. Erongo RED has different targeted programs from as low as cleaners and clerks.
Erongo RED has also recently trained all its middle management, by sent them for Management Development programme (MDP), therefore this group of about 20 employees was exposed to MDP training for about six month in order to develop their management talent, therefore they did not select specific managers but included the whole group of middle management. This is in line with the literature by Ready & Conger 2007 who defined talent as a group of employees with an average knowhow and skills and are prepared to be promoted to executive positions thus are regarded as best employees in the organization. All the middle management is regarded as potential employees that why they were all given equal chance.
In terms of exclusivity approach Erongo RED has demonstrated this by only implementing performance management system to the staff from C1 and above. Employees performance is being monitored, measured, they are given targets that they are supposed to meet and given responsibilities. Erongo RED is also practicing exclusivity or elitist approach whereby it reserves the talent for high-value and high performing staff. Erongo RED is interested more in developing the talent of the staff the individuals of which it sees potential for growth as well as potential for better contribution to the effectiveness of the growth of the company. These are the people that are regarded as future leaders or employees with potential that can take the company to the next level. Therefore, they identify these people and expose them to various trainings and so as to give them potential for growth. All this is done through performance appraisals.
The company applies exclusivity approach mostly to the staff in its core business units which is Network Operations as well as Network Engineering. The aim of this is to ensure that it has enough qualified Engineers as well as Electricians. Erongo RED also uses this to create leadership roles, succession planning as well as a mean of retaining high performing staff. They expose lower staff level to key Management meetings and initiatives for example acting in high capacity when incumbents are on leave. Erongo RED also does mentoring for graduate trainees.
4.2 Benefits of Inclusive and exclusive approach
Inclusive gives employees equal chances to show their potential, but only those who are exceed the threshold will be included in a talent programme.
Erongo RED gives equal opportunity to all employees by according them with job opportunity, on the job training, necessary equipment needed and all the support needed to perform their job to the best of their ability. When this approach is being used this means that every employee will then be for example partake in performance management. This will benefit the organization in the fact that all employees as low as the cleaner will start to take responsibility for their action as they know that their performance is being monitored and evaluated at the end of the day. Any development initiative targeted by the company will then be benefiting all employees as well as remuneration strategy.
The objective exclusive approach is mainly to enable the company to attract high caliber candidates and to retain high flyers and employees in roles which are regarded as specific or skills shortage areas. Without these roles the company would be unable to proficiently meet its company objectives. Erongo performs workforce projections data and demographic analysis in order to establish risk area, whereby risk analysis is performed in order to compare current and future vacancies in order to determine critical position in the company.
4.3 Potential Barrier to Inclusive and exclusive approach
Potential barrier to inclusive and exclusive approach that Erongo RED is currently facing especially to young generation is the fact in many instances people tent to leave the company the after they are trained.
One of the biggest problem to constraint Erongo RED to two approaches is the fact that most employees especially the generation Y people born between 1980 and 2000 are changing employment constantly therefore they tend to leave employment as soon as they are trained therefore this constraints Erongo RED to inclusive approach as it is investing a lot without necessarily getting any return on investment.
4.4 Talent Management practices at Erongo RED
4.4.1 Strategy
There is an alignment between the human capital division of Erongo RED and the Business strategy which recognizes the importance of talented employees which highly contributes to the achievements of long term objectives of the company. There are activities which involves culture transformation that ensures facilitation of annual cultural survey, implementation of employee wellness plan, review of Individual Development Plan as well as updating of employees profiles. The alignment of the talent management to the business strategy also includes the Implementation of Empowerment and Retention strategies. This ensures talent attraction, succession plan and Retention policies are in place.
4.4.2 Talent seeking
When it comes to talent seeking Erongo RED first put strategy in place in order to identify competencies and key critical roles and skills that are required. It also performs annual workforce planning reviews, offer bursaries as well as job attachments for interns.
4.4.3 Recruitment and Promotion
Recruiting a best talent is very critical for any company. Research shows that it is estimated that high performer are 10 to 100 times equal to the person’s compensation. Therefore recruiting a best talent on a single person per year has a great potential to increase the company’s revenue from 1 million to 10 million per year. This is Erongo RED’s philosophy.
4.4.4 Performance Management
Erongo RED have a performance management system in place whereby all employees from C1 and above have all signed performance contracts indicating their Key Performance Areas as well as targets that they are expected to achieve in those area. Performance is then assessed every 6 month in order to determine if they are reaching the targets that they have indicated.
This is very effective because it gives people that sense of ownership, when you sign for something then you know that it becomes your responsibility and when it is not completed on time and you know very well it is you to be blamed. This also enable alignment of strategy to basic operational needs and requirements.
4.4.5 Talent Development
In terms of talent development Erongo RED is investing a lot in training and development for its employees. Erongo RED is offering financial assistance to its employees who would like to further their studies in order to obtain formal qualifications as well as those who would like to purse in-service training as well as pre service training.
Apart from that the company is develop the talent of its employees whereby for instance if there is an open position and a certain employees identified to have potential qualities and capabilities to fill that position, even if that specific employee does not have the required experience but have the minimum qualification or vice versa this employee can be given a chance then the company will help this employee to fill in the gap so as to develop the required skills.
For example: If a manager is hired due to the exposure in the specific division this manager can be sent for Management training program just to prepare for management skills. Other initiatives includes: sending employees to seminars, skills upgrades for Electricians at Namibia Institute of Mining Technology, offering bursaries to students in the field of Electrical Engineering and Information Technology and study aids.
The main objective of talent management as mentioned in the literature is to developing individuals as well as growing future senior managers, therefore Erongo RED does this in order to ensure that it prepare its employees for future leadership positions.
4.4.6 Critical skills gap analysis
Erongo RED does critical skill gap analysis this help the management in compiling the skill record of critical and uncommon skills that have the potential of affecting the current as well as future business performance capability. They also recognize the skills development needs of talents pools in the company thus make it easy for management to develop as well as implementing an effective Human Resource Development strategy.
4.4.7 Connection of team goals to corporate goals
Strategic goals in Erongo RED are cascaded to all business units and each business unit has strategic objectives that are linked to overall company objectives so that employees and business units are not working in silos.
4.4.8 Talent Retention
It is the responsibility of every supervisor in Erongo RED to take ownership and retain the talent for the people under s/he supervision. Superiors at Erongo RED are advised to maintain that the company does not lose the talented employees. Supervisors can either provide these talented employees with other opportunities so that their talents are not lost.
Erongo RED is one of few companies that have best remuneration and benefit structures which the company provides far beyond the market. Included in the benefits is the 100% subsided medical aid for member plus five dependants. These are some of many retention strategies that the company has employed. Erongo RED has thus managed to retain for quite a long time the skill of its many employees especially those in critical positions for example Engineers and Electricians. Various training development opportunities are also part of the company’s retention strategy. In the literature we read that in order to attract as well as to retain talent for compatibility, there should be the fit between the employer and employee, Lockwood (n.d), therefore this imply that Erongo RED is trying by all means to ensure that there is a fit between Erongo RED its employees.
4.4.9 Workforce productivity
Erongo RED continuously tries to improve as well as become efficient and effective and try to identify and track the leading indicators of workforce productivity. The company measures the amount of quality or work that employees have performed within a specific period. This is labour productivity and performance is monitored through the process of performance management. At the end of the day overall productivity should reflect in the income statement of the company.
4.4.10 Succession Planning
Succession planning is one of the key tools that the company has if it wants to develop leadership capability of high-potential employees. Erongo RED have registered two of its Executive management into the Executive Management Development Programme (EMDP), this is a way to prepare the top members of the executive management for the top position in the company. Exposing lower level staff to strategic meetings or give them opportunities to act in high capacity are also efforts for succession planning. All these are agrees with Miller-Merrel 2014, who mentioned that ensuring continuity in case a particular employee resigns, retires or get dismissed as one of the benefits of succession planning. Organisations should have future leaders who are capable of driving their business plans forward. Therefore approach to talent management should start with the strategy and concludes with purified individuals and leadership plan.
4.4.11 Organisational Culture
Erongo RED is having a culture team committee which handles all organizational cultural aspects. A recent cultural survey which was conducted shows a drop in ENTROPY level of Erongo RED from 35 to 15 at the moment.
In order to ensure change in organizational culture the following changes has been done at Erongo RED:
Readiness for change
Articulate a strong business case for change, engagement session with stakeholders (union, board, EXCO and staff members), culture change: embark on culture change journey to enable new strategy and vision.
Leadership changes:
The company has got new CEO & Board of directors, reshuffling of senior management, realignment of managers through a process of dialogue and coaching.
Engaged staff to discuss results
Discussion sessions in order to explain results, unpack issues, brainstorm solutions & interventions to get buy-in for change ahead as well as identifying quick wins too get buy-in and build trust and reduce resistance.
4.4.12 Finance Measures
In Erongo RED employees are regarded as valuable assets as well as greatest investment. In any organization it is a big challenge to attract as well as retaining high performing employees. When employee leaves the organization a valuable part of the company investment is lost.
Therefore Erongo RED uses the following information in order to determine the Employee Turnover rate (the cost of losing the valuable talent) in order to see how can they strengthen their retention strategy.
o Number of employees who currently in those positions
o Annual percentage of turnover in that same position
o Annual compensation in that position
o Average tax and benefit cost calculated as percentage of salary
o Average number of candidates interviewed since the inception
o Average number of candidates assessed since inception