4 Set numerical goals
There are a number of methodologies available to set these goals, but the two main categories are:
4.1 Projections | 4.2 Human Resources planning
Projections make use of certain parameters (typically staff turnover and headcount growth) to forecast what the employee profile will be at some point in the future. The forecasting model is guided by feedback, such as the BEE score for a particular employee profile and the extent of under-representation of designated employees as defined by the Economically Active Population. Projections can be used in a top-down or bottom-up implementation as explained in this example:
4.1.1 Top-down implementation
One set of parameters which affect the whole organisation is used to develop numerical goals. These goals are then applied to all organisational units. For instance, the company may decide that in order to become a level 2 BBBEE contributor, we need a BEE score of 12 for employment equity. With the top down approach all organisational units have to achieve a score of 12 by the target date as the criteria for goal setting.
4.1.2 Bottom-up implementation
Each organisational unit applies their own individual parameters to a standard forecasting model. If you’re in a high staff turnover environment like a call centre, your parameters will be very different from another organisational unit where staff turnover is very low. The same applies to organisation units in high growth areas of the business where many new employees are recruited or transferred in as opposed to and organisational unit with surplus staff.
Each set of numerical goals can be evaluated against a straight line projection of the BEE targets for 2017 as published by the dti in the BEE Codes of Good Practice. Depending on your organisational unit’s current status, this projection may be easy to achieve or very challenging. If there are specific employment equity barriers that prevent your organisational unit from achieving the BEE targets for 2017, then affirmative action measures must be formulated to deal with your specific challenges.
4.2 Human Resources planning
The human resources planning approach represent the direct opposite approach of projections. With this approach we start with the current profile of employees and map out our numerical goals based on the individual opportunities for transformation. Each employees’ specific career path is considered when we set the numerical goals. A number of parameters are required to guide the development of the human resources plan. These parameters are the assumptions which will determine the main variables of the system:
4.2.1 Scope of the plan
Employment equity plan is for the period of 2014 to 2017.
Vacancies can be positive (newly created positions in the organisation structure) or negative (retrenchments or hiring freeze). The vacancies have an impact on the overall headcount from year to year. The number of expected vacancies for each year of the plan is required as input into the planning process.
Staff turnover during the past twelve months provides an insight into the average expected annual staff turnover. However the business plan, market conditions and planned organisational restructuring all play a role. The expected rate of terminations for each year of the plan is required input into the planning process.