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PRESENTATION TO THE STANDING COMMITTEE ON PUBLIC ACCOUNTS

Progress with regard to vacancy ratesin national and provincial departments

Office of the Public Service CommissionDate: 24 October 2007

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OVERVIEW OF PRESENTATION

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INTRODUCTION METHODOLOGY TOTAL NUMBER OF FUNDED VACANCIES IN THE PUBLIC

SERVICE VACANCY RATE AS AT 31 AUGUST 2007 SALARY LEVELS OF VACANT POSTS PROGRESS REGARDING THE RECRUITMENT PROCESS AVERAGE TURNAROUND TIME FOR THE FILLING OF POSTS FACTORS IMPACTING ON THE FILLING OF POSTS STRATEGIES TO DEAL WITH THE HIGH VACANCY RATES RECOMMENDATIONS CONCLUSION

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INTRODUCTION The issue of the capacity of the Public Service (PS) to improve and

accelerate the rate at which it is delivering services to the country’s citizens has come under the spotlight in the recent years.

The rate of vacancies in departments is one of the biggest challenges central to the problems of service delivery.

A commonly held view holds that the higher the number of vacancies in a department, the bigger the department’s challenge to deliver on the service delivery mandate.

The Standing Committee on Public Accounts (SCOPA) requested the Public Service Commission (PSC) to brief it on vacancy rates in all national and provincial departments.

The PSC has the mandate to conduct investigations into personnel practices in terms of section 196(4)(f)(i) of the Constitution of the Republic of South Africa, 1996, as well as section 9 and 10 of the Public Service Act, 1997.

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METHODOLOGY PSC developed a template for data gathering on vacancies. Heads of Department (HoDs) were requested to provide information

regarding funded vacancies as at 31 August 2007. The same information was obtained from the Personnel and Salary

Administration System (PERSAL). A request was made to the Department of Public Service and

Administration (DPSA) for the provision of relevant information. Information obtained from both PERSAL and national and provincial

departments was collated and analyzed. Limitations

o The limited time frame within which departments had to submit inputs impacted on the quality of the information.

o 6 departments did not provide inputs by the cut off date of 25 September 2007.

o Large variance between information obtained from PERSAL and from departments.

Despite the limitations, the PSC believes that it has provided a report that allows for solid engagement on vacancy rates within the PS.

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TOTAL NUMBER OF FUNDED VACANCIES PERSAL reflected a total number of 1 433 401 funded posts in the

PS on 31 August 2007. The information on PERSAL was compared with information from

departments. On the same date, the total number of funded vacancies were as

follows:

The above figures presents a difference of 242 664 vacancies (73.3%) between the two data sources.

As 6 departments did not provide information on funded vacancies, this could mean that the actual figure could be higher than 88 323.

Such discrepancies show a lack of reliable information to serve as a basis for effective decision making, budgeting and human resources planning.

PERSAL INFORMATION FROM DEPARTMENTS330 987 88 323

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VACANCY RATE30.7%30.3%30.1%27.9%

24.9%23.2%21.6%

17.6%15.6%

28.2%

2.6% 3.6%6.4%

2.5%

6.9%5.5%

8.2%

4.4%

8.6% 9.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Nat

iona

lD

epar

tmen

ts

Wes

tern

Cap

e

KZN

Gau

teng

Nor

th W

est

Lim

popo

Mpu

mal

anga

Eas

tern

Cap

e

Nor

ther

nC

ape

Free

Sta

te

Per

cent

age

PERSAL Vacancy Rate Departmental Vacancy Rate

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VACANCY RATE Due to the variance in information

by PERSAL and departments, the exact vacancy rate is difficult to determine. Hence, reference is made to the two different data sources (PERSAL and departments).

PERSALo The vacancy rate in the PS is

23.1%. o Overall national departments

have the lowest vacancy rate at 15.6% and the Free State Province the highest at 30.7%.

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330987

1102414

Funded Vacant posts Filled posts

(76.9%)

(23.1%)

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VACANCY RATE DEPARTMENTAL INFORMATION

o The vacancy rate in the PS is 5.8%.

o The Western Cape (4.4%), Gauteng (5.5%), Limpopo (2.6%), Eastern Cape (2.5%), and Free State (3.6%) provinces have vacancy rates below the overall vacancy rate of 5.8%.

o Mpumalanga Province, on the other hand, has the highest vacancy rate at 9%.

Due to the variance (17.5%) in the information provided by the two sources of data it is not possible to determine what the actual vacancy rate is in the Public Service.

88323

1345078

Funded vacant posts Filled posts

(94.2%)

(5.8%)

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COMPENSATION OF EMPLOYEES In order to establish whether the PS will be able to fund the number

of vacancies identified, information on the percentage of personnel expenditure as at 31 August 2007 was obtained.

The total budget on the compensation of employees for the 2007/08 financial year was R174,2b across the PS. Of this, an amount of R68,8b was spent on the compensation of employees as at 31 August 2007.

The actual expenditure on compensation of employees (R68,8b) as a percentage of the total budget for 2007/08 is 39.8%. As at 31 August 2007, the spending norm was at 41.67%, resulting in an overall under spending of only 1.87%.

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COMPENSATION OF EMPLOYEES Examples

o The Department of Economic Development and Planning in Mpumalanga Province has 105 vacancies and has spent 50.3% of their budget (representing an over expenditure of 8.63%).

o The Office of the Premier in the Northern Cape has 199 funded vacancies, and has spent 46% of their budget (representing an over expenditure of 4.3%).

o The Gauteng Department of Public Transport, Roads and Works has 676 vacancies and has spent 44.1% of their budget (representing an over expenditure of 2.4%).

Based on the above, it is apparent that the large number of the vacant posts identified through the two sources of data (PERSAL and departments) are in actual fact not funded.

The spending on the compensation of employees therefore suggests that the vacancy rate should be much lower than those determined through PERSAL (23.1%) and information provided by departments (5.8%).

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SALARY LEVELS OF FUNDED VACANT POSTS Of the total of 88 323 vacant posts reported by departments-

o the highest number of vacancies is at salary levels 6 to 8 (33 857 vacancies),

o the lowest number of vacancies is at salary levels 13 to 16 (1749 vacancies).

The highest vacancy rate is on salary levels 13 to 16 (SMS) at 14%, and second highest vacancy rate is at salary levels 9 to 12 (MMS) at 10%. This is cause for concern since these are the strategists who translate and implement policy respectively in any given department.

The lowest vacancy rate is at salary levels 6 to 8 at 5%. Employees on these levels are usually in the front office and vacancies impact on the speedy and quality service to the public.

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PROGRESS REGARDING THE RECRUITMENT PROCESS

43%

32%

4%

47%

27%

7%

25%

51%

23%

9%27

%

46%

27%

8%

24%

46%

28%

6%

0%

10%

20%

30%

40%

50%

60%

Per

cent

age

Level 1-5 Level 6-8 Level 9-12 Level 13-16 TotalJob EvaluationPosts already advertisedSelection process have commencedRecommendation made to EA/delegated authority

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PROGRESS REGARDING THE RECRUITMENT PROCESS

Job Evaluationo Job evaluation is a mandatory requirement on salary levels 9 to 16.o Departments have yet to job evaluate –

25% of funded vacant posts on salary levels 9 to 12 27% of funded vacant posts on salary levels 13 to 16

o In some instances departments have advertised posts which have not been job evaluated.

o Any appointment made to a post without it being job evaluated would render the relevant act irregular.

o If a post that has already been advertised is job evaluated and the outcome of the job evaluation is on a higher or lower level than the level indicated in the advertisement, the post will have to be re-advertised, which could result in fruitless and wasteful expenditure.

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PROGRESS REGARDING THE RECRUITMENT PROCESS

Advertisement of vacant postso 46% of vacant funded posts have already been advertised.o The highest percentage of posts has been advertised on salary

levels 9 to 12 (51%).o The lowest percentage of posts has been advertised on salary

levels 1 to 5 (43%). o Considering that the highest vacancy rate is at salary levels 13

to 16 (14%), it is disconcerting that only 46% of these posts have been advertised.

o PSCBC Resolution 1 of 2007 determines that all current funded vacancies should be advertised within six months of the agreement. Departments would have to accelerate the advertising of posts if they want to advertise the remaining 54% of vacant posts before January 2008.

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PROGRESS REGARDING THE RECRUITMENT PROCESS

Percentage of posts where the selection process has commencedo Departments have commenced with the selection process in

respect of an average of 28% of vacant funded posts. o At salary levels 1 to 5, departments have reported the highest

percentage of instances (32%) in which the selection process has commenced.

o Although the highest vacancy rate is at salary levels 13 to 16, departments have only commenced with the selection process in respect of 27% of vacant posts.

o The lowest percentage of instances in which the selection process has commenced is at salary levels 9 to 12 (23%).

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PROGRESS REGARDING THE RECRUITMENT PROCESS

Recommendations made to EAso Selection committees have made recommendations to the EA or

his/her delegate in 6% (5 520) of vacant posts. o The highest percentage of posts where recommendations have

been made is on salary levels 9 to 12 (9%), followed by salary levels 13 to 16 (8%).

o A fairly small percentage of recommendations have been made in respect of salary levels 1 to 5 (4%).

o Should all these recommendations be approved it would bring the overall vacancy rate down with 0.4%.

o A percentage of these recommendations would affect serving public servants who have applied for higher posts. The appointments made to these funded vacant posts would therefore not necessarily have a marked positive effect on reducing the vacancy rate.

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AVERAGE TURNAROUND TIME TAKEN FOR THE FILLING OF POSTS

The majority of departments (59.8%) indicated that the average turnaround time for the filling of posts is 2 to 3 months.

The longest turnaround time reported was between 6 to 18 months.

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3.3%

59.8%

19.7% 17.2%

0.0%10.0%20.0%30.0%40.0%50.0%60.0%

Per

cent

age

Below 2months

2-3months

4-5months

Above 6months

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AVERAGE TURNAROUND TIME TAKEN FOR THE FILLING OF POSTS

Some departments reported average turnaround times of 30 to 45 days to fill vacancies. Bearing in mind that the running periods for advertisements should not be less than two weeks, it is highly unlikely that the average turnaround time for the filling of posts could be 30 to 45 days.

Research conducted by the DPSA found that the average period of posts vacant is just above 15 months.

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FACTORS IMPACTING ON THE FILLING OF POSTS

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6638

211818

1311

109

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0 10 20 30 40 50 60 70

Number of instances

Scarce skillsUnavailability of selection committee

Salary not market relatedLack of delegations

Lack of HR capacityTurnover rate/Job hopping

Lack of fundingRestructuring

No suitable candidate identifiedCounter offers by other departments

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STRATEGIES TO DEAL WITH THE HIGH VACANCY RATES IN DEPARTMENTS

Given the challenges that have been identified with the filling of vacant posts, departments were requested to indicate whether they have specific strategies in place to fill vacant posts.

72% of departments that responded to this question have strategies in place to fill vacancies.

In Mpumalanga Province, with the highest vacancy rate (9% in accordance with information provided by departments), 70% of departments have a strategy in place.

In the Northern Cape, where the vacancy rate is at 6.4%, only 2 of the 11 departments that responded to this question indicated that they have a strategy in place.

In KwaZulu-Natal Province where the vacancy rate is at 8.2%, 5 of the 12 departments indicated that they do not have a strategy in place.

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RECOMMENDATIONS There is a need for urgent intervention to accelerate the filling of

posts. All departments should design and implement specific strategies for

the filling of vacant posts. This could involve the prioritizing of specific pockets of posts.

The accuracy of PERSAL information should be improved and an assessment should be done on how best to provide usable, accurate and user friendly information and to improve PERSAL as a reliable management information tool.

HoDs should display strict adherence to the regulatory framework governing the recruitment and selection process.

There should be regular management reports on the filling of posts, challenges experienced and ways to ensure the availability of sufficient and competent staff for efficient service delivery.

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RECOMMENDATIONS Departments should put in place periodical reporting mechanisms for

tracking actual expenditure on compensation against funded vacancies.

Departments are encouraged to utilise the PSC’s Toolkit on Recruitment and Selection to improve the overall handling of the recruitment and selection process.

The DPSA’s guide on managing the retention of employees is useful in developing retention strategies and curbing job hopping.

Contributing to this could be a consideration that employees be considered for higher posts after complying with certain requirements.

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CONCLUSION Based on the PSC’s findings it is clear that there is a need for

departments to respond with urgency to the filling of vacant posts. This needs to be prioritized to ensure that the necessary capacity is

created and maintained to address the service delivery imperatives of Government.

The PSC trusts that the issues raised in the presentation will contribute to a solid engagement on the filling of vacancies.

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THANK YOU!