Proposed Revisions: Bursary Policies & Processes

National Company Forum

29 May 2012

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Background

• In order to remain competitive and maintain the leading edge it is necessary to review our policies and processes to ensure their value-add to the business

• An external benchmarking exercise was conducted to see what other companies are doing

• Current bursary policies and processes have been reviewed in line with the outputs of the benchmarking exercise with a view to “sharpening the saw”

• It was noted that some of our practices are outdated and not business aligned or focused.

Current Scenario

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Over the past few years...

Budget cutsNo external bursary

recruiting for the past 3 years

Automatic awarding of bursaries to employees children with no link/alignment to business requirements

Skills lossFinancial loss

Increased unemployment

Misaligned skillspipeline

Inability to placegraduates

Barrier to EE transformation

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EE Profile – Current students

Count %

African 126 56%

Indian 36 16%

Coloured 14 6%

White 48 21%

Count %

Female 80 36%

Male 144 64%

Race Profile Gender Profile

Total number of students: 224

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Current scenario

• Award bursaries based on applications from employees children that apply in the 4 pre-identified study fields and meet the minimum criteria

• No needs analysis/input from business

• No formal selection process

• Generic process (ie, 1 size fits all)

• Bursary awarding not fully supporting transformation strategies (EE/AA, disabled)

Future Scenario

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Revised approach: Full time bursaries

Business-driven Needs based

Core Focus: Young Talent Acquisition

Talent based process

Building a young talent skills pipeline for the organisation

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Guiding principles: Full-time bursaries

• Line to advise annually of their requirement – bursaries will be awarded in line with these needs

• Selection process with a focus on identifying top talent, with consideration to: -

o Academic performance, extracurricular activities, leadership potential and learning potential

o Applicants that have already completed their first year of studyo Employees children who meet the criteriao Supporting the Company’s Employment Equity plan

• Bursary process will be more responsive to business needs

• Award fewer bursaries but have increased impact

• Line to be involved in the selection, orientation and placement of students - Line to carry the budget

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Revised approach: Part time bursaries

Career development

Personal development

plan

Core Focus: Career and personal development

Business operations

Increased skills base, engagement and retention

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Guiding principles: Part-time bursaries

• Study field does not necessary have to relate to your current job functions

• Study field:

o To be aligned to personal and/or career development plan, and o Telkom business operations

• Application to be approved by promoter

• Looking at increasing time period in which to obtain qualification

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Actions completed and next steps

Actions completed:

• ARIS process mapping completed for part time and full time bursary processes• Bursary policies have been reviewed• Draft policies have been compiled• Inputs of Group HR Finance and HR Business Partners obtained

Next steps:

• Socialise draft policies with National EE/Disability Task Team to ensure no barriers

Any questions/input?

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