Researches

State of Human Resources in Zimbabwe Survey Report

State of Human Resources in Zimbabwe Survey Report

Introduction

The purpose of this research was to gather and analyse human resources related information and practices from different organisations to enable Zimbabwean organisations to benchmark their practices.

The intention is that, on a yearly basis, we track the changes in HR practices in the country, commenting and justifying them where possible and allow executives to dialogue on the issues and how they can be enhanced.

Summary of Key Findings

1. On average, participating companies made more revenue in 2014 compared to 2015. There was a 33% decrease in revenue from 2014 to 2015.

2. The average operating profit for 2015 ($1 595 223 .22) was higher than that for 2014 ($906 974.32). The operating profit for most of the organisations increased by 76% from 2014 to 2015.

3. Both the average and maximum staff costs for most of the companies in 2014 were not different from that for 2015.

4. The average age of the participants’ board chairperson is 58 years.

5. On average, 3 executive directors on average sit on participating company boards and a maximum of 12 directors sit on the boards.

6. On average, 6 non-executive directors on average sit on participating company’ board meetings.

7. 75% of the board of directors is composed of male directors compared to female directors (25%).

8. 71% of the executive management is composed of male directors.

9. Most of the participants’ permanent employees are male (63%) and 37% of them are female.

10. The results show that the percentage of males in participants’ organisation is decreasing as we move from the executives to the non-managerial employees. The trend is opposite for the female participants.

11. The average span of control for Managers/Supervisors with people reporting to them in 2015 is 6. This means that, on average, most organisations’ departments have 6 supervisors with people reporting to them.

12. The average number of subordinates that report to managers in each department is 10.

13. Most of the heads of human resources departments (65%) are at the executive level, 29% are at the senior managerial level and 6% are at the managerial level.

14. 68% of the participants’ head of human resources do not sit on the board; only 32% sit on the board.

15. Most of the heads of human resources departments (68%) who do not sit on the board and are not invited for presentations in these board meetings. 32% of those who do not sit on the board meetings are invited for presentations in these meetings.

16. In 2014, most companies spent 14% less than they had budgeted for in the human resources budget. Most of companies spent everything in their human resources budget in 2015. On average, the number of human resources staff increased from 19 in 2014 to 20 in 2015.

17. Most of the employees in the human resources department are in the payroll department, followed by those who are generalist. On average, the number of employees in these departments did not change from 2014 to 2015.

18. Most participants (78%) have a workers’ committee at their organisations and 82% of the organisations are members of the National Employment Council.

19. 76% of the participants said their workers’ committee is cooperative.

20. Most companies’ workers’ committee members (79%) meet monthly.

21. 77% of the workers’ committee members in most of the companies are male and 23% are female.

22. Most organisations (74%) do not have a workers’ committee for managerial employees.

23. 80% of the participants said their workers’ committee for managerial employees meets monthly.

24. Most of the participants said most of the employees (58%) who are in the workers’ committee are male.

25. 76% of the participants said they have a works council at their organisation while 24% said they do not have.

26. Most of the participants (53%) said their works council meets every quarter while 47% said they meet monthly.

27. 75% of the employees that are in the works council are male and 25% are female.

28. An analysis of the works council composition shows that, most of them (50.49%) are employee representatives and 49.51% are employer representatives. The composition is generally equal for both sides.

29. Most organisations (62%) think the National Employment Council is necessary while 32% said it is not.

30. Most organisations’ employees (66%) are registered with a trade union.

31. Most participants said the influence of trade unions in their organisations is detrimental, 32% said its cooperative and 32% are not sure.

32. 27% of the disciplinary cases pending were being handled by an internal disciplinary committee.

33. Most of the industrial relations cases resolved in 2015 (78%) were handled by the internal disciplinary committee.

34. 37% of the industrial relations cases pending as at December 2015 were being handled by the internal disciplinary committee.

35. The average number of work stoppages for most of the companies was 1. Some companies did not have any work stoppage while others had up to 3.

36. An analysis of the days lost due to unplanned absenteeism shows that, 62% of the days were lost due to sick leave, 12% were lost due to absence without official leave, 7% were lost due to compassionate leave and 19% were lost due to other reasons.

37. Most of the participants (55%) said they restructured their businesses in 2015 while 45% said they did not.

38. A large percentage of organisations said they achieved what they set to achieve in 2015 while 32% did not achieve.

39. 69% of the participants said they did not retrench before the Supreme Court ruling, while 31%, said they had retrenched previously.

40. 42% of the participants said they retrenched after the Supreme Court ruling and 58% said they did not retrench after the Supreme Court ruling.

41. For those organisations that retrenched after the Supreme Court ruling, 85% said they did not apply for an exemption from the Ministry of Labour on the payment of retrenchment packages while 15% applied for exemption.

42. For the participants that applied for exemption from the Ministry of Labour on the payment of retrenchment packages, 70% said their application was not approved while 30% said their application was approved.

43. Most of the organisations (72%) do exit interviews and offer counselling after retrenchment or dismissal. Only 28% did not offer exit interviews.

44. Most of the participants (54%) said their counselling services did not extend to the employees that remain in the organisation. Only 46% said they extended their counselling services to the employees that remain in the organisation.

45. Most organisations (75%) do not plan to retrench in 2016. Only 25% plan to retrench their employees in 2016.

46. The results show that a number of organisations (78%) have a workforce plan in place. 22% said they do not have a workforce plan in place.

47. Most of the dismissals or terminations done in 2015 were due to the supreme court ruling, 20% were due to voluntary resignations, 18% were dismissals due to incompetence, 15% were due to retrenchment and less than 10% were due to other reasons like death, retirement, AWOL and medical grounds.

48. Most of the employees (66%) that were retrenched in 2015 were in the non-managerial level, 33% were managerial and 1% were executives.

49. On average the minimum salary in most of the organisations is $308 and the average salary given to employees is $1 322.

50. 49% of the average total wage bill in most of the companies were from the employees in the non-managerial level, 34% were from employees in the managerial level and 17% were from executive employees.

51. On average in 2015, companies paid $107 484 as total cost of overtime.

52. The total number of leave days taken by employees in most organisations was 6 244 days and the total value of these days is $842 629

53. 73% said they pay allowances to their attachés, 11% said they pay basic salary, 2% do not pay at all and 13% do not have attaches.

54. 52% of the participants said they pay basic salaries to their graduate trainees, 20% said they pay allowances, 2% said they do not pay their graduate trainees and 25% said they do not have graduates.

55. Most organisations do not have apprentices. For those who do, 21% pay them basic salary and 18% pay them allowances and 8% said they do not pay them.

56. Most organisations (44%) use the traditional remuneration model to pay their employees, 38% use the hybrid model and 18% use the total cost to company model.

57. Most organisations (78%) give salary advances, 57% provide personal loans, 38% provide vehicle loans, 13% provide housing loans and 43% provide other loans.

58. Most organisations negotiate their wages using the National Employment Council, 26% negotiate internally and 32% use both the NEC and internal meetings.

59. 27% of the participants said they have made basic salary adjustments and 23% have made benefits adjustments.

60. Most of the organisations (73%) have job evaluation systems. Only 27% do not have a job evaluation system.

61. 72% of the organisations have a formal salary structure while 28% do not.

62. When making salary adjustments, most organisations (92%) consider company performance, 90% consider industry trends and 82% consider individual performance. The least considered factor in salary adjustments (40%) is educational qualifications.

63. 85% of the organisations are current on PAYE, 80% of the organisations are current on NSSA, 79% of the organisation are current on NEC, 78% are current on AIDS Levy, 75% are current on ZIMDEF and Other statutory payments.

64. 62% said their pension fund is administered by a private pension fund, 30% administer using the industry pension fund and 8% use in house administration.

65. The results show that 86% of the organisations are current on funeral cover, 85% are current on medical aid, 73% are current on salary, 72% are current on pension, 70% are current on life assurance and 50% are current on other remuneration items.

66. Most of the organisations (82%) do not have a share ownership scheme while 18% do.

67. Most of the organisations (87%) undertake a formal performance assessment during and upon completion of the probation period while 13% do not.

68. 86% of the organisations do not use labour broking services while 14% do.

69. 77% of the participating organisations do not have preferences as regards to the university an applicant went to while 23% do.

70. When a vacancy arises, most organisations (77%) source talent internally, then recruit from outside if it fails. 16% source talent internally and 7% recruit immediately.

71. Most organisations allow one month acting period for positions where the right employees are not available. 22% of the participants allow 3 months and 4% allow 4 and 6 months acting period.

72. Most of the organisations’ (55%) policies allow a maximum acting period of 6 months. 25% allow a maximum acting period of 3 months, 15% allow a maximum acting period of 12 months while only 5% allow an acting period of a month.

73. Most of the organisations had 6 months as their longest acting period and 14% had an acting period of 12 months. Less than 10% of the organisations had other periods.

74. Of all the acting positions mentioned by the participants, most of them (79%) are in the non-managerial job category. 19% are in the managerial job category and 1% are in the executive level.

75. The non-managerial job category had the most acting positions in 2015 in the participating organisations. 32% were from the managerial job category and 5% from the executive level.

76. 54% of the non-managerial job category employees are still in an acting position while 45% of the managerial employees and 2% of the executives are still in an acting position.

77. 73% of the non-managerial employees in participating organisations were demoted in 2015, while a large percentage of employees in the managerial job category were promoted (44%).

78. A large percentage of organisations had a training budget in 2015 while 30% did not have.

79. For the participants that had a training budget for 2015, 55% did not reduce the budget compared to 2014, while 45% had reduced their training budget.

80. 88% of the participating organisations have a staff training and development policy and 13% have a succession plan.

81. Most of the participants said they achieved most of their training goals on the calender, 25% said they achieved a few of their training goals on the calender, 6% said they achieved none of their training goals and 6% said they achieved all their goals on the calender.

82. Most organisations’ trainings were provided using consultants, 60% of them provided trainings using individual experts’, 52% through internal facilitators only, 45% through international facilitators, 39% through professional boardies and 18% through academic institutions.

83. 88% of the organisations are satisfied and somewhat satisfied with their current skills coverage ratio while 12% not satisfied.

84. 54% of the participants said they did not undertake a skills audit in 2015. Only 46% undertook a skills audit in 2015.

85. 85% of the participants said they determine their training needs through performance review results, 63% determine their training needs through manager intution and 28% through a scientific study, 15% through external consultants and 17% through other factors.

86. The percentage of organisations that pay for continous professional development is equal for both those who provide it and those who do not.

87. The results show that, on average most companies’ training budget for 2015 was greater than the amount that was actually used for the trainings in 2015. Most companies reduced their training budgets in 2016.

88. An average of 281 employees were trained in different organisations in 2015 for 105 days.

89. 7 graduate trainees, 13 attaches and 5 apprentices are recruited on average per year by the participating organisations.

90. Most organisations indicated that graduate trainees stay for 1.5 years, attaches for one year and apprentices for 4 years.

91. The results show that the average salary for attaches is $175, $382 for apprentices and $542 for graduate trainees.

92. The results show that the largest percentage of time (54%) consumed on trainings is consumed by the managerial job category employees. 41% of the time is consumed on executives’ trainings and 5% on supervisory trainings.

93. A large percentage of the organisations have a health and wellness policy while 30% do not.

94. 56% of the participants have a performance incentive scheme in place while 44% do not.

95. Most of the organisations use permanent employee contracts for both levels; executives and non-managerial.

96. Most organisations (53%) do not calculate labour productivity. Only 48% calculate it.

97. 52% of the participants said they have not demoted employees because of poor performance while 48% of the participants said they have.

98. 49% of the participants said they use standalone HR systems, 22% of the participants said they use HR systems integrated into other business system.

99. Most organisations (84%) have social corporate responsibility policy while 16% do not.

100. Most of the participants (84%) said they are allowed to participate in salary surveys. Only 16% of the participants said they are not allowed to participate in salary surveys.

101. 55% of the participants said they are no longer relying on the salary surveys in the face of the current challenges, while 45% of the participants said they still do.

102. Most of the participants do not have any challenges with employees refusing to vacate company houses at end of their contracts. Only 30% had challenges with employees refusing to company houses.

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