Deloitte SA Blog


CEOs expect HR to play a more active role in enabling business strategies

HR business partnering

For a decade now, HR has been undergoing a process of transformation. For many organisations however, this process has increasingly failed to produce the results expected of it. During these times of rapidly changing economics, HR is faced with a stark choice. It can either evolve and make a significant contribution to the business or be diminished and dispersed into the business and other functions.

At today’s leading organisations, talent is becoming entirely integrated into business strategies, capital investments and operations. Human capital issues command increasing attention and, in some cases, has become a permanent fixture on board agendas. Senior business leaders consider talent to be perhaps the critical factor in the push for sustainable growth and the need to manage new opportunities and risks in a more complex – and interdependent.

Read the full article . . . .  Why CEOs expect HR to play an active role in enabling business strategies

For more information, contact Jack Sellschop (Director and HR Transformation Leader) at and Gareth Evans (Senior Manager and HR Transformation Centre of Expertise Leader) at

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Results of the Deloitte Snap Fraud Survey 2013

identity theft

In support of the Association of Certified Fraud Examiners’ International Fraud Awareness Week from 3 – 9 November 2013, we have prepared various articles relating to fraud. This is the third article, written by Bruce Thornton (Associate Director, Forensic), which presents the results of a snap fraud survey conducted by Deloitte.

Deloitte recently conducted a snap fraud survey. We have presented highlights from the survey and an infographic which reflects all the results:

  • Only 30% of the respondents who knew of fraud occurring within their organisations stated that the fraud was committed by an employee. Surveys performed across the globe have all highlighted the fact that employees are the prime perpetrators of fraud; therefore 30% is a very low statistic.
  • The two industries hardest hit by fraud are Financial Services (no surprises) and Technology Media and Telecommunications (big surprise). Globally, the industries hardest hit by fraud (apart from Financial Services) are in the Mining and Oil & Gas sectors.
  • The vast majority of respondents felt that management set the right tone at the top. This is at odds with global trends.
  • There is general consensus that there is a direct link between a global economic slowdown and the instances of fraud.
  • Cybercrime in South Africa is not yet seen as a major risk

View the infographic . . . .  Deloitte Snap Fraud Survey 2013 Infographic

If you have any questions or require a more detailed discussion, contact Bruce Thornton (Associate Director, Risk Advisory, Forensic at Deloitte & Touche) at

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Development of black managers crucial to growth of South African economy

black management forum

by Sandile Gwala, Executive Director at Deloitte South Africa

The development of black managerial talent and leadership for both the public and private sectors is crucial to the growth of the South Africa economy and future entrepreneurs. Thus the opportunity to become a knowledge partner to the learning day at this year’s Black Management Forum Conference was one we took up without hesitation.

Skills development forms part of the Deloitte ethos and has seen the firm being recognised by industry bodies such as the Association for the Advancement of Black Accountants of SA (ABASA) as a leading producer of black chartered accountants for many years in a row.  We believe in producing skills for the firm’s own talent pool and for the broader economy – because we have to play our part in developing skills for South Africa.

The Deloitte corporate social investment budget is solely focused on supporting skills development initiatives. In addition to our CSI budget, Deloitte also spends in excess of R20 million a year on tertiary education bursaries. Our alumni also sit at the upper echelons of the auditing and other professional services organisations – the auditor general, parastatals and parts of the private sector.

It is at the back of this passionate commitment to skills development that we found the call by the President of the BMF, Bonang Mohale, to reconfigure its annual conference and incorporate a learning day as a timely and important call.

Some of the BMF managers are destined to be top global industrialists, top executives in multinationals, leading CEOs of JSE listed entities as well as senior managers and directors in government and state owned enterprises.

We believe managers will be more impactful when they are instinctly aware of the social challenges around their organisations, know how to use data better in their environment, are more informed on how they can govern responsibly in their organisations, and have more insight on how they can protect their organisations data from various types of risks.

Empowering black managers with broader managerial expertise and social awareness will advance transformation and enable them to remain transformation agents themselves and not miss opportunities provided by their own managerial positions.

At the conference, the break-away groups will learn and explore three topics in line with the theme of  Can Good Governance Increase Trust: Data Analytics; Cyber Crime and effective managers who advance good governance. We will present our content in an interactive manner based on practical examples.

There will also be a plenary panel of captains of industry, including a JSE Non-executive director, the public protector, an official in the Office of the President’s planning and monitoring and evaluation departments and other state-owned-company CEOs who have successfully driven governance turnaround journeys.

Deloitte has had a corporate membership with the Black Management Forum (BMF) for decades and always looks forward to its annual conference and corporate update dinner. The Deloitte association with the BMF was also cemented by their long standing advisor and associate, the late Lot Maduke Ndlovu, who was the former MD and president of the BMF.

If you are interested in attending the Black Management Forum Conference, click here to register on the BMF website. We will also be providing updates from the conference on social media. You can monitor updates on the 23rd October on Twitter by following the #BMFConf2013 hashtag or @DavidGrahamSA on Twitter.


Four strategies to develop and retain talent cost-effectively

Four strategies to develop and retain talent

Trends essentially indicate the need for stronger leadership and management and the need for better ways to develop talent faster and more cost effectively

Results of the Talent Edge 2020, launched by Deloitte, indicate that respondents anticipate greater executive leadership shortages over the next several years than any other talent category in their companies.

They also rank leadership as their most pressing talent concern. Trends essentially indicate the need for stronger leadership and management and the need for better ways to develop talent faster and more cost effectively.

Here are four strategies to cost-effectively develop and retain talent in your organisation . . . . click here to read more

If you would like to have a more detailed discussion relating to talent development and retention strategies, contact David Bischof at

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Deloitte call for comments on the Draft Employment Tax Incentive Bill

draft bill

The Draft Employment Tax Incentive Bill was released for public comment on 20 September 2013. Deloitte will be preparing commentary on the Draft Bill and invite you to submit your commentary to Izak Swart at or Newton Cockcroft at by no later than 8 October 2013.

The Draft Bill aims to incentivise the employment of young, first time workers between the ages of 19 and 29 earning less than R6 000 per month (R72 000 per annum).

The concept of an employment tax incentive was first announced by the President in his 2010 State of the Nation Address; and in the 2010 Budget. It is proposed that employers who are registered to withhold and pay tax on behalf of their employees (PAYE) will be eligible to decrease the PAYE employees’ tax that is payable for hiring qualifying employees by the incentive benefit.

This employment tax incentive is expected to commence on 1 January 2014, for employment commencing after 1 October 2013, and will be available until 31 December 2016.

Qualifying employees

It is proposed that a qualifying employee is a person who meets the following requirements:

  • The employee must be in possession of a valid South African identity card
  • The employee must not be less than 19 years old and more than 29 years old
  • The employee and the employer must not be connected persons as defined in section 1 of the Income Tax Act
  • The employee’s salary must be between the minimum wage for that specific sector and R6 000 per month, with a minimum of R2 000 per month applying where no sectoral determination is applicable
  • The employee is not a domestic worker as defined in section 1 of the Basic Conditions of Employment Act, 1997

The employment tax incentive is also available to employers operating through a fixed place of business located within a Special Economic Zone (SEZ), designated industries as well as certain public entities as nominated by the Minister of Finance by notice in the Gazette. Age limitations will not be applicable here.

Supporting documents (click on the titles below to download the documents)

Call for comments

Deloitte will be preparing commentary on the Draft Bill and invite you to submit your commentary to Izak Swart at or Newton Cockcroft at by no later than 8 October 2013. You may also contact Newton Cockcroft on +2711 806 5298 or Izak Swart on +2711 806 5685.

Factors that will shape the future of competition between countries and companies

manufacturing for growth

The Future of Manufacturing report identified a number of factors that will shape the future of competition between countries and companies. Three areas rose to the top as the most critical: human capital and talent development; innovation and technology advancement; and strategic use of public policy emphasizing collaboration between policy-makers and business leaders.

This Manufacturing for Growth series addresses these key competitive factors and comprises of three volumes:

Appendix (Country Policy Comparisons Framework) compares tax, energy, and environmental policy instruments for the six focus countries discussed in Volume 1.

Click below to download:

Strategies for Driving Growth and Employment

Video posted with permission from the World Economic Forum.

If you have any questions or require a more detailed discussion, contact Karthi Pillay at



The Chief Executive Officer’s guide to talent management

talent management2

What Is Talent Management?

A CEO we talked to told us that while he couldn’t provide statistics linking talent management to performance, he partially attributed his company’s growth from $6.4 billion to more than $10 billion over four years to the exceptional quality of his people. The company, a leading provider of medical devices, has seized opportunities ahead of some of its competitors. One of the crucial elements of this company’s success: This CEO spends about half his time on talent management.

Yet we still talk to senior VPs of human resources every day who complain that their CEO still treats talent strategy as an afterthought, failing to grasp both how it supports the CEO’s plans for the business and his or her role in steering its course. And while we talk to CEOs who know talent management needs to be a personal strategic priority, they seem unsure about the best path for their own company.

The changes in the global economic landscape over the past few years have no doubt fed this uncertainty, as CEOs have confronted the need for their organizations to change course, re-evaluate long-term plans, and reorder strategic priorities. While executives have had to try to figure out what their organizations need, and need to be in the future, it has become apparent that nobody really knows what the future will look like.

However, we contend that the rise and ebb of the global economy has provided an invalid template for executives when it comes to talent: Economic growth and contraction are cyclical; the need for talent is not. The war for talent that received so much attention over the past decade did not go away during the global recession. As author Claudio Fernández-Aráoz pointed out in a December 2009 column in BusinessWeek, the number of managers “in the right age bracket for leadership roles” will shrink by 30 percent by 2015. He also warned that the global war for talent is “being ignored in many C-suites.

On the other hand, CEOs who make strong commitments to talent management—like the CEO of the $10 billion company we cited above—are the ones who find their organizations best positioned to execute their business strategies and ensure long-term viability and success.

In these pages we will demonstrate the importance of talent management to meeting your strategic goals and taking your company to the next level. What’s more, we’ll offer some straight talk about what you need to know and what you may not have thought of, and show you what critical roles you need to play.

Download the full article . . . .  The CEO’s Guide to Talent Management

To strengthen the capabilities of your mid to senior level leaders and high potential leaders, Deloitte offers Business Impact Leadership which will enable them to confidently meet the critical leadership challenges that they need to master. Contact us to structure the most relevant solution to meet your current business objectives.

The Deloitte Human Capital Talent Management team is happy to answer any questions you may have and will welcome a more detailed discussion with you around your talent management requirements. Feel free to contact Julie Rautenbach at

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Ethics and principles should always come before profit

ethics and principles

Deloitte SA Consulting Head Thiru Pillay outlined that ethics and principles should always come before profit when he addressed a group of 800 consulting employees last month.

This is in line with a move by many corporates, including banking group HSBC, to re-emphasise the importance of ethics and principles in the wake of wide-spread scandals that have been harmful to many companies’ reputations.

Thiru commented on how HSBC included ethics and principles as higher order Key Performance Indicators (KPIs) than financial performance and, where individuals were not acting according to the company’s ethics and principles, their financial performance was regarded as irrelevant, and even a dismissable offence, in their assessments.

The mining sector continues to be beset with charges that some firms do not act in an ethical way. Charges that have been levied against some mining firms, and those contravening global norms of ethical and principled behaviour, include:

  • The use of child labour
  • The promotion and support of corrupt regimes, warlords or rebel forces
  • The underpayment of workers
  • The use of unsafe or dangerous mining methods
  • The employment of corrupt practices in securing mineral tenure
  • The use of environmentally-damaging mining methods

Numerous local laws have been put in place by governments to prevent unethical, unprincipled and dangerous activities. The US’s Dodd Frank Act is notable in its influence on Securities Exchange Commission (SEC) registered companies, which are required to disclose payments to foreign governments, while the Publish What You Pay initiative tries to achieve the same aims on a voluntary basis.

In addition, the Extractive Industry Transparency Initiative (EITI) requires countries to have companies commit to report on their local revenue in their areas of operation.

However, while some may be influenced by these global initiatives, it has become apparent that companies are also feeling the need to introduce their own ethics-governing principles and to prioritise behaviour and values.

What is your take on ethics and principles before profit? We invite you to chat to us on Twitter or visit our Facebook page to share your views.


Venmyn Deloitte

The Open Talent Economy – People and work in a borderless workplace


You’re open for business, but are you open to the new world of talent?

Welcome to the open talent economy — a collaborative, transparent, technology-enabled, rapid-cycle way of doing business. Supported by an array of mega-trends ranging from globalization and mobility to social business and analytics, employers and employees now seek each other out on a playing field that is broader and more level than ever before. Talent is no longer a mere business expense, but an asset to be invested in — and measured.

The Open Talent Economy introduces a framework to guide talent strategy that brings together three components:

  • External influencers (the global mega-trends, along with regional and industry trends)
  • Talent investments (the strategies, programs, and infrastructure solutions available to an organization)
  • Business performance (the measurable business and talent outcomes of the investments an organization has chosen)

The framework also recognizes that talent strategy isn’t only about your workforce or the mass of available talent, but also about individuals—each at a different stage of their career and lifecycle as an employee. The ways you acquire, develop, reward, and retain these individuals will vary according to the openness of your strategy.

The open talent economy is open for business—step inside and have a look.

Download the paper . . . . The Open Talent Economy – People and work in a borderless workplace

The Deloitte Consulting Human Capital Leader, Trevor Page, would love to have a more detailed discussion around your talent requirements. Trevor may be contacted at  

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How to survive and thrive in today’s economic environment

survive and thrive

Deloitte Human Capital have published an article which discusses how organisations can survive and thrive in today’s economic environment and why e-learning and electronic assessments CAN work for you in these tough times.

The article provides recommendations on managing talent during a down turn and asks the following questions:

  • Are you actively looking at your own function in terms of how you can reduce costs, restructure, and add more value?
  • Are you scrutinizing every single program and service you provide for business relevancy and impact?
  • Are you working at the very top of the organisation to ensure that decisions around talent initiatives are taken with a long-term view?  Often, budgets for training, mentoring and developing people are often the first to go as pressures to reduce costs mount.
  • Are you actively seeking innovative ways to offer the same level of talent support while reducing your expenses? For example, virtual and e-learning programs offer a very viable alternative to continue a reasonable level of training and development at 50 to 75 percent of the cost of traditional classroom delivery.
  • Perhaps most of all, are you serving as the cultural “watch dog” of your organisation? Perhaps there is no more important role you can play than to help your organisation and its leaders shift from a state of learned helplessness and fear to one of “we will get through this.”

And, at the end of the day, nothing is more important to your organisations survival now and your success tomorrow than the quality of talent you are responsible for hiring, developing and engaging.

Click here to download the full article

Invitation to attend workshop

To address the business challenges listed above, Deloitte Human Capital invites you to a workshop where you will have the opportunity to investigate and experience “The Manager Ready® Assessments” and “DDI e-Learning Modules”.  These solutions may be accessed remotely from any location, are interactive and highly stimulating and are cost and time effective.  Booking is essential as space is limited.

CLICK HERE for more information or contact Adelaide Ndoyoyo at   or on +27 (0) 11 517 4057.

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