Executive retrenchment..becoming the new normal  By Auguste (Gusti) Coetzer* - www.signium.co.za

November 2018 

No job is safe, no future secure. That’s the new normal as executives in both the private and public sectors confront a disturbing reality – retrenchment. Executive head-hunters are today witnessing an upsurge in the number of senior candidates who are in the job market for one reason only: recent or imminent retrenchment. The development is not purely local. These days, international candidates with quality CVs often test the South African waters after being blindsided by retrenchment. The drivers are fast-changing technology, tough economic conditions and belt-tightening by private companies and public services. Cost savings are substantial when ‘tall poppies’ are cut.

How should executives react to an environment in which seniority is no safeguard and delayering of organisational structures ensures some top managers, advisers and professionals will be redundant? First, never assume ‘this can’t happen to me’. You may have good qualifications, with good relationships in place, but you can still be thrown under the bus when economic pressures mount and operational losses pile up. With this in mind, begin preparing for retrenchment years in advance. It should be central to personal forward planning. Keep networks, your skill set and friendships in good repair. You don’t want to be the executive who phones old contacts out of the blue, desperate for a favour.

The unspoken reaction to avoid is ‘I’ve not heard from you in years and now you phone me because you want something’. Engage in community or charity work. You meet new people and create contacts outside your industry and profession. You also demonstrate you are a well-rounded person with a sense of social responsibility – ticking an important box when future employers look at the sort of person you are. When developing wider networks or entrenching relationships, be sure your associates are people of integrity. Even a passing connection with unsavoury characters can come back to haunt you. However, no matter how well you prepare, retrenchment always comes as a shock. Self-esteem may take a knock. Emotions come into play. But it is important to proceed logically and methodically. Consult the internet for lists of things to do when facing retrenchment. Some tips may be irrelevant. Others are useful thought-starters.

Check your contract of employment, your insurance cover and income protection policies. Protect your financial position as far as you can. Amend your lifestyle. Cut needless extravagance. Take time for reflection. Where do you go from here? What about an entrepreneurial route? Update your resumé. Consult talent search professionals. Finding a top job may take time. Obtain the best possible assessment of prospects in your field and your situation. Write down your objectives. You might want to remain in your current industry or might prefer radical change, even relocation to a new country. Be mindful of your age should you consider emigrating. Don’t dwell on the past. Be future-focused. Don’t sit and fret. Try to relax and recharge the batteries. Never hide from reality. Share your situation with family, friends, peers, coach, therapist and associates. Listen to suggestions. Stay alert for leads. Retrenchment is not the end of the world. It can be a stepping stone to better things.

This may sound glib, but it’s true … for those who are well prepared, well advised and well placed to spot new opportunities. 

*Auguste (Gusti) Coetzer is a director of Signium Africa (previously Talent Africa), a leading recruitment company based in South Africa offering executive head-hunting and leadership consulting - servicing sub-Saharan Africa.  www.signium.co.za
Website: www.signium.co.za
Tel:  +27 11 771 4800

Undoubtedly USA politics has an impact on the global economy and markets, but what does this mean for South Africans in particular? Will the strong Republican win trigger a weakening in the Rand? Will interest rates hike? Will trade agreements between South Africa and the US suffer? Will Investment Companies notice an increased or decreased international interest in South Africa? A look at historical USA voting trends and the resulting impact on the South African economy may help us predict what’s to come and whether the election of Donald Trump as President of the United States of America will negatively impact our country, as is feared.

Looking at historical data for the last twenty years, it is evident that the US elections do impact the value of the South African Rand, however, other factors play a part in the extremity of the trend observed. There is a noticeable spike in the Rand/Dollar exchange value in the month of November after US elections in the election year, and usually in December or January following, the Rand per US Dollar will dip below that what it was before the election. Speculating on possible reasons lead us to believe that the hype and stress about the change in leadership in the country causes investors to sell their shares, and the market stress pushes up the cost in Rand per Dollar periodically.

It is, however, obvious when looking at the historical data that the current political climate in South Africa and other economic factors play a role in the general reaction to the US Election observed. For instance, in 1996, contrary to the years after and prior, there was a very small spike of only one cent on the day, and in the days that followed, a small drop in the Rand/USD exchange of a mere two cents. In the months that followed, the Rand/USD exchange rate spiked and dipped again to R4.55/USD. 

In the election years that followed 1996, a growing trend was observed where the value of the Rand dropped on the day of the US election and in the days that followed it, but picked up again by January of the next year. 

This year, with the US election results caused an viral epidemic across the internet with much fear and speculation around whether Trump will act on his many threats against minority groups and countries, the trend so far for the Rand seems as negative as can be expected in view of historical Rand/USD exchange rate statistics. The Rand was slowly strengthening during the month of November, however on the day of the election an immediate spike in the Rand/USD exchange could be observed. 

If we keep in mind the historical trends, the USA elections might actually have a positive impact on the Rand/USD exchange by mid-January 2017. Investors should look out for Investment Opportunities at the start of 2017 to take advantage of the appreciation of the Rand that, according to the historical data, is probable. 

Investment Companies like Coronation Fund Managers and Nedbank can help investors looking to invest, whether short term to take advantage of a coming drop in the Rand/USD exchange or long term, with weighing their options and considering the myriad other influencers in the market. Investments could possibly be in other foreign markets unaffected by US/SA relations to avoid the roller-coaster predicted in the next few months.

The question of how US-SA trade relations will be impacted remains up in the air. Trump was believed to be the most unpredictable candidate in the election when it comes to US-SA trade agreements and import and export relationships, with many fearing that Trump’s eagerness to amend trade agreements to unquestionably favour the US may be to South Africa’s detriment. The Algoa Trade Agreement in particular needs to be watched carefully. Unfortunately, Trump does not seem to be as favourable to Free Trade as Obama was, and it remains to be seen whether Donald Trump as President of the United States will bolster or devastate the South African economy.  

I spoke with Prof EN Barkhuizen from the Talent Management Blueprint Conference and asked her for some of the Key Takeout’s from the conference held on 16th and 17th of October which unpacked Talent Management and Organisational Energy and behaviour

‘Are we making a Difference? ’Was her biggest question for Industry Leaders.

‘There are Only about 100 scientific publications on talent management. ‘There are 32, 4 million people aged between 15 and 64 years (working age population) in South Africa.

Of these 13, 1 million (40%) were employed and 4, 5 million (3, 8%) were unemployed.

This report further pointed out that 41, 0% of the unemployed were students

15, 0% were discouraged work seekers.

38 236 doctors and 5 560 dentists.

The doctor-to-population ratio is estimated to be 0.77 per 1 000.

But because the vast majority of GPs – 73% – work in the private sector, there is just one practicing doctor for every 4 219 people.

(Source: RSA.info, 2014)

From the above stats, it is apparent that we clearly need to become more Talent Intelligent.

Other staggering Stats from hashtag Marius Meyer were the following:         

Human Capital is the biggest concern for CEOs (PwC).        

Only 18% of CEOs feel confident that they have the right people in place to execute strategy (CEB).        

Human Capital is the biggest risk in business (HCI Africa).        

Skills crisis is the top obstacle to economic growth.        

Strikes cost SA R 200 million+ per day.        

SA losing R12 billion a year due to absenteeism.        

Only 19% auditors feel they use HR optimally (CG Index – Institute of Internal Auditors)        

Only 5% employees understand business strategy.        

World-wide 13% of employees actively engaged.        

Companies with engaged employees outperform others by 202% (Dale Carnegie).

Companies with good HR Practices outperform others by treating HR as critical business function, these companies are 105% more profitable.

Average ROI on wellness programmes: 300%.

‘So what do we do about all this? ‘I asked like Dr Lynne Derman, who is a renowned expert in the field of organisational energy and whose Doctoral Study was the first to investigate organizational energy in the South African context.’

‘I am passionate about employee well being, in fact managing talent effectively gives business a competitive advantage.

Aligning Talent Management with Business Strategy is imperative. It is equally important to be equipped with the correct tools‘.

For more information on individual and organisational well-being visit goldfish-consulting

Link: http://goldfish-consulting.co.za/services/talent-management

We are thrilled to announce that both the public and private sectors appear to recognize the value of board diversity as BPW SA has been approached in the last month alone, to assist with eleven board vacancies for women on our Register.  Women and men have different interests and perspectives in important areas, and boards are starting to see the importance of utilising these varying experiences to tackle the tremendous challenges. 

BPW SA and the Department of Trade & Industry (the dti) want boards of directors to widen the search for talent by looking beyond the traditional pool of executives and bring new potential to light.  It is for this reason that we have joined forces to provide a Women on Boards programme to create a Register of female leaders in South Africa who are excellently trained and, as a result, are highly sought after by Boards.  After all, why on earth would you voluntarily exclude half the smart people?

Our first group of 19 senior women, all thoroughly trained through our 9-month Women on Boards director development programme and certified by the dti, are now available on our register of Board Potential Women Directors and we urge companies to contact us for potential female directors.

Seven of our graduates are in line for board interviews , many have been interviewed by the media – both radio and magazines – and all will be profiled in the KZN Chamber of Commerce Power Book (2015). As an ongoing service to the graduates, BPW SA continues to raise their profile in an effort to access suitable board placements.  We have proven that board diversity is not a supply problem, but rather a demand problem.

BPW SA is proud to announce that we have incorporated an international module into the Women on Boards programme.  Business acumen - incorporating business finance and strategy - a must in today’s complex landscape. Business acumen is a keen understanding of what it takes for an organization to make money.  It combines financial literacy – the ability to interpret numbers on financial statements – with business literacy – recognizing how strategies and decisions impact these numbers.  Call it a sophisticated business simulation. Call it an exercise in experiential learning. Or call it a board game. Whatever you label it, the simple fact is that the training is fun and will gives participants a true competitive edge.

A recent Women on Board graduate, Tebogo Maziya, who holds a Masters degree in Science, a postgraduate diploma in finance and a B Comm degree says the nine-month journey has been fulfilling. “I learnt there’s a risk and that that risk is manageable. So it’s important for the board to be transparent and accountable and for a board member to be aware of decisions made because they will be held accountable.”  Another graduate, Amantha Maharaj, a BSc electrical engineering graduate with an MBA, who works a top management level at an engineering consultancy says of the programme: “It teaches one to know how a board is structured, what to do, and questions one needs to ask when sitting on a board. It also teaches business risk and how one should view business from a higher level. It was certainly value for money.”

For more information about our Women on Boards Programme, please visit our website at www.bpw-jhbsa.co.za or contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. or (011) 794-4991.

On the 7th August, 2014, BPW South Africa and the Department of Trade & Industry launched South Africa’s first database of “Board Potential Women” at a Business Breakfast held with over 200 CEO’s and high level government officials.  Acting Director General, Mrs Pumla Ncapayi of the Department of Small Business Development (The Department of Trade & Industry) handed over certificates to 19 senior businesswomen who have completed the intensive BPW SA “Women on Boards” director development programme and have now been profiled on the “Board Potential Women” database.  

The first 19 women on this database all fulfil stringent criteria for corporate governance and legislation and are well trained through our “Women on Boards” director development programme.  This list of "Board Potential Women" makes it clear that there are more than enough eminently qualified women to help lead South Africa’s corporations into the 21st century and that it is now time to shatter the glass ceiling that keeps these women from ascending to board positions.  Furthermore, it’s time we provide opportunities to more women than just the “high flyers” who currently occupy most board seats.  

We need to use all of our society’s talents to ensure that South Africa’s economy thrives. We often hear the argument that there are insufficient qualified women to occupy positions in the boardroom. Today BPW SA and the Department of Trade & Industry are shattering those myths as well as glass ceilings! The database shows that the qualified women are there – it’s just a matter of finding them and we’ve made it easy through our database.  There is no longer any excuse for recruiting unqualified non-executive female directors onto a board.  

The programme and database is administered by BPW SA in consultation with the Department of Trade & Industry. All women listed in the database are suitable to be considered for company board-level positions and meet a clear set of criteria.  Every application to be part of our “Women on Boards” programme and database is formally assessed and reviewed and only those women who meet the criteria are accepted. Notably, all women on the database have extensive formal qualifications and at least five years senior management experience.  

Companies should now make use of this untapped pool of talent, and businesswomen interested in potential board posts, should be joining the “Women on Boards” programme and ultimately our national database, in order to promote their profile amongst a larger audience.

For more information, give us a call on (011) 794-4991 or 083 212 9134 or visit our website at www.bpw-jhbsa.co.za.

They are in South African companies and industries right now, although they may not be part of traditional networks and are unlikely to be present at the higher levels of management in the same numbers as men.  It is for this reason that BPW SA and the Department of Trade & Industry (the dti) have partnered in an unrivalled “Women on Boards” director development programme to create a pool of female leaders in SA who are excellently trained and are therefore highly sought after by Boards.  

Most people today have no knowledge about the makeup of corporate boards, even in the companies they work for. These people would be surprised to learn how little diversity of thought and experience exists in the corporate boardrooms and executive suites of South African businesses. Why should you care about board composition? Boards of directors make decisions that can impact you, your community, and the country.  That’s why it’s important that membership on corporate boards be representative of a company's constituents.

Boards of directors choose CEOs. They make decisions about executive compensation, whether to buy, sell, or merge with other companies, where corporate offices close and relocate, and how much priority a company gives to issues other than profits, such as social responsibility.  

Our Women on Boards programme will give you the expertise and exposure needed to be part of the right networks.  It is an eight-part program — strategically placed over the course of 8 months, due to the complexity of the material — equips women with the knowledge and tools needed to elevate themselves to the C-suite and beyond.  In a supportive and highly interactive atmosphere, an impressive roster of top government and corporate experts will guide skilled female executives through a rigorous program of intensive classroom instruction, case studies and simulations. Every element of the program is focused on strengthening and broadening the leadership talents of the participants and delivering positive results for their companies and organizations.  They will improve their understanding of the responsibilities of board membership and develop the skills and strategic insight needed to become a more effective director.     They will improve their understanding of board governance while heightening their financial literacy and increasing their understanding of relevant legislation.  Amongst others, specialist training is also provided by the Johannesburg Stock Exchange (JSE) with regard to corporate governance and understanding of JSE terminology and the Commonwealth Business Council (CBC) (London) who will impart their expertise on personal and reputational risk.  The dti will convey their expectations of board members and corporate experts will present, and execute simulations, on media and presentation skills to enhance leadership effectiveness. The programme is certified by the dti.  

For more information, please visit our website at www.bpw-jhbsa.co.za  .or contact This email address is being protected from spambots. You need JavaScript enabled to view it. or 011 794-4991.

Students can walk away with tangible learnings that will benefit them instantly”

SABC Education Career Indaba has attracted the support of top companies, including Anglo American, Auditor General South Africa and Allan Gray, who will be at the expo this year at the Sandton Convention Centre from 19-20 May. Career Indaba, to which entry is free, is aimed at South Africa’s youth.

International opportunities
Career Indaba’s event director Tanya Jackman explains: “there are a multitude of opportunities for learners of all academic capabilities and financial backgrounds to pursue their dream of international travel and studying abroad. Our connections in these international universities have told us that South Africa is now becoming a top priority for student acquisition and Career Indaba was identified as the perfect event to partner with to promote their bursaries and scholarships”.

She goes on to say, “Career Indaba has made huge strides this year by bringing an international element to the show. Ensuring students that studying abroad is a possible option. This is why it is important to expose South African youth to International possibilities.”

With international universities from China, Russia, Japan and America participating in Career Indaba parents are encouraged to accompany their children to meet with these connections face to face.

Encouraging local development
“We want to help learners and young people to take the next step in their education and career development. Career Indaba puts the needs of the student first by presenting them with exciting and relevant local careers and further education options in one location,” says Tanya.

Top South African universities and employers will be looking for bright young students to recruit. Tanya adds: “what better way to prepare for your academic or working future than to get advice from the experts themselves? Our Interactive Zone offers that personal engagement whereby students can speak directly with some truly inspirational individuals and walk away with tangible learnings that will benefit them instantly”.

Students have access to all the answers they might be looking for from top corporates, universities and employers.

Visitors can register online for their free ticket on: www.careerindaba.co.za/register  

SABC Education partnership
SABC Education has signed a three-year agreement with Career Indaba and African EduWeek which entails pre-event promotion to its radio and television audience as well as a strong presence onsite during the events. At Career Indaba, the SABC will have a highly interactive feature area focusing on the different career opportunities in broadcasting, including two OB (outside broadcast) unit’s on the expo floor.

Dates, times and location:
Dates:  Monday and Tuesday, 19-20 May 2014
Times:  Monday 09h00-17h00; Tuesday 09h00-15h00
Location:  Sandton Convention Centre, Johannesburg

For more information, interviews and media accreditation:
Marketing Coordinator: Zara Eckles
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Tel: +27 21 700 3541
Fax: +27 21 700 3501

{pp}The future “will not belong to the conglomerates or global institutions alone. It will belong to entrepreneurs - individuals who have the courage to dream and develop compelling visions - individuals who can see opportunity and match it to an idea - who can ultimately turn their dreams into reality.” - Janssen Davies (then CEO - SAGE)