BETTER PERFORMANCE THROUGH WORKPLACE LEARNING

TMAY 2004 +D Human Assets By Haidee E. Allerton

AngloGold Ashanti, a South African mining company second largest in the world, is empowering the historically disadvantaged population of its workforce in part through leadership development, with the help of U.S.-based retention firm TalentKeepers. The results have economic and cultural implications not only for the workers, but also for gold mining and other industries, as well as for the country. Dick Finnegan of TalentKeepers (left) with AngloGold’s van Veijeren at Mponeng (means “Look at me” in the Sotho language) Mine, near . The tower houses the elevator that goes underground to the mine.

Gustav van Veijeren manager HR development

ick Finnegan, chief client What Finnegan saw when he stepped ployee development program, in which Dservices officer of U.S. employee reten- off the mine elevator the next morning TalentKeepers would play a big part. tion firm TalentKeepers, arrived in Jo- was “an underground city” of corporate How a South African mining compa- hannesburg, , after a and training offices, ubiquitous kiosks ny and a U.S. retention firm found each 22-hour flight, knowing that the next housing training manuals, and an elabo- other is serendipitous. AngloGold has a resource center and library at its head- morning he would be making his first- rate system of tracks leading to the areas quarters, and its manager, Belinda Roux, ever visit to a gold mine three kilometers where ore is blasted from the hard rock. saw the article “Focus on Talent” by (about 1.9 miles) deep into the earth. “I AngloGold, second in the world by Craig Taylor, TalentKeepers’s senior vice didn’t know what to expect, but I was production to the American gold min- president of marketing, in the December ready to suit up in my hazard gear and ing company Newmont, was about to 2002 issue of T+D. She took the maga- grab my trusty flashlight,” Finnegan says. add an important element to its em- zine and walked it up to Gustav van Veijeren, manager, human resources business skills and performance man- skeptics around. So, we’re looking for development, at AngloGold. Van Vei- agement. For that reason, we found that some hard data to convince them to see jeren contacted TalentKeepers, and the the TalentKeepers approach comple- if it can work.” collaboration was forged. mented our hard management-type One radical aspect that van Veijeren is “It was opportunistic,” says van Vei- training, in which we’ve been investing referring to is TalentKeepers’s e-learning jeren. “We were looking around for ini- for a year or two. In the next couple of solution. In many cases, the online tools tiatives to expand the training and months, we’ll drive to get more data and were implemented at AngloGold with development of our first-line supervisors. then take a look at what we’ve gained workers who had no prior experience on We engaged with TalentKeepers. from the pilot process and see if we computers. Says van Veijeren, “We have “We already had been committed want to implement it on a wider basis. a few pilots, and they’re working very to first-line supervisory training pro- This is so new, so radical, in our envi- well with people who are used to com- grams, in which we train people on ronment that there are a number of puters. We also implemented it with Human Assets

workers who haven’t had any contact TauTona, says, “It showed me the weak- with computers. In my view, that’s also nesses and strengths of both myself and Top Ten working rather well, with a bit of plan- my team, and which areas I need to ning and effort. It’s encouraging. The develop in order to retain talent. It further Retention success of the pilots at our TauTona helps me to determine where to apply the (which means “great lion” in the Sotho strengths to improve retention.” Talents language) Mine is proof that under- Retention is where TalentKeepers fits ground supervisors can make use of the best. It operates on the data-supported These are identified by TalentKeepers TalentKeepers online process.” principle that talent retention rests on as the leading leadership competen- Says Finnegan, “TalentKeepers the quality of an organization’s leaders. cies that keep talented people from knows the ultimate goal is to provide In fact, TalentKeepers has, through leaving organizations. leadership and retention-skills training extensive surveys, identified 10 specific 1. Trust Builder: Creates a sense of to supervisors in the mines. To do so, leadership competencies that make those supervisors must be comfortable people stay. Says AngloGold’s Norval, trust and concern with team members. using online tools, online training. “It’s still early, but we’re starting to get 2. Esteem Builder: Develops ways So far, there has been great progress information that’s valuable to us and to give team members responsibility, through Gustav and his coaching that points to the importance of the freedom to act, and feel good team to make that happen. I’d also say leader to talent retention. That is the about themselves. that AngloGold chose TalentKeepers first set of information we have, and I 3. Communicator: Communicates the because it saw the opportunity to focus think it supports the process.” importance of retention to team not just on leadership development, but members and others effectively. on employee retention as well.” The impetus 4. Climate Builder: Develops ways to Jan Norval, senior human resources The major impetus for South Africa’s make work and the workplace enjoy- manager at TauTona, and whose first mining industry to embark on employee able and fulfilling. language is Afrikaans, weighs in: “I can development was the government’s 5. Flexibility Expert: Recognizes, only support that. In one of our project Socio-Economic Empowerment Char- sections, an operating section in the ter of 2002-2003, to “deracialize” the understands, and adapts to individual mines, we tried it with first-line super- country’s economy. Specifically, the aim needs and views. visors, who generally are not computer was to “encourage black economic 6. Talent Developer and Coach: Devel- literate, to get them into the process. empowerment and transformation at ops and coaches team members to Training personnel had to assist them the tiers of ownership, management, help them grow, which results in initially, but what has been quite inter- skills development, employment equity, greater commitment and loyalty to esting is that using the TalentKeepers procurement, and rural development.” the organization. online solution stimulated computer lit- “It’s not so much the charter but the 7. High-Performance Builder: Creates eracy and an interest in this technology. issues contained in the charter,” points conditions that reinforce high levels Some of the supervisors have enrolled in out Alan Fine, AngloGold’s public of team member performance, partic- other e-learning programs following affairs manager and an English-speaking ularly critical for retaining the most introduction of TalentKeepers’s pro- South African. “Similar efforts are going talented people. gram. In addition, these supervisors on in other parts of the economy, have expressed a great appreciation that other industries. The charter carries the 8. Retention Expert: Develops reten- here is an initiative from the organiza- legacy of the Apartheid years and con- tion knowledge and an understanding tion for improving their management tains various sentiments and targets of the supporting values that are cen- skills and an interest in keeping talent.” broadening ownership of the industry tral to initiating effective retention- Armand Wentzel, a mine overseer at to more black people, advancing them focused actions. 9. Retention Monitor: Demonstrates ability to measure and identify poten- Jan Norval senior HR manager tial retention problems and take pre- at TauTona Mine emptive action. 10. Talent Finder: Within the scope of his or her role, actively seeks to source and select qualified people effectively.

Alan Fine Public Affairs manager

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HRD Gold Standards

Here are several ways the skills gap of the South African labor force in the mining industry is being addressed: ● skills audits ● scholarships and educational advancement, especially in mathe- matics and science ● registered learnerships, not less than 5000 by March 2005 ● skills training opportunities to miners during their employment in order to improve their income- earning capacity after mine closure. Above: electric rock In addition, companies are drilling expected to offer every employee Left: TauTona Mine, the opportunity to become function- Carletonville, 70km ally literate and numerate by 2005, from to implement career paths to disad- vantaged employees in their chosen Below: Great Noligwa careers, and to develop systems (Zulu for “the other side through which empowerment of the river”), Anglo- groups can be mentored as a Gold’s largest mine means of capacity building. worldwide, at Klerksdorp to higher levels, encouraging the ment and labor—having the right inten- procurement of goods and services tions and a plan in place.” from black-owned companies for our To achieve the goals to empower and mining operations, and various social develop its historically disadvantaged and development efforts in the mining workers (referred to in the charter as community and regions from which HDSAs, historically disadvantaged a lot of the migrant labor is drawn. South Africans), AngloGold looked at Those are the kinds of things that the its leadership competencies in particu- charter seeks to encourage.” lar. Says van Veijeren, who is Dutch but The charter—essentially a contract whose family has been in South Africa between government, the industry, and for three generations, “There are a num- labor—“seeks to encourage and require ber of relevant factors. But, essentially, companies to do things that make good what has happened in the recent past business sense in the first place, some of is that we realized we had to empower which AngloGold has been doing for our lower-level team, those working to some time,” says Fine. “Some still have a mine the gold. That is a big change in way to go, but all of [the charter goals] the historical way that gold was mined. meet the general management approach It has been an autocratic process, telling of the company. For instance, AngloGold certain people what to do. We provide South African Region, “is where the first sold part of its operations to a black education and follow that on with team rock breakers, for example, work. It’s mining company in 1998, and quite a lot performance training on business easier to give those people the technical of the charter is based on actions like principles. That puts pressure at our expertise to perform their jobs, but we that.” Fine adds, “The important thing is lower level.” needed to go beyond that and give them for us to be acting in the spirit of what is “At that level,” says Ian Heyns, management roles and an understand- essentially a contract between govern- AngloGold’s head of human resources, ing of how they manage people and how

TDMay 2004 5 Human Assets

Ian Heyns women in particular, and AngloGold head of HR is up-stepping their participation in South the workforce through services and About African health care, with greater numbers in Region actual mining operations in the future. AngloGold Currently, there are female miners, in the blasting and conveyance areas. And, HRD interestingly, South Africa’s Minister of ● spends 5.2 percent, including a Minerals and Energy and Chief Inspec- 1 percent training levy, of its South tor of Mines are women. African payroll on training and has the organization manages people. That’s Mining isn’t easy work. Says Talent- how the need came about to develop Keepers’s Dick Finnegan on his visit to 104 students (73 percent of whom people in terms of managerial skills and, Mponeng, “Remember, this is almost are disadvantaged) on bursaries at with that, the issue of how we measure two miles down into the earth. There’s technikons (technical schools) and people and performance on the job. A the constant sound of air blowing from universities. The company also has lot of that leads to talent management the big ventilation pipes and narrow an extensive school support pro- and to seeking people in that environ- tunnels and train tracks to where the gram in rural areas that have an ment whom we can develop.” mining is done. It’s like an underground association with mining. city populated by extremely hardwork- ● a program offering all employees Finding the nuggets ing people. It takes an hour and a half to the opportunity to achieve functional Developing and empowering people get all of the miners in and the same literacy by end of 2004 who work in South Africa’s mines has its amount of time to get them all out. It’s ● career development plans for all historical challenges. obvious the mine was constructed with employees Says Heyns, who like van Veijeren safety foremost in mind.” is English-speaking with an Afrikaans Safety is a primary concern. It takes 10 ● mentor programs for graduates influence, “The workforce in mining has years of building the infrastructure before and diplomats, with plans to expand been going on for well over 100 years. A any extraction is begun, note AngloGold to cover all employees on training lot of the labor force is from countries in executives. “It’s an extremely costly and development paths. southern Africa and rural South Africa. process, but deep mines have a long life— Given the past and history, this work- 50-plus years compared to surface mines, AngloGold has done some work towards force has generally had a low level of which can often be found, mined, and [keeping that in-country], but a lot of education, and a large number speak closed within seven to nine years,” they work still has to be done.” different languages. It’s against that say. “The infrastructure you put up and With regard to South African indus- background that we as a company have sinking a mine are very, very important,” tries, mining is comparative with indus- been working to bring adult education says Heyns, “because that has to last most tries in larger cities and better than most into the workforce, to improve under- of the time you’re going to operate the regarding average wage, say AngloGold standing, and to develop the mines that mine. So, there’s high up-front cost with executives, adding that mining has led the we have.” no return for a long period of time.” race for increased wages for the historically The oldest of AngloGold’s South Huge tonnages of rock are pulled disadvantaged population. AngloGold African mines is close to 50 years old; from the ground every day and then go calculated that each worker in its gold the youngest is just coming into pro- through a metallurgical process to get mines is responsible for the support of 10 duction. In all, the company operates extraction of the small bit of gold— people. Many of the workers come from eight mining units in South Africa, about eight to nine grams of ore per ton rural areas and other African countries, and various others in East and West of rock. Observes Finnegan, “You don’t go live in “hostels” on mine property, and Africa, as well as Australia and North down into a mine and see the gold glitter- send money home. Thus, gold mining is and South America. The oldest mine in ing in the rock.” Most ore—80 percent— a major contributor to South Africa’s the world, in Brazil, was goes into jewelry production. A very small economy. Fine points out that the charter’s established in 1834 and acquired by amount is used for industrial purposes (in pressure is first on the mining industry AngloGold in 1999. computers, refrigeration, and so forth), because South Africa has historically been About 37,000 employees, plus 6000 and a percentage belongs to the world’s a mining economy. “Mining is the pre- on contract, work in South Africa; central banking system. mier industry, but it’s clear that [the char- 35,000 are directly involved in the In South Africa, all mining companies ter initiatives] are snowballing throughout mining operations. Other areas include deliver gold to a central refinery, the Rand the economy,” he says. corporate and services such as health Refinery. Says van Veijeren, “Most of the care. In fact, part of the mining charter ore that goes into jewelry is exported and Part of the solution calls for empowering and developing manufactured outside of South Africa. AngloGold is using the TalentKeepers

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With regard to South African industries, mining is comparative with industries in larger cities and better than most regard- ing average wage. Here, miners drill rock at Mponeng.

solution, RetentionWorks, to ● assess and develop the skills of cur- rent leaders ● develop and retain future managers, especially those from historically disad- vantaged populations ● improve safety by retaining more experienced workers ● accurately determine the real reasons employees join, stay, and leave the company a company has to do with organizational ● integrate findings from the Insight ● assess and monitor employees’ job factors such as benefits, pay, and the like. assessment tool into existing performance satisfaction levels and their propensity The number 1 reason they stay or leave is management measures to leave the leader or leaders—every time.” ● revise and tailor the implementation ● achieve five- and 10-year charter Says van Veijeren, “We are testing Tal- schedule to individual business units objectives. entKeepers’s theory to see if it can make a ● consider ways to streamline activities The RetentionWorks process involves difference in what we call ‘the happiness to reduce leaders’ time requirements four main stages: 1) launch, 2) awareness of the team.’ We’re not yet far enough ● build accountability in one-on-one building, 3) retention competency down the line in our data to say ‘yes’ or retention planning meetings. development, and 4) sustaining momen- ‘no,’ but certainly it looks promising.” I asked if the charter is the most dra- tum. TalentKeepers also trains its So far, TalentKeepers has gathered matic event to influence South Africa’s clients’ employees to become “retention baseline data, comparing the perfor- mining industry. Alan Fine answers: coaches,” working on site to help for- mance of AngloGold’s leaders with other “There have been a number of events, ward the process. leaders studied by TalentKeepers with re- such as the 1920s strikes, though I wasn’t Says Finnegan, “We’ve found that the gard to the leadership competencies, and around then,” he laughs, “that have issues regarding employee retention are the reported the findings to AngloGold HR changed the mining industry’s face and same everywhere in the world: Employees executives. TalentKeepers has also high- direction. Certainly the charter—not so want supervisors who are trustworthy, flex- lighted the areas of commonality and much the piece of paper but the change in ible, good communicators—the 10 reten- those for improvement. TalentKeepers approach—is up there with the other tion talents. Companies build programs has made recommendations to Anglo- three or four most important events over (HR management, newsletters, rewards, Gold to support its aim to meet the the past century.” and the like) hoping that will smooth over charter goal that at least 40 percent of The key objectives of the charter will be the inconsistencies regarding supervisors. management should consist of members realized, according to stated actions, “only But employees say, ‘If you want to keep of the historically disadvantaged popula- when South Africa’s mining industry suc- me, get me a good leader.’ tion by 2007. ceeds in the international marketplace… “We look at all of the factors that AngloGold executives are advised to and when the socio-economic challenges attract people and that keep them. In ● read survey comments in full to see facing the industry are addressed in a every case, the number 1 reason they join how team members perceive leaders significant and meaningful way.”

TDMay 2004 7 Aside from the charter, AngloGold’s as well as how long they intend stated “values that bind us” certainly res- Talent- to stay. onate with training and development FirstFit. A survey for new team mem- professionals and fit within the parame- Keepers bers that tells their leaders how to ters of the new workplace: best manage them. ● Give employees opportunities to Tools Retention Planning Guide. A develop skills—sharing risks and rewards summary for leaders of their in workplaces that promote innovation, Insight. A 360-degree assessment, in assessment and learning results. teamwork, and freedom with account- which leaders assess their ability. We embrace cultural diversity. RetentionLab. A series of 10 own application of retention e-learning modules built on ● Every AngloGold employee and man- competencies on the job and then ob- ager takes responsibility for health and retention skills. tain comparative views from safety and together strive to create work- RetentionLinks. An e-learning places that are accident-free. their managers, peers, and module for frontline employees to ● Strive to form partnerships with host team members. engage them in the retention effort. communities, sharing their environ- RQ (retention quotient). Objective self- KeepersXchange. An extensive knowl- ments, traditions, and values. Communi- assessment leaders complete edge base of best practices. ties will be better off for AngloGold by applying their judgment to PartingWords. An online exit survey. having been there. We will work in an resolve retention-related dilemmas, re- Specifically, RetentionLinks is environmentally responsible way. sulting in a measure of their a program for team members I’m also reminded of the last sentence knowledge for each retention that helps them understand in AngloGold’s Mission and Values State- competency. turnover’s impact on them and trains ment. It reads: “We are gold’s champion.” TalentWatch. A survey that asks team Now, that’s an idea this editor can get them to coach each other members why they join, behind! TD to stay. stay, and leave organizations, Haidee E. Allerton is editor of T+D; [email protected].

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Reprinted with permission from T+D Magazine, May 2004, by The Reprint Outsource, 717-394-7350 Copyright 2004 by The American Society for Training & Development 1640 King Street, P.O. Box 1443, Alexandria, VA 22313-2043. Phone 703.683.8100. All rights reserved.