Brightworks background and Case Study

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    19-Feb-2017

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Opening comments from Client Profile of Brightworks (Pty) Ltd BackgroundBrightworks is a South African registered private company, founded in July 2007 with the intent of developing and marketing the Electronic Compensation Management Toolkit (ECMT), primarily on the African continent. Brightworks contact details are:Offices:20 Murraryfield ParkPretoria EastSouth AfricaPostal:Postnet Suite 85Private Bag X1028Lyttleton0140South Africa Managing Director: Pat Wright +27 79 808 3444Email: pat.wright@brightworksafrica.co.zaShareholders and DirectorsThe shareholders and directors of Brightworks are:Pat Wright: Pat is the Managing Director of Brightworks and specialises in compensation management. Pat has twenty years experience in the reward field, including fifteen years experience with PricewaterhouseCoopers in Zimbabwe and South Africa. Pat designed the Electronic Compensation Management Toolkit (ECMT) and has consulted with and installed the Toolkit in over 200 organisations across all sectors, both Private and Public in South Africa, Lesotho, Swaziland, Namibia, Botswana, Mozambique, Zimbabwe, Zambia, Malawi, Kenya, Tanzania, Burundi, Nigeria, Mauritius and Dubai since its launch in January 2007. Michael Mitchley: Michael is the Financial Director of Brightworks. He is a business executive with over 30 years of experience in the finance, HR and IT fields. His work experience includes holding senior positions at Gold Fields, Billiton and Richards Bay Minerals as well as working as an independent consultant on large shared services and other change management projects.Electronic Compensation Management Toolkit (ECMT)ECMT is a proprietary software product owned by Brightworks and licensed to its clients on an annual licence fee basis. Brightworks developed ECMT v 2.2 and owns all rights in ECMT v 2.2 and beyond. Brightworks continue to evolve the ECMT product version 3 is currently being installed into Brightworks clients.Brightworks developed the ECMT as a mechanism to minimize administrative procedures but, more importantly, to enable efficient management of compensation to provide a sound basis for an objective, defensible, equitable, competitive and sustainable reward system that would enable organisations to recruit, retain and motivate employees of an appropriate calibre, while ensuring that their remuneration practices comply with corporate governance principles and Equal Pay for Work of Equal Value requirements.The ECMT enables users to produce affordable, optimal, market/industry related remuneration structures on which to base the most effective recruitment, development and retention/talent management policies for current and future employees. The Electronic Compensation Management Toolkit is more than a compensation diagnostic, analytical and budgeting tool. It is a mechanism that enables organisations to manage compensation, where the reward strategy becomes the driver, and accurate market information a key determinant of positioning that strategy.AssociationsDuring 2007 to 2012 Brightworks worked in association with PricewaterhouseCoopers South Africa, Nambia and Kenya, who provided marketing, consulting and distribution of ECMT in Africa (except Zimbabwe and Malawi). Brightworks has its own office in Zimbabwe (contact Briton Ncube at +263772660 661) and markets and supports the ECMT in Malawi.Brightworks ClientsSince its inception ECMT has been installed in over 200 companies to date in thirteen African countries as well as Mauritius, Dubai and United Kingdom. Brightworks clients include the following major companies:AirtelAFROXAlliance One TobaccoAviat NetworksBarloworldBidvestCAREDHLEconet Wireless IntGroup FiveIllovo SugarJTI TobaccoMinistry of LesothoNICO Holdings LimitedMarshOXFAMPLANPress Corporation LimitedPricewaterhouseCoopersReckitt BenckiserSandvikSeedcoTaste HoldingsThe World BankUniversal leaf TobaccoBrightworks Objectives:to provide a system: for the entire organisation across all its operations; that is agile and can adapt to market changes; that supports strategy; that is objective and transparent; that provides for competitive and market-aligned compensation; that provides for internal equity whilst still taking into account premiums for skills shortages; and that is aligned with other HR initiatives and programsCASE STUDY Installation of ECMT into AFROX African OperationsBrightworks Relationship History with Afrox/AFOPSBrightworks was introduced by PricewaterhouseCoopers South Africa to Afrox through a demonstration of the toolkit to Afrox Exco. The ECMT was initially installed into the operations in Zimbabwe, Malawi, Zambia, Nigeria and Kenya in 2007 and Mozambique and Namibia in 2008. During a Remuneration committee meeting in Kenya in 2009, the Managing Director of Afrox South Africa, saw a demonstration of the toolkit and requested that it be utilized in South Africa for budgeting, salary reviews, talent management and recruitment purposes. The ECMT was initially installed into Afrox South Africa in November 2009 for 2010 salary review mandate.APPENDIX IAfrican Oxygen LimitedAligning compensation management effectively across AfricaThe Electronic Compensation Management Toolkit is more than a compensation diagnostic, analytical and budgeting tool. It is a mechanism that enables AFROX to manage compensation, where the reward strategy becomes the driver, and accurate market information a key determinant of positioning that strategy" Francis GrahamHuman Resources Manager Africa Operations, AFROX.African Oxygen Limited: Aligning compensation management effectively across AfricaThe issueAFROX is Africa's leading producer of gases and welding products and employs over 3 000 people in 14 African countries.AFROX identified that its compensation systems lacked defensibility and an objective base. In addition, their policies and practices were not aligned across their African operations. This was undermining their objective to retain and motivate key employees. AFROX also recognized that the general compensation surveys in which they were participating had serious limitations, including sample base inconsistencies across positions and concerns around data integrity. To mitigate these concerns, AFROX participated in several salary surveys. However, this practice was found to be expensive, time consuming and often provided conflicting results. As a consequence, compensation proposals were difficult to defend to the Remuneration Committee and Board, and were questioned by employees.AFROX expressed the need for a truly defensible salary system based on sound and objective processes and methodologies to make informed compensation decisions for its operations across the subcontinent. The system was required to demonstrate alignment between the operations and provide speedy and flexible compensation modeling. Ultimately, the system would support AFROXs overall remuneration and retention strategy.Our approachWe presented and demonstrated our Electronic Compensation Management Toolkit (ECMT) software solution. The ECMT provides valid and current total compensation information from selected comparator companies in each local market. The information is based upon job worth and job function. The Toolkits what if and budgeting functions provides for speedy and simple analysis of alternative compensation scenarios. Graphics support added to its appeal for presentation, including those to Remuneration Committees.Our consultants visited each relevant country office in Nigeria, Kenya, Zambia, Malawi, Namibia, Mozambique, Zimbabwe, Botswana and South Africa together with the AFROX Africa Operations Human Resources Manager to:Introduce and demonstrate the Toolkit, discuss current remuneration policies and issues;discuss and agree on an appropriate comparator company market sample base to provide more relevance to the comparisons, and collect, analyze and input AFROX and comparator salaries and benefits data into the Toolkit;Present current state of salary structure internal equity and external competitiveness. This empowered the Human Resources manager in each region to begin to address local issues;Consult with, and train a Toolkit user within each country to utilize Toolkit budgeting and what if facilities to support decision-making. The outcomeThe client was impressed with the analytical and budgeting facilities the Toolkit provided. It enabled its companies operating in the African Region to manage the unique compensation benefits systems in the various geographies and labour markets, while creating a platform to harmonize policies and benefits. This was achieved across the region without compromising local legislative requirements.The Toolkit allowed AFROX to identify an appropriate representative market sample within each country, and produce exceptionally detailed reviews to aid informed and complete decision-making. Internal anomalies as well as market competitiveness issues within each country were identified and managed. This was made possible as a result of ECMTs methodology of matching by job worth and job function as opposed to job title or position. Useful before review and after review graphics depicting both internal equity and external competitiveness, assisted with the review process. The Toolkits reporting facility provided a detailed proposal for the Remuneration Committee. The client identified this as a breakthrough result.The Toolkit delivered a more customised consistent, defensible system of compensation management. It introduced efficiency, accuracy and relevance whilst providing a mechanism for effectively managing compensation and supporting remuneration strategy in a more pro-active manner.The benefits of the Toolkit are far reaching as it supports the recruitment, retention and motivation of staff. By the end of the project we had developed optimal, affordable salary structures. Harmonization of policies and procedures across countries is on-going due to the diversity of cross-country legislation.Francis GrahamHuman Resources Manager Africa Operations