1. Profile of Brightworks (Pty) Ltd
Background
Brightworks 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 Park
Pretoria East
South Africa
Postal:
Postnet Suite 85
Private Bag X1028
Lyttleton
0140
South Africa
Managing Director: Pat Wright +27 79 808 3444
Email: pat.wright@brightworksafrica.co.za
Shareholders and Directors
The 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.
2. 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.
Associations
During 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
+263 772 660 661) and markets and supports the ECMT in Malawi.
Brightworks Clients
Since 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:
Airtel
AFROX
Alliance One Tobacco
Aviat Networks
Barloworld
Bidvest
CARE
DHL
Econet Wireless Int
Group Five
Illovo Sugar
JTI Tobacco
Ministry of Lesotho
NICO Holdings Limited
Marsh
OXFAM
PLAN
Press Corporation Limited
PricewaterhouseCoopers
Reckitt Benckiser
Sandvik
Seedco
Taste Holdings
The World Bank
Universal leaf Tobacco
3. Brightworks’ 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 programs
CASE STUDY – Installation of ECMT into AFROX African Operations
Brightworks Relationship History with Afrox/AFOPS
Brightworks 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.
4. APPENDIX I
African Oxygen Limited
Aligning compensation management
effectively across Africa
“The 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 Graham
Human Resources Manager – Africa Operations, AFROX.
African OxygenLimited: Aligning compensation management
effectively across Africa
The issue
AFROX 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 AFROX’s overall remuneration and retention strategy.
5. Our approach
We 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 Toolkit’s
‘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, Botswanaand 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 outcome
The 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 ECMT’s 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 Toolkit’s 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 Graham
Human Resources Manager – Africa Operations