by Nimroth Gwetsa, 14 August 2014.

If employment was to be seen in the same light as business products and services where these are produced, bought and sold in the market, could it be that the high unemployment rate is a sign that many “businesses” (in this analogy, this being the unemployed) overproduce/ provide products or services that many consumers have no residual interest in?

Or could the problem be as simple as blaming current labour laws, the education system, people’s attitudes, greed or government? Could there be something else far more relevant beyond these reasons often attributed to SA’s high unemployment rate?

As it is the case with many human challenges, there is no simple straightforward answer to these questions. Certainly this article does not profess to have the panacea to this challenge.

What value then, could be gained if changes were to be made wherever needed so companies could avoid hiring some unemployed workforce capacity as employees or through labour brokers, but get them as personal liability companies? I know there are million reasons against the idea. But think for a moment about the predicament we are in. Companies may wish to hire staff but are reluctant to do so because of fear or perceived unreasonableness of labour laws and influence of militant unions. While the case, unfortunately the unemployment queue is growing each day and our collective future cannot be secure while this problem persists.

Notwithstanding those million reasons for companies not engaging the unemployed as personal liability companies presently, shouldn’t experts consider removing barriers and mitigating residual risks preventing the idea from coming to light? Is it unreasonable to think if the concept was carried out, there would be a sudden change in the mind-set and approach to value creation between hiring businesses and the unemployed? Could this give momentum to the changing of relationships between the unemployed and companies from that of entitlement to mutually beneficial value creation?

One of the ways of achieving security of tenure could be when everyone has something to lose and something to gain in the labour/ opportunities market. Unfortunately it seems lately that the SA business and labour climate is already toxic, particularly in the “less” skilled employer/ employee context. Recent explosive wage negotiations are symptoms of the toxicity of the environment. Each side seems to have ingrained “prejudices” difficult to overcome, hence the unfortunate reluctance by employers to hire new semi/ or unskilled workforce. Of course, better education and skilled workforce is the way to go. But South Africa is not there yet. So while these foundational concerns are being resolved, what do we do, meanwhile, about the current unemployment problem that will be with us for a long while still?

Surely, by changing from employer/ employee to business-to-business relationship we would begin to overcome some of these challenges. Literally, not everyone has been or can be an employee in their lifetime, but everyone, including a child, has been or will be a consumer or buyer of services at least once in their lifetime. So why then should we not capitalise on the buyer/ seller principles that everyone naturally understands through their lifetime experiences to resolve the unemployment conundrum?

There are many benefits of letting the unemployed be integrated into the economy by engaging them as personal liability companies. The approach would reduce the human related risk exposure and fear factor of those business owners paralysed by current labour laws and employee militancy. It could certainly force the parties concerned to be more creative about engaging one another and for increased clarity that would be required in specifying work expectations and the actual fulfilment thereof.

Not everyone knows how to run a business and it explains the high demand and costs of Business Administration courses. Every employee, however, is somewhat a “personal liability company” even if many don’t see things this way. For example:

• An employee (personal liability company) is simply a person having certain products and services (capacity and time) that the employer (buyer) acquires from them at an agreed regular fee (earnings).

• The employee (personal liability company) is expected to produce goods and services that continuously meet specified requirements and always add value to the company (regular performance assessments and ratings), failing which, the procurement of those goods and services (employee’s employment) could be stopped over time due to persistent non-mitigation of poor performance.

• Similarly, the employee (personal liability company) needs to continuously improve their performance (products and services) through training (Research and Development) having regard to latest developments and performance of the competition (ranking against peers). Consequently, the size of their earnings is based on the ranking of their contribution in value and differentiation against their peers.

How then can being an employee essentially differ from being a personal liabilities business owner?

With Murphy lording over our lives through his law (“Anything that can go wrong will go wrong”), not everything can go as envisioned with this idea. There’ll always be those who skimp on quality and others with a criminal or prejudicial intent. We should note their tricks and be prepared to mitigate against them. It’s certainly not a reason to dismiss the idea.

Many things would need to change to accommodate the introduction of the idea. For example, some laws may need to change and SARS would need to cooperate and define income thresholds for qualification as a personal liability company to prevent creating tax loopholes. The point really with this idea is to turn losses (owing to minimal contribution made to the fiscus by the economically inactive unemployed masses) to a gain. The change should be subject to a set income threshold, so we can begin to move from a spirit of entitlement to a truly entrepreneurial society.

Perhaps this is a cop out, but it is becoming increasingly evident that there are no clear cut answers to resolving unemployment challenges. That is why we are human beings able to think and resolve complex dynamic issues. Unemployment is a challenge calling us all to earn our humanity.

Meanwhile, for those currently unemployed, here are some tips that you could consider to improve your chances of being gainfully employed:

• Mind the gap: Only you know yourself more than anyone else. Be honest about your weaknesses and strengths. While waiting for answers from your opportunity prospects based on your strengths, start improving on your weaknesses. Weaknesses are like a fast spreading uncontrollable disease. Soon, disaster catches up with you at a time least expected. And when you suddenly find yourself employed, work as if you’re gunning for the Presidential “Order of Mapungubwe” Award. In so doing, that’s how you’ll permanently secure yours and your next generation’s future.

• Take charge: Be a conqueror and not a deliberate victim. It is often said that darkness is the absence of light. I would go further and say hopelessness is the absence of wisdom. Wisdom is gained when you act on what you know. Own up and get started.

• Collaborate: It is often said iron sharpens iron. Look for complimentary and mutually beneficial alliances where your weaknesses can be complimented by someone’s strengths and vice versa.

• Be anchored: You should note that for any structure to withhold, it needs strongholds. You too need something: whether your deity, your knowledge, your family, your culture, or whatever it is that energises you – provided it is good and legal, as your stronghold. A good stronghold gives to you and does not take away from you. It has more capacity than you can naturally handle. It is always there for you to accept or take, you do not need to earn it. That kind of stronghold is what you would need the most when all is lost. Decisively lose those strongholds that drain energy or take away from you.

• People-centricity: Whatever you do, it needs to add to the interests of people, otherwise it would be unprofitable.

• Take the first step: However painstakingly it might be, take that bold first step. On some good days that step would be a sprint, on others a yield. Sometimes you’ll make some steps backwards. All this, is progress if you keep taking notes and learning from your experiences as you journey through life.

Life is a university of perpetual learning and development. We choose to be ignorant. Revive the entrepreneur in you and be gainfully deployed.