SOUTH AFRICA is plagued by rampant corruption among state-owned enterprises. The prevalent and persistent nature of this problem has attracted a great deal of attention both nationally and internationally.
Dr Claudelle von Eck, Chief Executive Officer of the Institute of Internal Auditors South Africa, recently reported that South Africa has lost an astounding R700bn due to corruption over the past 20 years. Evidently, corruption is eating into South Africa’s wealth – hampering economic growth and prosperity for all.
Audit firms play a pivotal role in the creation of a sustainable business environment. These organisations review the financial statements of privately-owned and state-owned enterprises to determine its accuracy. They represent the proverbial “watchdogs” that prevent and discourage misrepresentation by monitoring financial irregularities. To counter corruption it is therefore imperative that South African audit firms function optimally.
Regrettably, the strenuous and often repetitive nature of work in audit firms is taking its toll on the well-being of employees. Research that I recently conducted among 391 employees of audit firms across South Africa indicates that these employees struggle to remain engaged in their work - often seeking alternative opportunities for employment.
This worrisome trend engenders concern, as it may be an impediment to the effectiveness of anti-corruption campaigns in South Africa.
Empirical findings suggest that proactivity plays an important role in nurturing employee engagement and discouraging the development of turnover intentions among employees of audit firms. Accordingly, a number of simple, practical and effective guidelines are proposed to enhance their proactivity.
• Appoint the right employees
Refine the selection criteria. Do not only appoint employees based on technical expertise. Also account for personality characteristics.
• Offer opportunities for growth and development
Employees who feel confident in their knowledge, skills and abilities are more inclined to exhibit proactive behaviour. Develop and implement a comprehensive induction process. After completing the induction, continuously offer employees opportunities to grow and develop their professional and interpersonal knowledge, skills and abilities.
• Recognise and reward proactivity
Recognition and rewards nurture feelings of acknowledgement and appreciation, which in turn affects work-related attitudes and behaviour. Recognise and reward proactivity in a fair and consistent manner. Importantly, this does not necessarily involve formalised or monetary rewards. Informal recognition or affirmation is often sufficient.
• Be a role model
In any organisation leaders set the tone. Their attitudes and behaviour cascade through the entire organisation. Encourage leaders to exhibit proactive behaviour that employees are expected to emulate.
• Support autonomous functioning
Autonomy is a precondition for proactivity. Introduce self-managed teams. Refrain from micromanaging employees. Empower employees to make decisions that are logically within their authority.
• Monitor and adjust workload
Overburdening employees with an unreasonable workload discourages proactive behaviour. Monitor the workload of employees and, if necessary, make appropriate adjustments.
• Cultivate a supportive organisational culture
The prevailing culture of an organisation influences work-related attitudes and behaviour. Cultivate a supportive culture characterised by psychological safety and trust. Do not react negatively to proactive behaviour.
There is mounting evidence that public confidence in the South African government have reached an all-time low. South Africans are no longer tolerant of poor governance and corruption. Recent service delivery protests and marches against corruption confirm this notion.
Protesters are demanding transparency, accountability and honesty from state-owned enterprises. In view of this it is imperative that South African audit firms function optimally.
The success and progress of any organisation is dependent on its human resources. Employees are the heart, brain and muscle of any organisation. It is therefore recommended that audit firms implement the above-mentioned guidelines. These guidelines may nurture employee engagement and discourage the development of turnover intentions among employees of audit firms, which promises to enhance the effectiveness of anti-corruption campaigns in South Africa.
* This guest post is written by Nicola van der Westhuizen, PhD student in Industrial Psychology, Stellenbosch University.