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Human Resources

Human Resources (HR) operates on two levels within the group. Firstly, there is the Group Human Resources division headed by the HR Director who sits on the operating board. This division is staffed by senior specialists whose role it is, in conjunction with the business and trading divisions, to set strategy and provide shared services such as recruitment, industrial relations, job evaluation, benefits administration, training and development and group succession planning and talent management.

Secondly, the trading and service divisions have well-established HR functions which are headed up by senior HR generalists who are members of their respective management teams. They devise and execute unique HR solutions in line with their division’s requirements, but within the parameters of the group strategy and drawing on the shared services where necessary.

These HR functions have dual reporting lines, one line to the individual MD and another to the Group HR Director.

HR strategy

Pursuant to a change in the leadership of Group HR, a new 9-point long-term strategy was developed taking specific cognisance of the business imperatives, the socio-economic landscape, best HR practice and the solid foundation that HR was built on, with the aim being to sustain and strengthen HR’s position as a strategic business driver that differentiates the group from its competitors.

At the core of the strategy lies a consistent performance management process that drives our approach to talent retention, development and attraction. The significant outcome of this is that new or revised job output models had to be developed for all positions in the group. This dovetailed particularly well with the job evaluation, e-recruitment, remuneration, talent management and leadership development projects.

In light of the need to provide more aggregate and real-time data to managers and employees, and the philosophy that employees should take responsibility for their personal information, the group has commenced the scoping process for a group-wide HR information system. It is hoped that a short list of vendors will be identified shortly.

Shared services


  • Recruitment: All senior and junior management, specialists and trainees are recruited centrally. To improve this process the group purchased and installed an e-recruitment tool that will greatly enhance this process plus provide the group with an accurate database of potential candidates.

    This e-recruitment tool is currently in use in all our head office departments. Phase 2 of the rollout will cover store recruitment, which will significantly speed up the process and avoid more than one trading division considering the same applicant.

    A further service provided is the setting of the recruitment policy, training of line managers in correct competency-based recruitment techniques and being the custodians of psychometric testing.
     
  • Industrial Relations (IR): The group has sound and clearly-formulated industrial relations policies, procedures and practices that empower line managers to deal with issues speedily and effectively. IR specialists are employed in both Johannesburg and Cape Town to provide advice and extensive training and to deal with more complex matters. In critical instances the group can and has called on the assistance of its attorneys and independent labour consultants.

    In addition, the group has regular interaction with its unions in South Africa and Namibia. In both cases wage agreements were negotiated, the South African agreement with SACCAWU being for one year and the Namibian agreement with the NWRWU being for a two-year period. This year’s South African negotiations will commence in time for implementation on 1 September 2007.

    The agreement in South Africa provided for an increase of 8,5% for the bargaining unit while the Namibian agreement provided for 8,7% in year one and 8,2% in year two.

Group management and development

The provision of a wide variety of generic and specific leadership, managerial skills and operational programmes ensures that employees have the opportunity to enhance their skills, whilst at the same time the group has a workforce that is current and can deal with all eventualities. There is a growing focus on aligning certain general programmes with the National Skills Standards, thus providing employees with a formal qualification.

The group is directing its efforts on store manager and graduate trainee training as one of the strategies to ensure an ongoing skills pipeline.

In excess of 14 800 staff participated in at least one training programme during the year. Further information on skills development appears in the Sustainability section of this report.

A discussion of both employment equity and corporate social investment initiatives appears in the Sustainability section of this report.

Remuneration and reward

To ensure that our staff are competitively rewarded, we constantly benchmark and review our practices against the market. In addition, the group recently introduced a new and more relevant job evaluation system and to date most of the key jobs have been re-evaluated. Further research into variable compensation practices and share schemes is currently in progress in order to further enhance and reinforce the principles of performance-based remuneration. The retention of key staff is a critical output of this area.

Talent planning

The group has a well-entrenched process addressing talent planning. The board meets twice annually to review each division’s plans and to establish a centralised view of the group’s resources. During the year the process was enhanced by standardising the performance review and talent mapping process, thus facilitating more accurate, meaningful and consistent comparisons across divisions.

The various divisions run a number of tailored programmes such as our well-established leadership academies to help identify and track talent at all levels.

HIV/AIDS

The group rolled out our Voluntary Counselling and Testing Programme during the year which is available to all employees in South Africa. The neighbouring territory programmes will be rolled out in due course.

Any employee testing positive will receive full support, including antiretrovirals as needed. Further information is available in the Sustainability Report.

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