Human Resources

The role of the Group Human Resources (HR) division is to set and implement strategies for human interaction within the group, working in collaboration with the group’s trading and service divisions. The HR division also provides a common platform to group companies for the provision of best practice HR.

The services listed below are provided by the division and are directed at the group’s employees and at HR practitioners working within the group’s trading and service divisions:

  • management of the group’s payroll for its more than 15 000 employees; 
  • management of policies regarding benefits and the practices associated with all these policies;
  • performance management;
  • reward;
  • talent development;
  • organisational structure management;
  • resourcing;
  • employment equity and transformation;
  • training and development;
  • industrial relations and dispute resolution; and
  • corporate social responsibility (CSI).

In providing these services the division makes use of specialised information technology aimed at providing data where and when it can be used most effectively.

The group recognises that its success is dependent on the full commitment of its employees within an occupational framework that is moral, fair, has social conscience and can readily be managed. The HR division carries out the value management process as one of its functions. As a result all HR policies and processes rest on a foundation supplied by a code of values which has become known as the Foschini Group Values.

Group values

The Foschini Group Values are as follows:

  • we maintain our integrity by being honest, open and ethical in all our dealings;
  • we are committed to providing “exceeding service” to customers and giving them value for money;
  • we treat people with dignity and respect and ensure a supportive, encouraging environment;
  • we believe in equal opportunity and development for all, and reward people fairly according to responsibility, effort and performance; and
  • we are committed to self-critical professionalism, with visible and consistent standards and a constant search for performance improvement.

Talent management

The management of talent, which encompasses recruitment, performance management, development, succession planning and reward remains a priority function in the division. This is a critical function in view of the prevailing shortage of skills in South Africa and the intense competition which takes place to attract and retain talented employees, particularly in view of the requirements of the Employment Equity Act (EEA). Talent audits are conducted twice a year and on the basis of their results retention and development plans are then formulated and carried out. Trends in the departures of employees from the group are monitored to enable the group to react to any risks that might endanger adequate employee or talent retention.

Details follow of some of the division’s ongoing activities and action taken in the past year.

Recruitment: An on-line recruitment tool, accessible through the group’s website, has been developed and is being used to identify and process candidates for vacancies in the group. Psychometric tests and assessment tools are used to enhance its effectiveness. More than 900 appointments were made by its use during the past year. Preference is given to internal candidates as part of the group’s commitment to advancing the careers of its employees.

Performance management: Employees are reviewed against measurable goals set in March of each year and progress reviews are conducted twice a year. The reviews are supported by training and development plans in a constant drive to raise levels of employee competence. The process of review, traditionally less than systematic and open to subjective influences, has been moved on to a far more satisfactory plane by the use of the competency wheel illustrated below. It displays the success factors required from the group’s employees and allocates weightings to them. This model was devised through intensive internal and external research and all the factors which are taken into account during recruitment, development and promotion of staff are to be found on it. It provides a single simple tool for use throughout the group, enabling objective measurement and comparison to be made in all circumstances.

Talent development: During the past year there has been intense focus on improving the training of employees. This has resulted in a reorganisation of training structures within the trading divisions in favour of a centralised training structure. The objective of this training is to build both generic business competence and leadership competence.

For these purposes the division launched:

  • a retail academy for store managers;
  • a buyer and merchandise planner trainee development programme aimed at newly-employed talent; and
  • a buyer and merchandise planner academy for honing the skills of existing merchants.

All of these are in-house developments specifically designed to cater for identified skills requirements within the group.

The retail academy for store managers touches every store manager and potential store manager both nationally and in Namibia.

The curriculum is aimed primarily at advancing the following goals and objectives:

  • development of business skills and improved retail knowledge;
  • managing employee relations and performance; and
  • equipping store managers as coaches to develop their staff.

The buyer and planner trainee development programme is available to new and young talent in the group. The programme is run over a period of 18 to 36 months and combines technical and generic interventions to build the capacity of the trainees. The programme includes a coaching component by which each trainee is trained on a personal basis by a technical coach as well as a senior mentor.

Reward: Best practice in the area of reward is critical in this environment where there is intense competition for skilled people. A number of projects have been completed in this connection to ensure that our approaches are up to date and relevant and that they provide the group with the best opportunity to employ and retain people. With these objectives in mind the division has implemented a new job system designed to achieve more effective measurement and comparison of jobs internally and externally.

Leadership

Leadership

A “pipeline” leadership model similar to the one illustrated above is intended to provide a framework to grow leaders to meet an organisation’s future leadership requirements. The development of such a model has been a matter of high priority in the past year. The model created by the division highlights key milestones that make up the developmental process for future leaders. Each milestone requires that the subject gain proficiency in a variety of competencies that are associated with a critical career stage. Career progression is based on mastery of these concepts, given sufficient time to achieve competence. The process is supplemented by assessments, specialised training, coaching, and various projects and assignments. The capability of each developing leader is carefully monitored and reviewed. Individuals advance on this journey according to their level of performance and capability.

Employment equity (EE)

The group is committed to being a demographically representative organisation which gives competent individuals equal opportunity at all levels and on all occasions. It operates through the following policies:

  • Sourcing: Trainee recruitment has focused on black candidates during the past year and a total of 70% of all trainees that were appointed were from this group.
  • Development: Employees’ needs have been identified during performance development discussions and talent assessment maps have been used to identify employees who will benefit from focused coaching interventions and one-to-one mentoring. Specific training courses and interventions and curriculums for merchants and field and store managers are in place.
  • Measuring performance: The performance management process was entrenched into the organisation during the past year and will be used extensively in the talent management reviews that are held twice a year.

Black Management

Black Management

The policies outlined above have led to an increase of 57% since 2003 in the number of appointments of black individuals to positions in middle and senior management in the group. Of these appointees, 60% were women.

Skills levy

During the past year the group paid skills levies of R9,8 million. The maximum available rebate from the Wholesale and Retail SETA was recovered. Further details on this topic are set out in the sustainability report.

HIV/AIDS

The voluntary counselling and testing (VCT) programme that was introduced during the previous year is now well entrenched. It is available to all employees in South Africa and negotiations are under way to extend it to Namibia. The group arranges for free treatment to be provided, including antiretroviral therapy, to any employee who is HIV-positive.

Since September 2006 a total of 538 employees have accessed the VCT programme and 30 employees have enrolled for treatment. It is recognised that employee participation is low and it is planned to expand its reach nationally during the next year.