annual report 2009
Shani Naidoo
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;
- corporate social investment (CSI); and
- organisational development (OD).
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 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.
Current activities
Details follow of some of the division’s ongoing activities and action taken in the past year.
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 a device known as the competency wheel (illustrated in the 2008 annual report).
It displays the success factors required from the group’s employees and allocates weightings to them. 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: There has again been intense focus on improving the training of employees. For this purpose a centralised training structure is used. The objective of this training is to build both generic business competence and leadership competence.
The facilities which impart this training are:
- a retail academy for store managers;
- a field academy for field 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.
The creation of all of these facilities was an in-house development 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;
- management of employee relations and performance; and
- equipping store managers as coaches to develop their staff.
The buyer and merchandise planner trainee development programme is available to new and young talent in the group. The programme runs 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.
| Training statistics | 2009 | 2008 |
| Total number of interventions attended by staff members (including details of staff members trained in-store on specific interventions) | 73 526 | 11 004 |
| Total number of interventions attended by black staff members | 60 699 | 9 520 |
| Total number of interventions attended by black female staff members | 41 477 | 6 657 |
| Total expenditure on training and development (including salaries of in-store training providers) | R 62,2m | R42,3m |
Reward: Best practice in the area of reward is critical in an environment where there is intense competition for skilled people. A number of projects have been completed in this connection to ensure that the division’s approaches are up to date and relevant and that they provide the group with the best opportunity to employ and retain suitable people. With these objectives in mind the division has implemented a new job evaluation system designed to achieve more effective measurement and comparison of jobs internally and externally.
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 and refinement of the model has been a matter of high priority in the past two years. It 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 the undertaking of various projects and assignments. The capability of every developing leader is carefully monitored and reviewed. Individuals advance on this journey according to their level of performance and capability.
RESOURCES
During the past year 510 head office and field placements were made. Of those hired externally, 69% were equity candidates. An increase in direct applications and placements was seen, with less dependency on recruitment agencies. The group’s website has attracted candidates, and the mining of more than 20 000 CVs on the division’s database has proven to be successful.
Recruitment in the field of IT was particularly challenging, as in the past. However, attendance at a recruitment exhibition in London provided an opportunity to expand awareness of Foschinidata and to source candidates with international experience. This event was successful and essentially cost-neutral, resulting in the placement of five candidates at management level.
Sizeable numbers of call centre agents have for some time been recruited weekly for the financial services sector as there has been continuing growth in headcount in this area, combined with high labour turnover. Over the past year the number recruited reached 775.
Graduate recruitment for a variety of positions across the group’s business was successful and 36 placements were made. Graduate recruitment is a key driver of employment equity and 70% of the candidates hired fulfilled the equity requirements. Of the graduates placed, 30% were recruited from within the group, thus providing career development opportunities to candidates already integrated into the culture of the organisation and who bring valuable store experience to the head office. Selection criteria for the trainee programme remain stringent in order to ensure that the group is selecting the best candidates to feed its talent pipeline and provide future management.
An extensive induction programme that covers all areas and levels of the business was developed to ensure that new employees are integrated quickly into the organisation to facilitate job performance over the longer term. The success of the programme will be seen in the new financial year.
A consistent exit interview process was initiated that feeds into recruitment and culture management. This process is in its infancy, and the success of monitoring trends and addressing problem areas will be evident in the next year.
EMPLOYMENT EQUITY (EE)
The group continues to be committed to the goals of properly representing the economically active population of South Africa and ensuring that competent individuals are given equal opportunities across all levels and on all occasions. The group operates within the framework of the national employment equity policy in South Africa and its plans are within the guidelines of the affirmative action legislation in Namibia.
Compliance with the employment equity legislation remains a matter of priority.
The group was subjected during the past year to an audit by the Department of Labour for employment equity compliance. This audit included analyses of the group’s strategic plans, its HIV/Aids policy, and all minutes from employment equity forums. An action plan based on the Director-General’s recommendations has been implemented.
A strong emphasis is placed on ensuring that the group attracts top African talent and to this end the group has activated its corporate membership of the Black Management Forum. A further initiative, through the group’s involvement with the Retailers Association, involves participation in the Business Unity SA research into the question why Cape Town-based companies are having difficulty in attracting and retaining Black talent at the senior levels.
The bar chart below depicts the workforce profile against the 2010 plan for the group.
Workforce Profile |
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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 AND EMPLOYEE WELLNESS
A voluntary counselling and testing (VCT) programme has been available to all South African-based employees since September 2006. This programme is well established and to date 767 employees have been tested. Free treatment is provided to all permanent employees who are HIV-positive, and 40 employees are currently registered on this programme. Treatment includes anti-retroviral therapy as well as post-exposure prophylaxis (PEP) where accidental exposure to possible infection has occurred.
In November 2008 a similar benefit was made available to the group’s Namibian employees.
Enhancing the extent of participation by employees in both programmes is an ongoing challenge.
In May 2008 an employee wellness programme was introduced with the launch of an employee helpline. The aim of the helpline is to provide psycho-social support to employees. By the year-end, 600 cases had been managed.
