Review from the group human resources director

Increase in training interventions Health evaluations done
	Junaid Allie

Over the last few years, we have adopted an active approach towards becoming an employer of choice by developing an employment experience which offers meaningful value to our employees and by creating an environment in which all our employees are engaged and able to develop optimally.

The group’s commitment to our employees through its corporate values and employment value proposition remained in place during the year and was particularly relevant in the current tough economic environment where retention of key talent becomes even more critical. Our focus on employees continued to pay dividends, with employee retention, individual productivity and employee feedback improving further.

• Material issues during the year and how these were managed

  Reacting to current market conditions

  The previous financial year ended on a high note as the group completed the majority of its large infrastructure contracts linked to the 2010 FIFA World Cup. Delivery of these contracts and others during a period of peak activity required an increase in human capital capacity, which resulted in the group increasing its employee base.

  In contrast, the current year saw the need to downsize our workforce as the impact of the local construction recession deepened. This resulted in reduced public and private sector spend and downward pressure on order books in the industry and the group. Our headcount decreased from 12 497 in F2010 to 11 997 in F2011. We aimed to approach all retrenchments in a professional and sensitive manner and with a focus on retaining core skills that will be required when markets return.

  Addressing employee feedback

  The group has conducted employee feedback surveys for the last few years. In the previous year, a key focus area raised by employees was the need to better understand the group’s performance management processes. To address this, we launched a training programme to explain the management process and to clarify our employees’ accountability for performance. We also implemented an automated performance management system to ensure an increase in employee feedback and appraisals. We expect that in the coming year this will result in at least 80% of our employees partaking in performance management discussions and maintaining feedback documents at any point in time.

  

  Managing core skills and retaining individuals who are in key positions or who may be appointed into core positions in the group is critical to the group’s success and delivery on its strategy during tough trading conditions.

  Retention of key skills

  Managing core skills and retaining individuals who are currently in key positions or who may be appointed into core positions in the group is critical to the group’s success and delivery on its strategy during tough trading conditions. To address this, we intensified our focus on succession management. This was formalised throughout the group, with managing directors accepting accountability for their respective business unit succession plans. We continued the roll out of our employment proposition of retaining quality managers and management systems, remunerating employees competitively, developing them through The Group Five Academy and creating development opportunities for different roles in the group.

  Managing over-border employees

  A key challenge for the group is to increase the mobility of our workforce in support of our geographic expansion. During the year, we therefore reviewed our over-border human capital procedures and enhanced internal awareness of the international work opportunities available. Business units which have retained an over-border presence over the last few years have established a reliable international recruitment database and process to rapidly resource contracts. These databases will be utilised across the group as additional businesses expand geographically.

  Formal skills development

  Ongoing development of employees through The Group Five Academy remains crucial to the group’s employee value proposition. During the year, we further refined our approach to training in the group to ensure we remain efficient in our delivery of development programmes. We increased the number of training interventions delivered from 14 941 in F2010 to 17 234 in F2011.

  Broad-based black economic empowerment (BBBEE)

  As the group is in the process of unwinding a portion of its BBBEE ownership transaction with one of our shareholders, iLima Consortium, we deemed it prudent to exclude any potential contribution from iLima to the ownership element of the group’s BBBEE scorecard during this year’s verification audit. Notwithstanding this adjustment, the group is pleased to have improved its overall rating to a Level 2 contributor. This was achieved due to a particularly strong focus on skills development, procurement and the employment equity elements.

  However, going forward the group will need to focus its attention on its ownership structure and employment equity targets, specifically amongst senior employees, to ensure it retains its Level 2 rating. The board has mandated management to review and propose a future BBBEE shareholding structure which will be presented to shareholders for approval. This process is currently underway. As outlined earlier in this report, to address the equity target under-performance at management level, the group has implemented a succession management process which will assist in identifying and developing more black talent into management levels.

  Managing the health of our employees

  Employee wellness was further improved in the year through additional health awareness campaigns. We set a target two years ago to ensure that 80% of our employees are aware of their HIV status over a two-year period. We have achieved this. We also intensified our focus on ensuring improved compliance with occupational health standards by our employees. In line with this, we increased the number of health evaluations from 5 176 to 5 767 in F2011. We also improved employee attendance at primary healthcare medical evaluations.

  

• Looking forward

  Key focus areas for F2012	Desired results
  Internal HR efficiencies.	Align HR processes across geographies to limit duplication of resources
  Succession management.	Actively manage this as an HR process and key management tool
  Ensure a cohesive organisational culture.	Uniform standards and behaviours throughout the group to facilitate effective cross-business unit integration on mega-contracts requiring more than one business unit’s involvement
  Address ownership and employment equity performance.	Improve our BBBEE ownership element to meet both the Construction Charter and Mining Charter requirements Create a more equitable demographic representation at middle and senior management level through succession management, skills development and external recruitment
  Effective resourcing of our international operations.	Mobilise resources and fill critical positions in support of the group’s geographic expansion

• Appreciation

  Firstly, I wish to acknowledge the contribution of the group’s human resource professionals. This year was particularly difficult and you have dealt with the challenges well. Secondly, the group’s Academy has once again improved the customisation and delivery of quality and relevant training programmes linked to the group’s needs. I thank you for that. Lastly and importantly, I acknowledge the group’s leaders who value the contributions made by the human resources and learning and development functions in the group and who empower their teams to truly live the corporate values of Group Five.

  MJ (Junaid) Allie
  Group human resources director

  5 August 2011