Management approach disclosures

Employment

Barloworld understands that its employees are the foundation of its success and achieving its 20153vision. This is captured in the slogan ‘20153…driven by you’. Accordingly, ‘people’ is identified as one of our strategic focus areas.

The group is a signatory to the UN Global Compact, of which Principles 3 to 6 specifically address Labour. The group Chief Executive has expressed continuing support for the UNGC’s 10 Principles (see GRI 1.1 and Barloworld’s 2014 COP). For details on the UN Global Compact, see: www.unglobalcompact.org

One of the group’s most vital attributes is creating value through – and for – employees by attracting, developing and retaining globally competitive people necessary to implement our strategy and meet our growth targets.

Specific activities in this regard include developing internal human resources for promotional opportunities through detailed development needs analysis per person, leadership/management development programmes, and continued focus on technical skills upliftment.

We have identified six Critical Success Factors that guide the group in managing its employees. Each of these factors is closely aligned to the value drivers identified in the Integrated Financial Value Model, delivers on the Employee Value Proposition and ensures sustainable intellectual capacity and value creation competence. Through the Learning Organisation, powered by structured team forums and reinforced by our Leadership Behaviours, Worldwide Code of Conduct and Code of Ethics, employees are able to take an active role in reviewing and continuously improving organisational processes, systems and practices and building the organisation of the future. The Critical Success Factors are:

Clear purpose and direction establishes clarity and alignment and clearly understood and owned at organisational, team and individual level
Sustainable competence focusing on organisational learning and development of employees
Talent management focusing on the processes to identify, develop and manage the career paths of employees
Caring, equitable workplace to support and ensure employees’ safety and wellbeing as well as investing in society as a responsible corporate citizen
Professional climate creating a culture of innovation, ethical leadership, environmental stewardship and good corporate governance
Performance management at organisational, team and individual levels.

The Learning Organisation is the sustainability platform upon which the six critical success factors are based to deliver on the Employee Value Proposition. The key drivers are information sharing, collaboration, innovation and collective wisdom through structured team forums.

This approach is implemented across the group in a range of interfaces and interventions. An Individual Perception Monitor (IPM) surveys employee attitudes on the status of the six critical success factors. These results are used to identify areas for attention. It has a four point scale and the group target is a rating level of at least three in all business units for all factors. Scores of above three are considered excellent. The IPM survey was run in 2014 in all Divisions except Equipment Iberia. The overall scores per Division are highlighted below:

DIVISION/BUSINESS UNIT OVERALL
Equipment Southern Africa 2.88
Equipment Russia 2.99
Equipment UK 2.78
Equipment Iberia N/A
Automotive Head Office 3.04
Avis Fleet Services 3.05
Avis Rent a Car 3.08
Logistics 3.10
Motor Retail 3.12
Handling UK 3.30
Handling, Agriculture & SEM South Africa 3.15
Handling Rest of Africa 2.82
Agriculture Russia 2.92
Corporate Office 3.01

Labour/management relations

Collective labour relations are constructively managed based on the principle of freedom of association. Employees may associate or not with representative organisations and trade unions. Trade unions that are sufficiently representative of employees are recognised at appropriate operational levels, and operations covered by industry agreements participate in relevant industry forums. There are no operations where the right to exercise freedom of association and collective bargaining is at significant risk.

Employee representatives, including trade unions, worker committees, health and safety committees and industry bodies are openly engaged at appropriate levels in the organisation and in South Africa, work-skills and employment equity forums are established. Similar initiatives take place in the group’s Iberian operations.

There are no formal health and safety agreements with trade unions although this aspect is regularly included on the agenda of meetings with management in the various operations. Businesses that operate under industry agreements with unions are covered to the extent that these issues are addressed at industry level.

Occupational health and safety

The group has a philosophy of ‘zero injuries or harm’ to employees. Business units operate under a strict divisional risk management audit protocol incorporating health and safety.

Occupational health and safety (OHS) standards are covered by prevailing legislation.

OHS is the direct responsibility of divisional Chief Executive Officers (CEOs). Formal health and safety committees with management and worker representatives cover all South African staff and the majority of staff in all other operations. Equipment Russia are implementing such committees. Regional laws cover staff in our operations including Iberia, UK, Russia, and the United States of America.

In addition to quarterly SHE reports, Health and safety reporting is reviewed on a bi-annual basis by the Risk and Sustainability Committee, a sub-committee of the board.

Operations are encouraged to start all meetings with a safety message (or “safety moment’).

Training and education

Value creation through and for employees by attracting, developing and retaining globally competitive people is necessary to implement the group’s strategy and meet its growth targets. This remains one of the group’s most vital attributes. Specific activities include developing internal human resources for promotional opportunities through detailed development needs analysis per person, leadership/management development programmes, and a continued focus on technical skills upliftment.

Barloworld recognises that achieving its vision and sustainable value-creation objectives rests on the ability of its people. Having the right calibre of employees, which covers attracting, developing and retaining talented and globally competitive employees, is central to ensuring competence and intellectual capital in the group.

This objective is achieved through focused talent identification, recruitment, individual employee development plans, career-paths, training and development programmes, competitive reward systems and careful succession planning.

Diversity and equal opportunity

Whilst great progress has been made, empowerment and transformation remains a key focus area for Barloworld and continues to be central to our success. We understand that equity is central to achieving equal opportunities and the principle is applied fairly and justly. Equally, we value the competitive advantage inherent in a diverse workforce and are committed to an employee complement that reflects the demographics of the countries in which we operate.

Central tenets of the group’s approach to equality include:

Prohibition of unfair discrimination on the grounds of gender, race, religion, disability or sexual preference
Proactive pursuit of programmes and initiatives to achieve our equality objectives
Complying with legislation in all countries in which it operates
Identification and elimination of employment barriers which unfairly discriminate

By identifying empowerment and transformation as a strategic focus area, we ensure group and individual commitment to equality in the workplace across all operations.

Race, gender and disability are addressed in employment equity, transformation and empowerment targets in South Africa in line with legislation. Localisation and gender objectives are set in non-South African operations. Required employment equity plans and progress reports are submitted in South Africa and other southern African countries. These plans set out employment targets that address race, gender and disability.

In South Africa, Barloworld follows the Department of Trade and Industry’s (dti’s) broad-based black economic empowerment (B-BBEE) scorecard with the target for all South African operations to achieve a level 2 or 3.

Equal remuneration for women and men

Remuneration and employee benefits are attractive, well-structured and competitive. All remuneration and employee benefits are aligned with legislation.

Remuneration practices are regularly reviewed and the group is committed to removing unfair discrimination in pay scales. In South Africa, pay differentials are disclosed in terms of employment equity legislation.

Male and female income levels are continually reviewed and unfair anomalies are addressed.

We have implemented the Towers Watson global grading system in all operations, and our positions are graded accordingly. Wage and salary levels are benchmarked by country and category. This ensures equity and non-discrimination in remuneration practices.