Creating a high-performance culture

Strategic goal: Instil a high-performance culture

KEY FOCUS: OPTIMISE PERFORMANCE AND GROW OUR TALENT

Key initiatives in managing for value

– Design leadership competency framework for the group
– Develop a One Barloworld integrated talent management framework
– Refocus performance optimisation and people development
– Drive diversity and inclusion
– Align remuneration and reward philosophy
– Continue focus on health and safety

Key highlights

Indicator   Our performance
Develop a leadership competency framework
 

Achieved:

  • The leadership competency framework was designed with reference to international best practice and inputs from both internal and external stakeholders. Implementation will take place during the 2019 financial year
Develop a One Barloworld integrated talent management framework
 

Achieved:

  • The group's integrated employee value model (IEVM) served as the basis for developing a consistent framework for managing the group's senior management talent. The framework includes enhanced performance optimisation processes and people development strategies which will be implemented during the 2019 financial year
Drive diversity and inclusion
 
  • 76.02% black employees
(2017: 73.75%)
  • 76.02% black employees
(2017: 35.88%)
  • 76.02% black employees
(2017: 17.06%)
Enhance attraction and retention rates
 
  • 18.19% total employee turnover ratio
(2017: 21.69%)
  • 10.62% voluntary employee turnover ratio
(2017: 12.19%)
  • 7.57% involuntary employee turnover ratio
(2017: 9.50%)
Align remuneration and reward philosophy
 

Achieved:

  • The group’s remuneration philosophy and policy was reviewed to ensure alignment with the group’s strategy. For more details, please refer to the remuneration report.
Develop our people
  A number of our employees benefited from the group’s various formal training and development programmes. See below.

401-1, 404-1, 404-2, 404-3, 405-1

High-performance culture drivers

During the reporting period our IEVM practices were prioritised and recalibrated to align to our strategy and its accompanying managing for value philosophy; with specific focus on the following employee value proposition and high-performance drivers:

                 
  Talent management   Diversity and inclusion   Performance optimisation   Reward and recognition  
  Talent
management
  Diversity and
inclusion
  Performance
optimisation
  Reward and
recognition
 
                 

This focus translated into our Integrated Talent Management framework, which aims to activate three drivers across the group and bring our employee value proposition to life, by aligning performance, development and reward tightly to our bold ambition.

One Barloworld integrated talent management framework

The framework ensures that we equip our people for optimal performance by creating an environment that nurtures the best talent through processes that enable us to:

 

Our principles for optimising performance and winning include:
Our principles for optimising performance and winning include

People development

Our approach to future talent development varies according to the needs of the organisation and each individual

People development
Development programmes 2017/2018
beneficiaries
Young talent pipeline programmes   Apprenticeships/ learnerships 1 632
    Internships/graduate programmes 110
    Chartered accountant trainees 12
Management and leadership development programmes   Executive development programmes 16
  Leadership development programmes 912
Tertiary education support   External bursars (including BET bursars) 77
  Employee study support 140
 

Other solutions we are working on aim to enhance the on-boarding experience, improve job performance, build capacity for future roles and enhance the exit experience.

   
DEVELOP THE LEADERSHIP BRAND THROUGH THE LEADERSHIP COMPETENCY FRAMEWORK
We have completed the design phase of the leadership competency framework. This is an important milestone as the framework will be our reference for ensuring that we develop and grow leaders that have the competencies required to lead teams that win as one. The next phase will be the implementation and embedding of the framework across the group.

Diversity and inclusion

While significant progress has been made in transformation, it remains a key focus area for Barloworld and continues to be integral to our success in all areas where we operate.

The central tenets of our approach to equality:
Prohibition of unfair discrimination on the grounds of gender, race, religion, disability, age or sexual orientation   Proactive pursuit of programmes and initiatives to achieve our equality objectives   Compliance with legislation in all countries in which we operate   Identification and elimination of employment barriers which unfairly discriminate

In South Africa, race, gender and disability are included in our employment equity targets, in line with the Department of Trade and Industry’s (dti) Broad-Based Black Economic Empowerment (B-BBEE) scorecard requirements with the target for all South African operations to achieve a level 4 or better. In our non-South African operations, localisation and gender objectives are set in accordance with local demographics and legislation.

Gender

We are making progress against this objective in 2018. Specialised programmes such as our women in leadership development programme and women behind the wheel are aimed at the inclusion and participation of women in key roles of the business across the group.

Total female
employees
  New female hires   Female middle
management
  Female senior
management
  Female executives
28.44%   782   39.21%   28.79%   34.88%
2017: 28.12%   2017: 945   2017: 36.59%   2017: 27.59%   2017: 21.95%

Broad-based Black Economic Empowerment (B-BBEE)

In our South African operations, we align to the EAP in the composition of our staff in terms of the number of African, Indian and Coloured (AIC) employees.

Employees by ethnic background

 

SA business units’ B-BBEE level

Employees by ethnic background   SA business units’ B-BBEE level

Localisation of employment

We seek to obtain skills, create jobs and develop talent in the countries we operate in, reducing the number of expatriates in the workforces of our international operations.

Health and safety
WE REGRETTABLY HAD TWO WORK-RELATED FATALITIES DURING THE YEAR, ONE IN EQUIPMENT RUSSIA AND ANOTHER IN AUTOMOTIVE
We extend our sincere condolences to the bereaved families to whom we have offered support. We continue to drive the awareness of health and safety in the workplace; and to maintain non-hazardous working environments for our people

Group lost-time injury frequency rate*

Group lost-time injury frequency rate

* LTIFR = Lost-time injuries multiplied by 200 000 divided by total hours worked.

 
HIV statistics* (South Africa only)

Employees who know their status (%)

Employees who know their status

 

Employees tested who are HIV positive (%)

Employees tested who are HIV positive

* Three-year cumulative figures.

TO MINIMISE THE IMPACT OF THE DISEASE OUR AWARENESS, COACHING AND LIFESTYLE INTERVENTIONS FOCUS ON:
  • – Prevention of new infection
  • – Provision of voluntary counselling and testing
  • – Provision of appropriate care and treatment for people living with HIV/Aids
  • – Protection against discrimination and victimisation in the workplace

Looking forward
   
Change management
 

We will continue aligning our people around the One Barloworld ambition and over the next 18 to 24 months, with consideration to embedding new culture principles and practices, calibrating and evolving change communication throughout the process, both at group and at divisional level

Leadership competency framework
 

We have developed our leadership competence framework, which will set the tone for the competencies and standards of behaviour required from all leaders

The competencies will be incorporated into key human capital value chain processes as part of the implementation which will take place over the next 24 months

This will enable us to improve the effectiveness of human capital processes and leadership development so that we can sustainably grow the people capacity required to achieve our bold ambition

Metrics that will be added to measure our progress include leadership brand value and a succession bench-strength index

Employee engagement and productivity measurement
 

We will be reviewing our people engagement measurement tools to align to the principles of our high-performance culture

Remuneration practices
 

More work is required to align remuneration practices across the group and at the various operating levels to effect the principles of our revised remuneration and reward philosophy. We will continue to review both our financial and non-financial reward offerings and we are committed to fair and responsible pay practices


 

Women behind the wheel of the transport industry

When considering the individual behind the wheel of a truck, the assumption is often that the person opted for this career out of necessity, rather than choice. It is hardly considered a calling or a career, and truck drivers tend to occupy a clear stereotype in the minds of the public.

It is for this reason that the story of 18-year-old Amanda Mathebula is so refreshing. She has a passion for driving, and after matriculating, signed up for a National Certificate in Professional Driving with the Barloworld Logistics Academy. She recently obtained her Code 14 licence on her first attempt and is due to complete the first of a three-year school partnership programme which covers both professional driving and transport operations management.

Barloworld is committed to developing our talent and seeing our drivers progress through the ranks. We identified a gap for talented professional female drivers and embarked on an industry-first female-focused driver development programme. Since inception, the programme has seen over 100 graduates, of which 90% have been retained in various businesses in Barloworld Logistics.

 

Barloworld Equipment recognised for empowering women

As a patriotic and responsible corporate citizen, Barloworld Equipment’s (BWE) gender equity strategy is inspired by the South African Constitution and the Employment Equity Act. We wholeheartedly believe in the principles of promoting fairness and equality in our company as we work towards building a gender representative organisation.

Barloworld is committed to developing our talent and seeing our drivers progress through the ranks. We identified a gap for talented professional female drivers and embarked on an industry-first female-focused driver development programme. Since inception, the programme has seen over 100 graduates, of which 90% have been retained in various businesses in Barloworld Logistics.

We are implementing a robust human capital and recruitment strategy that ensures that Barloworld Equipment does not only go beyond compliance with the Employment Equity Act, but also helps us build a profitable women-friendly company. Numerous studies done around the world indicate that there is a compelling correlation between gender-balanced companies and strong financial performance. As an organisation, we are committed to tapping the potential of our female colleagues to grow our business.

Even though our country has not yet set numerical employment equity (EE) targets for various sectors of our economy, we took a decision to implement a 40/20 strategy which aims to boost women representation in our workforce to 40% across all senior levels of our company by 2020. This, we believe, is the right thing to do in normalising South Africa and for us to become a high-performing company.

As a member of the 30% Club in South Africa, we entered the PwC/Business Engage Gender Mainstreaming Awards. The categories we entered were: Investing in Young Women where we showcased our participation in the Techno Girls programme – we achieved third place; Economic Empowerment, where we showcased BWE’s female contribution to Barloworld’s Siyakhula programme – we achieved second place; we entered the BWE Executive commitment to women leadership into the Women on Boards category and came first. Finally, our Women Leadership Development Programme enabled us to enter the Women Empowerment in the Workplace category where we also achieved first place. These awards meant that we were also named the 2018 Gender Mainstreaming Champions.