Market presence: 202-1 to 202-2
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Management Approach
Indicators addressed under Market Presence are covered by our strategic objectives (Specifically Instil a high-performance culture), and the Intellectual, Social and Human capitals.
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.
Localisation
Localisation and gender objectives are set in non-South African operations in accordance with local demographics and legislation.
Where the required skills are not available, the focus is on expatriate assignments, with the commitment to develop a local skills base. Senior managers in all divisions are mostly locally based.Over 90% of employees are hired from the respective local communities. We comply with legislation when recruiting locally and procedures for hiring include advertising, developing people from within the company, involvement in the community and schools to source potential employees and learners.
202-1 - Ratios of standard entry level wage by gender compared to local minimum wage
Integrated Report:Remuneration Report - Remuneration policyRemuneration Report - Future focus areasREMUNERATION REPORT - Fair and responsible remunerationAll remuneration and employee benefits are in line with relevant legislation.
Remuneration exceeds legislated minimum country wage levels irrespective of gender. However, where industry-negotiated agreements and other relevant legislation apply, payment is made according to these obligations. Similarly, apprenticeships and learner-ships are usually paid at industry levels.
There are no structural disparities by gender in entry level wages.
Given the vast range of countries and industries in which Barloworld operates, as well as the significant number of job categories in the group, it is not practical to disclose all detailed wage minimums as well as related Barloworld levels and ratios although this information is reviewed annually.
However, examples of ratios of standard entry level wages range on average from 0.95 to over 8 times above the local minimum wage in certain African countries, with instances of up to 16.4 times; 0.97 to 3.32 times in Europe and in Russia, depending on the region. In South Africa, standard entry level wages are at agreed or above industry levels.
As noted, the material issue for the group is that it does not pay below minimum legislated wage levels, is not exposed to risk in this regard and that its remuneration policy aligns with its need to attract and retain the required talent to realise its value creation objectives.
As the group has implemented the Towers Watson (TW) global grading system in all operations, its positions are graded accordingly. Wage and salary levels are benchmarked by country and category. This ensures equity and non-discrimination in remuneration practices.
Remuneration practices are regularly reviewed and the group is committed to removing any unfair discrimination in pay scales. In South Africa, differentials are disclosed in terms of employment equity legislation.
Group policies and practices are fair and do not unfairly discriminate based on gender.
Executive increases
For the 2020/2021 period executive committee members received no salary increases.CEO remuneration
For the period from 1 October to 30 September the Group CEO total remuneration (annualised) was R8.5 million. This includes salary; retirement and medical contributions; car benefits; and bonus. It excludes long-term incentives (see also 2020 Integrated Report: Barloworld Remuneration report, 2020 Total remuneration outcomes).During the same period, total remuneration paid to 12 904 employees (excludes CEO) was R7 129.8 million. This includes salaries, wages, overtime payments, commissions and allowances as well as retirement and medical contributions and insurance (see also: 2020 Barloworld Integrated Report – Value added statement for the period ending 30 September 2020 for value distributed to employees). This resulted in an average amount paid to employees during the period of R552 484.
In the circumstances, the ratio of Group CEO compensation to the average of all employees during the period was 15.32.
202-2 - Proportion of senior management hired from the local community
Integrated Report:Our operating context - SOCIAL AND ENVIRONMENTAL CHALLENGESDifferentiated relationships - Stakeholder engagement - CommunitiesRemuneration Report - Remuneration policyRemuneration Report - Performance against non-financial targetsSocial, ethics and transformation committee report - Diversity and inclusionAt Barloworld, unfair discrimination based on gender, race, religion, sexual preference or age is not permitted and our commitment is reflected in the Barloworld Human Rights Policy. All employees have access to the same opportunities. In South Africa, historically disadvantaged South Africans or HDSAs are actively recruited and promoted. Transformation objectives in this country ensure a commitment to local recruitment and employee development. In other regions, applicable localisation requirements also inform recruitment procedures.
In South Africa, mandatory employment equity plans and progress reports are submitted to the Department of Labour. These set out employment targets that address race, gender and disability. Over and above this, some divisions within the group have implemented localisation targets for their African operations.
Where the required skills are not available, the focus is on expatriate assignments, with the commitment to develop a local skills base. Expatriates are in general assigned for specific periods under certain conditions and return to their home countries on completion of the assignment.
There is a small contingent of 1 271 international assignees who principally support operations in southern Africa. Senior managers in all divisions are mostly locally based, with 15 currently in expatriate positions.
Overall 9.85% of employees are expatriates, with the balance of 11 077 (90.15%) employees hired from the respective local communities. We comply with legislation when recruiting locally and procedures for hiring include advertising, developing people from within the company, involvement in the community and schools to source potential employees and learners. Empowerment and transformation legislation and objectives in South Africa ensure commitment to local recruitment and development of employees (see table below for breakdown of employee profile). In other regions localisation requirements also inform recruitment procedures.
Employee breakdown by region 2020 2019 2018 South Africa 9 543 12 352 13 150 Rest of Africa 1 665 1 908 2 053 Europe and Russia 1 697 1 068 1 044 Middle East 0 68 90 Total 12 905 15 396 16 337 2020 2019 2018 Employee breakdown by ethnicity South Africa AIC White Foreign
NationalsAIC White Foreign
NationalsAIC White Foreign
NationalsBoard* 2 0 0 1 0 0 1 1 0 Executive 27 10 5 22 18 5 14 20 6 Senior Management 48 39 1 56 60 2 42 70 2 Middle Management 655 564 15 755 723 16 708 855 15 Skilled Upper 3 447 1 229 35 4 292 1 509 52 4 210 1 714 59 Semi-skilled/apprentices/trainees 3 067 109 216 4 051 152 258 4 367 212 299 Labour/Unskilled 72 0 2 378 0 2 538 0 17 Sub total 7 318 1 951 274 9 555 2 462 335 9 880 2 872 398 Total per category 9 543 12 352 13 150 * Excludes non-executive directors