The financial services industry is technically. top quality, highly engaged employees help us do our job as a company better.

Transcription

1 54 Component objective Component sub-issues top quality, highly engaged employees help us do our job as a company better. Santam relies on quality employees to deliver on its strategic vision. We focus on finding the right people, do our best to keep them safe, healthy, engaged with the company s strategy and we help them grow to their full potential. At the same time we stay mindful of our intention of achieving a fully representative workforce. Attraction, retention and development of employees with emphasis on equity Impact of HIV/Aids on our workforce Employee wellness Occupational health and safety The financial services industry is technically challenging and requires high levels of skills and experience. This is especially true of the short-term insurance industry knowledge and relationships are built up over time. It is crucial to our business to identify good people and provide them with an environment that will help them achieve their full potential. Good people are constantly being targeted by competitors in this competitive industry and we have to have strategies in place to counter this threat. These concerns are addressed within the broader context of Santam s commitment to transformation. Attraction, retention and development of employees with emphasis on equity Aligned to: The brand promise: Insurance, good and proper Strategy Regulations Guidelines Santam policies Focus We insure with excellence Focus on talent management Employment Equity Act, Labour Relations Act, Skills Development Act dti CoGP, Department of Labour Human resources policies HIGH

2 Our approach to human capital is to identify top internal and external talent, and ensure that we offer a compelling employee value proposition (EVP) that will attract external candidates and keep key talent in the company. We do this through offering a range of learning and development opportunities which enable our employees to reach their full potential. This is simple business sense top quality, highly engaged employees help us do our job as a company better. In short, it enables us to insure with excellence. Stakeholders At the same time, we focus on increasing black representation at all levels of the business through targeted appointments, succession planning and development. Although we are challenged by the technical nature of the insurance industry and the shortage of skills across all race groups in key areas, we remain committed to meeting our targets 55 Stakeholders Engagement Key stakeholder concerns Approach Employees Government (FSB, INSETA) Internal roadshows, newsletters, employee magazines, intranet, employment equity website, surveys, performance reviews, development discussions, feedback after training courses Ad hoc interactions with Department of Labour, industry bodies, EEA submissions, workplace skills plan, annual training report, annual site visits and audits Fair opportunities for development and advancement Transform the insurance industry and provide appropriate training SAIA Representation, surveys Create a sustainable insurance industry Clients SASBO Contact centres, media, Santam website Regular meetings, negotiations and consultations Demonstrate that Santam cares about transformation Fair labour practices Clear communication, performance reviews, succession and career planning Compliance with dti CoGP Alignment with the dti CoGP Alignment with the dti CoGP Alignment with the Labour Relations Act

3 Regulations and guidelines Our approach to employment equity and skills development is driven by our strategic focus on talent management and we report our progress in terms of the dti CoGP. We are also closely following the development of the Financial Sector Charter to ensure we comply once this has been gazetted. Human resources committee 56 Tag (chaired by the CEO) Tag (chaired by the CEO) report support support Chief Executive Officer and Exco Champions (from each business unit) Divisional forums report neef (chaired by executive head: people and brand) consult Employees BLACK REPRESENTATION How we manage employment equity One of our key EVP focus points is to address the underrepresentation of black employees. While we have made good progress over the last four years in increasing black representation across the group, we need to improve representation at senior management level. We have two formal national structures that govern employment equity and transformation issues in the group: 30 The National Employment Equity Forum this forum addresses compliance with employment equity and diversity and is responsible for driving and monitoring employment equity in the group OVERALL The Transformation Advisory Group this group comprises senior change agents who bring diverse skills and views to a robust debate on broader company transformation issues with the Chief Executive Officer. Discussions are not limited to BBBEE issues, but also cover any area in the company where transformation may be needed, such as company culture. SENIOR MANAGEMENT EXCO

4 Consultative employment equity forums comprising employment equity champions at the business unit level deal with practical implementation issues. Executives are required on a rotational basis to report to the sustainability committee on the progress they are making in their respective areas. Our employment equity strategy was reviewed during 2011 to align it more closely with the Department of Labour guidelines which have a narrower focus on African representation rather than the broader categorisation of black (which comprises Africans, Asians and Coloureds collectively) under the dti CoGP. Our diversity audits show that the area that needs the most attention is representation of Africans (male and female) and people with disabilities. Our shortcomings in senior black representation is a challenge that is not unique to Santam. We are addressing it by: Following a targeted approach to succession planning, career path planning and mentoring for black employees with leadership potential Where vacancies arise, preferentially filling these with black candidates where possible Diversity We are raising awareness of diversity through diversity workshops and training modules on effective management in a diverse workplace. It is important that we continually engage all employees in the company on the issue of employment equity so that everyone is aware of the strategic importance of progress on this issue. All employee groupings are represented on the key forums and our progress is regularly communicated through employee magazines and on our internal website. During 2011, 86% of the overall appointments and 59% of terminations were black. This is an improvement on 2010, when 76% of appointments and 58% of terminations were black. 57 APPOINTMENTS AND TERMINATIONS 2011 TRAINING SPEND ON BLACK EMPLOYEES AS A % OF LEVIABLE AMOUNT (AS PER SCORECARD) 120 5% % 4.0% 4.0% 3.7% % 2% 1% 2.0% 0 0% African Indian Coloured White * DTI TARGET APPOINTMENTS * Unverified TERMINATIONS

5 58 In our 2010 verified scorecard, training spend is reported including the salary cost of attendees while on training. When shown in this way, Santam spent 3.7% of the leviable amount (salary base as defined by the scorecard methodology) on training and development of black employees in How we manage attraction and retention Our EVP is our key attraction and retention strategy which we continue to enhance and communicate to employees. Communications aim to highlight the full range of benefits employees enjoy beyond direct salary and benefits. Employee attraction and retention are achieved through a combination of: Competitive remuneration and financial incentives Opportunities for employees demonstrating expertise, drive and commitment Fast-track opportunities for those demonstrating leadership potential supported by individual coaching, academic programmes and other targeted development opportunities Peer recognition programmes to reinforce best practice Study aid and study leave programmes Santam invested R1.4 million in study aid in 2011 (R1.3 million in 2010) Value-added benefits such as access to a concierge service, employee counselling and wellness programmes How we manage skills development Our investment in skills development empowers our employees and helps to guarantee the longevity of our company. We have a structured approach to training corporate strategy determines human resources strategy which in turn informs our skills development strategy. Learnerships Santam continues to highlight the importance of learnerships, which ties into our strategy to bring people into the business at entry level and create a pipeline of new talented black individuals. Highlights in 2011 People with disabilities During the year we finalised our strategy on people with disabilities. As a first step of this strategy, we ran disability awareness workshops that were attended by nearly 500 employees across the group. Employees completed EEA1 forms as required by the Employment Equity Act, and a project was run where employees updated their personal information including the declaration of any disabilities. The company had 19 employees with disabilities at the end of the year, of whom 10 are black (8 in 2010). % BLACK EMPLOYEES WITH DISABILITIES 5.00% Finding a job was really difficult companies didn t want to hire a person with a disability. I came in for an interview with Santam and I was a bit sceptical. I was amazed to find management and employees were absolutely polite and friendly and took a keen interest in me. I ve had the happiest work experience ever. It s not just a workforce it s a family I m proud to be part of. Denzel David, Inbound Contact Centre Agent 25 At first I didn t know what to expect coming to work how would people react? How would I get around? But from the first day people have been really friendly and always willing to help. I feel at home here. Anees Kajee, Inbound Contact Centre Agent 24 We use bottom-up feedback from managers about the skills required and information from the INSETA. This indicates where they see skills shortages within the industry. We run a range of training programmes each year facilitated by external trainers, including leadership development programmes, behavioural (soft) skills and legislative training (e.g. FAIS). The group Learning Forum brings together human resources and skills development teams from across the Sanlam group. This forum meets monthly to identify synergies, potential cost savings, best practices, alignment of strategies and transformation learnings. 4.00% 3.00% 2.00% 1.00% 0.00% 0.30% 0.31% 0.29% * DTI TARGET * Unverified

6 Employment equity We held focus group sessions early in 2011 to identify barriers to employment equity and to gather perceptions on this issue. These sessions were attended by nearly a quarter of employees. Thereafter, a full-day workshop was held with all key stakeholders to collectively identify affirmative action measures. An interim employment equity plan has been approved by Exco. Santam s current three-year plan ended at the end of 2011 and the interim plan will apply until the end of At that point, Santam will align its employment equity plan with the broader Sanlam group three-year plan once this is finalised. What we said we would do in 2011 Aspirations Increase number of senior black African employees Conduct a full review of our employment equity plan, with revised targets starting in Address income differentials Progress During 2011, two white and two black employees were appointed in the senior management category. However, three black employees resigned during the same period. A full review was conducted, the EE plan rewritten and revised targets developed by the business and in place. On average, white employees have been with the group significantly longer and are older than other race groups. Income differentials will narrow over time as our workforce profile matures 59 Defining and driving a performance culture Another key focus this year was on organisational culture and employee engagement. A culture and engagement survey was conducted to benchmark the current culture against key criteria and to assess levels of engagement across the business. Santam is driving a performance culture, but we understand that to do this in isolation of a focus on engagement is short-sighted. Employee engagement is a key contributor to organisational success the survey assessed individual engagement levels, conditions for engagement and leadership for engagement. Results are positive but there are gaps which will be addressed through targeted initiatives in The culture survey has indicated that there are key organisational capabilities which we need to focus on. These include a focus on agility, adaptability and change capability. We will integrate these core areas into our development programmes and culture initiatives in Our focus on performance culture and engagement is part and parcel of our internal philosophy of Inside Out. Inside Out is fundamentally about looking inwards, uncovering excellence and then acting outwards to deliver insurance, good and proper. To enable Santam to deliver authentically on our brand values and promise to the external market, we need to ensure we are internally positioned to do so. By uncovering the excellence within and by enabling employees to reach their full potential we will position Santam to not only give effect to the required performance culture but also to authentically engage the external market and stakeholders. Santam s labour climate Santam respects the rights of its employees to participate in collective bargaining organisations and has a mutually respectful relationship with the financial sector union Sasbo. At the end of 2011, 817 employees (33% of employees) were members of Sasbo. Santam has good relations with its labour force and this results in few labour-related disputes Disciplinary dismissals CCMA cases There were 14 disciplinary dismissals during the year (2010: 11) and the number of CCMA cases rose to 12 from seven in The increase in CCMA cases is partly due to the carryover of certain cases from last year. We have shown improvement in our employment equity score since our 2009 performance.

7 We have maintained our EE performance for both 2010 and However, we remain focused on improving this going forward. EMPLOYMENT EQUITY PERFORMANCE * DTI TARGET * Unverified Employee representation per race by level Total black employees % Total white employees % Exco 22.2% 20.0% 16.7% 77.8% 80.0% 83.3% Senior Management 21.7% 23.9% 25.9% 78.3% 76.1% 74.1% Professional 34.7% 30.5% 29.7% 65.3% 69.5% 70.3% Skilled 54.9% 49.1% 49.2% 45.1% 50.9% 50.8% Semi-skilled 81.8% 78.6% 76.1% 18.2% 21.4% 23.9% Unskilled 100.0% 98.3% 100.0% 0.0% 1.7% 0.0% TOTAL 56.8% 54.4% 50.8% 43.2% 45.6% 49.2% Rectifying black representation at executive and senior management level remains a challenge for Santam but will continue to be a focus for us going forward. PROGRESS IN OVERALL EMPLOYEE COMPOSITION SINCE 2005 Dec % 43.2% Dec % 45.6% Dec % 49.2% Dec % 50.3% Dec % 53.9% Dec % 55.9% Dec % 61.2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Black White

8 Appointment by race African 39.60% 32.6% 33.7% Coloured 35.70% 33.1% 32.2% Asian 11.00% 10.6% 11.1% White 13.70% 23.7% 23.1% Terminations by race African 23.60% 22.3% 22.8% Coloured 26.40% 27.2% 29.0% Asian 9.10% 8.2% 8.0% White 40.90% 42.2% 40.2% Black terminations are still disproportionate to the percentage of employees that black employees make up although it is offset by recruitment of black employees. A total of 56.8% of Santam employees are black and, as such, one would not expect to find black representation among terminations to be higher than that (59.1% in 2011). 61 Promotions by race African 24.70% 19.8% 16.3% Coloured 33.50% 34.8% 29.6% Asian 11.40% 12.1% 11.7% White 30.50% 33.3% 42.5% Black promotions have increased from 57.8% in 2010 to 69.5% in 2011 of all promotions. Revised approach to reward We revised our succession planning model during the year to focus on the top three employment levels. We have also finalised a new rewards strategy that will be implemented in This new strategy identifies those mission-critical characteristics, such as unique leadership or technical skills, employment equity status, ease of replacement and key relationships with stakeholders. The identification of key employees, combined with an understanding of their reward needs, will enable Santam to offer customised reward offerings which will be geared to enhance motivation and retention. Part of this rewards strategy will include the introduction of job families rather than job grades. This gives employees a clearer view of possible career progress, helps succession planning, career planning and performance management. We also increased communication to employees to emphasise the full value proposition of working for Santam, and to highlight the full investment the company makes in its employees, beyond the remuneration package. Our leadership development programme demonstrates our commitment to investing in our employees development.

9 Skills development targets 62 Area 2011 target Achieved 2012 target Learnership 100% Y 30* Graduate programme 90% black Y 100% Study aid 65% to black employees 69% 65% Senior management development 65% black Y 65% programme Junior leadership development programme 65% black Y 65% * Black including five people with disabilities Impact of HIV/Aids on our workforce Aligned to: The brand promise: Insurance, good and proper Strategy Santam policies Focus We insure with integrity Achieving operational and capital efficiencies HIV policy LOW Santam s strategy of maximising operational and capital efficiencies requires a healthy and productive workforce. Health risk factors affecting productivity are monitored and managed. Insuring with integrity means caring for the wellbeing of employees and respecting their right to a healthy and safe work environment. How we manage HIV/Aids in our workforce Research conducted by SAIA determined that HIV/Aids does not pose a significant risk to the insurance sector. This is borne out by our experience with our employees. We approach the management of HIV/Aids in the workplace by offering voluntary counselling and testing at our wellness and health days as well as regular communication with employees. World Aids Day particularly is used for various awareness-raising initiatives. HIV/Aids assistance is integrated into our employee wellness programme and our medical aid funds, membership of which is compulsory for all employees. Employee wellness Aligned to: The brand promise: Insurance, good and proper Strategy Focus We insure with integrity Achieving operational and capital efficiencies MEDIUM

10 How we manage employee wellness Employee wellness is managed under a joint Sanlam and Santam strategy aimed at standardising a core offering to employees. This includes an employee wellness scheme, preventative health screening and HIV/Aids management. Employee wellness is crucial to our business and we believe that the management of risk factors, especially those impacted by lifestyle choices, is essential. Highlights in 2011 Wellness days were held by our medical aid partners in late 2011 where screening was offered for lifestylerelated diseases, such as diabetes, hypertension, obesity and cholesterol. HIV/Aids testing and lifestyle Occupational health and safety Aligned to: The brand promise: Insurance, good and proper Strategy Regulations Santam policies Focus assessments, covering nutritional habits, stress evaluation and exercise levels, were offered. Feedback from our employee wellness programme partners has indicated that couple and family relationships are a major stress factor affecting employees. To this end, sessions covering depression and dealing with stressful events were conducted in the second half of Sanlam financial advisors continued with financial education workshops based on needs identified in various areas of the business. We have started publishing employee wellness information on the Health Bytes pages on the company intranet. We insure with integrity Achieving operational and capital efficiencies Operational Health and Safety Act Occupational health and safety policy LOW 63 We have a legal and moral obligation to provide our employees with safe working conditions. Although our operations are conducted in office environments which carry a low risk from a health and safety perspective, we take our obligations to ensure compliance with the Operational Health and Safety Act seriously. At induction, employees are informed of their rights and responsibilities under the Operational Health and Safety Act and they sign an electronic declaration on the intranet to confirm this. Operational health and safety is managed as part of the facilities management process. We rely on regular inspections by external compliance agents at our 10 largest buildings to make sure we continue to materially comply with the Operational Health and Safety Act. For smaller offices, we have a monthly self-assessment programme in place.

11 64 o Human capital Aspirations for 2012 Sub-issue Attraction, retention and development of employees with emphasis on equity Impact of HIV/Aids on our workforce Employee wellness Occupational health and safety Employment equity plan targets: Increase black employees to 59% Increase African employees to 23% Increase black females to 34% Increase disabled employees to 0.9% Increase black disabled employees to 0.71% Attraction and retention targets: Deliver initiatives to drive engagement Repeat the culture and engagement survey Implement revised rewards strategy Enhance succession process Redesign induction programme Complete job families project and align with levels of work Re-design and implement EVP in line with Brand refresh Skills development targets 30 black learnerships including five disabled Graduate programme 100% black Study aid 65% black Senior management development programme 65% black Junior leadership development programme 65% black Low-focus item no short-term aspirations set Continue focusing on problematic life issues identified by our employee wellness programme partners, HIV/Aids education, financial education and general health and nutrition education Low-focus item no short-term aspirations set