Investing in our people

Investing in our people

Strategic intent

Build an organisation that adds value to employees as our success is based on inspired, aligned, empowered, results-driven, globally competitive, passionate people who create value through strategic innovation and continuous improvement.

Integrated Employee Value Model

The main components of the people management model:

Our Integrated Employee Value Model (IEVM) was rolled out across the group during the year and is central to us realising our strategic ambitions. The Employee Value Proposition (EVP) ensures we attract and retain the required talent and our people methodology, known as the High Performing Organisation (HPO), revolves around aligning purpose and effort, creating a safe, equitable and enabling environment that provides job satisfaction and inspires discretionary effort from employees. Collective wisdom and being a Learning Organisation ensures participation and knowledge sharing. Overall, our IEVM identifies and aligns all employee elements to ensure sustainable value-creation.

This is supported by 360-degree reviews and the Individual Perception Monitor (IPM) which offer feedback on the Barloworld Employee Value Proposition and employee commitment to the values in our Worldwide Code of Conduct.

The 2014 IPM questionnaire was aligned with the elements contained in the Employee Value Proposition – Inspire, Grow, Thrive, Live, Relate and Reward – as well as the sustainability platform on which it is based, the Learning Organisation. Critical aspects of employee engagement were also measured. The survey was conducted in most of our businesses.

Division/business unit		IPM result overall

Equipment southern Africa		2.88


Equipment Russia		2.99


Equipment United Kingdom		2.78


Equipment Iberia		Not conducted


Automotive head office		3.04


Avis Fleet Services		3.05


Avis Rent a Car		3.08


Logistics		3.10


Motor Retail		3.12


Handling United Kingdom		3.30


Handling, Agriculture and SEM South Africa		3.15


Handling rest of Africa		2.82


Agriculture Russia		2.92


Corporate office		3.01

LA1 to LA15

The objective was to gauge how close we are to achieving our strategic objective on people, with a rating of at least 75% (3 or above) in all aspects of the IPM questionnaire as the benchmark.

The divisions are analysing the qualitative and quantitative results and detailed action plans are being prepared to improve the areas not achieving the benchmark of level 3.

Talent management

We have committed to invest in growing our sustainable competence and this necessitates an annual workforce planning analysis to identify future manpower needs aligned to the company’s strategic plans. A talent pipeline review is also done to identify any gaps. Talent segmentation is important to identify core and scarce skills, which are prioritised and incorporated into recruitment strategies and skills development plans.

An annual Intellectual Capital Review (ICR) identifies and manages the talent within the organisation. In addition, 11 563 employees had career development discussions and individual development plans are implemented to enable employees to improve their skills to excel in their current and future roles. We have preference for internal appointments within the organisation through internal advertising of vacancies.

Skills development programmes are aligned to national regulations and frameworks and address both technical and other skills.

We place strong focus on apprenticeship and learnership programmes. We have 1 097 candidates on these programmes. In addition, there are 3 460 artisans, technicians and technologists within the group and 3 111 employees have degrees or diplomas.

With focus on the future talent pipeline, Barloworld provides financial assistance to 185 employees studying towards degrees or diplomas. 27 bursaries have been granted to external students studying towards a degree. In 2014 we have also assisted 164 external individuals in training, including work experience through a number of internship programmes.

Leadership development

The development and enhancement of leadership skills is a key element of Barloworld sustainability. Management and executive development programmes are held through recognised business schools and universities. Two of these programmes, the Executive Development Programme (EDP) and the Leadership Development Programme (LDP), are coordinated centrally with participants selected from across the group to participate. To date, 744 Barloworld employees have attended these two programmes.

Direct training spend increased by 10% to R129.3 million.

Percentage spend by occupational level

		% spend
Occupational level	2014	2013	2012
Board*	0.01	0.00	0.01
Executive	0.80	0.02	0.09
Senior management	2.93	0.87	0.22
Middle management	13.07	11.34	10.96
Skilled upper	46.97	48.36	48.13
Semi-skilled/apprentices/trainees	33.95	39.36	39.60
Labour/unskilled	2.27	0.05	0.99
Total spend	R129 268 232	R120 078 219	R156 589 474
Continuing operations	R129 268 232	R117 051 847	R152 679 992

Average training hours per employee by occupational level

		Average hours
Occupational level	2014	2013	2012
Board*	3.17	3.00	3.17
Executive	22.72	4.02	8.19
Senior management	34.39	12.24	8.93
Middle management	28.06	21.74	27.29
Skilled upper	30.06	37.40	28.18
Semi-skilled/apprentices/trainees	56.80	38.55	53.14
Labour/unskilled	3.99	2.51	16.04
Total	38.08	35.05	35.40
Continuing operations	38.08	35.22	35.80

Note:

Classification of executive, senior management and middle management has changed in 2014. This has not been changed for previous reporting periods.

*	Executive directors only.

Performance management

Performance is managed to recognise excellence and develop skills. The reward and performance management system is aligned to value creation through remuneration, coaching and reviews.

Performance reviews are conducted annually. During the reporting period 12 778 reviews took place.

Health and safety

We are committed to creating a caring, equitable workplace and the safety and wellbeing of all Barloworld employees is paramount.

Regrettably, there were three work-related deaths during the year which were all motor vehicle accident related. We continue to emphasise safety and awareness of practices that will contribute to zero harm.

HIV/Aids statistics in Barloworld South Africa

	Employees			Employees who know their status*			% who know their status*			% of those tested who are HIV positive*
Divisions	2014	2013	2012	2014	2013	2012	2014	2013	2012	2014	2013	2012
Equipment and Handling	4 171	4 293	4 210	2 832	2 160	2 627	68	50	62	4	3	4
Automotive and Logistics	10 333	9 471	8 241	10 008	5 301	4 918	97	56	60	5	5	5
Corporate	115	113	119	68	50	100	59	44	84	6	4	4
Total	14 619	13 877	12 570	12 908	7 511	7 645	88	54	61	5	4	5

*	Cumulative over three years.

Number of employees

Barloworld is a multinational entity committed to recruiting from communities in which we operate and developing the local skills base. Where the required skills are not available, the opportunity is used to broaden the experience and expertise of expatriate employees who, in turn, assist in developing local skills. Overall 1.40% of employees are expatriates and the number is steadily decreasing due to our comprehensive skills development programmes in all territories.

Overall headcount (permanent and contractors greater than 12 months) increased from 19 182 to 19 616 as a result of organic growth and smaller acquisitions in Handling and Logistics. This number was also impacted by retrenchments/ redundancies and sales/disposals of businesses in Equipment, Handling and Automotive and Logistics.

Workforce by region

	2014	2013	2012
South Africa	14 619	13 877	12 570
Rest of Africa	2 357	2 418	2 334
UK, Europe and Russia	2 472	2 632	3 548
Middle East and Asia	161	242	244
North America	7	13	14
Total	19 616	19 182	18 710

Number of employees – group

	2014	2013	2012
Equipment and Handling	8 298	8 691	9 427
Automotive and Logistics	11 203	10 378	9 164
Corporate	115	113	119
Total	19 616	19 182	18 710

Outlook

The creation of a high-performing organisation is an ongoing process and in 2015 the main focus will be on implementing detailed action plans to address feedback from the IPM survey results. As we finalise the details of the next strategic period for the group to 2020, attention will also be given to skills assessment to determine future needs that will support our strategic priorities.

Logistics team wins 2014 CEO award

Friday, 7 November 2014 saw a gathering of teams and individuals from across Barloworld who have clearly indicated why people are our strategic advantage. These are the finalists nominated by our divisions to participate in the annual CEO Award.

Barloworld believes in making a world of difference to all our stakeholders by exceeding expectations in the provision of innovative, value-adding solutions. Our Value Based Management approach centres on long-term, positive outcomes for all who interact with the organisation. The CEO Awards recognise employees who go beyond the call of duty to make a world of difference.

The 2014 CEO Award went to our Logistics team responsible for managing Illovo’s Germiston Bulk Sugar Depot. The 25-strong team, led by Krishna Govender, manages this sugar storage and bulk handling facility 24 hours a day, seven days a week, on behalf of Illovo. This is a critical supply point to Illovo’s industrial customers such as ABI (bottlers of Coca Cola), National Brands and SA Breweries in Gauteng and surrounding areas.

The depot’s CEO Award nomination followed outstanding performance over three years, with superior service levels consistently exceeding expectations.

The total Illovo contract has generated R3.4 billion in revenue, adding significant value to our shareholders as well as the customer.

From left to right – Alexandr Radionov, Jacques Gericke,
Kavendrin Naidoo, Mbali Tshitenge, Clive Thomson,
Willie Stander and Krishna Govender

The other finalists were:

Willie Stander (Handling), who has achieved a record year for the Challenger agricultural franchise in his first year as general manager of this business, an exceptional achievement in difficult conditions. Willie’s customer focus, relationship with our principal, AGCO, and ability to motivate his team have laid the platform for strong future growth.


Jacques Gericke and the Isuzu Trucks JHB Service Team (Automotive), which has implemented several innovative ideas to substantially increase monthly hours and create enormous customer value. This team of 23 has consistently exceeded all financial targets through hard work, pride in doing the job, and putting customers first.


Mbali Tshitenge (Equipment southern Africa), strategy manager, who has received extremely high praise for her successful leadership of the strategically important Caterpillar dealer growth and profitability (DGAP) project for parts. This has laid a sound platform for growth in our Cat parts business now and in the future, which sits at the heart of our alignment with our principal.


Alexandr Radionov (Equipment Russia), for outstanding customer support as aftermarket manager for the Yakutia region. He finds innovative solutions to keep machines productive, negotiates long-term parts and service contracts and delivers fleets in record times to mining sites thousands of kilometres from our depots in some of the most challenging conditions on the planet.


Kavendrin Naidoo (Corporate office), group sustainability analyst, for enhancing the quality, accuracy and efficiency of safety, health and environment (SHE) reporting to the extent that Barloworld’s non-financial reporting has won us many accolades and excellent rankings on various local and global indices.