Integrated annual report
for 52 weeks ended 27 December 2015
Share -0.60%
Back to top

Human capital

We believe that each of our associates brings a unique set of skills, experiences, perspectives and ideas that gives us the competitive edge. We believe people drive their own development, but it is our duty to provide an environment that is conducive for nurturing their talent and creating opportunities for them.
In 2015…
What we did well:
The focus of the talent management team this year has been on understanding leadership talent risk at a functional level, identifying a technology solution to support the management of the data and the process, and aligning learning and development solutions with the gaps identified through the talent review process.
The Massmart Corporate University has grown and evolved into a key element of our talent management strategy, as it provides a framework in which we can make focussed contributions to the development of people at all levels, while building internal succession.
The improvements we made:
In 2015 Massmart embarked on a project of job evaluation, and the setting of remuneration structures that are market related, affordable to the business and that encourage an environment of performance related pay.
The challenges we’re facing:
Prompted by changes to section 198 of the Labour Relations Act (No. 66 of 1995) each Massmart Division has undertaken a comprehensive assessment of their employment contract composition.
WE OFFER AN AUTHENTIC RETAIL EXPERIENCE WHICH ENCOURAGES A SPIRIT OF ENTREPRENEURSHIP. WE RECOGNISE THAT A DIVERSE AND INCLUSIVE WORKFORCE IS CRUCIAL FOR SUSTAINED BUSINESS GROWTH.
 

 

 

 

 

 

 

Human-capital-Pic-2

 

 

 

 

 

 

 

 

 

 

 

 

 

Human-capital-Pic-3

Above:
Fikile Sikhosana, Makro Corporate Brand Controller and Graduate Development Programme alumnus

We offer an authentic retail experience which encourages a spirit of entrepreneurship. We recognise that a diverse and inclusive workforce is crucial for sustained business growth.

The Group actively seeks the continuous improvement of performance in the portfolio and its parts, through strategic and structural clarity, high market shares, excellent management, principle-driven ethical leadership, cost-effective technology and the sharing or accumulation of capabilities, knowledge, resources, influence and information.

To this end, thought-leadership, individual and collective performance, and collaboration throughout the Group are appropriately recognised, valued and rewarded. Our vision as an organisation is to deliver value to our customers, suppliers, employees, investors, communities and other social partners at large. We share people-centric values that define our behaviour and shape our culture, allowing us to: service our customers; show respect for the individual; and strive for excellence and integrity. Our adherence to these principles has created a unique work culture within our business. These are built on a foundation of integrity where the principles of honesty, fairness and objectivity guide how we apply these values in the workplace.

Massmart offers diverse career choices such as: Marketing, Business Intelligence, Accounting, Information Systems and Business Processes, Supply Chain, Operations, Legal, Compliance, Human Capital, Merchandising and International Commerce; to name but a few. This is what differentiates us and strengthens our value proposition to our employees. We aspire to be the most trusted retailer in Africa and the ultimate home of the career retailer. This goal can only be achieved when excellence is demonstrated through inspired and engaged people.

Talent management

At Massmart talent management refers to a set of integrated organisational Human Resources’ processes designed to attract, assess, develop, motivate, and retain productive, engaged employees. Through these processes we create a high-performance, sustainable organisation by having the right people in the right place at the right time. This requires an accurate forecast of the demand for talent in core, critical and scarce skill functions, and an understanding of the talent supply we already have.
Our objective is to:

  • Align strategic Group talent management initiatives with current and future business requirements;
  • Provide accurate, useful, actionable “People Intelligence” to the business for the purpose of human capital risk management and succession planning;
  • Accelerate the development of high potential leadership talent through individual career management discussions, and customised executive development programmes;
  • Build a diverse organisation that mirrors the customers and communities that we serve; and
  • Enable the operating Divisions by providing best practice talent management processes, tools and training.

Our bi-annual Executive talent review and succession planning process is the foundation of talent management. Leadership talent data from across the organisation is collected, analysed and calibrated by the Massmart Executive Committee for the purpose of identifying, developing and retaining top talent. The focus this year has been on understanding leadership talent risk at a functional level, identifying a technology solution to support the management of the data and the process, and aligning learning and development solutions with the gaps identified through the talent review process.

Massmart Corporate University (MCU)

The MCU has grown and evolved into a key element of our talent management strategy, as it provides a framework in which we can make focussed contributions to the development of people at all levels, while building internal succession.

Furthermore, positioned as it is at the intersection of all Divisions, the MCU provides us with a unique opportunity to influence our organisational culture that has as its foundation the values of mutual respect, collaboration and empowerment. As employees enhance their personal capacity they are encouraged to network and build relationships across the Divisions.

The MCU consists of four schools that are closely aligned to our business strategy:

  • The School of Leadership Development: Advanced leadership development is critical to our growth strategy. This school addresses the ongoing development needs of senior Executives through a variety of interventions, under the guidance of faculty at some of South Africa’s best business schools;
  • The School of Management Development: Acknowledging that many of our best leaders have emerged from inside the business, this school provides them with the opportunity to attend accredited courses that equip them with the tools to optimise their own and their team’s performance;
  • The School of Retail Excellence: Keeping in mind the shortage of core retail skills in the country, this school aims to provide development to merchants at all levels, ensuring strength in this critical team; and
  • The School of Career Development: In South Africa, with our history of systemic discrimination, the management of talent cannot be seen in isolation from our journey towards transformation. The School of Career Development has to date primarily been responsible for driving our Graduate Development Programme, and Graduate Alumni Programme. As we move our diversity and inclusion strategy forward, we will now offer a framework for the development of all emerging talent candidates.

We believe that this systematic approach to the development of talent will serve Massmart’s needs to build core competencies in support of our growth strategy.

Remuneration and benefit structures

At Massmart we believe in remunerating employees fairly for their roles. In 2015 Massmart embarked on a project of job evaluation, and the setting of remuneration structures that are market related, affordable to the business and that encourage an environment of performance related pay. In 2016 Massmart will begin the formal implementation of these remuneration structures.

People First project

The HR Forum embarked on a project to implement a new Group-wide HR/Payroll system. The motivation was to replace the existing legacy payroll systems, while providing additional HR functionality to facilitate clean data, standardised processes and richer reporting. This project was a first for Massmart as HR, Payroll, Finance and IT from all Divisions collaborated, ensuring a single payroll instance and simplifying ways of working for the benefit of the Massmart Group in all countries in which we trade. Synergies have already been realised in new HR and Payroll processes and templates, reports that all areas can benefit from, alignment to policies and legislation, and implementing best practice. The project is due for completion mid 2016 where phase two will look at additional functionality like Employee Self Service.

BUA employee engagement survey

Massmart participates in an employee engagement survey with all companies working within the Walmart group to help understand how our employees feel about working for Massmart. The survey covers themes that impact on the Massmart Brand namely; teamwork, work environment, career and development, support, leadership, direct supervisor, action planning, and ethics. The last survey was held in 2014; leaders have worked with their teams throughout 2015 to improve on our engagement scores.

Labour brokers

Prompted by changes to the section 198 of the Labour Relations Act (No. 66 of 1995) each Massmart Division has undertaken a comprehensive assessment of their employment contract composition. This has resulted in the decision to phase out the use of labour brokers in core roles. Divisional Human Resources’ leaders are working on projects with labour brokers and unions in their business to accommodate the new legislation.

 

Human capital performance indicators