Multiplying talent

A key enabler of the Massmart business strategy is to have world-class, fit-for-purpose talent.

Our focus this year has been on redesigning the Massmart talent management approach to create a customised, integrated talent management solution that will better enable the organisation to plan for, identify, assess, manage, develop and retain high value talent in all identified talent segments.

In conducting this review, we adopted a fully integrated approach, resulting in Talent Management 2.0. We are guided by the need to empower our people to create a better future for themselves and the business while addressing the critical skills shortage and transformation imperative.

The objectives of Talent Management 2.0 are to:

  • Ensure remuneration competitiveness through the systematic application of our Total Rewards Strategy;
  • Align strategic talent management initiatives to 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;
  • Equip line managers to facilitate quality talent conversations and robust talent reviews;
  • Accelerate and multiply the development of high potential talent through on-going career management discussions and intentional development planning;
  • Retain key and critical talent segments;
  • Build a diverse organisation that is representative of the customers and communities that we serve; and
  • Enable the operating Divisions by providing best practice talent management processes, tools and training.

Growing capabilities

At all levels, our people are encouraged to develop themselves. Divisional learning and development teams provide skills development for both existing employees and unemployed people through learnerships and skills programmes.

  • The purpose of the Massmart Corporate University (MCU) is to support continuous learning at both individual and organisational level, in order to position Massmart to achieve its long-term strategic objectives. The university is now entering its eighth year.
  • In order to ensure its strategic relevance we conducted a review of all master classes and courses. This review further aligns the course content to our critical talent segments. We are confident that the programme content is more aligned than ever to meet Massmart’s future needs.
  • As a result of this review we expanded our graduate programme to include two focused graduate programmes for Finance and Store Development. Our cadet programme, which commenced in 2001, is bearing fruit as the first executive appointments were made from this group in 2016.
  • We have invested R8.1 million (2015: R4.5 million) in leadership development ensuring that the employees who serve our customers have the best leaders possible. In order to ensure that our customers get the best service from our employees, we have invested
    R86.8 million (2015: R64.0 million) in upgrading skills and developing our people.
  • The MCU forms an integral element of our transformation agenda. Selection for programmes is based on South Africa’s National Economically Active Population (EAP) demographics.

Massmart Corporate University participants

The percentage of African, Coloured and Indian (ACI) participants/white participants in the MCU historically (including proposed percentages for 2017).

The percentage of male/female participants in the MCU historically (including proposed percentages for 2017).

Developing a lead culture

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

  • Transformation remains a critical focus predominantly at senior management levels. Our vision is to become a truly diverse company that mirrors our customers and the communities we serve; a company that has an environment that will allow all team members to feel valued for all of their various characteristics, skills and abilities, so that they contribute wholeheartedly to the success of the Company. To ensure that diversity and inclusion is viewed as integral to business sustainability rather than just the achievement of targets, we have introduced several initiatives, including, but not limited to:
    • monitoring of recruitment practices;
    • diversity awareness training and experiences;
    • bonding of roles; and
    • specific focus on managing strategic diversity and inclusion across all identified talent segments.
  • In terms of amendments to the Labour Relations Act
    (S 198A(3)) an employee of a service provider not performing a genuine temporary service is deemed to be the employee of that client after three months. In response to these amendments, each Division undertook an assessment of their employment contract composition. Plans to reduce reliance on Labour Brokers are currently being implemented by all Divisions. In 2016, more than 6,218 employees joined the permanent workforce at Massmart.
  • An integral element of our culture is our employee value proposition. During the course of 2016 we have further refined this to drive attraction and retention.
  • Affordable healthcare in South Africa continues to be a subject of much debate. Employee welfare and affordable access to health cover for staff is important for Massmart and as such 25,447 (2015: 16,324) employees received medical cover either through Massmart’s Health Plans or its occupational health and wellness offering in 2016.
  • 36.77% (2015: 38.83%) of the permanent workforce are union members. The Company supports freedom of association as part of our culture.
  • Our Women in Leadership Mentorship programmes have supported an increase in female store managers.
  • Black management increased to 62.34% (2015: 60.13%) as a percentage of all management.

Optimising HR processes

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 optimising HR processes to facilitate clean data and richer reporting.

  • In July 2016, the Group-wide implementation of the Sage VIP HR/payroll system, the People First project, was concluded. The project delivered the following for the first time:
    • a single Group-wide source of people data, and HR/payroll processes;
    • a more intuitive, more responsive system allowing for the creation of operating efficiencies in payroll processing; and
    • an employee self-service portal.
  • Synergies continue with the HR/payroll community to conclude any outstanding issues, ensure full HR adoption, and plan the implementation of Employee Self Service
  • An online tool will be used to support our Talent Management 2.0 project and allow for richer, more intuitive reporting.