Senwes Integrated Reports Senwes 2018/2019 Integrated Report (b) | Page 24

THE BUSINESS TRADE-OFFS IN OUR USE OF INTELLECTUAL CAPITAL TRADE-OFFS IN OUR USE OF HUMAN CAPITAL The Senwes group workforce increased, which had a positive impact on human capital. The in- crease in salary costs had a negative impact on financial capital. Employees were challenged by process changes, which caused a short-term reduc­tion in productivity, due to the time inves­ted by employees, but resulted in improved decision- making proces­ses and greater efficiencies through standardisation. HUMAN CAPITAL JOB LEVELS PER Our employees are the key stakeholders of Senwes. Our workforce has been, and still is, our primary competitive advantage in the long and successful 110-year history of the company. We have a hardworking team, which has always ensured our long-term sustainability and will continue to ensure our success. executive management 0% 100% middle management 4% 96% NON-BEE BEE OR INTELLECTUAL CAPITAL The appointment of the correct person in the correct position, supported by effective management systems and company culture, contributes to the suc- cess of Senwes’ business model and the achievement of its strategy. Senwes is a customer focused company which strives to find innovative and integrated solutions for the challenges faced by our customers. senior management 0% semi - skilled 49% KEY INPUTS Margin management; A core business-driven graduate programme; Extensive learnership and apprenticeship programmes; skilled technical 14% KEY INPUTS 86% unskilled employees 92% 8% Focused and tailor-made leadership and management development programmes; A bursary scheme; and Accelerated learner development programme for learners with diplomas. An industry leader and an excellent company to work for; A safe and healthy work environment; ACTIONS TO IMPROVE OUTCOMES Market-related employee recognition and remuneration; A resilient, ethical leadership team; and Re-evaluation of existing policies and pro- cedures; Implementation of an electronic human re- sources management system; Implementation of various online reward systems to determine remuneration fair- ness in the market; A workplace where fair labour practices are enforced. OUTCOMES 2019 2018 Total employees (group, including JV’s) Number 3 344 3 252 Total remuneration costs (group, including JV’s) R’m 828,8 810,9 Man-days lost, due to injuries Days 486 836 Section-24 disabling injuries Number 4 13 Disabling injury frequency rate # 1,5 1,6 Implementation of extensive talent forums throughout the group; and Facilitation of five-year EE-plans with iden- tified barriers. FUTURE CHALLENGES REASSURANCE IN RESPECT OF HUMAN CAPITAL Compliance Committee; Remuneration Committee; Job Grading Committee; Social and Ethics Committee; and Employment Equity Committee. 22 OUTCOMES Alignment of internal management practices to support the future world of work; Cultural diversity and sensitivity; Retention of key individuals and scarce skills; Identification and management of critical posi- tions; and Introducing BOTS and online learning techno­ logy. SENWES INTEGRATED REPORT 2019 Total revamp of the online performance evaluation system; Employee well-being programme develop- ment; Market-integrated business solutions to clients; and Focus on the optimisation of existing in- vestments by means of problem analysis and internal improvements. A structured graduate programme that supports the core business: Graduate programme 2010 - 2019 BEE 54,5% Senwes Academy # NON-BEE 45,5% FUTURE CHALLENGES 2019 2018 2015-2019 28 49 322 # Includes programmes for learners in accelarated leadership, training at business schools, learnerships, apprenticeships and leadership development. Talent development indicator 2019 2018 Movement 10 937 9 806 11,5% 7,3 9,1 (19,8%) Margin % of training invested in black individuals 37,8 38,2 (0,4%) Average number of training days per employee 3,0 4,2 (28,6%) Captured training costs as a % of payroll cost 1,4 2,0 (30,0%) Number of training man-days Total training costs (R’m) # Times per one million man-hours worked. ACTIONS TO IMPROVE OUTCOMES Outcome-driven objectives for all person- nel, aligned with measurable divisional ob- jectives for effective management; 100% 51% Investing in the right skills and systems requires a lot of capital, which has a positive impact on human capital, natural capital, financial capital as well as social and relationship capital over the longer term. The improvement of certain process- es and technology could result in a decrease in human capital. Significant capital was invested to develop and train employees, adversely impacting financial capital. Medium to long-term benefits will enhance our decision-making abilities and result in greater efficiencies. Recruitment and retention of suitable employ- ees (as a rural employer); Increasing stakeholder expectations in respect of technological innovation; Increasing pressure on data, capacity and ana­lytical ability; Competitiveness; and Timely and effective implementation of re- search findings. REASSURANCE IN RESPECT OF INTELLECTUAL CAPITAL Financial and IT Steering Committee; Social and Ethics Committee; A well-defined talent management framework; Employment Equity Committee; Succession identifier criteria developed with supporting succession path documents; and Job Grading Committee; and Enhanced recruitment and appointment of new employees. SENWES INTEGRATED REPORT 2019 Remuneration Committee. 23