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OUR MANAGEMENT APPROACH |
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During the period under review, Imperial
embarked on a concerted talent
management process. With the increasing
scarcity of key management skills, the
growth of the group into new markets
and segments, and increasing demands
on senior management in a more
complex operating environment, talent
management and succession have
become critical considerations at group
level. This implies a pronounced shift in
the role of continuous learning and people
development – from an operational
function to a strategic imperative.
Strategy around talent management and
succession is set by the CEO in conjunction
with the senior management team and
implemented through line management.
The group maintains a strong focus on
training, with employees at all levels
having access to training and development
opportunities. Training programmes are
aligned with performance management
though the creation of personal
development plans for employees.;
An internal psychometric assessment
centre has been established, to assess
potential new recruits and enable
high-performance individuals to be
identified and promoted internally. This
centre is staffed by a number of
psychologists and psychometrists.
Psychometric assessments are conducted for
recruitment, developmental and promotional
purposes. Traditionally, recruitment for senior
roles at Imperial has mainly been from within
the organisation, but the growth of the group
and the focus on new areas of business have
meant that a broader skills pool now needs to
be tapped. The expansion of the group has also
driven a focus on different aspects of human
capital management. For example, an expatriate
policy is now being developed as a result of the
group’s expansion into Africa and beyond.
The primary goal of the group’s transformation
initiatives is to ensure the sustainability and
societal alignment of the group over the long
term and to contribute positively to the
development of the South African economy
and society. It is also essential for the business
to achieve an acceptable empowerment rating
in each of its divisions to assure their
competitive position within each industry
is maintained and enhanced.
Sustainable transformation is addressed in
the group by focusing on three areas:
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People development – the training and
development of employees across the
group with an emphasis on the
identification and advancement of black
talent. Initiatives cover the spectrum from
technical training, through supervisory
functions to executive levels |
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Promotion and recruitment – ensuring
employment equity targets can be met
by appointing black people to
management positions across the group
through recruitment and promotion |
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Employee value proposition and
engagement – measuring employee
perceptions and levels of satisfaction
periodically through internal climate
surveys.
18 factors were measured
during our last survey, including topics
such as job satisfaction, organisational
commitment, overall evaluation
of Imperial as an employer, leadership
climate, work team climate, employee
engagement, diversity management,
remuneration and job stress.
The results of the evaluation were
generally favourable, with high scores
in areas such as job satisfaction,
employee engagement and work
team climate |
While the group has made significant
progress in the overall level of
transformation to date, the pace of
transformation at senior levels remains a
concern. In response, we have put in place
programmes designed to increase the
representation of employment equity
groups in two areas – dealer principals
(the managers of our dealerships) and
experienced finance professionals,
specifically Chartered Accountants, who
can be deployed in the broader group.
The latter programme is known internally
as ‘Project 60’.
Both programmes have targets and
processes associated with them to ensure
an additional 100 black managers are
responsibly deployed into our talent
pool by December 2015.
IMPERIAL’S TRANSFORMATION STRATEGY
For Imperial to be recognised as a leader in the development of human capital at
all levels, with the prime objective in South Africa, being the closer alignment of
the group’s employee and leadership profile with the national demography |
To develop employees and prepare them for promotion whilst ensuring
cultural readiness for changes throughout the group
To attract and promote talented black employees to suitable positions
PEOPLE DEVELOPMENT
AND CULTURAL READINESS
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Imperial Technical Training
Academies |
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Middle management leadership
programmes |
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Branding |
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PROMOTION AND RETENTION
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Target black appointments for group executive committee
and divisional boards |
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Employment equity targets per division |
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Executive oversight and veto over senior appointments |
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Attention to board profiles at group and divisional level |
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20% weighting in senior incentive structures |
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SUPPORTED BY THE GROUP EXECUTIVE AND PEOPLE DEVELOPMENT FUNCTION |
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GOVERNANCE, MONITORING, REVIEW AND ASSURANCE |
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SOCIAL,
ETHICS AND
SUSTAINABILITY
COMMITTEE |
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DIVISIONAL
EMPLOYMENT
EQUITY AND
TRANSFORMATION
COMMITTEES |
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SCORECARDS AND
INDEPENDENT
VERIFICATION
AGENCIES |
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TRAINING QUALITY
ASSURANCE
REVIEW |
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DEVELOPING THE EMPLOYEE VALUE PROPOSITION AT IMPERIAL
Imperial’s value proposition for
employees centres on the ability of the
individual to succeed in an empowered
and performance-driven entrepreneurial
culture.
Tangible benefits for employees are
however no less important. One such
benefit is the consistently high quality of
training programmes which employees can access and the sustained
focus on personal development.
In addition, as a result of the tremendous
diversity of operations across the group, we
have been able to create a scheme whereby
employees benefit from valuable rebates on
in-house products and services – the ‘Imperial
Mall’. The group’s buying power is further
harnessed to enhance this employee offering.
Currently 14 952 employees, or 32% of our
workforce, are members of the Imperial Mall
and over 5 880 employees signed up as
members during the financial year under
review. We estimate that employees have saved at least R2,7 million during the
financial year by using the Mall,
benefiting from the 330 product
brands which are available on the site.
An element of excitement is added by
regular competitions, with prizes
including a scooter, car and weekends
away.
The Mall continues to enjoy a
consistently high rate of usage.
Each month there are on average 500
employees signing up, 17 500 logging
onto the site and close to
4 500 voucher requests.
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IMPERIAL'S HUMAN RIGHTS POLICY
Imperial subscribes to the highest international standards when it comes to the protection of human rights. These include principles
embodied in the Universal Declaration of Human Rights, and in the South African constitution.
We encourage all entities with which we do business to observe laws and internationally recognised labour rights standards, ensure
training and education on labour rights for employees and to refrain from knowingly employing anyone who has contributed to the
violation of labour rights. We will not hesitate to terminate agreements and relationships with contractors or suppliers who contravene
international human rights standards and, in particular, use forced labour or prohibited child labour.
All cases involving discrimination complaints that were received during the year were investigated, disciplinary hearings held if appropriate
and, where allegations were substantiated and the circumstances warranted it, the offending employees were dismissed.
No instances have been identified where freedom of association or collective bargaining have been found to be at material risk. None of
our operations have been identified as having a significant risk of child labour or forced or compulsory labour. |
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OPERATIONAL STRATEGIES AND INITIATIVES |
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The vehicles businesses depend on the
availability of skills and the ability to attract
a sufficient number of qualified people for
the diverse roles required.
In South Africa, competencies in the areas of
management, technical and administrative,
science and maths skills remain scarce.
Strategy in respect of people management
has the following components:
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Recruitment of appropriately-skilled
employees |
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Extensive training and development of
existing employees, including graduate
programmes to support employees without
qualifications or who want to improve the
level of their existing qualifications |
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Specific programmes covering chartered
accountants, executives, management
and artisans |
Performance is measured through the
outputs achieved through these programmes,
primarily the number of employees who
successfully completed the courses concerned.
Artisan training is undertaken through the
Imperial Technical Training Academy (ITTA)
network, which has operated since 2008 in the Western Cape and 2009 in Gauteng, and
is recognised as the largest private technical
training provider for trades in South Africa.
The ITTA employs a mix of practical
apprentice training and theoretical training
combined with on-the-job experience.
Advanced technical training to technicians
throughout South Africa is also provided
at Hyundai South Africa’s training centre
in Boksburg.
The Vehicle Retail, Rental and
Aftermarket Parts Division nominates a
large proportion of the student intake of the
Imperial Technical Training Academy.
Franchises send auto mechanic apprentices
for training through the apprentice
programme. Since June 2013, the division
has received revised employment equity
targets which must be achieved by all
franchises.
Divisional targets relate to the number of
apprentices attending the academy and
achievement of equity targets. The division
has made steady progress towards
achieving these internal targets.
As well as providing essential training to
Imperial group employees, the academy
assists public colleges in producing pipelines
of correctly-skilled and employable youth
through a bridging academy designed by
Imperial, which is now part of the National
Development Framework for trades. It is
also involved in the technical high school
turnaround strategy in two provinces. |
The Car Rental business is centred on
service delivery, with people and people
development critical to achieving business
growth, transformation and sustainability
objectives.
The car rental business’ people development
strategy for 2014 covered a range of areas
reflecting the diverse requirements across
the business, including:
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The shortfall of employees in critical skills
sets at junior, middle and senior
management level |
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Basic numeracy and literacy deficits,
which impact on further growth and
development of many employees. This
need is met through the Foundational
Learning Competence (FLC) learning
programme in English Communication
and Maths Literacy. |
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Improving administrative proficiency –
an issue which affects almost every
business area |
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Internally-delivered training on new
operating systems under the new
reservation and accounting system,
Project Evolve |
One key challenge faced in implementing
these programmes was the lack of available,
experienced and willing workplace mentors
to assist with practical application of the
knowledge gained. This is being addressed
through mentor development programmes.
In 2015, existing initiatives will be continued
and a learning programme specifically for
people with disabilities will be introduced.
Auto Pedigree, which sells pre-owned
vehicles, provides employees with ongoing
support to perform at an optimal level.
Talent management programmes identify
high-level performers who are then
earmarked for future promotion and receive
further training in accordance with individual
development programmes.
In 2014, four of Auto Pedigree’s employees
went through management development
programmes to prepare them for senior
positions. Our experience is that there is a noticeable change in the behaviour of
employees who undertake these
programmes. To satisfy demand for
competent motor vehicle sales employees,
a sales cadette programme has been
introduced at Auto Pedigree.
The Aftermarket Parts business has
designed and developed a Leadership
Development Programme and, during 2014,
concluded the first course under this
programme. It is embarking on a
second programme for junior and middle
management in July 2014, in an attempt to
build a succession pipeline and retain key
skills. A supervisory programme will be
introduced in July 2014 to ensure that
supervisors can develop the requisite
leadership and management skills.
In the logistics businesses, the talent
pipeline is crucial for sustainability and to
support business growth objectives.
In Logistics International, an expert in
talent management and skills development
was recently appointed by the business. The
ageing workforce in Europe poses a specific
challenge for the European operations. The
division participates in regional vocational
training and job fairs to attract new labour
market entrants.
In Poland, the business has taken on six
logistics students for a three-year
programme to be offered for the first time
from September 2014, which includes both
classroom time and work experience. Also in
Poland, Panopa Logistics is offering a
programme to bring forklift drivers up to the
required company standard. The programme
includes four days of classroom work and at
least 15 hours of driving experience, as well
as mechanical knowledge and an
occupational safety component.
In Logistics Africa, people development
strategies focus on the areas of people
management, skills development and
training. Transformation objectives are
met through these workstreams
and supported through group-level
transformation incentives.
Human resource policies, procedures and
programmes in Logistics Africa are aimed at
ensuring that the division has access to the
human resources required to achieve long
term objectives and strategies.
A strong talent pipeline is crucial, as is a
skilled workforce. The business performance
of the division would be impaired if there
was no skilled pipeline of talent and if the
Broad Based Black Economic Empowerment
(BBBEE) scorecard of the division was not a
competitive and morally acceptable level.
A primary focus is performance
management. The division has rolled out
performance management in all operating
units, which has led to succession planning
and the identification of High Performance
and Potential Individuals (HPPIs), for whom
development plans have been generated.
The Logistics Africa framework governing
education and professional development
includes three elements:
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The Imperial Logistics Academy |
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Workplace entry programmes |
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Industry collaboration |
The latter is focused on alignment with the
government’s National Skills Development
Strategy III (NSDSIII), where the business
works together with industry and
professional bodies to support employees
with skills training, career progression and
personal development.
Significant achievements during the year
included:
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Establishment of the Imperial Logistics
Academy and accreditation with the
Transport Education and Training Authority
(TETA), positioning the Imperial Logistics
Academy as an Institute for Sector
Occupational Excellence |
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Acquisition of Ikaheng HR Services to
complement education and training
provided through the Imperial Logistics
Academy. Ikaheng is a commercial
training provider to industries in South
Africa and the rest of Africa, with a focus
on the empowerment of people in
various economic sectors through
operator and legal compliance training |
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Expanding its educational drive to benefit
logistics and supply chain industries in
Africa through its implementation partner,
the Imperial Health Sciences Supply
Chain Academy |

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THE IMPERIAL LOGISTICS ACADEMY |
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After three years of development and
investment of R3,3 million to date,
Logistics Africa established its Imperial
Logistics Academy during 2013. The
academy aims to provide Imperial
Logistics employees with customised
training programmes aligned to national
qualifications. It also offers a range of
short courses and professional
development events that complement
learnership programmes.
During the year, the academy finalised
curricula for qualifications in business
management, warehouse supervision,
transport supervision, business
administration and transport and
warehousing fundamentals, customised
to reflect the best practice in the
division. Subject matter experts from the
division contribute to the training
programmes by way of content
development, guest lecturing and
mentorship, allowing skills transfer
internally within the group, as well as
externally. The academy enrolled a total
of 275 students for learnership
programmes in 2014. In assessing the
viability of the Imperial Africa Logistics
Academy, in-depth research was
conducted to assess the skills landscape
within Imperial Logistics and to ensure
that the academy’s offering addressed
the most urgent skills gaps within the
organisation.
WORKPLACE ENTRY PROGRAMMES
Close relationships are maintained with
further and higher education institutions
across South Africa by means of
sponsorships, guest lecturing and
participation in career programmes.
A key strategic theme for the Imperial
Africa Logistics Academy is building a
pipeline of graduates across further and
higher education, to feed into bursary
and internship programmes. A dedicated
graduate development manager is
employed by the academy to engage
with these institutions and to promote
the Imperial Logistics brand to graduates
across South Africa. 65 graduates are
currently engaged in internship
programmes within Imperial
Logistics entities. |
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In the Financial Services businesses,
people development is a particularly relevant
consideration given the service orientation
of the business.
The product value proposition to markets and
clients is delivered through interaction with
people. Client centricity and unquestionable
market conduct are core tenets of the
organisational value set and culture.
Our workforce needs to both reflect the
demographics of our clients and differentiate
our offering through the delivery of sound
financial advice, product and excellent service.
As we operate in an increasingly competitive
and highly-regulated market, we also require
strong capabilities in the areas of product
development, actuarial skills, pricing,
marketing, sales, client relationship
management, claims management,
technology and compliance. The availability
of these skills in the marketplace is low
and in some cases very scarce, especially
in areas such as actuarial skills.
Talent management is proactively
addressed at all levels of management in
the business and is given continued focus at
the divisional board level, including through
the board’s various sub-committees,
Regent’s executive committee and other
management fora.
Three key objectives of Regent’s human
capital management policy are:
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Building a diverse workforce |
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Being an employer of choice |
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Building human capital excellence |
To achieve these objectives, the business
is currently deploying the following
programmes:
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Enhancement of the division’s
performance management programmes,
including the introduction of 360 degree
appraisals |
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The introduction of a leadership pipeline |
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Leadership development initiatives |
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Regulatory training programmes, including
Financial Advisory and Intermediary
Services (FAIS) accreditation |
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Learnership programmes |
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Study assistance programmes |
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The deployment of an e–learning platform |
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Implementation of a new job
evaluation system |
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Upgrade of the IT system
for human resources |
Performance against the division’s human
capital management objectives is measured
with reference to metrics covering workforce
diversity, being an employer of choice and
building human capital excellence. The
business met targets and milestones as
planned in most areas, although challenges
remain in meeting the desired level of black
management representation at middle,
senior and top levels of the organisation.
CASE STUDY |
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EUROPCAR SOUTH AFRICA PILOTS FOUNDATIONAL LEARNING COMPETENCE (FLC) FOR EMPLOYEES |
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EUROPCAR SOUTH AFRICA PILOTS
FOUNDATIONAL
LEARNING
COMPETENCE
FOR EMPLOYEES |
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THE NEED FOR A
PRACTICAL SKILLS
DEVELOPMENT
INTERVENTION
In South Africa, the low level of educational
outcomes presents a number of challenges.
Low levels of literacy and numeracy, in
particular, are obstacles to the progression
of employees’ careers and their own
personal development.
In response, the Europcar South Africa
business initiated a pilot project in
January 2014 to run the Foundational
Learning Competence programme (FLC).
FLC is a nationally-recognised, one-year
learning programme consisting of two
six-month modules – communication with a
focus on English and mathematical literacy.
WHY FLC?
The South African Qualifications Authority
(SAQA), an oversight body set up to monitor
and regulate training and skills development
initiatives, formally recognised the FLC
programme in 2012 and encourages
employers to run FLC programmes for
employees. SAQA envisions that in time,
FLC will replace the fundamental unit
standards of all qualifications in the National
Qualifications Framework (NQF). Completion
of FLC also opens doors for employees to
study further. For example, FLC must be
obtained before an occupational qualification
at NQF Level Three and Four can be awarded.
WHO IS PARTICIPATING IN OUR PILOT FLC PROJECT ?
Our programme has been implemented with
a group of ten learners, five of whom are
current employees and five of whom are
youth participants who have been given the
opportunity to join Europcar on a fixed-term
contract for the duration of the programme.
This allows practical work experience and
mentorship for these young people. Europcar
has structured the pilot programme to
ensure a balance between time spent in formal classroom learning, and time spent in
the workplace acquiring practical business
skills.
In the selection process, existing employee
participants were identified as development
candidates and were assessed for programme
readiness. For youth participants, a database
of learner applicants was screened and
promising candidates were interviewed,
with shortlisted candidates then assessed for
programme readiness.
WHAT ARE THE CHALLENGES?
Employee uncertainty about the benefits
of the pilot programme still needs to be
addressed, and trust with employees built
over time to ensure this is viewed as
a helpful and meaningful intervention.
Perceptions that FLC is primarily for young
and junior employees might potentially limit
uptake with older or more experienced
employees. This needs to be managed
through communicating the successes
of the programme and demonstrating
the opportunities it may unlock.
WHAT HAS THE IMPACT BEEN?
Initial assessment results for the 2014
participants reported an average score of
33% for the English and 17% for the Maths
Literacy modules. Upon completion of the
programme at the end of the 2014 calendar
year, we expect the average score for
participants to have shifted to 65% for
English and 50% for Maths Literacy.
More difficult to measure – but no doubt
as important – has been the noticeable
increase in personal confidence among
the participants, as well as their increased
engagement in the workplace. These
individuals feel they are now more eligible
for occupational development opportunities.
“I’ve improved my English.
I know how to use the right
punctuation in my everyday
language and writing. I feel more
confident when using English
because it is not my home
language, and I always felt a
little shy when speaking it.”
– Mmatlala Maupi, Youth Learner |
“The FLC programme is very
important to me and it helps
a lot when it comes to
communication skills. It helps
me to plan my daily work
better. My English has improved
a lot and I do not have
communication problems
anymore.”
– Clifford Zungu,
Car Park Supervisor, OR Tambo Airport |
TOTAL PROGRAMME COST
The FLC pilot project has cost just over
R300 000 to implement, of which
approximately half relates to accredited
training partner costs and the balance was
used for supporting stipends for the youth
participants.
SCALING UP
Europcar intends to extend the FLC
opportunity to a further ten participants in
2015, once again to a combination of current
employees and youth participants, should
the pilot project prove successful in terms
of the targets set.
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