Material Pillars - Responsibility for developing our people - Our human resource policy and practices
Sanlam Sustainability Report 2011
Our human resource policies and practices
Sanlam's philosophy is to build strong relationships with, and to treat all staff members fairly with transparency and dignity. This is reflected in the Group's HR policies and practices, which are aligned to business strategy. Our human resource (HR) practices centre on:
- Recognising the relationship with our employees as our most important asset.
- Focusing on transformation, the equitable treatment of staff and diversity.
- Offering training, skills development and access to new career opportunities to ensure a "talent pipeline" for the required skills.
- Ensuring career progression, leadership development and succession planning.
- Promoting employee wellness through an integrated offering.
- Fostering an enabling and empowering working environment.
- Implementing fair rewards.
The Sanlam Employment Value Proposition (EVP) was developed in order to enable the organisation to attract and retain talented and committed employees. Our EVP is designed to position Sanlam as the leading employer and to assist staff in achieving their career and personal development ambitions in line with the business strategy. It clarifies what staff can expect from Sanlam and the opportunities available to them within the business.
- Egbert van der Straaten, Head: Group Human Resources
The following critical EVP areas have been identified as vital for enhancing employee engagement and therefore performance and retention:
- Reputation: At Sanlam, we understand the distinction between leaders and managers, and the impact leadership has on our company, as well as individual staff careers. Through diverse initiatives, we invest in nurturing leaders who engage and empower, are open to new ideas, and are driven to create an environment for our staff and our company to excel.
- Leadership: At Sanlam, we understand the distinction between leaders and managers, and the impact leadership has on our company, as well as individual staff careers. Through diverse initiatives, we invest in nurturing leaders who engage and empower, are open to new ideas, and are driven to create an environment for our staff and our company to excel.
- Reward: Recognising and rewarding excellence in the workplace is critical in the process of securing continued high performance and dedication from employees. From awards to competitive bonuses, we try to make our staff feel valued for their contribution.
- Growth: Fulfilment in the workplace depends on the opportunity to learn and develop. Through diverse opportunities – including coaching, mentoring, training and challenging assignments – we support the growth of our staff and help them realise their full potential.
- Connectivity: Sanlam promotes open communication across the workforce, with the aim of sharing responsibility and experiences. This is essential to keep in touch with concerns and interests in the workplace, and to promote relationships based on respect and trust both between employees and between employer and employees.
- Balance: Sanlam is a business that has been built on understanding people, their needs and their realities. Employee wellness is important if staff members are to perform at their best. We therefore seek to promote their health and wellbeing through diverse initiatives.
The Sanlam HR function is managed at a decentralised level. Each business unit has its own set of HR support services and works within "loose" and "tight" principles. "Loose" principles are discretional and "tight" principles include generic issues such as Group benefits. Group HR oversees group-wide strategic projects and compliance with labour legislation and regulatory codes. Compliance and Regulatory policies and certain other strategic HR policies are viewed as Group policies are therefore viewed as tight across the Group. An example of this would be the remuneration philosophy and the Employment Equity policy.
Focus areas during 2011
During 2011 we revised our HR service approach for office staff to ensure a more efficient and effective service. This was achieved through the development and implementation of a shared service aimed at streamlining processes, achieving economies of scale and improving internal efficiencies. The revised approach has also mitigated risks: for example, the number of payroll systems has been reduced from nine to four, thereby reducing costs and associated risks. Guidelines have been developed and additional systems introduced to promote greater consistency in reporting compliance.
Progress has been made in realigning the culture of the organisation, notably through the Sanlam for Sanlam initiative that emphasises cooperation and collaboration across the Group. An example of this initiative is the transition to a single retirement fund to enable greater organisational flexibility and the easy rotation of staff members across the group of companies. During 2011 a survey that was conducted amongst a focused group of staff members confirmed the correct alignment of the direction and intent of the Sanlam for Sanlam initiative.
A review of HR policies was conducted and agreement was reached on which policies were viewed to be Group-wide and applicable to all different Clusters. New Group-wide policies, such as a Transfer policy, were approved during this period.
Performance
In relation to the stated objectives for 2011, some of the achievements include the following:
- Increased levels of awareness were achieved across all staff levels around HR-related legislative requirements.
- The Investors in People Standard, which is an international standard, was adopted as a Sanlam standard. It has been effectively implemented across the businesses with the exception of the Sanlam Investment Cluster (SI). The standard addresses people's understanding of how their outputs align with and contribute to the implementation of the business strategy. SI conducted a customised programme that focused on their strategic imperatives and stakeholders.
- New employees have an opportunity to provide feedback to the Group Chief Executive about their first six months in the organisation. This continues to provide valuable insights as well as indications of areas of improvement. It has been encouraging to observe increasingly positive responses about Human Resources practices and the Sanlam culture over the last few years.
- Levels of staff turnover have declined since 2008 and are currently below the industry norm. This improved performance may be attributed to the efficacy of the Group HR policies and practices.
- In general very few grievances are lodged, suggesting that the HR policies and practices are fair and effective. There were no material breaches of the Code of Ethics. The Risk and Compliance Committee reported no new instances of material non-compliance. There has been no significant change in union activity within the Group, and no formal Recognition Agreement has been entered into with any union.
Managing cases of grievance
The Group manages its own grievance procedures by facilitating consultation between our employees and our organisation through various formal and informal mechanisms. This procedure is communicated to all employees via the intranet. Hard copies of the procedures are available on request, and HR employees are available to discuss these procedures face to face. Grievances are monitored by HR in terms of frequency and level of escalation. At Sanlam RSA, the incidences of CCMA (Commission for Conciliation, Mediation and Arbitration) cases are minimal. During 2011, 43 cases were lodged at the CCMA, compared to 44 in 2010. Of these cases, 12% were ruled in favour of Sanlam and 26% of the applicants resigned whilst the proceedings were in process. There was only one grievance relating to discrimination. These cases were not considered to be materially significant.
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