HUMAN CAPITAL
TRUWORTHS STRIVES TO BE THE SOUTH AFRICAN RETAIL EMPLOYER OF CHOICE FOR PEOPLE WHO IDENTIFY WITH THE COMPANY’S PURPOSE AND VALUES. THE BUSINESS CONTINUALLY INVESTS IN ATTRACTING, DEVELOPING AND RETAINING TALENT WHILE ENHANCING EMPLOYEE ENGAGEMENT AND SATISFACTION LEVELS.
The COVID-19 period brought with it many disruptions to employee routines and lives. The unnatural lifestyle as a result of lockdown and COVID-19 caused stress in the workforce and particularly for younger people.
The gradual easing of restrictions post COVID-19 was welcomed by many employees and with the phased return to work, employees embraced the opportunity of a more structured and normal routine. The introduction of flexible work arrangements enabled employees to manage their work and personal lives, easing back into normal life and working in the office and once again collaborating with their teams. To support employees in this difficult transition, Truworths introduced an employee assistance programme where employees could obtain counselling on various grief, trauma, financial and legal matters.
In the past year, the key human resource focus areas remained:
- ensuring employees understand and live by the Truworths Values;
- maintaining investment in ongoing training and development despite the challenging macroeconomic environment;
- investing in employees' financial and broader well-being to ensure improved performance and engagement levels;
- managing employee retention in an environment where employee expectations have shifted; and
- recruiting and driving internal succession in a globally competitive scarce skills environment.
The Truworths workforce comprises a core component of full-time employees and a smaller component of flexi-time employees whose working hours are dependent on business requirements. The number of flexi-time positions has continued to reduce through natural attrition thereby avoiding the need for any redundancies in South Africa in the reporting period. This continued responsible and cautious approach has ensured that Truworths remains a stable employer for the many loyal and high-performing employees in the business. Recruitment from the flexi-time pool of employees to core full-time positions, when they become available, ensures continuity of skills in our stores.
* South Africa only.
| Truworths' human capital at a glance | 2022 | 2021 | |
| Total employees (South Africa and rest of Africa) | 9 843 | 10 022 | |
|---|---|---|---|
| Full-time employees | 5 084 | 5 080 | |
| Contract employees* | 146 | 165 | |
| Flexi-time employees | 4 613 | 4 777 | |
| Skills development expenditure (excluding W&R SETA levies paid) | (Rm) | 116 | 116 |
| Skills development spend per employee trained | (R'000) | 11.0 | 12.0 |
| Total employees trained (including those who left employment during the period) | 10 541 | 9 656 | |
| Employees trained in South Africa (including those who left employment during the period) | 10 272 | 9 511 | |
| Black employees as a % of employees trained in South Africa | (%) | 98 | 98 |
| * | Contract employees include interns, fixed-term and post-retirement contracted employees |
TOTAL EMPLOYEES
9 843
(lower by 1.8%) through natural attrition
(2021: 10 022)
TURNOVER OF
PERMANENT EMPLOYEES
11.9%
(2021: 9.6%)
IN SOUTH AFRICA
BLACK EMPLOYEES COMPRISE
94% OF TOTAL EMPLOYEES
(2021: 94%)
IN SOUTH AFRICA
FEMALE EMPLOYEES COMPRISE
74%
OF TOTAL EMPLOYEES
(2021: 74%)
INVESTMENT IN SKILLS DEVELOPMENT
UNCHANGED
AT R116 million
(2021: R116 million)
TOTAL EMPLOYEES
9 843
(lower by 1.8%) through natural attrition
(2021: 10 022)
TURNOVER OF
PERMANENT EMPLOYEES
11.9%
(2021: 9.6%)
IN SOUTH AFRICA
BLACK EMPLOYEES COMPRISE
94% OF TOTAL EMPLOYEES
(2021: 94%)
IN SOUTH AFRICA
FEMALE EMPLOYEES COMPRISE
74%
OF TOTAL EMPLOYEES
(2021: 74%)
INVESTMENT IN SKILLS DEVELOPMENT
UNCHANGED
AT R116 million
(2021: R116 million)
EMBEDDING OUR VALUES
The Truworths' Business Philosophy, comprising our Purpose, our Values and our Vision, permeates the corporate culture and underpins the human capital management strategy and supports the goal to be the South African retail employer of choice. These elements have been central in guiding the business through the challenging trading environment and assisted in navigating the ongoing impact of the COVID-19 pandemic.
Management endeavours to foster a culture of innovation and high performance by encouraging employees at all levels to share their ideas, and by recognising and rewarding excellence. The business continually invests in attracting, developing and retaining talented employees who live our Values and are ambassadors of our brand.
The Values are incorporated into everyday working life at Truworths through employee engagement, recognition programmes, performance reviews and employee development. We remained focused on embedding and reinforcing our Values throughout the business during the period ensuring there is continuity and common understanding of how each person can contribute to the success of the business by living our Values.
MANAGING COVID-19 IN THE WORKPLACE
As COVID-19 restrictions were gradually relaxed, the Group introduced a hybrid work policy, which enabled employees in appropriate roles to continue working remotely for a portion of their work week. This policy was introduced in addition to existing core hour flexibility that enables employees to self-manage a portion of their working hours per week. These changes have successfully addressed the need for teamwork (which is central to the Truworths Values) and maximum output, combined with a progressive approach to workplace management post COVID-19.
Employees were strongly encouraged to be vaccinated although Truworths did not apply a compulsory vaccination policy. Truworths partnered with the administrators of the various healthcare plans to offer vaccinations at the head office and at other sites where large numbers of employees are based. In addition, employees were invited to attend the healthcare administrator's vaccination sites to obtain their vaccinations. Employees from third-party service providers who were based on site, including cleaning and security staff, were also invited to be vaccinated. The Group has a total vaccination rate of 90.8%.
Awareness was created amongst employees on the importance of monitoring their mental wellbeing and that of their colleagues and employees, while employees affected by the loss of a family member or colleague, due to COVID-19, were offered psycho-social support. Telephonic trauma support was made available to all our employees via the Employee Assistance Programme introduced, and an additional trauma counselling benefit is available via the gap cover arrangement in place for specialised full-time employees who have opted to take up this gap cover arrangement.
Regretfully, three employees and two pensioners sadly succumbed to COVID-19 during the reporting period. We extend our sincere condolences to their families and those colleagues who worked closely with them.
REMUNERATION, BENEFITS AND RETENTION
Truworths' remuneration strategies aim to reward employees who consistently focus on their contribution. They consider financial and strategic project performance, as well as the performance of teams and individuals. All management and specialised full-time employees are remunerated on total guaranteed packages, enabling these employees to tailor their cash and benefits to suit their personal needs. In addition, tailored incentive structures are aimed at driving reward for performance in all areas across the business. Rewarding and retaining high-performing employees is critical as there is a strong demand for talent and scarce skills in the marketplace.
Currently, 68% of employees have retirement fund benefits and 66% have access to healthcare benefits.
The wellbeing of employees is a priority for Truworths. Employees on the healthcare plans have access to the 'Hello Doctor' service, which provides 24/7 access to telephonic medical advice. An Employee Assistance Programme was introduced, enabling employees and their dependants in South Africa and full-time employees in Namibia and Eswatini to access telephonic counselling services, including trauma support, general mental health support as well as financial wellness and legal assistance.
Due to higher claims experience, disability premiums for Alexander Forbes Retirement Fund members who qualify for disability benefits increased from 1.08% to 1.30% of pensionable salary. Employees contributing to the SACCAWU National Provident Fund experienced an increase from 1.16% to 1.23%.
Death benefit premiums under the Alexander Forbes Retirement Fund decreased from 0.76% to 0.72% of annual pensionable remuneration for specialised full-time employees and from 0.38% to 0.36% for employees in the core full-time category. The death benefit premium for SACCAWU National Provident Fund members increased from 2.35% to 2.70%.
Flexi-time employees, with more than two years' service, receive funeral benefits which are paid for by Truworths.
There have been no material changes to remuneration practices in the reporting period.
Owing to changes in business operations and trading patterns, 23 stores in South Africa were closed during the reporting period, with no resultant retrenchments. Following the civil unrest in KwaZulu-Natal in July 2021, four stores have not yet been reopened and the affected store employees have been accommodated in nearby stores. Following the floods in KwaZulu-Natal, several employees and their families were impacted through the loss of their homes. Truworths assisted these employees with a financial donation through its corporate social investment trusts to reduce the financial burden on them.
TRANSFORMATION
Truworths is committed to transformation and meeting the objectives of the South African Broad-Based Black Economic Empowerment (BBBEE) Act and Codes.
To accelerate transformation, the Truworths Transformation Committee was restructured in the previous financial year and a director allocated the responsibility for managing each of the five pillars of the BBBEE scorecard. The Chief Operating Officer has assumed chairmanship of the committee. The committee meets quarterly to review strategy and measure general transformation activity and progress relative to the BBBEE scorecard. The committee continues to seek advice from external consultants on opportunities to improve the BBBEE score and to highlight associated risks.
AQRate independently reviewed and verified the Group's BBBEE rating in line with the Act.
The heightened focus of the restructured committee on each element has contributed to the BBBEE scorecard rating improving from level 8 to level 6, through improving our points from 63.68 to 73.69 and achieving the required sub-minimum points on the three priority elements (namely Ownership, Preferential Procurement and Skills Development) of the BBBEE scorecard. Truworths remains committed to steadily improving the BBBEE score in the year ahead.
| Truworths' BBBEE scorecard | 2022 | 2021 |
| Ownership | 14.39 | 13.43 |
|---|---|---|
| Management control (including employment equity) | 7.68 | 7.83 |
| Skills development | 17.82 | 15.56 |
| Enterprise and supplier development (including preferential procurement) | 28.80 | 21.86 |
| Socio-economic development | 5.00 | 5.00 |
| Total points | 73.69 | 63.68 |
| Level | 6 | 8 |
BBBEE points for management control decreased slightly following the resignation of a black non-executive director from the Truworths International board in the last quarter of the reporting period.
The improvement in the preferential procurement pillar reflects the progress in engaging with suppliers on enhancing their BBBEE credentials as well as an increased focus on procurement from black-owned micro, small and medium-sized enterprises.
The improvement in the skills development score has been realised from the continued focus on learnerships, internships and other skills development programmes for people living with disabilities, as well as focus on absorption of learners into employment following the completion of their learnerships. Learnerships and internships form an important source of talent in our business as we place a huge focus on absorption in this regard. Many of our junior roles in the business are filled from this pool across the business.
EMPLOYMENT EQUITY
An employment equity plan for the South African businesses was implemented in 2019 and is scheduled to run until June 2024. Quantitative and qualitative analyses were undertaken in developing the plan, including an employee survey to identify affirmative action barriers in the workplace. The process included consultation with the Employment Equity Forums, the Truworths International Social and Ethics Committee and the Truworths Transformation Committee as well as communication to all employees regarding the process of developing and adopting the new plan.
As the plan is not predicated on a growth in headcount, opportunities to transform the workplace profile to be more representative of South Africa's demographic and economically active population will arise from resignations and retirements.
| Employment Equity Plan 2019 - 2024: Targets | 2022 % |
2021 % |
Goal 2024^ % |
| Black* representivity | |||
| Top management | 18.2 | 20.0 | 27.3 |
| Senior management | 15.5 | 15.6 | 23.0 |
| Middle management | 41.9 | 40.7 | 44.3 |
| Junior management | 90.0 | 90.1 | 90.5 |
| Female representivity | |||
| Top management | 27.3 | 30.0 | 27.3 |
| Senior management | 50.7 | 47.8 | 52.7 |
| Middle management | 66.6 | 69.3 | 67.0 |
| Junior management | 77.7 | 77.4 | 76.2 |
| * | 'Black' comprises persons classified as African, Indian and Coloured. |
| ^ | Goals for 2024 have been adjusted from the original Employment Equity Plan based on a review of the grading of certain roles as well as taking into account what we view to be achievable given the current workplace profile. |
The employment equity plan was subject to a Director-General review by the Department of Employment and Labour in the reporting period. The review resulted in several recommendations being made to Truworths and a formal response has been submitted to the Department detailing how Truworths has complied with the recommendations.
SUCCESSION, TALENT AND SKILLS DEVELOPMENT
Truworths' Values encourage employees to learn and share, and there is a strong culture of guiding, coaching and mentoring throughout the business. In 2022, 10 541 employees participated in 212 training programmes.
During 2020 and 2021 training programmes were innovatively adapted due to COVID-19 restrictions. While online training will continue where it has benefit, the response to in-person training and the value gained from shared learning has been welcomed by both trainers and the employees being trained.
E-learning initiatives have doubled in the past year, with over 80 training interventions being offered. This is a particularly successful platform for the store environment or for high-volume training interventions. Over 8 800 employees registered on the TRU Learning mobile app. The high rate of completion, measured by those employees who pass the assessment that forms part of every intervention, reflects employees living the Truworths Values and embracing the opportunity to learn and contribute more effectively. The e-learning content is developed internally, allowing for quick response interventions that are targeted, fit for purpose and cost effective.
The merchant graduate training programme is crucial to succession planning in key scarce skill areas in the retail industry.
The training programme uses a blended learning approach, combining theoretical, practical and on-the-job training, supported by individual mentorship and coaching for every trainee. In order to ensure the effectiveness of the training, the training material was recently redesigned for the new learning environment.
Opportunities have been created for unemployed learners and youth through the implementation of learnerships and internships, in entry-level positions. The internship programme provides opportunities for unemployed graduates to gain workplace experience and become workplace ready. It has become a talent pool for recruiting for flexi-time and full-time entry-level roles and is targeted at previously disadvantaged groups. Following the success of the one-year internship programme in the stores, credit operations and human resources departments, the programme has been extended to other scarce skills departments, including information technology, credit risk and marketing.
The bursary programme further demonstrates Truworths' commitment to its employees as it provides mentorship and financial support to those who plan to enrol for tertiary academic studies.
Truworths continues to offer leadership-focused development programmes for managers and future managers to ensure succession in merchandise, operations and support departments. In 2022, 1 344 employees attended these leadership development programmes (2021: 1 275), despite the constraints related to the COVID-19 pandemic.
HUMAN RIGHTS
Our human rights policies and practices are embedded in our Business Ethics and Integrity Code and our Truworths Supplier Code of Ethics and Good Business Practice, as well as several other supporting policies such as our Anti-bullying and Harassment Policy and our Health and Safety Policy.
FREEDOM OF ASSOCIATIONAll employees are made aware of their rights to freedom of association. Managers are trained on the right to freedom of association during the course of the employee relations training programme. Truworths has a policy against unfair discrimination or victimisation of employees exercising any right to freedom of association. The right to freedom of association is extended to the Group’s operations globally, but there is no material union membership in other African operations and therefore Truworths only has a relationship agreement with the South African Commercial, Catering and Allied Workers Union (SACCAWU) in South Africa. Membership of SACCAWU remains unchanged at 9.3% of all South African employees.
Truworths did not experience any incidents of industrial action in the reporting period.
LABOUR STANDARDSTruworths is committed to valuing the rights of children as outlined in section 28 of the Constitution of South Africa, specifically designed for South African citizens under the age of 18. Truworths is furthermore committed to the legislative and moral principles relating to the prohibition of work by children under the age of 15 and forced labour. In this regard, Truworths complies with laws within South Africa and other countries in which it operates.
The principles in respect of the employment of children aged 15 to 18 are equally adhered to by Truworths, and no child of such age may be required to do work that is inappropriate for their age or work that places at risk the child’s well-being, education, physical or mental health, or spiritual, moral or social development.
In addition to the rights of children and forced labour, Truworths adheres to international labour standards in relation to equal remuneration, collective bargaining and anti-discrimination conventions and legislation.
Refer to the Social and Environmental Report 2022 as well as the Business Ethics and Integrity Code on the website www.truworths.co.za/sustainability for further details relating to human rights.
HUMAN RIGHTS
Our human rights policies and practices are embedded in our Business Ethics and Integrity Code and our Truworths Supplier Code of Ethics and Good Business Practice, as well as several other supporting policies such as our Anti-bullying and Harassment Policy and our Health and Safety Policy.
FREEDOM OF ASSOCIATIONAll employees are made aware of their rights to freedom of association. Managers are trained on the right to freedom of association during the course of the employee relations training programme. Truworths has a policy against unfair discrimination or victimisation of employees exercising any right to freedom of association. The right to freedom of association is extended to the Group’s operations globally, but there is no material union membership in other African operations and therefore Truworths only has a relationship agreement with the South African Commercial, Catering and Allied Workers Union (SACCAWU) in South Africa. Membership of SACCAWU remains unchanged at 9.3% of all South African employees.
Truworths did not experience any incidents of industrial action in the reporting period.
LABOUR STANDARDSTruworths is committed to valuing the rights of children as outlined in section 28 of the Constitution of South Africa, specifically designed for South African citizens under the age of 18. Truworths is furthermore committed to the legislative and moral principles relating to the prohibition of work by children under the age of 15 and forced labour. In this regard, Truworths complies with laws within South Africa and other countries in which it operates.
The principles in respect of the employment of children aged 15 to 18 are equally adhered to by Truworths, and no child of such age may be required to do work that is inappropriate for their age or work that places at risk the child’s well-being, education, physical or mental health, or spiritual, moral or social development.
In addition to the rights of children and forced labour, Truworths adheres to international labour standards in relation to equal remuneration, collective bargaining and anti-discrimination conventions and legislation.
Refer to the Social and Environmental Report 2022 as well as the Business Ethics and Integrity Code on the website www.truworths.co.za/sustainability for further details relating to human rights.
