INTEGRATED REPORT 2023

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Truworths strives to be the South African retail employer of choice ...

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TRUWORTHS HUMAN CAPITAL

OPERATIONAL REVIEW: OFFICE

OFFICE

HUMAN CAPITAL

The focus on aligning the Office human resources processes with those of Truworths continued during the reporting period. Office continues to work in collaboration with its counterparts in Truworths on business critical operations.

REFRESHING OUR VALUES

The Business Philosophy comprises our Purpose, Values and Vision and includes a bespoke Purpose specifically suited to the Office DNA. As the business and the operating environment have evolved, these elements of the Business Philosophy have been reviewed and modified to ensure that Office delivers on stakeholder expectations while the Values, which are central to the Business Philosophy, were refreshed to create a strong, shared culture in the Group.

The Business Philosophy, including the refreshed Values, was launched to all teams across Office through formal, interactive training, facilitated by the Group's leadership and human resources team. This is expected to positively impact the business and ensure that Office continues to deliver on its Vision for its key stakeholders. Refer to Our Business Philosophy.

REMUNERATION, BENEFITS AND RETENTION

The Office remuneration strategy has been aligned with that of Truworths and all employees are rewarded based on financial and strategic project performance, as well as team and individual contribution. All management and full-time employees are remunerated on total guaranteed packages and a private healthcare benefit, which is paid by the company, is available to all qualifying staff. In addition, tailored incentive structures are aimed at driving reward for performance in all areas across the business including a commission scheme for store staff, based on turnover. While there is a strong demand for talent and scarce skills in the market, there is also a strong drive to contain costs to ensure the long-term sustainable performance of the business and our ability to continue employing and rewarding people.

The national minimum wage in the UK for 2023 increased by between 9.66% and 10.89%, the highest increase since its introduction. Office salaries were reviewed in April 2023 and adjusted, where applicable, in line with the revised minimum wage levels.

The gender pay gap report for 2022 was published in May 2023. This report is required to be produced annually in terms of the Equality Act 2010 for businesses employing more than 250 employees in Great Britain.

Office is committed to gender pay equality. The company's overall gender pay gap median is favourable to female employees by 1.6%. The overall gender pay gap mean is favourable to male employees by 11.2% compared to the UK national average gender pay gap which is 13.9% in favour of males. In the gender pay gap review period, 79.1% of Office's female employees received a bonus compared to 63.2% of male employees.

Staff turnover at the Office head office in London has normalised with vacancies at acceptable levels. The number of resignations has also normalised.

Office discontinued its operations in Germany and closed all seven stores in that country over the reporting period. These store closures resulted in 50 employees being made redundant.

TALENT AND SKILLS DEVELOPMENT

The key area of focus has been on training all staff on the updated Business Philosophy, with a focus on our Values. There has also been a focus on leadership development. All mandatory training for new employees including induction and other key related topics such as health and safety, fire safety and data protection is conducted through Office's e-learning training platform. There are currently more than 1 000 active users registered on the e-learning platform.

The e-learning platform houses training modules which staff can access on a needs basis when looking for information on topics such as the staff handbook, diversity and inclusion, sustainability, in-store processes and procedures and human resources-related training. The platform also enables companywide communication and is used for regular business updates from the Managing Director.

In the year ahead, there will be a greater focus on training through the apprenticeship levy.

DIVERSITY AND INCLUSION

Office aims to create an inclusive environment where all employees are able to bring their whole self to work and feel comfortable sharing information about who they are. The principles of fairness and respect for difference, equality of opportunity and treatment across gender and ability (mental, physical and different abilities) are practiced across the business. The updated Business Philosophy, with the focus on our Values, embraces the power of inclusive teams.

INTEGRATED REPORT 2023