Human capital: employee development
Our people are key to our business performance. Our human resources strategy therefore focuses on attracting and retaining talented people who have the skills and leadership required for sustainable value creation.
We strive to be an employer of choice by encouraging our employees to reach their highest potential in an engaging, professional work environment. We reward performance excellence and address non-performance. While our employees are accountable for their individual actions, we support teamwork and the mutual exchange of knowledge, regardless of cultures, genders and background. We foster a culture of respect with zero tolerance for discriminatory behaviour.
We offer competitive remuneration, comprehensive training support and skills transfer. Performance targets, training and skills development are reviewed annually and aligned with the group’s strategy.
Hyprop complies with employment laws and is committed to protecting human rights, ensuring that our code of ethics and disciplinary code are communicated to all employees.
|Total number of employees||2016||2015|
|Hyprop Investments Limited|
|Contract and casual employees (mainly information kiosk and event staff)||47||43|
|Total Hyprop workforce||279||242|
|Employees who are permanent %||83||82|
|Employees belonging to a trade union %||—||—|
Employment equity (EE) and transformation
Our EE policy codifies and stipulates the promotion of equal opportunity and fair treatment by eliminating discrimination and implementing measures to redress disadvantages experienced by designated groups and ensure their equitable representation in all occupational categories.
Hyprop’s ﬁve-year employment equity plan was approved by the Department of Labour in 2013, and an annual progress report is submitted in January each year. Hyprop complies with the Employment Equity Act and is committed to organisational transformation to diversify its workforce.
Our challenge is that, due to extremely low employee turnover, very few vacancies become available.
Employee engagement surveys
Annual employee engagement surveys ensure we timeously address any issues on employee morale, productivity and turnover. The 2016 survey indicated that 97% of employees currently feel that the company’s benefits, processes and policies are implemented according to expectations. The survey included our recruitment process, corporate culture, employee policy implementation, HIV and Aids education, remuneration, company benefits as well as the work environment and facilities.
Motivated by an engaging work environment and competitive remuneration, the commitment of our people is reﬂected in high retention rates, especially at senior level. While low employee turnover ensures continuity and aligns group performance with our long-term strategic objectives, we remain mindful of the value of fresh insight and aim for an appropriate balance between internal and external appointments.
|Hyprop %||Average service years||Hyprop %||Average service years|
|Number of employees|
|Section 197 transfers due to sale of asset||11|
|Section 197 transfer due to cancelled marketing contract||42|
|Employee turnover (%)**||9||7|
Employment equity statistic
|Section 197 employment contract transfer into company||10||17||0||73|
|Internal placements and promotions||21||32||47|
Development and training
Our training and development programme considers our own requirements, skills shortages in the property industry and transformation imperatives.
Training needs are identified during the employee review process, while the group-wide skills base is objectively assessed to identify focal areas for training in the year ahead.
The objectives of our training strategy include:
- Enhancing knowledge and the skills base
- Enabling employees to contribute to our business and growth
- Encouraging further education to enhance competence in current positions and increase eligibility for promotion
- Supporting employment equity initiatives.
One of our primary objectives is to establish a succession plan by developing junior managers for middle management roles.
During the year, a combination of internal and outsourced training sessions covered key areas:
|Leadership||436 087||690 634|
|Business operations||482 633||536 753|
|Graduate programme||54 351||85 250|
|Green building leasing principles||59 928||9 789|
|Leasing and administration||4 500||63 000|
|Health and safety||31 818||6 406|
|HIV/Aids health training and information||213 941||52 349|
|Total||1 283 258||1 444 181|
Value of training
|Cost of training R||Training cost %||Number of people trained||Number of training sessions||Average
|Cost of training R||Training
|Number of people trained||Number of training sessions||Average
|African||218 108||17||94||225||969||152 392||10||83||249||612|
|Coloured||116 277||9||59||116||1 002||37 363||3||40||120||311|
|Indian||84 829||7||112||349||243||223 063||15||103||51||4 374|
|White||850 464||66||18||55||15 463||1 022 378||71||16||309||3 309|
|Foreign nationals||13 580||1||3||8||1 697||8 985||1||3||11||817|
|Total||1 283 258||100||286||753||1 704||1 444 181||100||245||740||1 952|
|Male||421 974||35||113||310||1 361||657 007||45||114||336||1 955|
|Female||861 284||65||173||443||1 944||787 174||55||131||404||1 948|
|Total||1 283 258||100||286||753||1 704||1 444 181||100||245||740||1 952|
Additional human capital measures
|Total working days||70 168||55 352|
|Total number of person days lost due to absenteeism (sick, family responsibility and maternity leave)||1 177||1 321|
|Percentage of total person days lost due to absenteeism (%)||1,7||2,4|
|Total number of days lost due to industrial action||—||—|
|Percentage of total days lost due to industrial action||—||—|
The national human resources manager is responsible for employee relations. A disciplinary and grievance policy governs these relationships and is available on the company intranet, in hard copy at each management office, and on the website.
There were 11 disciplinary cases during the year, resulting in six dismissals. No grievances were reported.
To entrench Hyprop as a preferred employer, we offer a range of employee benefits that exceed legislated minimum standards, including:
- Membership of a defined-contribution pension fund with death, disability and funeral benefits
- Four months’ maternity leave pay (paid at 50% of cost to company)
- Annual leave rises to 20 days after five years with the group
- Employees qualify for six days’ paid study leave for approved qualifications
- Free paid parking at all our management offices.
Discrimination is not tolerated. Any reported instances are immediately and appropriately dealt with under our code of ethics and conduct and related disciplinary procedures. Policies are reviewed annually and distributed to employees.
No incidents of discrimination were reported during the year.
Hyprop has no unionised employees and there was no impact on the business from industrial or labour unrest during the year.
Health and safety
Our policy is to create a safe and healthy working environment, with procedures to manage occupational incidents and compensation claims in line with legislation. In brief, we aim to:
- Provide a health and safety programme that is effective, of high standard, and continuously reviewed and improved
- Comply with relevant statutory provisions for health, safety and environmental matters that affect employees, customers, contractors and the public
- Ensure all employees are properly informed of their responsibilities for health, safety and environmental matters and discharge these effectively
- Encourage employees to participate in preventing accidents and preserving health
- Provide the resources and training to achieve these objectives.
Each shopping centre is responsible for executing this policy on site through its operations manager. At group level, the national facilities manager is responsible for biannual audit reports, drawing on submissions from each centre.
All centres conduct regular health and safety training for employees, while third-party suppliers perform annual health and safety audits.
All construction projects have health and safety consultants who represent Hyprop and monitor activities on site regularly. On large and complex projects such as Rosebank Mall, the contractor has its own health and safety officer managing contractor teams and subcontractors.
There were no serious casualties or injuries during the year at any of our properties or projects.
|Number of employees and contractors who received voluntary counselling and testing for HIV/Aids||533||247|
|Number of employees and contractors tested for HIV/Aids||258||200|
|HIV/Aids prevalence rate among employees (%)||6||5|
|Contracted employees tested for HIV/Aids||115||—|
|HIV/Aids rate among contractors (%)||6||—|
HIV/Aids remains an issue in South Africa that could affect the wellbeing of our employees, leading to emotional distress, absenteeism, employee turnover and lower productivity. As a formal risk assessment determined the impact of HIV/Aids on the group as negligible, Hyprop does not have targets for addressing its direct impact, nor does it have strategies for addressing indirect business risks (eg effect on customer base/supply chain).
Our formal HIV/Aids policy, reviewed annually, provides guidelines on creating a non-discriminatory workplace, dealing with HIV testing, conﬁdentiality and disclosure, providing equitable employee beneﬁts, dealing with dismissal and managing grievance procedures. It also ensures affected employees’ rights to conﬁdentiality.
Where employees willingly disclose their status, Hyprop offers counselling and encourages openness, acceptance and support.
Every year, HIV/Aids awareness days are held at each centre management office by professional nurses, with an external healthcare service provider conducting voluntary counselling and testing programmes. Employees are offered the opportunity to test for HIV, cholesterol and stress levels.