| EDUCATION, TRAINING AND
DEVELOPMENT |
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| Human capital development is a strategic
focus for all group operations and our
human resource functions have been
appropriately aligned to support our business
objectives. |
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| Our focus is on attracting and retaining staff
and developing people in a way that fosters
growth, places them in roles that effectively
use their strengths and interests, and connects
them in ways that enhance performance.
Particular emphasis is placed on: |
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long-term career development and multiple
work experiences in the group; |
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talent management, with an emphasis on
high-potential employees; |
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offering access to mentors across the
group; |
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arranging work-life flexibility; |
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ensuring a technically competent work
environment; and |
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establishing social networks that embrace
open and honest communication. |
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Over the years, Steinhoff has invested
significantly in developing its employees as
we believe this is the key to maintaining our success. We have established dedicated
programmes to identify and develop highpotential
employees. In these programmes,
which run over two years, employees take
part in various subject-matter programmes
and attend workshops, seminars and courses
to improve general management skills and
specific functional expertise. The programme
caters for international development and
opens up global employment opportunities,
facilitating the dissemination of expertise
across
the group. |
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| Each of the group’s operations has learning
and development initiatives that address the
particular requirements of that operation, as
highlighted by the examples below: |
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| South Africa |
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| PG Bison |
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| Internal initiatives are focused on technical
skills and product training. External
facilitators approved by the company provide
training in programmes such as adult basic
education and training (ABET), learnerships
in electrical engineering, mechanical
engineering, forestry stewardship and in
assessor, moderator and mentorship skills.
Of a total workforce of 3 232, there were
770 trainees. Total training spend for the
year was R5,7 million. |
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| Vehicle retail |
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| The bulk of internal training is workplace
training in accordance with guidelines set by
Merseta, the industry sector and training
authority. External training is mainly productspeci
fic technical and sales training from the
division’s franchise principals. In addition,
the vehicle division has introduced
18-month graduate management trainee
programmes, using an external training
provider. The division has 208 trainees in a
workforce of 4 719 employees. Total spend
on training for the year was R7,6 million. |
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| Europe and the United Kingdom |
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| The German and Eastern European
operations have established a “Jump”
programme for high-potential candidates to
receive training, over 18 months, on soft
skills, project management and effective
cost management. General training extends
across the workforce and other initiatives
include language training, quality
management, a continuous improvement
programme, technical training and
communication skills. Training is focused to
address specific operational needs, including
intensive five Sigma and lean manufacturing
training. Of a total workforce of 5 649,
there were 327 learnerships and trainees
and R4,6 million was spent on training
during the year. |
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| From a total of 1 574 employees in the
operations in Poland, 373 learnerships were
entered into during the year. |
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| Over 1 000 employees on the retail side of
the United Kingdom operations were
exposed to learning and development
interventions during the year. |
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| Pacific Rim |
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The majority of employees attended some
form of development activity during the
year. Traineeships were undertaken at various
levels for certificates in retail operations,
telecommunications, transport and
distribution (warehousing and storage, and
administration) business. Technical training
was undertaken internally and externally, as
was orientation for new recruits together
with train-the-trainer courses for the learner
and development team. Business process
training and courses on understanding
marketing and merchandising were
also
undertaken. |
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| SUCCESSION PLANNING |
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| Succession planning forms part of the
group’s staff retention policies, and this
includes learning and development.
Management development is entrenched
across the group, particularly in respect of
candidates with potential for high
performance. Internal promotions are
assisted by this development process and the group’s systems of assessing managers
and employees. Due to the current shortage
of skills, particularly in South Africa but
increasingly on a global scale, we recognise
that young talent must be recruited,
developed and appropriately used across the
group to ensure retention and progression. |
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| We have linked our succession planning and
employment equity strategies to focus on
skills development and the upliftment of our
employees. This allows employees,
particularly those from previously
disadvantaged backgrounds, to take
advantage of internal opportunities for
advancement. |
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| Each operation is responsible for putting
plans in place to ensure the smooth
succession of key executives. The succession
strategy includes, where appropriate, the
recruitment of talented individuals from
outside the group. |
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| EMPLOYMENT EQUITY |
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| Steinhoff considers employment equity a
long-term commitment towards the creation
of an equitable work environment. Our
employment equity programmes are focused
on achieving fair representation across
employee groups, on removing any
remaining barriers to the advancement of
designated groups and on unlocking the
value of the group’s diversity. |
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| In the South African operations, key principles
have been built into employment equity
policies to redress past inequalities by: |
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aligning employment equity activities with
the operation’s strategic objectives and
training programmes; |
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promoting and fast-tracking talented
employees from previously disadvantaged
backgrounds as suitable opportunities
arise; and |
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compliance with the Employment Equity
Act. |
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| Through our employment equity initiatives and
our education, learning and development
policy, we aim to create a racially equitable
workplace that more closely represents the
racial and gender demographics of South
Africa. |
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| BROAD-BASED BLACK ECONOMIC
EMPOWERMENT |
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| Broad-based black economic empowerment
(BBBEE) is a programme launched by the
South African government to redress the
inequalities of the past by affording previously
disadvantaged groups in South Africa (blacks,
coloureds and Indians) economic
opportunities previously not available to
them. The programme measures progress
against a balanced scorecard compiled by
the Department of Trade and Industry (the
dti). This scorecard measures ownership, management, preferential procurement,
employment equity, skills development,
enterprise development, and socio-economic
development against set targets. |
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| Steinhoff fully supports BBBEE in its
operations in South Africa and each
operation has developed initiatives and
strategies to facilitate transformation. These
initiatives are designed to benefit the
company and its shareholders as well as
South Africa as a whole, and to underpin
long-term, sustainable growth. |
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| In recent years, Steinhoff has introduced
empowerment shareholders in certain of its
operating companies in South Africa and
neighbouring countries, including: |
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The formation in 2005 of Fundiswa
Investments Limited (Fundiswa). In a
transaction valued at over R290 million,
11,6 million shares in Unitrans Limited
were issued for cash to Fundiswa (held
34,9% by Mvelaphanda Capital Limited,
34,9% by Thembeka Capital Limited
(previously Arch Equity Limited) and
30,2% by the Unitrans Limited Employee
Benefit Trust, all black empowerment
entities). |
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Fundiswa initially funded this transaction
via a loan which was later replaced with
preference shares. Security for the funding
was provided by Steinhoff. |
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The 11,6 million Unitrans shares held by
Fundiswa were exchanged on
7 May 2007
for 23,2 million shares in Steinhoff under
the initial share exchange offer made by
Steinhoff to shareholders, as detailed in
the circular dated 22 March 2007. |
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A similar transaction was concluded in
2006 in which transaction Steinhoff
provided ultimate security for the funding
that Micawber 455 Limited, an accredited
BEE company, used to acquire 26 million
shares in KAP International Holdings
Limited, an associate of Steinhoff, for
R84,6 million. |
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| As announced in September 2007, Steinhoff
has resolved in principle to introduce BBBEE
equity participation at the Steinhoff Africa
level. In terms of this proposed transaction,
20% of the equity in Steinhoff Africa will be
sold at fair market value to selected BBBEE
participants with whom the group has an
existing relationship at operating level. It is
envisaged that this BBBEE transaction will
include an appropriate employee share
ownership plan. The group is at an advanced
stage of developing the appropriate structure
and indicative funding terms have been
obtained from financial institutions and
other providers of BBBEE finance. Further
details of this transaction will be announced
at the annual general meeting of shareholders
to be held on 10 December 2007. |
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| Steinhoff fully supports BBBEE
in its operations in South
Africa and each operation has
developed initiatives and
strategies to facilitate
transformation. The initiatives
are designed to benefit the
company and its shareholders
as well as South Africa as a
whole, and to underpin longterm
sustainable growth. |
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| The group’s approach to BBBEE includes
specific emphasis on: |
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awareness throughout our South African
operations of our transformation policy,
procedures and initiatives; |
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enterprise development, which allows our
operations to transfer skills and facilitates
the development of strong black-owned
businesses, while creating viable and
sustainable business opportunities for all
stakeholders. Examples of group enterprise
development initiatives include: |
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Bojanala Bus – established by Unitrans
Passenger, together with BBBEE
partners, to provide commuter bus
transport in the North West province of
South Africa. |
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Klipstone Transport – established by
Unitrans Supply Chain Solutions,
together with BBBEE partners, to
provide transport specific to the
cement industry. |
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Induna Tippers – established by Unitrans
Supply Chain Solutions, together with
BBBEE partners, to transport waste
material from the
Gautrain project. |
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In addition, Steinhoff Africa facilitates many
smaller empowerment enterprises, mostly
involving non-core activities such as vehicle
washing and valet services. |
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Preferential procurement systems have been
put in place to ensure that procurement expenditure is correctly channelled. The
group will, however, not compromise on
quality, price, delivery and service and, in
applying these systems, will ensure that all
safety, technical, commercial, compliance
and environmental standards are met. |
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As a result of its contribution to BBBEE
and transformation, Steinhoff has been
nominated as one of South Africa’s top
empowered companies for 2007/8 by
Impumelelo, a respected publication in
South Africa focusing on the top empowered
companies in South Africa. |
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