Investment continues to be made into fostering and entrenching cultural sustainability across
the organisation. Importantly, Nedbank Group recognises that achieving the desired cultural sustainability is not the exclusive responsibility of the Human Resources (HR) Division, but
requires the commitment of all stakeholders at every level of the organisation.

During 2010 positive shifts continued in the culture and corporate climate of the group as it retained its strong focus on developing its people, with a particular focus on the retention and attraction of talented employees who support the organisation’s goals and objectives. The group’s people strategy for 2010 included the following focus areas:

• Accelerating transformation
  
• Building a unique culture for competitive advantage
  
• Embedding talent management
  
• Aligning the total reward strategy
  
• Learning and growing
  
• Enabling HR capability and excellence
  

These focus areas are supported by HR policies that set out the high level principles to be applied across the group in attracting, recruiting, selecting, motivating, managing and retaining the required skills. These policies play a critical role in reducing people-related risk by ensuring consistent, compliant and fair practices.

MAIN CHALLENGES IN 2010

Despite having made much progress in transforming Nedbank Group into a ‘great place to work’, a number of key challenges remain in terms of the group’s cultural sustainability efforts. These include:

• The adequate appointment and development of people with disabilities.
• The appointment of Africans, especially African females, at middle and senior management levels.
• Difficulties in establishing a robust talent pipeline to support transformation at senior management and executive level.
• A scarcity of skills despite the focus on developing a pool of graduates.
• The need to formalise mentoring and coaching programmes to ensure the transfer of skills within designated groups.
• The rising cost of attracting and retaining talent within designated groups.

NEDBANK GROUP EMPLOYEE PROFILE

ACCELERATING TRANSFORMATION

Nedbank is committed to continuing to accelerate transformation, both within the organisation and in support of the country, and 2010 saw the group moving forward in its realisation of this objective. During the period under review Nedbank Group was in joint first place in the Financial Mail/Empowerdex Top Empowered Companies Survey on the Department of Trade and Industry (dti) Codes in respect of the employment equity, social development and management control dimensions.

The following table shows the current demographic profile of the group based on the Employment Equity (EE) Act definition of occupational levels at 31 December 2010.

2010 EMPLOYMENT EQUITY ANALYSIS BASED ON THE EMPLOYMENT EQUITY ACT

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EMPLOYMENT EQUITY

The year 2010 saw Nedbank Group in the final stage of its 2008 – 2010 Employment Equity Plan. A new target-setting model and approval process allow for group targets to be calculated based on the individual cluster targets, and the review and approval process is now aligned to the three-year business planning process. The 2011 – 2013 employment equity targets, including targets for people with disabilities, was approved by the Group Executive Committee (Group Exco).

Nedbank Employment Equity Forum (NEEF) continued to function well under the chairmanship of the Group Chief Operating Officer, Graham Dempster. Graham’s tenure as Chairman ended in December 2010 and the position was filled by Mfundo Nkuhlu, the Managing Executive of Nedbank Corporate, with effect from 1 January 2011.

Focus areas for the forum were identified for 2010 to ensure an objective-driven approach for the year. NEEF monitors and evaluates the implementation of the employment equity plans in each of the group’s clusters. Consultation on the group 2011 – 2013 Employment Equity Plan was a key focus area for NEEF in 2010.

PEOPLE WITH DISABILITIES 2010 PROFILE OF PEOPLE WITH DISABILITIES

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Nedbank Group continues its drive to becoming a fully disability accommodating organisation. The table above provides a breakdown of the profile of people with disabilities within the group at 31 December 2010.

As part of a broader diversity framework that was developed and approved in 2010, Nedbank Group has implemented a number of initiatives aimed at promoting tolerance and fostering good relations among all its employees, including specific initiatives for women and people with disabilities.

The People with Disabilities (PWD ) Forum continues to function well and the chairperson is also a member of the NEEF, ensuring that matters affecting people with disabilities are channelled through the correct transformation governance structures.

In April 2010 the group placed 15 learners with disabilities within the various clusters, through a partnership with Bank Sector Training Authority (BANKSETA) and Boston City Campus. By participating in this partnership, Nedbank Group has contributed to the broader skills development agenda for people with disabilities.

The PWD Forum has also been instrumental in driving communication aimed at raising awareness on matters related to people with disabilities. A drive to encourage staff to declare their disabilities was initiated in the runup to International Disability Day on 3 December 2010 and saw an additional 45 Nedbank Group employees declaring their disability status. Such declaration allows the group to better accommodate the special needs of these employees.

Nedbank Group is a member of South African Employers 4 Disability (SAE4D), an organisation
that represents the interests of the national business community in its efforts to meet disability employment targets and further the wider disability equity agenda.

Recently, the group participated in the Top South African Companies and Disability Survey conducted by Stellenbosch University. The group received a benchmark report on disabled employees and disability practices in South Africa, which will be used to provide further impetus to the bank’s efforts in this area of transformation.

GENDER EQUITY

EMPLOYEE RELATIONS

The following table provides an overview of the number of disciplinary incidents, disputes and Commission for Conciliation, Mediation and Arbitration (CCMA) cases recorded in 2010:

While the number of disciplinary incidents and disputes referred to the CCMA in 2010 represents an increase over 2009, it is not possible to ascribe this increase to any single factor. The number of dismissals during the period under review decreased compared with 2009. The majority of dismissals occurred as a result of dishonesty or gross negligence. Nedbank Group’s approach to dismissals remains one of a fair disciplinary process.

A special escalation procedure was established for unfair discrimination, sexual harassment and bullying cases. A number of cases reported via this procedure have been escalated to the Industrial Relations Oversight Committee. All cases of this nature now receive attention at senior levels of the organisation, protecting staff and helping to prevent unnecessary litigation.

Formal and informal management training, as well as focus group sessions, were offered on the industrial relations (IR) aspect of managing discipline, grievances and performance. In 2010 a total of 319 (2009: 333) managers and supervisors attended these sessions.

Internal ombudsman

Collective bargaining

During 2010 two outsourcing projects were successfully concluded, impacting 79 staff members. The integration of Imperial Bank staff into Nedbank was also successfully concluded without any forced retrenchments. For further details on the Imperial Bank integration please see page 145.

The relationship agreement with the recognised trade unions requires the bank to commence consultations with them as soon as operational changes that could affect the job security of staff are contemplated. The agreement caters for a two-month consultation period followed by one-month statutory notice if terminations are unavoidable.

Building a unique culture for competitive advantage

Culture measurement and development

During 2010 significant emphasis was placed on the development of Nedbank Group’s organisational culture as a means of enabling the achievement of the group’s other cultural sustainability objectives.

The Organisational Development Unit worked with a culture and values work stream, resulting in a number of key initiatives, most notably research conducted into the group’s middle management employees and their development requirements see here.

Nedbank Group continues to measure staff morale and corporate culture on an annual basis, using various diagnostic methods. In addition to the surveys, insight-driven reporting was introduced, thereby enabling focused interventions.

The group’s employee surveys scores showed slight declines, but remained in high-performance ranges despite significant macro and micro-environmental changes.

The three main culture-based surveys conducted in 2010 were:

The Barrett Survey
This measures employee perceptions and the ‘degree of alignment’ of personal values, current corporate cultural values and desired corporate cultural values within the organisation. For the first time the 2010 Barrett Survey results registered ‘commitment’ as a value present in the group’s current culture. This result is key, as it reinforces the internal cohesion of the organisation, which is supportive of its aspiration of ‘becoming great at collaboration’.

The group’s entropy level for 2010 was 13% with six value matches between current culture and desired culture recorded. These results are indicative of an aligned, high-performing culture. Entropy is the amount of energy in the group that is consumed in unproductive work. it is a measure of conflit, friction and chaos that exists within the organisation.

Hewitt Engagement Survey and Nedbank Staff Survey
An unprecedented 19 878 Nedbank Group employees participated in the 2010 Nedbank staff survey (NSS) in 2010. The overall engagement score for Nedbank Group registered a small decline year-on-year, primarily due to the challenging local and global economic circumstances. The group’s performance remains within the Hewitt Engagement Survey’s high-performance range of between 65% and 100%.

The overall NSS score also experienced a small decline from 78,9% in 2009 to 75,9% in 2010, but this remains an acceptable score by international standards and in the current economic climate.

Old Mutual Engagement Survey
Engagement is the extent to which employees commit to something or someone in their organisation, and a measure of how hard they work and how long they stay as a result of that commitment. The results of the 2010 Old Mutual Engagement survey indicated that the engagement levels within Nedbank Group remained stable in relation to those of 2009.

Middle-management research
During 2010 Nedbank Group middle managers were identified as a specific grouping that requires additional development in order to ensure overall alignment with the group’s strategy. The findings
of the detailed research and qualitative focus groups conducted in this regard led to a decision to cascade the group’s Leading for Deep Green programme to this level of management.

Leading for Deep Green is a programme that was launched in 2006 to senior management with the core aim of entrenching a values based leadership culture across the group through personal insights and team effectiveness. A manager’s newsletter was launched to share HR information directly with managers.

Employee Wellbeing

The programme is available to all permanent and temporary staff members and their household family members. The wellbeing programme’s service provider, ICAS, offers confidential counselling telephonically or face-to-face through trained professionals located across South Africa.

The programme was well-utilised by Nedbank Group staff members during 2010, with 21,5% of group employees making use of the various services available to them. This is notably higher than the industry standard of 10,3% and is due to effective awareness campaigns that were run to launch the revised service offering.

Realising potential through learning – Ran jini Maharajh

Ranjini is a training consultant who works in Nedbank Corporate. I n 2010 she was selected to participate in the Nedbank W omen Empowerment P rogramme, a joint initiative of the Nedbank W omen’s F orum and Group Human Resources.

‘While much of what I learnt had to do with the practicalities of realising my full potential, I think the most valuable lesson was the fact that acknowledging that one needs help is not a sign of weakness, but rather an indication of inner strength of character and a willingness to grow. In future I will not hesitate to ask for assistance, or give it, in order to ensure a positive outcome for all. I will be forever grateful to Nedbank Group for affording me this excellent opportunity to learn, grow, challenge myself, and become the person and leader that I know I can be.’

The top reasons for employees making use of the programme were relationship issues and work or personal stress.

Nedbank Group conducted its first employee wellbeing survey in 2010. This behavioural risk assessment, Pulse Audit, offers a snapshot of the emotional and behavioural health of a sample of group employees. All employees who responded to the survey received a personal analysis of their responses, outlining the extent of their behaviour and emotional risk exposure and providing recommendations about ways to address higher-risk areas. The employee wellbeing services and initiatives offered by Nedbank Group include (but are not limited to) the following:

• Executive health programme –a comprehensive wellbeing assessment, with a combination of medical and behavioural, risk management and personal optimisation modules.
  
• Trauma debriefing – for employees who have suffered a traumatic incident, such as a robbery. Certain cases are transferred to the Employee Wellbeing Programme for longer-term care where required.
  
• Employee Wellbeing Programme – confidential, professional consultation services for all employees.
• Holsboer Benefit Fund – offering support to Nedbank Group employees who suffer extreme financial hardship as a result of unexpected medical costs. In 2010 medical costs to the value of over R1,7 million were covered by the fund.
• Gerry Muller Benefit Fund – assisting Nedbank pensioners to overcome financial hardship caused by medical aid shortfalls.
• Holsboer Vacations Fund – offering employees and pensioners affordable holidays at a variety of resorts countrywide.

Nedbank Group also provides childcare facilities at three of its head office buildings in Gauteng. By addressing the needs of working mothers and fathers, the group retains key staff members, boosts productivity and reduces absenteeism. Together these facilities accommodated 238 children in 2010.

HIV/Aids management programme

As part of its commitment to addressing HIV/Aids in a positive, supportive and non-discriminatory manner, Nedbank Group offers treatment to HIV-positive employees through its HIV/Aids management programme. At 31 December 2010 there were 488 (2009: 444) employees or dependants registered on the zprogramme. Registered employees and their dependants qualify for unlimited HIV/Aids benefits, including chronic medication and blood tests required to treat the condition. Free antiretroviral drugs are also provided as part of a managed care programme.

In support of the government’s HIV Counselling and Testing Campaign, Nedbank Group relaunched its Voluntary Counselling and Testing (VCT ) Programme in December 2010 to offer both on and
off site testing to employees until the end of February 2011. In December 2010 a total of 597 employees were tested as part of the VCT Programme.

An actuarial assessment of the impact of HIV/Aids on employees was also commissioned in 2010 and the results will be used to enhance current HIV/Aids management practices.

Embedding talent management

Talent attraction

Employer branding and the employee value proposition
Enhancing Nedbank Group’s employer brand remains a key priority and efforts in this regard continued in 2010 via a number of key employer branding publications. The group also actively explored partnerships and associations with both the professional and youth chapters of black professional associations such as the Association of Black Securities and Investment Professionals (ABSIP), the Association for the Advancement of Black Accountants of Southern Africa (ABASA) and the African Women Chartered Accountants Forum (AWCA). The continued sponsorship of students In Free Enterprise (SIFE) and the Sci-Bono Maths and Science Week further served to position the group as an employer of choice.

Recruitment and selection

Altogether 36 976 external candidates applied for jobs on Nedbank Group’s e-recruitment system in 2010 (2009: 40 370), many in response to the 581 (2009: 427) positions that were advertised during the year.

A total of 2 844 external appointments were made, while 2 751 internal appointments to higher occupational levels occurred. In addition, 218 appointments were made as a direct result of existing staff members acting as employer brand ambassadors and referring suitable candidates for vacancies.

Recruitment and assessment processes were monitored to ensure that any barriers to fulfilling the transformation strategy were removed. A total of 315 African females and 305 African males, at both senior and middle management levels, were appointed to positions within the group.

In an effort to ensure appropriate broad-based black economic empowerment (BBBEE) spend, focus was placed on partnering with more black-women-owned recruitment vendors as well as other recruitment agencies that specialise in the sourcing of black talent and people with disabilities.

The graduate recruitment campaign saw Nedbank Group actively targeting students at seven universities across South Africa with a view to attracting new, qualified talent in 2011. These efforts resulted in applications by 7 796 students wishing to participate in the Nedbank Graduate Development Programme – 110 of whom were placed on the programme for 2011. This is 38% higher than the 80 candidates that were accommodated in 2010.

Talent management and retention

Nedbank Group is committed to retaining its talented employees and is continuously exploring opportunities to ensure greater retention of staff members. Talented employees and those with scarce skills are key areas where such retention is of utmost importance.

In 2010 the group saw the finalisation of a global high-potential employee list, with 43 candidates being identified. Global high potential employees are individuals who show the potential to occupy future key executive positions within the Nedbank Group and/or Old Mutual Group in the next six to 10 years.

In 2010 priority was given to strengthening the succession pipeline in Nedbank Group, and this resulted in succession plans being formalised for all roles within the group management structure up to two levels below that of chief executive. Profiles have been developed for each of the prospective successors to gain a better understanding of their career aspirations and developmental needs.

Flexible work practices
Nedbank Group continued to promote flexible work practices. Various flexible work practices are on offer to employees, including flexitime, telecommuting, homeworking, compressed working hours, four- and five-hour workdays, and two-, three- or four-day workweek options. A total of 691 staff members (2009: 236) made use of this employee benefit in 2010.

Aligning the Total Reward Strategy

Nedbank Group subscribes to a total-reward approach in order to attract, retain, motivate and reward all of its employees appropriately. Total reward is a combination of financial and non-financial, direct and indirect, and intrinsic and extrinsic rewards. This total-reward remuneration philosophy is aimed at promoting sustainable long-term performance and aligning performance with the strategic direction and specific value drivers of the business.

During 2010 the group reviewed all remuneration policies to ensure alignment with the relevant codes of best practise and governance frameworks. The minimum guaranteed package paid by Nedbank Group in 2010 was R82 000 per annum. This is above the stipulated minimum wage. Please refer to the Nedbank Group Remuneration Report, available here, for more detail.

Remuneration

Nedbank Group actively monitors race and gender income differentials across the organisation and in 2010 an extensive analysis was done to assess whether there were any unfair or discriminatory practices in the group’s remuneration processes. The results revealed that, while parity of remuneration still requires attention, no unfair or discriminatory practices are taking place.

The annual increase process and out-of-cycle increases are used to address any remaining parity issues.

Empowerment through the Eyethu share schemes
In 2005 Nedbank Group made history by launching Eyethu, a truly BBBEE transaction that included participation by employees, strategic black business partners, corporate and retail clients and a community trust. In July 2010 the Eyethu Broad-Based Employee Share Scheme vested. This was an important milestone in Nedbank Group’s BBBEE transaction and proved a huge success for both the organisation and the participants.

The employee portion of the Eyethu Broad-based Employee Scheme afforded Nedbank Group the opportunity to recognise the important role its employees play in its success. In line with the group’s aspiration of being a great place to work, in 2005 shares were allocated to employees earning less than R278 482 per annum, regardless of race. A total of 14 699 Nedbank Group employees (including past employees) have benefited from this scheme, with the shares appreciating by around 65% since inception.

The Nedbank Eyethu black economic empowerment (BEE) schemes comprise the following:

• Eyethu Black Executive Trust – aimed at attracting and retaining black executives.
• Eyethu Black Management Scheme – designed to attract and retain black senior and middle managers.
• Eyethu Broad-based Employee Scheme – intended to promote an equitable and diverse workplace through encouraging share ownership by employees.
• Eyethu Evergreen Trust – assisting the empowerment of black employees at lower income levels.

The various Eyethu BEE schemes have delivered over R1 billion in value to beneficiaries to date, including R670 million that accrued to beneficiaries of the Corporate and Non-executive Directors Schemes on 1 January 2011. The group has also undertaken an investigation into how best to deal with future empowerment allocations now that some of the initial Eyethu schemes have vested.

Performance management

Nedbank promotes holistic performance management by incorporating all aspects of performance into a single integrated HR framework. To facilitate transformation within the group a strategic performance management philosophy has been adopted that aims to put strategic plans into action and measure how the organisation responds to variables that influence organisational performance. There is a great focus on creating a high-performance culture with high aspirations, a common vision and individual responsibility for actions and decisions.

Performance scorecards are formulated around the principle that all objectives and projects support the objectives of the business unit and are aligned with the Nedbank Group strategy. In this way key strategic objectives are applicable to every individual in the business. The performance scorecard is based on the balanced-scorecard methodology.

In 2010 a learning and exploration journey was undertaken to integrate the performance standards from the Nedbank Group leadership pipeline into performance scorecards.

Recognition

The Nedbank Achiever process is unique in that it decentralises recognition in the group by allowing each business cluster to customise the programme. This cluster customisation takes place within a clear set of guidelines to ensure fairness and consistency in the groupwide recognition approach.

The culmination of the recognition programme saw 141 Nedbank Top Achievers (119 individual winners, 20 Top Team winners and two CEO Award winners) and their partners visiting Singapore and Bali as reward for their excellent performance throughout the year.

Learning and growing: developing people

The Group People Development function supports the delivery of Nedbank Group’s three-year business strategy through policies and practices that allow clusters and business units to benefit from world class thinking and research into developing their people. Nedbank Group’s people development focus areas include:

• Enabling people to perform at the level required within the organisation through role-based development.
• Building a transformed talent pipeline through formal and informal learning solutions.
• Providing future career opportunities through personal development.
• Measuring and reporting on learning to inform people development decisions.
• Contributing to the National Skills Development Strategy.
• Embedding the legislative requirements created by the Employment Equity Act, Skills Development Act, Skills Development Levies Act and all other relevant legislation in all Nedbank Group’s people development practices.
  

Skills development and training

Nedbank Group focuses its learning efforts on delivering optimum value for both the employee and the organisation via a positive shift in performance. The creation and maintenance of a learning culture within the group not only fulfils the various regulatory requirements that govern skills development, but also provides the momentum for sustainable organisational performance.

In 2010 the drive to develop learners for the financial services industry resulted in 137 learners participating in the Kuyasa and Letsema Learnership Programmes (2009: 210). A further 214 participated in other learnerships (2009: 240), while eight graduates undertook the Training Outside of Public Practice (TOPP ) Programme for accountants, and 80 attended the Nedbank Graduate Development Programme (2009: 104).

In 2010 an average of 39 hours of training per employee was completed.

Nedbank bursary scheme

The External Bursary Programme saw 265 bursaries awarded to undergraduates studying toward bank-related qualifications. The focus of the bursary scheme is on meeting scarce-skills requirements at Nedbank Group as well as ensuring that candidates who are most in need of funds receive the assistance they require. A total of 132 final-year bursars exited the scheme at the end of 2010, of whom nine were selected for placement on the 2011 Graduate Development Programme, while 109 are available for direct recruitment across the group in 2011.

A further 1 081 internal bursaries amounting to R8,4 million were awarded to Nedbank Group employees for further academic studies at graduate and postgraduate level. Study grant assistance to the value of R3,6 million was provided to 347 employees for the education of their children.

Training spend

In 2010 Nedbank Group spent R244,2 million on training, representing 3,58% (2009: 4,32%) of basic payroll, with R130,6 million or 2,78% (2009: 2,97%) going to the training of black staff (after adjusted recognition for gender). O f the total direct spend 27% (R40 million) was on strategic programmes supporting transformation, with 59,88% of the total training spend on black staff having been spent on black female staff.

Business and academic development for successive levels of our management is catered for in the business education programmes. In 2010 a total of 63 senior managers attended the executive education programmes, locally and internationally, and 462 managers attended business education programmes at top business schools in South Africa.

Other training and development opportunities made available to employees of Nedbank Group include:

• Executive education programmes – provide global and local leadership and management knowledge and skills to senior managers and executives.
• BANKSETA learnership programmes – funded by Bankseta, Nedbank Group provides the infrastructure and support to ensure that learners develop skills and knowledge to make them more employable.
• Professional development programmes – aimed at graduates entering specific professional fields within banking to provide further professional development in the workplace.

Management Development Programme

The Management Development Programme (MDP) is aimed at establishing a common values-based management approach within the group. A total of 3 876 staff members attended MDP role orientation workshops in 2010.

Coaching for Growth

During 2010 coaching was repositioned as an enabler of leadership development in order to support the group’s vision of fully performing leaders. A three-tier coaching framework was designed and implemented.

More than 1 000 business managers and HR professionals attended Coaching for Growth in 2010 and the aim is to reach 3 500 managers by the end of 2012. Coaching for Growth, as part of tier 1 of the coaching framework, aims to provide all managers across the group with basic coaching capabilities as a requirement of their leadership roles.

During 2010 a total of 26 external coaches (accredited through the International Coach Federation) and 18 internal coaches were selected for the development of both executive and managerial staff.

Enabling human resources capability and excellence

Nedbank Group is committed to enhancing its HR capability and competence levels in order to build effectiveness and efficiencies in employee interactions and relationships, and to enable all HR professionals to realise the vision of building a great place to work. As part of enhancing the HR capability, an HR academy programme has been designed and will be rolled out in 2011.

CULTURAL SUSTAINABILITY OBJECTIVES FOR 2011

IN ORDER TO BUILD ON THE ACHIEVEMENTS IN THE AREA OF CULTURAL SUSTAINABILITY OVER THE PAST YEAR THE FOLLOWING CORE OBJECTIVES HAVE BEEN IDENTIFIED FOR 2011:

Transformation beyond the numbers

• Foster an integrated approach to transformation.
  
• Leverage transformation and diversity to align the business profile with that of South Africa’s economically active population.
  
• Build a truly SA bank where transformation is prioritised.
  
• Retain key skills.
  
  

Building a unique and innovative culture

• Cascade leading for Deep Green (LFDG) management programme to the next management tier.
  
• Enable a culture conducive to the creation of a ‘great place to work’.
  
• Ensure that interventions and programmes are integrated into the overall organisational approach to building culture.
  
• Build a strong values-based leadership culture through embedding and implementing the Nedbank Group employee value proposition.
  
  

Leadership/Management effectiveness

• Operationalise the Nedbank Group learning framework.
  
• Ensure a return on the investment in leadership and management effectiveness.

Hr 2010 and beyond

• Deliver value-added, client-driven HR services.
  • Roll out the HR academy to the HR community.

Talent management

• Attract, develop and grow talent within the group.
  • Share knowledge, skills and experience across the group.
  • Ensure the mobility of talent across the organisation.
  • Define scarce- and strategic-skills categories and focus on building a pipeline for these skills.
  • Refine and embed the employer brand.
  • Respond to the availability of talent as economic pressures ease.
  • Reward talent optimally, taking cognisance of market practices and affordability.

Occupational health and safety

A culture of safety is of utmost importance at Nedbank Group. This entails compliance with various pieces of legislation including the Occupational Health and Safety (OHS) Act, 85 of 1993, and its regulations, and the Compensation for Occupational Injuries and Diseases Act (COID), 130 of 1993, as well as internal OHS policies aimed at the health, safety and security of employees, clients and all other stakeholders. Measures to ensure compliance include the following:

• OHS training is compulsory for all Nedbank Group employees.
• Evacuation drills are practised at least twice annually. During 2010 the time taken to clear all sites was materially reduced.
• All OHS representatives undergo annual training.
• OHS committees meet monthly at all Nedbank Group sites to review the effectiveness of OHS within the group as well as compliance with legislation.
• The Nedbank OHS intranet site is available to all employees and includes relevant OHS information, training, a copy of the OHS Act, and important policies and procedures.
• Recognition for all OHS wardens is endorsed by the annual recognition process and the OHS function is now provided for in their performance agreements.
  
• Health, safety and security awareness events are held regularly.
• Regular communications are sent to all staff in terms of health and safety.
• Commitment from the Nedbank Group Exco to maintain a culture of safety.

Accident reports and investigations
In 2010 altogether 61 workmen’s compensation claims were accepted by the Compensation Commissioner (2009: 52). Incidents are investigated for accidents involving all Nedbank Group permanent and temporary staff members and contract workers, and are reported.

OHS highlights

• The 2010 FIFA World Cup brought some new challenges to OHS as soccer teams were hosted close to Nedbank sites and so alternate emergency routes and assembly points were identified and successfully drilled.
• Compliance with the OHS Act by Nedbank Group remained consistent at 98,88% (2009: 98,43%).
• The group complied with changes in legislation, eg the promulgation of the Tobacco Act that resulted in all Nedbank buildings being declared non-smoking areas.
• The Imperial integration into Nedbank Group resulted in an increase in the number of sites included in the Nedbank Group OHS programme.
• The disability incident frequency rate (DIFR) for Nedbank Group in 2010 was 0,33. This aligns with the industry standard and is 0,4 below the national average.
• The group’s OHS Act compliance target for 2010 was to achieve a gold rating. This target was achieved, with a final rating of 98% for 2010.

Caring for people makes integration easier

Recognising this fact, Nedbank Group’s acquisition of a further 49,9% of Imperial Bank in 2010 was undertaken with a focus on successfully integrating the staff members of the affected businesses in a way that would demonstrate Nedbank’s commitment to caring for its people and build the bank’s image as a great place to work.

Measuring success differently
A total of 1 500 Imperial Bank and Nedbank Group employees were affected by the integration and, in drawing up the required acquisition documentation for the C ompetition C ommission in November 2009, the worst-case scenario outlined in terms of potential surplus positions was that 460 jobs could be affected as a result of the integration.

It was agreed that the ultimate success of the venture would not hinge solely on the business opportunities it delivered, but also on the extent to which employee security was maintained.

Demonstrating commitment through action
An integration that impacts 1 500 employees creates feelings of insecurity and uncertainty. So the first step, aimed at preserving a positive corporate culture throughout the exercise, was the commitment that there would be no forced retrenchments of permanent Nedbank or Imperial Bank staff as a result of this integration for the 12 months to January 2011 – a commitment that was subsequently extended to June 2011.

An Operational Talent Pool managed by a senior HR professional was established to facilitate the placement, within Nedbank Group, of employees in surplus positions. As a direct result of this, less than 1% of staff members affected by the integration had not yet been placed in positions by the end of the 2010 financial year. Subsequent to this, all staff have been placed. This represents a significant achievement when viewed against the original worst-case scenario of 460 surplus jobs.

Further evidence of this commitment is that there have been no IR cases emanating from the merger.

The power of culture alignment
When integrating two businesses, alignment of culture is of paramount importance. In the case of the Nedbank and Imperial Bank merger this proved less of a challenge than originally anticipated, as independent research revealed that employees of the two organisations already shared very similar personal values as well as similar perceptions of the organisation’s current and desired values.

Helping people to manage change
Despite these cultural similarities, every effort was made to ensure that all employees affected by the merger enjoyed a measure of security and familiarity. Conditions of employment were aligned and change management workshops facilitated for the most impacted areas.

FIVE LESSONS LEARNED

The success of the integration of imperial bank with Nedbank delivered a number of key cultural sustainability lessons that are sure to stand Nedbank Group, and indeed any business, in good stead in the future. These included:

1. Demonstrate real concern for the welfare of employees as this is an investment that will reap huge rewards well into the future.
   
2. Create a platform for affected employees to secure their own futures – this significantly enhances levels of security, loyalty, goodwill and productivity.
   
3. Make every effort to align the values and cultures of all the businesses in one’s own group. if evaluating outside companies for the purpose of a merger, be sure to include staff values and corporate culture in the assessment.
   
4. Never underestimate the power of transparent communication, focused training and genuine empathy, and furthermore the commitment of the leaders throughout the process.
   
5. Never assume that people can cope with change. When they feel like their livelihood might be threatened, everyone can use a little help in managing their lives, careers and emotions.