Staff matters

COMPETITIVE ADVANTAGE THROUGH A UNIQUE CULTURE

Nedbank Group believes that the primary differentiating factor of any business is its culture. The group is therefore committed to making every effort to create a culture in which staff are empowered and enabled to develop and deliver to the very best of their ability.

ENTRENCHING THE NEDBANK VISION

The bank has embarked on various initiatives aimed at embedding the vision and values of the organisation. The key initiative is the Leading for Deep Green (LFDG) cultural intervention that has been rolled out from the Group Exco to the executive and senior management levels. Running parallel to this is the management development programme that focuses on empowering all staff to become better managers – of themselves and others.

 

LIVING THE VALUES THROUGH OUR BEHAVIOURS

Nedbank Group’s five core values form the foundation of the group strategy and are measured by means of a biannual performance management process, as well as through annual culture and climate surveys.

 

DRIVING HIGH PERFORMANCE

Nedbank Group’s high-performance culture is characterised by openness and trust, with clear accountability for execution, the freedom to take calculated risks and the encouragement to adapt to change, thereby constantly raising individual and organisational performance. This philosophy extends across the entire organisation, with scorecards for all levels of management up to the Chief Executive and balanced across business, social and cultural requirements.

 

MANAGING THE NEDBANK WAY

The Management Development Programme (MDP), which was piloted in 2007, is a consistent and integrated approach to management development across the group and is aimed at creating great leaders and managers. The MDP provides Nedbank Group with an ongoing pipeline of skilled managers who are capable of executing group strategy while embracing our values.

The MDP also provides an understanding of the management accountabilities required at different levels in order for the business to function optimally and to ensure more effective talent management.

During the 2008 rollout MDP gained significant momentum across the business clusters, exceeding its 25% target, with a 44,9% attendance by employees of the role orientation workshops, which forms the core of the programme.

STAFF MORALE

Staff morale is measured annually using various diagnostic methods. This ensures that Nedbank Group receives constant feedback regarding the progress it is making in attaining its aspiration of being ‘a great place to work’. During 2008 three surveys were undertaken:

 

Barrett Survey

This provides a view of the current organisational culture as perceived by employees and shows the gaps between this perception and the culture desired by employees. The 2008 survey revealed good improvement in the number of matches (from 4 to 5) between the current and desired culture, just below the international best-practice benchmark of 6 to 8 matches. The entropy score also decreased to 14% from 17% and is now much closer to the optimal level of 10%, which is indicative of a highly aligned and high-performing culture. The entropy levels have decreased from 25% in 2005 and the improvement has been consistent over the ensuing three years.

 

Nedbank Staff Survey

This climate survey is designed to measure and track employees’ perceptions about organisational performance across 12 predefined dimensions. Following the trend seen since the survey was first launched in 2005, the overall score and individual dimension scores again improved in 2008. The overall score saw a statistically significant increase from 71,5% (2007) to 75,1% (2008), which compares favourably with best-practice scores of between 60% and 70%.

 

Old Mutual Group Engagement Survey

This survey is conducted by Old Mutual plc and involves all businesses within the group. The survey assesses levels of staff engagement in addition to perceptions of the organisation’s performance against strategic objectives and alignment to the group’s values. In previous years a group of Nedbank staff were randomly selected to participate in the survey, but in 2008 all Nedbank staff with email addresses were invited to participate. Most of Nedbank’s 2008 results were encouraging in terms of improvement on 2007 results and benchmark scores. On the specific engagement measures Nedbank saw improvements on the Discretionary Effort, Emotional Commitment and Rational Commitment scores. Nedbank’s Discretionary Effort and Emotional Commitment scores exceeded the international benchmark scores. In terms of the group values, Nedbank reported exceptionally positive scores on all the values, with improvements being noted for each value when compared with 2007 scores.

 

WORK ENVIRONMENT

Employee wellbeing

Nedbank Group views employee wellbeing as a vital part of the employee value proposition. The Employee Wellbeing Unit provides a supportive structure that contributes to the health and wellbeing of all employees. A cross-functional wellness board has been implemented with the aim of creating a sustainable framework to encourage employee wellness as well as assist in managing the organisational, operational and individual health risks posed to Nedbank Group as a consequence of the health issues of individuals.

The following are also offered to Nedbank Group employees as part of the Employee Wellbeing Programme:

• Childcare/Crèches – Nedbank Group provides childcare facilities at three of its headoffice buildings.
• Prayer room – Interdenominational prayer room facilities have been set up for employees in Gauteng.
• Bankers on the Run – this provides an opportunity for employees to complete their exercise and weekly training as part of their daily work routine.

Our employee assistance programme provider, the Careways Group, offers confidential professional consultation on any personal problems at no cost to employees. The programme is available to all permanent and temporary employees and their household family members. In 2008, 11,89% of our staff utilised this service.

Other elements of employee wellbeing include the following:

	Name		Description		2008	2007	2006
	Executive health		Offered through the Careways Group, the programme offers Nedbank Group executives a physical assessment by a medical doctor and biokineticist, as well as a distance-care facility for assistance with any physical, emotional, personal or work-related problems.		226	114	184
	Trauma debriefing		In a banking environment employees are always at risk of being exposed to a traumatic event like a bank robbery, as well as general and personal trauma issues. By partnering with TraumaAssist, Nedbank Group provides trauma debriefing to all employees and refers certain cases to the Employee Wellbeing Programme for longer-term care when required.		256	185	167
	Employee Assistance Programme		The Nedbank Group, through its Employee Assistance Programme, offers confidential, professional consultation on any personal problems at no cost to employees.		11,89%	10,97%	8,71%
	Holsboer Benefit Fund		Nedbank Group employees who suffer extreme financial hardship as a result of unexpected medical costs can apply for support from the Holsboer Benefit Fund, which makes financial assistance available for medical shortfalls. In 2008 the fund processed 224 applications and paid out grants to the value of R1 093 081. Grants vary according to individual requests and a fair process is followed in assessing each case. In 2008 the grant amounts awarded significantly increased, which was mainly due to the trustees broadening the fund scope to try to assist as many employees as possible.		230   (R1 127 199)	156   (R490 426)	133   (R321 922)
	Holsboer Vacations		The Holsboer Vacations Fund affords Nedbank Group employees, direct family members and pensioners the opportunity to enjoy affordable holidays at a variety of resorts and destinations. The fund entered an alliance in 2008 with Quality Vacation Club and now offers employees access to over 180 local resorts and a wide variety of international destinations.		50%   occupancy   for   wholly   owned   resorts	50%	53%
	Gerry Muller Benefit Fund		The Gerry Muller Benefit Fund – established by former Nedbank MD, Gerald Sydney Muller – assists Nedbank Group pensioners to overcome financial hardship caused by medical aid shortfalls.		R480 329	R317 075	R516 329

 

Flexible Work Practices

Nedbank Group introduced Flexible Work Practices in April 2008 with the aim of enhancing the employee value proposition and taking into account the effect of work practices on productivity and a balanced lifestyle.

 

HIV/Aids management programme

Nedbank Group is committed to proactively addressing HIV/Aids in a positive, supportive and non-discriminatory manner. One of the objectives of the group’s HIV/Aids strategy is to minimise the impact on employees by means of the formulation and implementation of an HIV/Aids response plan.

The HIV/Aids strategy takes a two-pronged approach, focusing on:

• prevention – to reduce the transmission of HIV; and
• positive living – to improve the quality of life of employees who are HIV positive.

Voluntary counselling and testing was launched across the group in 2008 and, thus far, 5 959 employees have undergone testing, while 1 289 employees have completed awareness training over the past two years.

EMPLOYEE RELATIONS

Nedbank Group is committed to fostering sound employee relations and acknowledges the rights of employees to representation, freedom of association and collective bargaining as a way to determine conditions of service.

In 2008 a total of 6 234 disciplinary incidents were logged. Of these 2 762 were resolved through counselling, 1 013 by means of verbal warnings and 1 880 by written warnings.

Of the 101 cases referred to the CCMA, 34 were settled, 13 withdrawn, 23 dismissed in favour of Nedbank Group, three resolved via unfavourable decisions against Nedbank Group and 28 cases are still in progress.

Collective bargaining

Nedbank Group believes that the process of collective bargaining assists in creating healthy employer-employee relationships. The bank is therefore committed to utilising this process as a means of determining terms and conditions of employment.

Nedbank undertakes to consult with its employees as well as their recognised unions as soon as any restructuring is contemplated. For the purposes of restructuring, the minimum notice period, including consultation, during which alternatives are explored, is four months. However, there is no notice period for headcount freeze as this does not impact on staff already employed. The bank does make provision for honouring any employment offers made before the date of implementation of any headcount freeze.

As at 31 December 2008, 69% of permanent staff belong to the bargaining unit.

Grievances and discipline

Nedbank Group and the recognised trade unions have negotiated and agreed policies and procedures governing the handling of grievance and disciplinary processes. These policies are governed by the following principles:

• The assumption of innocence before guilt, and corrective rather than punitive discipline.
• The right of the employee to be heard and treated fairly.
• The separate escalation of grievances relating to unfair discrimination, sexual harassment and bullying to ensure swift resolution.

Internal ombudsman

The Nedbank Ombudsman provides staff with an additional channel to voice any concerns they may have regarding issues such as victimisation, racism and discrimination. Altogether 89 incidents were handled by the Nedbank Ombudsman in 2008, compared with 66 in 2007 and 52 in 2006 (for nine months). The ombudsman’s role is to facilitate discussions between staff, HR and line managers and to allow the line manager to resolve matters accordingly.