Professor Shirley Zinn (47)
Group Executive: Human Resources

3,5 years’ service • DEd

GROUP HUMAN RESOURCES AND
EMPLOYMENT EQUITY

REVIEW OF THE YEAR

In keeping with our belief that ‘great things begin with great people’, 2008 was a year in which we continued the strong focus on our people, their development and retention, the culture and climate in which they operate, and alleviating the challenges facing them as employees in a global economy.

Nedbank is faced with challenges in the war for talent and the shortage of key skills in the financial sector, hence our efforts in attracting and retaining great people are supported by a creative employee value proposition (EVP), as well as simple and effective tools to enable high performance. These tools include having job profiles, outlining a clear purpose and objectives, job matching to the market for market-aligned remuneration and benefits, a career management system that enables employees to make their own career decisions, a learning and growth framework that caters for all levels of development from entry-level matriculants and graduates to senior managers and executives, as well as flexible work practices to enable more productive working hours that suit employees and the organisation.

We are committed to attracting the very best people to work at Nedbank – our EVP and our recruitment processes support our efforts in this regard. In 2008 altogether 20 campuses were visited during the successful external graduate recruitment campaign, with contact being made with approximately 8 500 potential candidates. There were also 22 654 potential candidates registered on our e-recruitment system in response to 628 advertised positions; and approximately 6 500 referrals by staff were registered on our e-referral system. Our staff are encouraged to refer potential candidates to Nedbank and are rewarded for successful placements after a successful referred candidate has been in the specific position for six months.

We believe that the opportunity for development is key to attracting and retaining the right people at Nedbank, and this forms a significant part of our value proposition to current and future employees. At the entry level the drive to develop learners for the financial services industry resulted in 160 learners participating in the Kuyasa and Letsema Learnership Programmes, 110 on other learnerships, 23 graduates on the Training Outside of Public Practice (TOPP) Programme for accountants, and 68 graduates on the Nedbank Graduate Development Programme. All learners and graduates undergo intensive on-the-job training and, following successful completion of the programme, are ready to be placed. We have been very successful in placing the majority of students on completion of the programmes and have been pleased by their progress.

The External Bursary Programme was launched in February and 464 bursaries were awarded to undergraduate students studying toward bank-related qualifications. Furthermore, internal bursaries were awarded to 949 employees for further academic study at graduate and post-graduate level and study grant assistance was provided to 305 employees for the education of their children.

The Management Development Programme (MDP) is aimed at establishing a common values-based management approach within our organisation and the Old Mutual Group. To this end 9 897 (10 867 including Africa) of our staff have attended the role orientation workshops this year and are now embarking on practical application of skills learnt on these workshops. Business and academic development for successive levels of our management are catered for in the Applied Academic Programmes. In 2008 altogether 27 senior managers attended the executive education programmes, locally and internationally, and 446 managers attended business education programmes at the top business schools in South Africa.

Nedbank recognises that the single differentiating factor for competitive advantage is the prevailing culture of our organisation. In ensuring that we receive continuous feedback for improvement, Nedbank measures the staff morale through different diagnostic methods. The current organisational culture as perceived by employees is measured by the Barrett Survey, focusing on the level of entropy and the gap between the current and desired culture. For 2008 the entropy levels improved to 14% from 17% in 2007. This improvement comes off the original base of 25% in 2005 and shows a marked improvement over the past four years. International research shows that an entropy score of between 11% and 20% indicates a well-functioning organisation and organisations operating at levels of 10% and below are considered exceptional. The number of matches between the current and desired cultures increased from four to five, which is one below the best-practice range of six to eight matches. The Nedbank Staff Survey measures employees’ perceptions of organisational performance on 12 dimensions, and there was a statistically significant improvement in the score of 71,5% in 2007 to 75,1% in 2008, comfortably above the best-practice range of 60% to 70%.

The impact of working in a highly competitive financial services industry can be detrimental to the health and wellbeing of employees. Nedbank is cognisant of this and provides free wellbeing services to employees, in the form of psychological counselling for personal problems, trauma debriefing, executive health examinations, and financial assistance to qualifying employees experiencing exorbitant medical expenses. We also aim to provide an environment in which a balanced work and home life is achieved through flexible work practices.

Nedbank’s response to the devastating impact of HIV/Aids on employees is acknowledged through a two-pronged strategy. Firstly, prevention is approached through the voluntary testing of employees and, secondly, we attempt to improve the quality of life of employees affected by the disease. In 2008 a total of 5 959 employees underwent voluntary testing to confirm their status, equivalent to 24,25% of employees, way beyond our expectations of 10%.

We are buoyed by the significant successes achieved in 2008, and we strive to continue building on our capability to deliver high performance, retain and develop our best people, create a competitive advantage for the bank through our unique culture and contribute to Making Things Happen.

EMPLOYMENT EQUITY

Nedbank aspires to be a leader in transformation and a great place to work. Transformation is gaining increasing momentum in Nedbank and, in particular, employment equity (EE) has been one of the key focus areas to accelerate transformation.

While demographic representation is a requirement of the EE Act, the group firmly believes transformation is not only about compliance with legislation and achieving targets – it is also about creating an environment for staff that is conducive for meaningful and sustainable transformation to take place, which will enable the organisation to flourish.

If demographic representation is achieved in a supportive environment, then the bank will be well-positioned to maximise the benefits of a diverse workforce. This will ensure that the bank not only performs, but also remains relevant in the South African context.

EMPLOYMENT EQUITY PLAN 2008 TO 2010

An EE plan was submitted to the Department of Labour (DoL) in April 2008, and the group was complimented on the quality of the plan, which was compliant with all aspects of the EE Act. All business clusters have also finalised EE plans, which are aligned to the Group EE Plan. The balance of this year has been dedicated to implementing quantitative and qualitative aspects of these plans, which are monitored as part of the performance agreements of cluster heads and all the management levels below.

NEDBANK EMPLOYMENT EQUITY FORUMS

Nedbank has created governance processes and structures such as the Nedbank Employment Equity Forum (NEEF) and has established employment equity forums (EEFs) at cluster, divisional and regional levels. The Nedbank Employment Equity Forum (NEEF), which comprises the chairpersons of the cluster EE forums, EE managers, the People with Disabilities (PWD) Forum chairpersons, Women’s Forum representatives, trade union representatives and other stakeholders, monitors EE and consults with staff across the group.

Under the leadership of Nombulelo Moholi, Group Executive: Strategy and Corporate Affairs, the NEEF continued to champion EE in the bank.

The NEEF was also consulted on the Workplace Skills Plan (WSP), which was submitted to the BANKSETA at the end of June 2008. By being involved in these two major submissions, the NEEF ensured that there was greater alignment between the EE plan and the WSP, and that the Skills Development Plan supported EE. The NEEF also serves as a platform for clusters to showcase their innovative initiatives to support EE, and through this medium also monitors clusters’ progress against the implementation of their respective EE plans.

Other governance structures to facilitate effective implementation of transformation at Nedbank include the Group Operations Committee (Opcom), the Transformation and HR Committee (TRAHRCO), EE Managers Forum, PWD Forum, Women’s Forum and EE Implementation and Communications Steering Committee, all of which have contributed to the successful implementation of our plans.

EMPLOYMENT EQUITY PROGRESS – BASED ON THE EE ACT

The table below reflects the current demographic profile of the group, based on the EE Act’s definition of occupational levels, at 31 December 2008.

These figures are monitored on a monthly basis in order to determine the group’s performance against set targets.

Total workforce profile per Employment Equity Act

Numbers		Designated							Non-designated
		Male			Female				Male	Foreign nationals
Occupational levels		A	C	I	A	C	I	W	W	Male	Female	Total
	Top management	2	0	0	1	1	0	1	9	0	0	14
	Senior management	44	17	41	30	7	22	90	310	25	11	597
	Professionally qualified	575	317	577	522	450	582	1 767	1 779	104	99	6 772
	Skilled technical	1 241	679	666	2 149	1 533	1 266	2 011	655	51	103	10 354
	Semiskilled	749	308	163	1 553	860	421	687	125	7	43	4 916
	Unskilled	9	0	1	11	0	0	1	0	0	1	23
	Exceptions – permanent staff not matched	12	2	3	6	2	3	6	4	2	0	40
Total permanent		2 632	1 323	1 451	4 272	2 853	2 294	4 563	2 882	189	257	22 716
	Non-permanent employees	356	74	87	690	185	70	247	293	140	112	2 254
Grand total		2 988	1 397	1 538	4 962	3 038	2 364	4 810	3 175	329	369	24 970

(%)		Designated							Non-designated
		Male			Female				Male	Foreign nationals
Occupational levels		A	C	I	A	C	I	W	W	Male	Female	Total
	Top management	14	0	0	7	7	0	7	64	0	0	100
	Senior management	7	3	7	5	1	4	15	52	4	2	100
	Professionally qualified	8	5	9	8	7	9	26	26	2	1	100
	Skilled technical	12	7	6	21	15	12	19	6	0	1	100
	Semiskilled	15	6	3	32	17	9	14	3	0	1	100
	Unskilled	39	0	4	48	0	0	4	0	0	4	100
	Exceptions – permanent staff not matched	30	5	8	15	5	8	15	10	5	0	100
Total permanent		12	6	6	19	13	10	20	13	1	1	100
	Non-permanent employees	16	3	4	31	8	3	11	13	6	5	100
Grand total		12	6	6	20	12	9	19	13	1	1	100

RECONCILIATION OF HEADCOUNT

• Reporting period:
  The figures reported to the Department of Labour (DoL) on 1 October 2008 were for the period 1 July 2007 to 30 June 2008. However, the figures reported in the annual report cover the financial year from 1 January 2008 to 31 December 2008.
• Staff categories:
  The DoL requires that the headcount includes permanent staff, payroll contractors, temporary staff, commission-based staff and international secondees.
  
  The headcount figures in the annual report reflect all staff categories reported in the DoL format, except temporary staff, international secondees and staff of external entities.

During the course of the year Nedbank has focused on and made major inroads in becoming a disability-competent organisation. One of the initiatives undertaken to ensure the achievement of this aim was actively to increase the number of PWDs in the group’s employ. As a result, the number of PWDs has increased from 232 in December 2007 to 395 in December 2008. This represents 1,6% of Nedbank’s total workforce.

The following table provides a breakdown of people with disabilities:

Numbers		Designated							Non-designated
		Male			Female				Male	Foreign nationals
Occupational levels		A	C	I	A	C	I	W	W	Male	Female	Total
	Top management	0	0	0	0	0	0	0	1	0	0	0
	Senior management	1	0	1	9	0	0	0	0	1	0	13
	Professionally qualified	6	6	8	46	3	6	5	30	3	4	117
	Skilled technical	19	4	7	15	19	16	10	42	1	3	136
	Semiskilled	25	4	6	10	22	10	8	27	0	0	112
	Unskilled	0	0	0	0	0	0	0	0	0	0	0
	Exceptions – permanent staff not matched	0	0	0	0	0	0	0	0	0	0	0
Total permanent		51	14	22	80	44	32	23	100	5	7	378
	Non-permanent employees	1	0	0	6	4	1	0	4	1	0	17
Grand total		52	14	22	80	44	32	23	104	6	7	395

(%)		Designated							Non-designated
		Male			Female				Male	Foreign nationals
Occupational levels		A	C	I	A	C	I	W	W	Male	Female	Total
	Top management
	Senior management	8	0	8	69	0	0	0	8	8	0	100
	Middle management	5	5	7	39	3	5	4	26	3	3	100
	Junior management	14	3	5	11	14	12	7	31	1	2	100
	Semiskilled	22	4	5	9	20	9	7	24	0	0	100
	Unskilled	0	0	0	0	0	0	0	0	0	0	0
	Exceptions – permanent staff not matched	0	0	0	0	0	0	0	0	0	0	0
Total permanent		13	4	6	21	12	8	6	26	1	2	100
	Non-permanent employees	6	0	0	35	24	6	0	24	6	0	100
Grand total		13	4	6	22	12	8	6	26	2	2	100

EE – BASED ON dti CODES

Occupational levels			Black people %		Black female %	African %	Total staff
	Top management		30,00	20,00		20,00	10
	Senior management		26,96	9,82		12,48	601
	Middle management		44,64	22,95		16,20	6 772
	Junior management		72,76	47,79		32,74	10 354
Total management			60,45	37,00		25,73	17 737
	Semiskilled		82,47	57,65		46,83	4 916
	Unskilled		91,30	47,83		86,96	23
	Permanent staff not matched		70,00	27,50		45,00	40
Total permanent			65,26	41,46		30,39	22 716
	Non-permanent employees		64,86	41,93		46,41	2 254
Total dti			65,23	41,51		31,84	24 970
Included for reconciliation purposes
	Add:
		International					1 778
		International secondees					25
		Imperial					1 198
		Imperial secondees					4
	Less:
		Temp headcount					405
Total Nedbank Group							27 570

Nedbank remains committed to accelerating transformation and redressing underrepresented groups at management levels. We have set ourselves challenging annual targets to rectify the situation by 2016. Appointment ratios for all groups are clearly communicated and progress is celebrated on a regular basis.

EMPLOYMENT EQUITY PROGRESS – BASED ON THE FINANCIAL SECTOR CHARTER

Steady progress has been made since 2004, the start of the Financial Sector Charter (FSC), in all three management levels. 2008 targets have been met for both middle and junior management. Performance at senior management level was a challenge, especially due to the prevailing economic conditions and the current war for talent in the private and the public sector, but this was achieved during the course of 2008.

Employment equity progress – Based on the Financial Sector Charter

Staff category in terms of the definitions of the  FSC		African		Coloured		Indian		White		Total
		Female	Male	Female	Male	Female	Male	Female	Male
	Group Executive	1	1	1	–	–	–	–	7	10
	Senior management	49	105	15	42	40	111	275	831	1 468
	Middle management	213	271	110	130	216	285	795	1 006	3 026
	Junior management	486	475	410	263	505	393	1 424	757	4 713
	Non-managerial	4 368	2 273	2 530	978	1 627	772	2 481	749	15 778
Total operations		5 117	3 125	3 066	1 413	2 388	1 561	4 975	3 350	24 995

FSC definition includes: Permanent, temporary, payroll contractors, international secondees and commission earners
Included for reconciliation purposes

	Add:
		International									1 778
		Imperial									1 198
		Imperial secondees									4
	Less:
		Temp headcount									405
Total Nedbank Group											27 570

Employment equity progress as a percentage – based on FSC

Staff category in terms of the definitions of the FSC (%)		African		Coloured		Indian		White		Total
		Female	Male	Female	Male	Female	Male	Female	Male
	Group Executive	10,00	10,00	10,00	0,00	0,00	0,00	0,00	70,00	100
	Senior management	3,34	7,15	1,02	2,86	2,72	7,56	18,73	56,61	100
	Middle management	7,04	8,96	3,64	4,30	7,14	9,42	26,27	33,25	100
	Junior management	10,31	10,08	8,70	5,58	10,72	8,34	30,21	16,06	100
	Non-managerial	27,68	14,41	16,03	6,20	10,31	4,89	15,72	4,75	100

LEARNING AND GROWTH

Nedbank Group as an organisation focuses learning on achieving an optimum value for the employee and the organisation. Learning is ultimately about development for the employee resulting in portable skills and sustainability for the organisation. The intersection of value is created when both the employee and the organisation experience a positive shift in performance.

Skills development is regarded as a key pillar to achieving our transformation strategy. In support of the transformation strategy the WSP was completed as stipulated by the Skills Development Act. The primary source of information for this plan is the personal development plans completed online by employees annually, following the annual performance discussions that are held between employees and their managers. These discussions focus on increasing competence in their current roles and preparing them for future opportunities linked to our broader talent management plans.

Nedbank has spent R263 840 903 on training in 2008, which is 4,44% of basic payroll. Of this, 2,87% of basic payroll was spent on black staff.

At Nedbank learning and growth is sustained by a learning culture, which not only fulfils the various regulatory requirements that govern skills development, but also provides the momentum for sustainable organisational performance.

1	TRAINING EXPENDITURE
	1. 1	Training expenditure in terms of Department of Trade and Industry (dti) Codes
		Black skills development spend (Rm) 2008   Total basic payroll R5 945,4   Total training spend R263,8   Training spend as % of basic payroll 4,44%   Training spend for black staff using adjusted recognition for gender R170,8   Training spend for black people with disabilities (PWDs) using adjusted recognition for gender R1,4 Training spend on black staff as % of basic payroll 2,87% Training spend on black PWD as % of basic payroll 0,02% Nedbank qualifies for 9,14 points out of the 15 points allocated to skills development expenditure as per the dti generic scorecard. Altogether 56,40% of the total training spend on black staff was spent on black female staff.
	1. 2	Training expenditure in terms of Financial Sector Charter (FSC)
		Black skills development spend (Rm) 2008 2007   Total basic payroll R5 945 R5 272,0   Total training spend (1) R240,5 R174,5   Training spend as % of basic payroll 4,05% 3,31%   Training spend for black staff R127,2 R106,5 Training spend on black staff as % of basic payroll 2,14% 2,02% Total training spend improved by 37,85% in 2008, compared with 2007, while the training spend on black staff increased by 19,41%. Nedbank has exceeded the FSC target of 1,5% on training spend on black staff by 0,64%. Note 1: Difference in total training spend Total training spend in terms of dti Codes includes opportunity cost on salaries of employees participating in category B, C and D programmes in terms of the learning programme matrix.