Massmart’s Approach to Diversity & Inclusion Pearl Maphoshe September 2012
Massmart Structure Massmart Holdings Mass Mass Mass Masscash Masscash build warehouse discounters Wholesale RetailWarehouse Browns & Game Weirs Express Makro Cambridge Dion Wired Shield Food Trade Depot Jumbo
Alignment With Business Strategy Integrated Human Resource Management Strategy Leadership Critical Pipeline Positions Workforce Diversity & Inclusion Business HR Attraction & Acquisition Talent Business Strategy Strategy Outcome Outcome Performance Management Learning & Development Total Rewards Retention & Engagement Risk & Compliance
We Value Diversity by:• Accepting, respecting, celebrating and valuing individual differences;• Capitalizing on the diverse backgrounds and experiences of our staff, customers, suppliers and stakeholders.
We Value Inclusion by:• Identifying, addressing and removing barriers in our environment;• Facilitating opportunities that result in effective and meaningful participation;• Drawing ideas and creating solutions that are multidimensional and universal.
Legislative Framework• Black Economic Empowerment Act 53 of 2003;• Employment Equity Act 55 of 1998;• Skills Development Act 97 of 1998;• South African Constitution.
Key Diversity and Inclusion Questions• How can we use the way we think, the way we do business and the way we are to create competitive advantage in the market place?• How can we attract top talent that reflects the rainbow nation to position Massmart for current and future success?• How can we drive innovation and growth by leveraging the rainbow nation?• How can we create an environment that is supportive of collaboration and that promotes superior performance for all our people?
The Business Case: Diversity alone is not enough• Economic marginalization leads to social and political instability;• Businesses that are successful in leveraging the diversity of their people and supplier base are better able to adapt to changes in the external environment; • Inclusive companies score higher on customer satisfaction, productivity index, profitability and generally have lower stuff turnover.
SA Specific Business Case• The changing demographics of SA are transforming the culture and the buying habits of our nation;• Business involvement in these communities, from supplier-diversity (BEE/local sourcing) to CSI initiatives to recruitment and retention of diverse employees sends a strong signal of support to potential customers within these communities.
Creating a sustainable competitive advantage Culture Enhancing “how we do things around here” and improving the way people think. Behave and perform in organisations Inclusion Making the fullest and best use of the diverse talents, skills, Complexity perspectives and experiences Diversity Increasing the richness of different talents, skills, perspectiv es and experiences Organisational maturitySource:Price Waterhouse Cooper Open University
What Diversity is NOT NOT just a good idea; NOT only about non-commercial CSI; NOT just a moral imperative.
Bottom-Line Business Benefits• Attraction and retention of top quality talent: Employer of Choice;• Improved morale among employees;• Talent optimization: Improved productivity due to better leveraging of skills and competencies within the organization;• Stronger relationships with strategic stakeholders;• Increased ability to compete in the market place.
True Value of Diversity and Inclusion• An Employer of Choice;• A Business Partner of Choice;• A good Corporate Citizen;• A Global Business.
Virtual Cycle of Diversity & InclusionMarket Leader & Diverse & InclusiveBusiness Partner Work Culture of Choice Employer of Choice
In a Nutshell Market Focus Leadership and People Focus Culture Transformation Recruitment and Retention Diversity and Inclusion
Massmart’s D & I Strategic FrameworkCorporate To create a culture that fosters innovation productivity andMission respect for all peopleStrategic Workforce Diversity Sustainability of Workforce InclusionPillars Diversity and InclusionChange Commitment Communication Measurement AccountabilityDrivers
Scope of Diversity & Inclusion The way we The way we do think things The way we are
Diversity & Inclusion Goals Create processes, Attract, devel policies, op and retain plans and practices talented that promote Identify people from Massmart as an and all population Employer of Choice address groups barriers including within designated Have a Massmart groups workforce broadly reflective of the demographics in South Africa
Diversity & Inclusion Framework Accountability loop Executive Measurement sponsorship Diversity & Inclusion Policy Framework Coherent Review & strategy Development Alignment of D&I with Socialization Talent Management
Our Guiding Principles• Demonstrated leadership commitment;• Effective communication;• Continuous education, awareness and skills development;• Shared accountability and responsibility for D & I;• Effective measurement of D & I efforts.
Diversity & Inclusion Scorecard Goals Activities Performance Indicators Desired Outcomes Undertake regular culture survey; Participation rate; Survey results demonstrate Have a workforce Review recruitment, Learning & Diversity & Inclusion index on that over time Massmart has abroadly reflective of Development and retention practices recruitment & promotions and diverse workforce and to ensure the identification removal of Survey results. Representation of diversity in the demographics barriers to employment and top management levels & in SA Create mentorship & job shadowing succession plans. opportunities. Ensure that senior leaders are Diversity & Inclusion discussion Diversity councils and circles and consistently visible and vocal in throughout the organisation, Diversity & Inclusion training. Identify and communicating their commitment to twice per annum; diversity as a performance standard and aaddress Diversity & Integration of D & I as an business priority; Create awareness of Massmart’s Diversity integral measure of Inclusion barriers performance management and & Inclusion strategy; within Massmart Use the information from the employer Visible demonstration and surveys to identify barriers to inclusion in observance of D & I. our environment and Development customised plans to address identified barriers. Recruit the best & most diverse talent Progress on representation of A workforce that reflects theAttract, develop and available & to develop & retain that designated groups on the rainbow nation; retain talented talent at all levels of Massmart; Massmart workforce especially in Lower staff turnover and Implement the Employment Equity Act; top management; Sustained investment on the people from all Implement the Skills Development Act; Equitable representation on all L & development of designated population groups groups. Establish Diversity & Inclusion Council D programmes on the Massmartincluding designated Further roll out of Black Scarce Skills Corporate University and groups Share Trust (BEE shares). Improved retention rate. Engagement survey; Survey Results; Sustainable competitive Create Employee value proposition; Bursary Scheme; advantage through Diversity & processes, and Actively promote our employer brand Massmart GDP and Inclusion in our workforce and practices that and Procurement spend on Small supplier-base. Promotion of all tenants of Broad- Medium Enterprise, black ownedpromoted Massmart companies & women owned Based Black Economic Empowerment. as an Employer of companies. Choice
Conclusion• Strategic imperative;• Commercial value and leverage of D & I;• Multi-dimensional and not a numbers game;• Internal and external focus;• D & I is the key to business success.