019553 NEDBANK PEOPLE V3c JH

019553 NEDBANK PEOPLE V3c_JHC
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CONTENTS
5 Headcount movement
6 – 2019 Employment equity demographics – black (ACI) male and female
7 – 2019 Employment equity demographics – year-on-year growth (2017–2019)
7 Creating opportunities for gender equity
8 Transformation initiatives
8 – LGBTQI+ forum
8 – Maternity transition coaching
8 Cell C Take a Girl Child to Work
9 Voices of Change
10 – Youth Employment Service (YES)
11 RIGHT-FIT CULTURE THAT UNLOCKS VALUE FOR NEDBANK
11 Introduction
16 MANAGING OUR TALENT
17 Talent mobility
19 DEVELOPING OUR WORKFORCE FOR THE FUTURE
20 Continuous professional development
22 HEALTHY AND HIGH-PERFORMING STAFFMEMBERS
22 Introduction
23 Staff volunteerism
24 Employee benefits
25 OCCUPATIONAL HEALTH AND SAFETY 25 Occupational Health and Safety committees
25 Emergency preparedness
25 Training and awareness
25 Emergency medical facilities
26 – Grievances
27 Industrial action
Please refer to nedbank.co.za or our 2019 Integrated Report for further details on our response.
19 COVID-
Covid-19 At the time of publishing, many governments were implementing emergency measures to curb the spread of the virus, including a full lockdown in SA. At Nedbank, we are working tirelessly to ensure that we do all we can to ensure stakeholders are prepared to deal with this escalating challenge. Our primary focus is on the health and safety of our staff alongside the continuous and uninterrupted provision of worldclass banking and other financial services to our clients.
NEDBANK GROUP PEOPLE REPORT 2019
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During 2019 the pace and impact of digitalisation on our business and staffmembers continued to accelerate, presenting several challenges and opportunities:
• Business models, the nature of work and the size and shape of our workforce are changing, and we are compelled to evolve our organisational design so we can deliver on our business strategy.
• There is a shifting demand for new skill sets necessary to achieving our strategic intent and differentiated service delivery aspirations. This heightens the need for continuous learning and reskilling solutions.
• Despite Nedbank’s best efforts to mitigate job losses, the number of redundancies increased in 2019. This has required Nedbank to think carefully about our role and response as a responsible employer.
• There is increased pressure from trade unions in response to optimisation and digitisation efforts. Given that the impact of digitisation on the workforce is not unique to Nedbank, there are threats of industrial action in the financial services sector.
The intensifying pace of change in the workplace, coupled with political, social and economic distress in our society, means that our staffmembers are experiencing higher levels of stress and are looking to Nedbank for more support than ever before. This is evidenced by a year-on-year increase in the uptake of some of our wellbeing offerings.
As we continue to optimise our business, we have reduced our permanent headcount by 1 686 year on year while managing the people impact responsibly. The headcount reduction was primarily achieved by natural attrition, which is evidenced by a marked reduction in external recruitment year on year. Through our Agility Centre 620 staffmembers were successfully redeployed into alternative roles within Nedbank, while 158 staffmembers were regrettably retrenched.
Given this context and in alignment with our People Vision of positioning Nedbank as an employer of choice, we continued to evolve our leadership, people and support practices towards delivering a more positive employee experience.
Furthermore, Nedbank remains committed to serving a broader nation-building agenda and playing its part in supporting a more sustainable society. We are extremely proud to have been one of the few South African organisations to invest in the Youth Employment Service (YES), which saw us provide 3 315 previously unemployed youth with work experience.
Notwithstanding the challenging environment, we laid foundations in 2019 to benefit Nedbank in years to come and delivered on critical people priorities. Our key highlights are articulated in the following section.
OVERVIEW
Globally, the Fourth Industrial Revolution is driving financial services towards digital transformation. The changing needs and behaviours of our clients, influenced by digital technologies, have made it necessary to adapt our product offerings, service delivery and engagement model.
Our strategy aims to achieve higher levels of client focus across the enterprise through the key levers of technology and people while delivering efficiencies. In line with our purpose ‘to use our financial expertise to do good for individuals, families, businesses and society’ we strive to be more client-focused, digital, agile and competitive so we can deliver on our business strategy in a rapidly changing context. Our People Vision is to position Nedbank as an employer of choice that attracts and retains the required talent and skills to enable our strategy.
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PEOPLE HIGHLIGHTS FOR 2019
During 2019 we laid foundations and executed against critical demands of our People Vision. Our highlights include the following:
Positioning Nedbank as an employer of choice • We redefined our employee
value proposition (EVP) and recognised culture as a critical building block in positioning Nedbank competitively as an employer of choice.
• We reviewed several of our employee benefits with the aim of providing more competitive benefit offerings.
• We are creating a future- fit organisation by evolving our business model and capabilities to be more competitive, agile and digital. In 2017 we launched new Ways of Work (nWoW) and refined and embedded the approach in 2018 and 2019. Today, more than 3 000 staffmembers are working according to this new approach. We aim to increase this number incrementally to support an optimal agile scaling framework.
Transforming our skills profile • We developed an
organisationwide strategic workforce plan that identified the skills we will need to achieve our aspirations. The plan details the learning solutions required to ensure our staffmembers’ skills remain relevant in the future.
• We redesigned our learning strategy to enable a lifelong learning culture and create a place where staffmembers can realise their potential.
• We improved the organisational redeployment process and operationalised the Agility Centre solution to support staffmembers impacted by restructuring. We are pleased to have been able to redeploy 620 staffmembers who were affected by organisational change. Regrettably, 158 staffmembers were retrenched.
Transforming the demographics of our workforce profile • We completed a diagnostic
exercise to understand the barriers to achieving representation of underrepresented race groups, such as the attrition of African talent at senior and middle- management levels. We then developed remediation plans to address these root causes.
• We achieved 15,67 skills development points (2018: 14,38), which contributed to the achievement of our overall level 1 broad-based black economic empowerment (BBBEE) status.
• A total of 39 learnership programmes (2018: 22) were implemented organisationwide. These created development opportunities for 1 714 learners, 90% of which were black (ACI).
• We implemented a check-and- challenge practice to ensure fair performance outcomes for all our staffmembers.
Contributing to nation-building • We were the first of the
large banks to participate in the YES programme and provided 3 315 previously unemployed youth with work experience, in line with our commitment to nation- building.
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As our business context continues to evolve, we are focused on having the right skills at the right time, to give our clients the best service experience. During 2019 Nedbank identified critical, strategic and core skills that need to make up our workforce in the future to help us stay competitive. We have a robust learning strategy that will enable our staffmembers to learn anywhere, anytime, through self- directed learning.
We continue to evolve our organisational design and business model to be more client-focused, digital, agile and competitive and focus on including young talent in our drive for innovation. Below is a comparative snapshot of our workforce profile over the past three years.
WORKFORCE PROFILE 2019 2018 2017
Total number of staffmembers – opening balance 31 227 31 887 32 746
SA permanent staffmembers at the beginning of the year 26 953 27 417 28 106
Recruitment 1 004 1 934 1 851
Reclassification of staff (changed to permanent) 175 383 409
Terminations (actual year to date) 2 840 2 734 2 931
Resignations 1 840 2 056 2 222
Deaths 29 46 41
Dismissals 306 241 288
Retirements 349 255 271
Retrenchments 158 23 22
Emigration 43 28 27
Disability 81 71 51
Other* 34 14 9
Reclassification of staff category (changed from permanent) 25 47 18
SA permanent staffmembers at the end of December 2019 25 267 26 953 27 417
Permanent headcount change on previous year (1 686) (464) (689)
Other staffmember categories
Temporary staffmembers** 190 400 356
International staffmembers (including Nedbank Africa Regions)*** 2 929 2 878 2 802
External entities 62 65 63
OUR WORKFORCE IN REVIEW
2019 2018 2017
Total number of staffmembers at 31 December 29 403 31 277 31 887
Attrition rate (%)**** 10,8% 10,0% 10,5%
YES programme participants placed in Nedbank 239 – –
YES programme participants placed with Nedbank partners 1 390 – –
Total number of staffmembers, including YES programme 31 032 – –
* Includes employees who exited with undefined reason.
** Reported on the basis of fulltime equivalents.
*** Reporting of staff information is subject to country-specific legislation.
**** Total permanent terminations in all categories, divided by the average permanent headcount for the reported period.
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In 2019, 250 youth were placed directly in Nedbank as part of the YES programme, with 239 remaining in the programme at 31 December 2019. The change in number is attributable to absorption into Nedbank or YES youth having left the programme. YES youth that completed eight months of the programme do not have to be replaced.
The balance of the 3 315 YES youth was placed in partner organisations and this, in addition to our bursary and numerous graduate programmes, demonstrates our commitment to infusing young talent into our organisation continuously.
Staffmember terminations by age group
Age
30–39 11 041 1 160 10,5
40–49 6 547 529 8,0
50–59 3 440 317 9,2
60–69 274 213 77,7
All termination categories are included in the attrition percentage in both tables above. The attrition shows the average net loss to the organisation.
In line with the behavioural trends of millennials, our attrition of this generation is the highest: the exit rate for the 20–29 age group is 12,4%, and 10,5% for the 30–39 age group. Our staffmembers in the 60–69 age group show the typical trend of increased exits in line with the South African retirement age of 60–63 (2019: 213).
During 2019 there was a shift in the workforce and great focus on minimising the impact of retrenchments. Nedbank prides itself on being a responsible employer and implemented the Agility Centre in 2018 to provide greater support to staffmembers who were impacted by organisational changes. In doing so, we managed to redeploy 620 affected staffmembers into other roles in Nedbank successfully. Despite our best efforts, 158 staffmembers were regrettably retrenched during 2019 (2018: 23).
HEADCOUNT MOVEMENT In December 2019 our headcount was 29 403, which represents a headcount reduction of 1 686 year on year, achieved mainly through natural attrition.
A total of 715 staffmembers transferred across clusters within the bank. We aim to increase crossbusiness mobility further in 2020 to promote collaboration and innovation while developing talent.
Overall, we had a total of 2 840 terminations, which is an increase from 2018 (2 734). The overall increase can be attributed to an increase in termination categories (emigration, retirement, disability and retrenchments). Voluntary terminations (resignations) have, however, decreased year on year from 2 056 in 2018 to 1 840 in 2019.
We continue to focus on reskilling and upskilling staffmembers and filling available vacancies internally where possible, with the aim of reducing our operating expenses while using natural attrition as a primary lever. To this end we have reduced the number of new (external) hires by 930 – from 1 934 (2018) to 1 004 (2019). Recruitment remains one of the enablers of Nedbank’s skills transformation. The 1 004 roles that were filled through external recruitment were predominantly within sales and service (223), information technology (189) and investment banking (125).
With the reduction of headcount year on year, we need to ensure that our workforce continues to represent the demographics of South Africa fairly, with transformation remaining a business imperative.
OUR WORKFORCE IN REVIEW continued
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INTRODUCTION As a purpose-led organisation, Nedbank is committed to nation-building and contributing to a more transformed South Africa. We believe that a more diverse workforce results in greater innovation and value creation for Nedbank.
In support of our aspiration to lead in transformation, overseeing our transformation mandate is the Governance Framework Transformation Human Resources Committee (TRAHRCO), which is a Group Executive Committee (Exco) subcommittee, and the Group Transformation, Social and Ethics Committee (GTSEC), which is a board subcommittee.
As a result of emerging legislative changes, there is a marked increase in competition for talent from underrepresented race groups. To achieve our transformation targets it is imperative that Nedbank attracts and retains African talent at all management levels, in support of a healthy succession pipeline. A diagnostic exercise (completed during 2019) focused on the retention of underrepresented race groups and highlighted root causes inhibiting progress. A remediation plan has been developed and implemented to further promote a culture of inclusion. Good progress was made against key priorities of the action plan in 2019, including the following:
• We redesigned our EVP to reflect who we are as an organisation. Inclusion is one of five central themes of our EVP.
• A check-and-challenge step was introduced in the performance management process to ensure fair performance outcomes.
• In alignment with legislation we revised our approach and the methodology we used to review the ‘equal pay for work of equal value’ (EPWEV) practices that seek to ensure fair and unbiased reward outcomes.
Nedbank remains true to its commitment of a differentiated learning investment towards the development of black staff, including prioritised focus on the development of black female staffmembers. This commitment is reflected in Nedbank’s financial investment for 2019, together with the increase in the BBBEE scorecard points for skills development. Our progress on skills development is unpacked further in the ‘Developing our workforce’ section.
In 2019 we continued to make good progress towards transformation. The tables below reflect the demographics of our workforce.
2019 Employment equity demographics – African and black (ACI)
Occupational levels Total
population African African
Senior management 1 035 169 16,3 445 43,0 190 18,4
Middle management 8 765 2 528 28,8 5 459 62,3 2 937 33,5
Junior management 15 282 8 868 58,0 13 532 88,6 9 204 60,2
Semiskilled 2 800 2 193 78,3 2 724 97,3 1 800 64,3
Temporary staffmembers 33 22 66,7 31 93,9 21 63,6
Total 27 932 13 784 22 198 14 156
2019 Employment equity demographics – black (ACI) male and female
population Black (ACI)
male Black (ACI)
female Black (ACI)
Senior management 1 035 255 190 43,0
Middle management 8 765 2 522 2 937 62,3
Junior management 15 282 4 328 9 204 88,6
Semiskilled 2 800 924 1 800 97,3
Total 27 899 8 032 14 135
Transformation figures comprise employee groups defined by the Department of Employment and Labour, processed through Nedbank’s payroll and residing and working in South Africa.
LEADING IN TRANSFORMATION
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Occupational levels 2019
Africans 16,3 14,3 12,9
Africans 28,8 27,5 26,8
Africans 58,0 57,4 56,6
Disability 2,5 3,0
CREATING OPPORTUNITIES FOR GENDER EQUITY The Nedbank workforce has a strong and growing representation of females, particularly at junior management (67,99%) (2018: 67,52%) and middle management (52,50%) (2018: 32,48%) levels.
Gender breakdown per management level
population Male Male
Senior management 1 035 662 64,0 373 36,0
Middle management 8 765 4 163 47,5 4 602 52,5
Junior management 15 282 4 892 32,1 10 390 68,0
Semiskilled 2 800 942 33,6 1 858 66,7
Total 27 899 10 669 17 230
At top-management level we have 41,18% (2018: 35,29%) female representation, which shows Nedbank’s commitment to gender diversity. In 2020 our focus will be on improving female representation at senior-management level.
4159 TOP
MANAGEMENT
There is growing representation of females at all occupational levels in the organisation.
3268 JUNIOR
MANAGEMENT6436 SENIOR
MaleeFemal
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LEADING IN TRANSFORMATION continued
LGBTQI+ forum Nedbank launched a lesbian, gay, bisexual, transgender, queer and intersex (LGBTQI+) forum in 2019. The forum is evidence of our commitment towards building a diverse and inclusive workplace and embracing the need for our staffmembers to be their authentic selves.
Since its launch in May 2019 the forum has held various activations, including the International Day against Homophobia, Transphobia and Biphobia. During 2019 four activations took place at various campuses with the focus on education and awareness. The forum has been integrated into most of our employment equity forums.
Looking ahead the forum will focus its attention on consulting on gender neutrality and inclusivity. A programme will be developed with the focus of raising awareness and increasing understanding to leverage the power of diversity.
Nedbank Women’s Forum As we strive for a more inclusive environment, we embrace the spirit of the Employment Equity Act, 55 of 1998, and the advancement of women.
In this spirit we established the Nedbank Women’s Forum, which promotes equal opportunities and fair treatment for women and guides a funding strategy for the implementation of various initiatives to empower women.
The following initiatives took place under the guidance of the Nedbank Women’s Forum in 2019:
Transformation initiatives
Maternity transition coaching Nedbank introduced a maternity transition coaching programme aimed at supporting professional women through this significant life event.
For the pilot 14 senior female leaders were coached at various stages in their maternity transition (before, during and after maternity leave). Their line managers were also equipped to support them through this transition period.
Home Loans Habitat for Humanity The purpose of the Home Loans Habitat for Humanity programme is to enable homeownership dreams with expertise and care.
In partnership with the Women’s Forum, the programme initiated various activities:
• Nedbank funded the building of two homes in Palm Ridge to the value of R200 000 each. This initiative was unique as it was built by an all-female team, including female members from Group Exco.
• Learners at a school in Palm Ridge were provided with food during this week.
• Nedbank Home Loans donated buckets, chalkboards, sanitary towels and cosmetic items.
Cell C Take a Girl Child to Work This day was celebrated with the theme ‘More than a day’. Nedbank hosted 142 grade 11 learners from Thuto Ke Maatla Secondary School in Tembisa. The topics discussed on the day included the following: • Drug abuse and teenage pregnancies.
• Career planning, future skills and financial fitness.
Learners were also able to apply for an Unlocked.Me Account, our student account, onsite.
In the Western Cape over 80 girls and boys were hosted at an entrepreneurship workshop at Zeekoevlei Primary School. The aim of this initiative was to:
• improve the learners’ social and economic environment;
• enable the learners to develop a hobby and entrepreneurial skill and earn money;
• increase the learners’ financial literacy;
• establish a mindset of saying ‘No’ to crime; and
• reduce social challenges in the learners’ households.
This initiative was sustained with a followup session at the school through the Teach a Child to Save programme. The programme encourages entrepreneurship as an alternative to tertiary education.
We will continue to support the school in partnership with the principal, who is a participant in the Partners for Possibilities programme, of which Nedbank is a major sponsor.
A survey will be conducted to determine the impact and progress of this initiative.
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Nedbank remains committed to the representation and reasonable accommodation of persons with disabilities. The Nedbank Disability Forum and Disability Desk champions promote inclusion and reasonable accommodation for both internal and external people with disabilities.
Voices of Change The Women’s Forum partnered with Accenture and MTN to deliver the annual Voices of Change event. The event promotes the awareness of gender equality within global organisations, irrespective of their business purpose, so they can work towards common goals.
This was one of a series of global events aimed at illustrating the importance of collaboration in accelerating progress towards the United Nations (UN) Sustainable Development Goals (SDGs) – specifically SDG 5: gender equality. More than 400 women attended the event, which focused on authentic leadership, inclusion and diversity, as well as countering gender-based violence.
CREATING OPPORTUNITIES FOR PEOPLE WITH DISABILITIES
During 2019 disability awareness campaigns were held in Durban and Cape Town.
Nedbank’s disability representation stands at 2,90% (2018: 2,96%).
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The YES youth are placed in fields that align with Nedbank’s sustainability agenda, and provided work readiness opportunities in the following areas:
• Biodiversity economy.
• Ecological restoration.
• Green schools.
• Sustainable livelihoods.
• Various administration functions, including document control, data capturing, receptionist tasks and field marketing, as well as those involving IT and healthcare programmes.
The YES youth are receiving training from Nedbank and our implementation partners to ensure they are equipped with skills to support them when they enter the job market or become entrepreneurs once the one-year programme has been completed.
The Nedbank YES programme has a national footprint across the country, in Limpopo, Northern Cape, KwaZulu-Natal, Eastern Cape, Western Cape and Mpumalanga; and the Gauteng townships of Ekurhuleni, Vaal Triangle, West Rand, Soweto, Alexandra and Soshanguve. In Nedbank the YES youth were placed in various clusters across the organisation.
The investment Nedbank has made in YES demonstrates our commitment to nation-building and recognises the critical role the youth plays in shaping our economy and our country. Commencement of Nedbank’s 2020 YES programme will be delayed due to the impact of the Covid-19 pandemic.
LEADING IN TRANSFORMATION continued
Youth Employment Service Nedbank invested in President Cyril Ramaphosa’s YES programme, launched in 2018. Nedbank has been the largest contributor to date and the only participant among the big four banks to have participated in the initiative at our scale. This positions us as a YES thought leader and aligns with our purpose of being money experts who do good.
YES seeks groundbreaking ways to create one million jobs for South Afica’s youth through innovation and technological best practice. Our commitment to playing a positive role along with other leading CEOs and the government, is demonstrated through participating in and bearing the costs of the YES internships.
In May 2019 Nedbank inducted 3 315 previously unemployed youth into the 12-month YES journey along with its sponsored implementation partners.
Placement of YES youth
Nedbank – placed within Nedbank 250
Administered by Nedbank payroll
UnlockD 800 Administered by Nedbank payroll
ORT SA 400 Administered by Nedbank payroll
Tradeway 150 Administered by Nedbank payroll
Total 3 315
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(2017: 71%). The results indicated that staffmember engagement levels had decreased slightly to 75% (2017: 79%), which is still higher than international benchmarks. The results also indicated that staffmembers had high levels of pride in the Nedbank brand and purpose, that they were loyal to the organisation and that they had a strong commitment to ethics and values-based behaviour. They were client-centred and understood how the work they did contributed to the achievement of Nedbank’s goals. They were proud to work at Nedbank and felt they could progress in the organisation.
The Compass survey results further indicated that staffmembers were looking to their leaders for increased transparent communication about how we were tracking against our strategic goals. Although significant progress was made toward an agile transformation, the organisation’s processes were still experienced as bureaucratic in some instances. High levels of change in the organisation, coupled with high levels of social, economic and political challenges in the South African context, may have contributed to the increased levels of stress as indicated in the survey. Given the turbulent context we find ourselves in, it is not surprising that our ability to manage change and innovate is an ongoing priority. Staffmembers felt encouraged to come up
INTRODUCTION As a purpose-led organisation, Nedbank aims to create great client experiences enabled by people and technology. We recognise the role that culture plays in the success of the organisation and we are committed to ensuring that our culture supports our strategy.
While our current culture is positively perceived by our staffmembers and has been a competitive advantage to date, we acknowledge that it must shift for Nedbank to remain relevant and attractive to current and prospective staffmembers. During 2019 we made essential progress in defining the culture shifts required to enable Nedbank to become more client-centred, digital, agile and competitive. The cultural shifts will be reinforced through an EVP that was launched in January 2020. We will continue with our multiyear journey towards shifting practices and the behaviours and mindsets of our staffmembers through an integrated people change plan.
OUR CURRENT CULTURE Our staffmembers’ perceptions and experiences provide vital insights into the areas where change efforts should be focused to achieve the required culture. The Nedbank Compass survey (introduced in 2017) was conducted again in 2019, with 20 330 (68%) staffmembers participating
RIGHT-FIT CULTURE THAT UNLOCKS VALUE FOR NEDBANK
Our purpose is clear: to use our financial expertise to do good.
This is what drives us to be the difference that impacts our world every day. Integrity, good ethics and values-based behaviour are our way of life. We act with purpose in every step, spreading the Nedbank magic to bring about positive change, because managing money with purpose makes a real difference in people’s lives and in our world.
We are one team and we deliver worldclass service with purpose.
Our clients are our everything. Together, we show up for them in big and small ways, rewarding the trust they have placed in us.
The extra mile? It is the new standard, because going the distance makes the difference.
It is in our nature to look at the world differently. Our purpose fuels us to make an impact and this drives us to perform better, work smarter and reach higher.
This strong-results orientation is supported by our developmental approach to performance management. When we are good at what we do, our clients see money differently and live better lives as a result. That is the impact we are after.
Growth comes from striving to be a better version of ourselves each day.
We never stop developing ourselves, bringing our potential to life by making the most of every learning opportunity and facing challenges with courage.
With our finger on the pulse and our eyes on tomorrow, we seize every opportunity to make an impact, with an unshakeable, shared passion.
We strive to create a culture of inclusion and belonging.
Celebrating diversity, we welcome everyone and anyone who shares our passion for our purpose.
We treat each colleague, stakeholder and client with care, respect and integrity – because that is who we are.
When things go wrong, we communicate openly to learn from mistakes, reminding ourselves to be the difference that impacts our world.
Purpose- led
High performance
Service excellence
Growth and development
Diversity and inclusion
with new and better ways of doing things. However, more focus was required on fast- tracking the execution of these ideas.
Most staffmembers believed that good performance would lead to their progression and attainment of career goals. However, there was a need for ongoing education on how performance was evaluated.
EMPLOYEE VALUE PROPOSITION A compelling EVP and strong employer brand will strengthen our position in the market as an employer of choice. The Nedbank employer brand and lived employee experience also serve as enablers of attracting and retaining the necessary talent and skills of the future.
Despite several strengths, Nedbank’s EVP needed to be more clearly articulated to make it easier for current and potential staffmembers to understand our differentiators and what we offer our people. Thanks to feedback from our staffmembers, 2019 saw us develop an EVP that defines the essence of Nedbank – what makes us unique and what we stand for. It articulates why staffmembers are proud and motivated to work here, what Nedbank expects from them and what they can expect in return.
The EVP promotes the notion that our staffmembers, as part of a purpose-led organisation, can be the difference that impacts our world.
The five themes of our EVP, with ‘purpose-led’ as our core theme, form the basis for engagement with our staffmembers and about matters that are important to them – what makes them proud to work at Nedbank.
The launch of Nedbank’s People Promise in January 2020 aligns well with our required culture and includes the following five themes:
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RIGHT-FIT CULTURE THAT UNLOCKS VALUE FOR NEDBANK continued
PERFORMANCE MANAGEMENT Nedbank recognises that culture is reinforced by the behaviours that we value and practise. To this end we continue to review and enhance our people practices supporting the required culture. Performance management and recognition are two such key supporting practices.
We believe an environment with clear expectations and regular performance discussions promotes a high-performing and productive workforce. The refreshed performance management approach (launched in 2018) seeks to align individual and team performance with the business priorities.
During 2019 the focus moved to a successful rollout of the refreshed process to all staffmembers and 24 945 staffmembers participated in performance conversations following this refreshed approach.
The new practice requires a mind shift away from predominantly quantitative measures and assessments. Leaders are now required to set the tone for regular and constructive performance conversations to promote more continuous and quality conversations. They are tasked with fostering high performance and addressing development issues as they occur.
Key performance management practice improvements introduced during 2019 include the following:
• A simplified process for managing underperformance to align with the refreshed performance management practice – ‘The ABC of Managing Underperformance’.
• A peer-to-peer check-and-challenge process that leads to additional oversight to promote fair and unbiased performance outcomes.
• Further performance management system functionality to promote continuous performance conversations and feedback.
Diagnostic workshops were held with more than 400 staffmembers across the country to solicit feedback on the new performance management approach: participant feedback on the direction and new approach was generally favourable and staff confirmed that they were having more regular performance conversations. They did, however, request more awareness, training and coaching as the practice evolves.
During 2020 ongoing effort is required in terms of change management, communication and upskilling our leaders to ensure that the performance management practice is embedded successfully.
RECOGNITION Performance management and recognition programmes contribute to an organisation’s culture and shift behaviours. During 2018 we redesigned and launched both the formal (Top Achievers) and
The programme celebrates and acknowledges Nedbankers who: • have performed
exceptionally; and
The programme enhances the recognition process through: • ongoing everyday
acknowledgment;
• annual recognition.
informal recognition programmes. In 2019 further focus was placed on encouraging discretionary effort, role-modelling of preferred Nedbank behaviours and teamwork.
Formal recognition Our Top Achiever recognition programme is designed to support Nedbank’s required culture. It acknowledges the efforts of our staffmembers and that what they are doing is meaningful and matters. The programme celebrates and acknowledges Nedbankers who have performed exceptionally well and who demonstrate Nedbank’s desired values and behaviours.
Following the launch of the refreshed recognition programme in 2018, there was a significant increase in staff participation and submissions of recognition nominations in 2019 (12 872) compared with 2018 (7 621).
A total of 477 (2018: 467) staffmembers received an Individual Achiever award. As work is increasingly delivered through teams, promoting team recognition is a growing necessity. Our recognition programme has been reviewed to amplify team acknowledgement in accordance with our desired behaviours: 3 180 staffmembers (2018: 1 757) were nominated as members of teams that later received Team Awards.
From the nominations 111 staffmembers (101 Individual Achievers, one team and two Chief Executive award winners) and their partners were rewarded with a Top Achiever international trip.
The programme provides better incentives to recognise achievements with: • up to two days off each
year and 1/2 Krugerrand for Nedbank Achievers; and
• an international trip for Nedbank Top Achievers (individual, Top Team and Chief Executive winners).
Nedbank Top Achievers recognition programme Launched in April 2018, the programme elevates our culture of recognition to new heights.
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Badges 2019 2018
I create a high-performance environment 8 289 5 797
I am client-driven 7 991 5 812
I am action-oriented 7 643 5 063
I am team-savvy 5 645 745
I am a Nedbanker 3 369 2 686
I am agile 1 647 1 380
Total badges awarded 46 230 29 359
We will continue to enhance the programme to ensure that it promotes the behaviours our staffmembers need to display to achieve the required Nedbank culture.
Leadership, Values and Culture goal A Leadership, Values and Culture (LVC) goal was included in the Goal Commitment Contract (GCC) of the group executives in 2018. Core elements of the goal include: 1) leadership behaviours, 2) values alignment and 3) culture enablement.
The intent of the LVC goal is to hold leaders accountable for the required behaviours that will bring about cultural and leadership shifts.
This goal is measured using a suite of reference points to identify and reinforce positive leadership behaviours as well as identify areas for development, the outcome of which forms part of the leader’s overall performance conversation and development planning.
In 2019 the LVC goal was included in the GCCs of cluster executives and their direct reports.
Informal recognition The informal programme, which was relaunched in 2018, introduced virtual badges in recognition of performance excellence delivered according to the right behaviours.
Our staffmembers have embraced this programme as a fresh and meaningful way to recognise their colleagues instantly.
A total of 46 230 virtual badges were awarded in 2019 (2018: 29 359), with the top three badges awarded being:
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The LVC, together with any other feedback that the leader receives, forms the basis of their behavioural and skills development in support of the required culture.
Nedbank recognises the need to continuously refresh our leadership offerings and develop our leaders’ skills to lead in the new world of work.
Our leadership development programmes are constantly evolving to align with the required organisational capabilities to execute on the strategy. They are aimed at equipping leaders to lead in environments of ambiguity and exponential change.
During 2019 the following leadership development took place:
Programme name Number of leaders
Senior management
Design Thinking Masterclass 89
Postgraduate Diploma in Management Practice for Senior Managers (Henley) 33
Digital Leadership Programme (Nedbank Corporate and Investment Banking – CIB) 27
Makanyane Leadership Programme (Centre for Conscious Leadership – CCL) 35
Artificial Intelligence: Implications for Business Strategy (MIT) 1
Advanced Management Programme (INSEAD) 2
Transition to General Management (INSEAD) 4
Disruptive Strategy with Clayton Christensen (Harvard) 2
Exploiting Disruption in a Digital World (London Business School) 1
Middle management
DnX Leadership Programme (CCL) 32
Junior management
Higher Certificate in Management Practice (Henley) 16
Total 364
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Nedbank also piloted a formal programme through which 14 leaders received a postgraduate diploma in digital business. The format of the programme was 100% digital and delivered by the Emiritus Institute of Management, based in Singapore.
Several cluster-specific leadership development programmes were also conducted in addition to the group programmes. One such programme was the Skillsoft Leadership Development Programme – Digital Age, an e-learning programme facilitated by an external vendor partner. The programme was attended by junior, middle and senior management as follows:
Category Number of leaders
Leading Business 258
Total 2 254
In July 2019 we held a successful leadership engagement session that provided 206 of our senior leaders with the opportunity to discuss the following:
• The Nedbank strategy and purpose.
• Their role in shaping the required culture in Nedbank.
• Their critical input in the EVP design and the required behaviours to support the strategy.
During 2020 we will continue to focus on the development of our leaders in critical skills and behaviours required to lead in Nedbank.
EQUIPPING OUR LEADERS TO LEAD continuedEQUIPPING OUR LEADERS TO LEAD continued
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INTRODUCTION New business and technology requirements demand a change in the shape of the organisation, with a contraction in activities being seen at junior and semiskilled levels. In addition, there is an increase in the demand for highly skilled sales and relationship management roles and specialist skills, which are often scarce in the marketplace. We recognise the need to anticipate, plan for and develop future skills.
Our nWoW uses human-centred design and rapidly unlocks innovative client solutions, which are developed using agile methodology to meet clients’ evolving needs. We use squads, tribes and chapters to deliver innovation successfully to drive efficiency both internally and externally, which helps us deliver client-centred solutions that support our purpose of using our expertise to do good. A squad is a crossfunctional team of 10 to 12 people that combines resources from different areas of expertise to develop minimum viable products (MVPs) and solve client pain points within 12-week cycles consisting of six two- week iterations called ‘sprints’.
To ensure that we can access the capabilities that we require means that we need to evolve many of our workforce management practices. The development of a workforce with the right skills for today and tomorrow has become an increasing priority for Nedbank.
STRATEGIC WORKFORCE PLANNING The practice of strategic workforce planning provides us with the ability to diagnose and anticipate skills gaps and guide ongoing skills transformation. The strategic workforce plan is an essential enabler of defining Nedbank’s future skills and capability requirements.
In 2018 a strategic workforce planning practice and tools were piloted, while the focus in 2019 was on embedding the practice in Nedbank. A total of 184 people were trained on how to anticipate and plan for future workforce requirements strategically. This will enable them to build the capability with business leaders through strategic people conversations.
In 2019 this practice was integrated into the annual people strategy review process, which enabled the delivery of Nedbank’s consolidated enterprise strategic workforce plan in support of strategic business plans. This plan forecasts the workforce shape and skills of the future and enables proactive workforce strategies, eg developing, reskilling, retaining and hiring critical skills to achieve our strategic objectives. We will continue to mature the practice and people analytics to further inform our people decisions.
TALENT MANAGEMENT During 2019 Nedbank continued to invest in digital platforms and adopted the use of talent analytics, while embedding the refreshed talent management approach to build a steady supply of right-fit talent. High- potential talent was identified and leadership talent pools were built for the future. We also continue to invest in talent assessments and develop the leadership capabilities of our talent pools to retain our critical talent through monetary and non-monetary initiatives.
Bursar and graduate highlights Our external bursary programme (sponsored by the Nedbank Education Trust) granted 97 bursaries to the value of R12,5m for the 2019 academic year (2018: R12m). Funding decisions prioritised scarce and future skills required for Nedbank and South Africa more broadly.
MANAGING OUR TALENT The table below refers to the student categories.
Bursars Number
of bursars
Current graduates (2018 and earlier) 48
Total undergraduates 89
Total honours students 8
Bursars who attained an aggregate of 75% and above for the funded academic year receive an award of R5 000 to acknowledge their excellent performance.
Bursars who attained an aggregate of 75% and above
2019 2018
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All 27 bursars who graduated in 2019 (2018: 20) attended a work readiness programme to prepare them for the world of work. It included insights into creating business plans, entrepreneurship 101, CV-writing, interview tips, social- media behaviour and personal branding.
Nedbank facilitated career fairs at 22 universities countrywide (2018: 17) to market the various graduate programmes, including the partnership with the Nedbank Foundation at the Enactus Career event. We also worked with career offices at universities to advertise in their handbooks and target relevant faculties to showcase the specialised graduate programmes.
CIB hosted two showcase days in KwaZulu-Natal and Cape Town.
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directly impacts how we are perceived by talent in the external marketplace.
Our culture and the employee experience are two elements unique to Nedbank and cannot be replicated by other organisations easily. The Nedbank EVP therefore forms the basis for customised messaging to talent segments to help us attract and retain top talent.
We use the annual Universum Most Attractive Employer survey to measure our brand attraction to professionals and students. This survey allows us to benchmark our employer brand image against our recruitment competitors and against respondents’ preferences.
The results of the 2019 Universum survey show a significant improvement in Nedbank’s ranking as a preferred employer for professionals across the business/commerce and engineering/ technology segments.
In business/commerce Nedbank improved from 39 to 32 in the Ideal Employer ranking and from 26 to 17 in the Considered Employer ranking.
In engineering/technology Nedbank improved from 51 to 34 in the Ideal Employer ranking and from 40 to 17 in the Considered Employer ranking. These positive shifts indicate that we are improving our employer brand and perception.
The 2019 Universum survey shows a decrease in Nedbank’s ranking as a preferred employer for students. Consequently, there is still much room for improvement in developing and positioning our employer brand at universities and this will be our focus in 2020.
In line with the market trend around an increase in flexible workers, the experience of the contingent worker therefore becomes increasingly important to us. A
TALENT MOBILITY Talent mobility is viewed as an important retention driver and received heightened attention during 2019. Talent mobility in Nedbank is the purposeful movement of talent between work assignments and/or from role to role at leadership, professional and operational levels in the organisation to areas where the talent is needed most. It requires an understanding of the opportunities while applying key skills and knowledge beyond the individual’s current cluster or country. It is about making talent available for the most critical business initiatives while considering the career aspirations, development needs and interests of the staffmember.
A policy on international talent mobility was developed in 2018. During 2019 the practice was operationalised. Administrative support was required in the end-to-end process to manage various compliance- related processes related to international assignments.
Awareness and capability-building sessions were conducted with Nedbank Africa Regions to ensure efficient and effective application of the international mobility policy. During 2019 six individuals participated in the international talent mobility programme to learn from and scale this practice going forward.
Our aim is to continue to position talent mobility in support of development and talent-sharing across the enterprise.
TALENT ACQUISITION AND ONBOARDING The war for talent in critical segments continues to intensify, particularly in areas such as technology, data, user design and engineering disciplines. Nedbank seeks to differentiate itself through a compelling proposition in the marketplace; our employer brand is a critical enabler that
MANAGING OUR TALENT continued
project was initiated in 2019 to implement a contingent-workforce management system across our South African business. The successful implementation of this project will ensure that we not only realise efficiencies in the procurement of contingent resources, but also improve the overall user experience.
An online and digital induction programme was developed in 2019 to support the orientation of all new staffmembers joining Nedbank. This digital offering will be launched in 2020.
Various improvements that are key in the onboarding process are planned for 2020. These improvements will ensure that the pre-onboarding and ‘day one’ experience for new hires reflects the Nedbank EVP.
AGILITY CENTRE (REDEPLOYMENT CENTRE) Organisational changes have resulted in a year-on-year comparatively higher displacement of staffmembers. As a responsible employer, Nedbank has made every effort to mitigate the adverse impact of these changes on our staffmembers. We focused efforts on empowering staffmembers for and during such changes. During 2019 we enhanced our redeployment solutions, which are offered through the Agility Centre (previously known as the Redeployment Centre), to improve support for staffmembers displaced as a result of optimisation efforts through career coaching, effective redeployment, and reskilling, upskilling and outskilling initiatives. We will continue to build on these in 2020.
While considering alternative internal opportunities, impacted staffmembers can also look at external opportunities to increase their chances of remaining gainfully employed.
REDEPLOYMENT Support for employees to find a role either inside or outside the organisation
RE- or UPSKILLING Training roles of the future inside the organisation
OUTSKILLING Training for alternate roles outside the organisation or to start or grow their own business
CONTINUED EMPLOYMENT
The diagram below depicts the outplacement support services available to affected staffmembers:
OPTIONS
REDEPLOYMENT SUPPORT AND COACHING An approach that enables employees to have an understanding of their career interests, strengths, aptitude and ability to learn, a well as an understanding of their personal brand, in relation to opportunities that are available to them.
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In supporting our staffmembers and aligned with our purpose ‘to do good’, redeployment takes precedence, with retrenchment being a last resort. During 2019, 620 affected staffmembers were successfully redeployed into alternative roles in Nedbank. A total of 88 staffmembers opted for early retirement.
Notwithstanding our best efforts, 158 staffmembers were regrettably retrenched in 2019 (2018: 23). Free counselling services were provided by our independent service provider ICAS to support our retrenched staff and/or their families.
Outplacement support was offered to all the affected staffmembers and 134 impacted staffmembers opted into the support. They were supported through the change, and their ability to harness future opportunities was maximised through the following:
MANAGING OUR TALENT continued
• Group sessions led by qualified specialists providing a forum to deal with emotional challenges. These sessions focused on stress management, resilience-building and coping strategies.
• Individual sessions with career coaches focused on lifestyle choices, effective action plans and guidance on available options.
• Introduction to recruitment and headhunting companies.
• Workshops that teach practical CV-writing skills, personal branding, effective interview skills, social-media networking, as well as innovative ways to enter the market.
• Session focussing on postretrenchment benefits and financial wellbeing.
Nedbank will continue to be a responsible employer and corporate citizen by identifying skills gaps more proactively as we mature our strategic workforce planning practice. By doing this, we will be able to provide staffmembers with development opportunities more proactively, to ensure that they continue to keep their skill sets relevant.
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DEVELOPING OUR WORKFORCE FOR THE FUTURE The reskilling and upskilling of our staffmembers remain a strategic imperative to ensure a steady supply of relevant skills for Nedbank while mitigating job losses. A culture of lifelong learning is required to prepare our staffmembers for both the short-term and long- term impact of the new world of work.
In line with consumer trends we continue to focus our efforts on enabling learning through investments in digital channels. In 2018 we noted an expectation that digital learning will continue to increase compared with more traditional ways of learning. During 2019 we redefined our learning strategy to make greater use of digital learning. As we continue to offer a wider spectrum of digitally enabled learning solutions, we are better able to respond to the changing needs of our staffmembers. This is evidenced in a marked increase in digital learning in Nedbank, with 50,8% of reported learning having taken place digitally in 2019.
In 2019 our staffmembers completed approximately 23 000 hours of learning at an average of 5,25 hours on LinkedIn Learning alone. The availability and accessibility of digital learning content from external libraries have resulted in a seven-fold increase in
the number of learning items completed in comparison with the previous year (2018: 18 842 versus 2019: 135 685). Our investment in platforms such as PluralSight, Udemy and Coursera has ensured that our staffmembers have access to leading-edge content in areas such as artificial intelligence, machine learning, cloud computing and data science. These platforms offer on-demand learning that sees staffmembers following industry-endorsed certification paths towards mastering critical competence in skills of the future.
As we look forward to 2020, we aim to enhance our digital learning architecture to include personalised learning that puts the power of growth and remaining future-fit in the hands of each staffmember. We will continue the multiyear journey of bringing our redefined learning strategy to life.
Notwithstanding our increased focus on digital learning, we remain committed to investing in learnerships and graduate programmes, formal learning programmes and courses, as well as continuous professional investment.
The table below breaks down Nedbank’s 2019 investment in skills development:
Training expenditure (FSC report) 2019 2018 2017
Total basic payroll R15 082 586 997 R14 131 011 851 R13 602 411 699
Total training spend R759 665 181 R468 128 368 R338 615 730
Training spend as % of basic payroll 5,0% 3,3% 2,5%
Training spend for black staff R601 912 861 R370 069 058 R270 106 808
Training spend for black female staff R364 101 281 R228 013 860 R173 021 509
Training spend for black staff with disabilities R10 391 308 R6 066 974 R3 571 775
Training spend for black female staff with disabilities R7 684 390 R3 813 704 R2 267 321
The 2019 training spend for black staff exceeded the 2018 spend due to the investment in differentiated skills development for the development of black (and especially black female) staffmembers to support Nedbank’s commitment to transformation.
The total training spend has increased dramatically due to equalisation practices introduced as well as improved efficiencies and effectiveness. Of the total training spend, 31,7% can be ascribed to categories B, C, and D on the Learning Programme Matrix beneficiaries’ salaries and is included as legitimate training spend. In addition, Bankseta grants enabled the ability to implement a major component of the BCD programmes, in turn contributing to the increased salary spend related to the BCD programmes.
Staff development highlights
Item 2019 2018
Average training hours per staffmember (including compliance training) 44 35
Training beneficiaries* 28 479 31 691
* The total number of staffmembers who attended training.
The increase in the BBBEE scorecard points for skills development bears testimony to our commitment to the growth and development of our people, as well as differentiated learning investment in the development of black (and especially black female) staffmembers, in line with skills development legislation. A decrease in the total number of beneficiaries can be attributed to a decrease in total Nedbank headcount year on year.
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CONTINUOUS PROFESSIONAL DEVELOPMENT Nedbank is committed to providing continuous professional development so all staffmembers can perform to their full potential. We award internal bursaries, an important driver of professional development, to permanent Nedbank staffmembers who wish to acquire academic qualifications from recognised and accredited institutions. Bursaries are not limited to qualifications that are linked to a staffmember’s current role, but rather to those that are relevant to the requirements of Nedbank as a whole. This change was made to acknowledge that roles are rapidly changing and to build a multiskilled workforce. During 2019 bursaries were awarded to 862 staffmembers to the value of R13 835 614.
The table below provides a comparative breakdown of the bursaries awarded in 2018.
Internal bursaries 2019
Occupational level 2019 2018 2019 2018
Senior management 17 8 R669 932 R357 437
Middle management 376 371 R7 449 520 R6 036 291
Junior management 444 387 R5 369 633 R5 527 162
Semiskilled 25 37 R346 530 R584 421
Total 862 804 R13 835 614 R12 505 311
Continuous professional development was also enabled through several additional programmes that resulted in 192 staffmembers gaining formal qualifications (2018: 90).
Programme title
M F M F M F M F
Higher certificate in management practice B 4 6 – 2 – 4 – – 16
Postgraduate diploma in management practice B 10 15 3 1 3 1 – – 33
Advanced certificate in financial planning B 4 1 – 1 1 2 1 2 12
Digital Leadership Programme (Nedbank CIB) B – 1 1 2 5 4 10 4 27
Higher certificate in financial planning B – 4 2 – 1 – – – 7
Higher certificate in financial products B – – – – – 1 – 1 2
Higher certificate in short- term insurance B 1 7 2 3 – 3 – 2 18
Management and Leadership in Action Programme B 13 22 2 1 7 1 – – 46
DEVELOPING OUR WORKFORCE FOR THE FUTURE continued
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LEARNERSHIPS, INTERNSHIPS AND GRADUATE PROGRAMMES Learnerships and internships are key vehicles through which we can address skills shortages and infuse young talent into the organisation.
2019 2018 2017
tion
Learnership and internship 1 714 1 517 197 99 1 466 1 198 268 84 1 487 1 316 171 127
Black representation 90% 92% 85%
Absorption is relevant only to unemployed learners/interns.
The increase in overall participation is due to the addition of several learnerships aimed at internal staffmembers in line with our commitment to reskilling and upskilling our existing workforce. Four of our learnerships/internships targeted unemployed graduates and matriculants: Letsema, Kuyasa, the business analyst learnership and one for chartered accountants.
Number of learners
Programme 2019 2018
Letsema 105 167
Kuyasa 42 55
Cybersecurity internship 10 N/A
Total 169 229
Our various graduate programmes provide candidates with workplace experience and a platform to apply theoretical knowledge to real business problems. The programmes aim to build foundational skills for young talent while supporting Nedbank’s intention of becoming more digital and client-centred. During 2019 we hosted 69 (2018: 61) graduates across our various graduate programmes, ie the RBB Graduate Programme, the CIB Graduate Programme, the Chartered Accountants (CA) Training Programme, the Quants Graduate Programme, the Risk Graduate Programme, the Compliance Graduate Programme and the Group Technology Graduate Programme.
Annual graduate programme intake and absorption rate
2019 2018 2017
Graduate Programme 10 18 45% 16 83%
CIB Graduate Programme 29 20 97% 30 100%
CA Training Programme* 11 14 82% 11 64%
Quants Graduate Programme** 10 9 78% 13 62%
Group Technology Graduate Programme 9 Initiative commenced in 2019
Total 69 61 76% 70 77%
* The CA Training Programme is a three-year training programme. The trainees may sign a permanent contract with Nedbank only at the end of their third year in the programme.
** The Quants Programme is a two-year programme. The graduates may sign a permanent contract with Nedbank only after their first year in the programme.
Risk and Compliance Graduate Programmes are currently underway and will conclude in 2020. They run over 18 months and this is the 2020 absorption rate aimed for.
Nedbank welcomes the opportunity to infuse young, diverse talent and thinking into the organisation, as evidenced by an increase in the overall percentage of youth employed permanently through our various graduate programmes.
DEVELOPING OUR WORKFORCE FOR THE FUTURE continued
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among our staffmembers, in part due to the uncertainty surrounding the future. The societal stigma on mental health was addressed through ‘Caring for your wellbeing’ campaigns held across our main campuses, at which clinical professionals gave staffmembers a platform to talk about the different mental illnesses affecting society today. These awareness events reached 2 340 staffmembers in 2019. We designed crossreferral programmes to deliver an integrated wellbeing offering for our staffmembers, to help contribute to healthy communities. An educational series aimed at improving brain function through healthy eating was also made available to staffmembers.
FINANCIAL HEALTH While one part of financial health is planning for the future in the form of long-term retirement plans and insurance benefits, the other part is supporting our staffmembers to live a healthy and balanced financial life today. Our staffmembers have access to various Nedbank products, services and practical tools for effective money management. This has been enhanced by the introduction of financial clinics equipped to offer face- to-face financial coaching. The overall staff engagement on financial wellbeing offerings improved in 2019, with 3 541 staffmembers having received support (2018: 925).
During 2019 we offered financial support to staffmembers in a number of ways:
• The Dr Holsboer Benefit Fund, which assists with medical shortfalls, supported 1 133 staffmembers to the value of R3 976 179 (2018: 1 180 staffmembers – R4 448 884).
INTRODUCTION The socioeconomic and political environment increasingly adds to uncertainty and consequent stress levels, including a growing prevalence of dread disease and mental health conditions. In line with our purpose ‘to use our financial expertise to do good for individuals, families, businesses and society’ we help staffmembers cope and thrive by providing support that includes a focus on physical, financial, social and emotional wellbeing for them, so they can perform optimally. We also support causes in the community that our staffmembers care about through our volunteerism community programme.
EMPLOYEE WELLBEING PROGRAMME Socioeconomic factors generally trigger different categories of stress, which affects individuals at different life stages. Our Employee Wellbeing Programme is supported by our constructive relationships with wellbeing service partners both internally and externally. These include access to free counselling services to employees and their immediate families through our independent services provider ICAS. In 2019 the programme focused on providing staff with mental health, financial health and healthy-lifestyle management support.
MENTAL HEALTH The pace of change continued to accelerate in 2019, contributing to a deterioration of staff wellbeing due to social and industry challenges. This led to increased anxiety and mental illness
HEALTHY AND HIGH-PERFORMING STAFFMEMBERS • A total of 1 599 Nedbank staffmembers,
their families and pensioners booked holidays with Dr Holsboer Vacations that saw them spending 7 997 nights (2018: 7 505) on holidays at discounted rates.
• The Gerry Muller Fund assisted 314 Nedbank pensioners (2018: 342) with medical grants for shortfalls to the value of R1 251 283 (2018: R987 466).
• The earning threshold for the Nedbank Study Grant was raised from R500 000 to R600 000, resulting in 191 staffmembers (2018: 174) being assisted with funding for their children’s studies towards first-time degrees or diplomas to the value of R2 746 688 (2018: R2 386 930).
• The Dr Holsboer Education Fund assisted 2 153 staffmembers (2018: 2 226) with a once-off grant for their children, increasing the total amount contributed to R4 134 126 (2018: R4 058 480). This benefit was marketed more aggressively, with additional time given to staffmembers to complete applications.
HEALTHY LIFESTYLE MANAGEMENT There was an intensified drive to encourage staffmembers to get preventative health risk screenings and assessments in 2019, resulting in a significant increase in uptake from 2018. This was positioned with the understanding that the adverse impact of chronic conditions is preventable through a healthy lifestyle and early detection.
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Number of staffmembers participating in preventative health risk screenings 3 740 2 533
Executive health risk assessments 568 221
Number of staffmembers participating in HIV screenings* 1 743 1 019
* HIV counselling and testing.
Annual leave man days taken 430 158 454 055
Sick leave man days taken 129 620 137 147
Absence due to illness (sick leave) reduced in 2019 to 129 620 days (2018: 137 147). This is a 5,49% reduction from 2018. Looking at 2018 and 2019, sick leave utilisation against our total workforce is well managed. Of the sick leave days taken in 2019, 251 days (2018: 153) were extended sick leave events (representing approximately 100 employees).
We monitor the utilisation of sick leave closely as one of our overall indicators for general wellbeing.
Our wellbeing programme will prioritise a focus on improving physical exercise, on healthy eating and on lifestyle management in 2020.
STAFF VOLUNTEERISM Our volunteerism community programme is an important part of the Nedbank culture. It builds staff morale and adds value to our corporate social investment (CSI) efforts. The programme takes the different needs, preferences and capabilities of our Nedbank volunteers into account.
Below are examples of programmes that staffmembers were involved in:
HEALTHY AND HIGH-PERFORMING STAFFMEMBERS continued
LOCAL HERO
To provide financial support to the organisations where staffmembers volunteer and to recognise staffmembers’ efforts.
Number of local heroes in 2019: 100 (2018: 94)
Number of NPOs* that benefited in 2019: 100 NPOs (2018: 94)
PAYROLL GIVING
To facilitate regular financial donations from staff to NPOs through a structured and efficient programme.
Payroll givers in 2019: 4 320 staffmembers (2018: 4 679)
Number of organisations that benefited in 2019: 12
Donated to staff in 2019: R2,8m (2018: R2,8m)
SATURDAY SCHOOL
To provide extra tuition in English and Maths in grades 5 to 7.
Number of Saturday School volunteers in 2019: 20 (2018: 16)
Number of learners that benefited in 2019: 50 (2018: 50)
TEAM CHALLENGE
To support a variety of NPOs over a period of 10 months through staffmember teams, with seed funding made available to get the project off the ground.
Number of team challenge participants in 2019: 668 (2018: 650)
Number of staffmember teams in 2019: 48 (2018: 43)
Number of organisations that benefited in 2019: 48 (2018: 43)
PROGRAMME OBJECTIVE IMPACT
* Non-profit organisations (NPO)
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HEALTHY AND HIGH-PERFORMING STAFFMEMBERS continued
In alignment with our EVP, we review our suite of employee benefit offerings continuously.
EMPLOYEE BENEFITS Nedbank provides a comprehensive benefit offering to our staffmembers and their families. We review and adjust our employee benefits constantly to keep pace with our staffmembers’ changing needs and expectations.
Below are examples of our employee benefits highlighting some of the benefit improvements made in 2019:
RETIREMENT FUNDS AND LIFE ASSURANCE
We offer retirement funds, life assurance, financial planning and staff banking as staff benefits.
Our retirement funds have flexible contribution options and an additional voluntary contribution (AVC) option where additional funds towards retirement savings can be invested.
We have a variety of life assurance and saving products offered on a compulsory and voluntary basis to our staffmembers. We enhanced our life assurance cover for spouses by adding more multiples for wider choice and by increasing the cover limit.
NEDGROUP MEDICAL AID SCHEME
Nedbank has a dedicated closed medical scheme, with membership for permanent staffmembers being compulsory unless they belong to a partner’s medical scheme. Our medical scheme currently has 27 507 principal members. Additional contribution levels, based on revised income levels, were implemented to make contributions more affordable to staffmembers.
FLEXIBLE WORK PRACTICES
Nedbank offers and supports a range of flexible work practices, subject to workplace requirements.
MINION KIDZ CRÈCHE Nedbank supports access to childcare. Minion Kidz Crèche at Nedbank 135 Rivonia Campus caters for children from three months to grade R, making it easier for some of our staffmembers to achieve work-life integration. In 2019 the crèche had between 160 and 174 children.
LEAVE
Parental leave We improved our parental leave provisions ahead of labour law amendments to adopt a progressive and family-friendly framework. We believe our parental leave provisions should be inclusive of as many family arrangements as possible. In 2019 we also implemented the impending legislative amendments relating to adoption and surrogacy, even though these changes were not yet effective.
Adoption leave For adoption leave the maximum eligible age of adopted children has been increased from six to 18 years old. This aligns with the broad South African definition of a child being any person under the age of 18 years. Improved adoption leave for mothers will be paid for four months, which may be extended to a maximum of six months by using unpaid leave (similar to the maternity leave provisions), and fathers are eligible for 10 days of paternity leave.
Surrogacy commissioning leave The parent of a surrogate child is entitled to four months of paid maternity leave, which can be extended to six months under certain conditions.
Surrogacy maternity leave Maternity leave will be available to the surrogate mother who bears the child. The surrogate mother will be entitled to six weeks of paid maternity leave after the birth.
BENEFIT ENHANCEMENTS DESCRIPTIONS
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OCCUPATIONAL HEALTH AND SAFETY The vision of Nedbank’s Occupational Health and Safety (OHS) team is to be a centre of excellence that focuses on creating, promoting and maintaining a work environment where appropriate programmes are implemented to embed a positive culture of health and safety, thereby ensuring a safe and healthy environment for all our staff and stakeholders.
The team guides the group on all health and safety matters and ensures compliance with legislation and regulatory updates. In this regard Nedbank must comply with the Occupational Health and Safety Act, 85 of 1993, and its regulations, as well as the Compensation for Occupational Injuries and Diseases Act, 130 of 1993.
All Nedbank foreign subsidiaries must adhere to the relevant occupational health and safety laws and regulations in the countries in which they are located. It is also compulsory for Nedbank’s subsidiaries to comply with the Nedbank Group OHS Policy.
OCCUPATIONAL HEALTH AND SAFETY COMMITTEES It is compulsory for the Nedbank headoffice, regional offices and branches to have fully functional health and safety committees. Management is responsible for ensuring that OHS appointees are available and trained for their health and safety roles as part of their daily work-related activities, with refresher programmes having to be attended regularly.
In 2019 a total of 1 057 OHS appointees (2018: 640) received this training. The increase is a result of the focused efforts of the OHS function to raise awareness of the importance of qualified representatives across the group.
EMERGENCY PREPAREDNESS Evacuation drills take place at all sites at least twice a year. Local disaster management and emergency medical, fire and traffic services form part of our emergency preparedness procedure. In 2019 evacuation drills were completed at 558 sites (2018: 449).
COMPLIANCE AUDITS AND BASELINE RISK ASSESSMENTS Independent OHS compliance audits are conducted internally once a year, and the results of these audits are reported to Nedbank Group management. In the year under review 413 sites were assessed (2018: 277) and the findings were presented to the relevant heads of various portfolios to be addressed. Standard operating procedures were developed to address common findings from the risk assessment reports.
TRAINING AND AWARENESS It is compulsory for all our staffmembers to complete online OHS training and acknowledge the Nedbank Group OHS Policy and the Incident Reporting and Investigation Procedure. Nedbank joins the international community in commemorating World Health and Safety Day on 28 April every year. An OHS induction video was also developed and has been shown to staffmembers, visitors and contractors during OHS events.
EMERGENCY MEDICAL FACILITIES Our medical emergency (first-aid) rooms are equipped with emergency equipment and our first aiders are fully trained to assist during any emergency. The total number of first aiders trained during 2019 was 363 (2018: 570). The lower number of staffmembers trained in 2019 is because the majority of the first aiders were trained in 2018 and the first-aid certificate is valid for three years.
INCIDENT REPORTING AND ATTENDANCE All injuries on duty (IODs) are attended to by our trained and accredited first aiders. These incidents are then recorded and reported monthly in the executive reports. IODs are immediately reported to the Compensation Commissioner in terms of the Compensation for Occupational Injuries and Diseases Act. The table below reflects the number of incidents recorded in 2019:
Number of incidents
Medical 151 191 261
Workman’s compensation claims – contractors – – 5
Injuries – public/visitors 48 59 24
Fatalities – Nedbank – – –
Fatalities – public/ visitors 1 – –
In 2019 there were 112 (2018: 184) first-aid cases, which included IODs leading to minor treatment such as applying a plaster. Regrettably there was one fatality, involving an independent contractor’s employee, during 2019. Immediate action was taken to avoid recurrence of a similar incident. The current contractor induction manual with the Nedbank safety code of conduct and the relevant standard operating procedures were also enhanced.
Our lost-time injury frequency rate for the period under review was 0,82 (2018: 0,86). The total recordable injury frequency rate is 0,28 (2018: 0,32). The decrease in this rate can be attributed to the greater awareness created among staff during safety campaigns. Medical conditions such as migraines, nausea and asthma attacks are not included in this figure, as they are primary health issues and not occupationally induced cases. Only injuries that occur while a person is on duty are included in the injury rate.
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MANAGING OUR EMPLOYEE RELATIONS
Disciplinary action Our commitment to corrective discipline was again demonstrated in the types of disciplinary action taken to correct staff misconduct. We are committed to curbing misconduct and, to this end, 4 376 incidents of misconduct were addressed, resulting in 306 dismissals in 2019 (2018: 241).
INCAPACITY/ UNDERPERFORMANCE A high-performance culture at Nedbank requires a consistent focus on whether staffmembers are able to deliver on their goal commitments and offering assistance where they fall short. While informal and constant performance feedback is encouraged, serious cases of underperformance are addressed formally through our incapacity processes. In 2019 a total of 786 staffmembers were impacted by incapacity processes (2018: 793).
CCMA REFERRALS Our commitment to fair treatment of staff is demonstrated in the relatively small number of disputes that are referred to the CCMA when compared with the total incidents of disciplinary action. CCMA referrals were relatively constant at 162 (2018: 157). Of these, only 98 disputes were referred to arbitration after conciliation (2018: 81), with the majority of them being decided in the bank’s favour. As far as possible, we will continue to seek fair settlements of disputes at conciliation, which minimises risk to the bank and increases stability. We will also continue to use learnings from CCMA and Labour Court decisions to improve our employment practices, so we can avoid or minimise further disputes.
SETTLEMENTS When appropriate, we have settled cases on either monetary or non-monetary terms. In line with our commitment to limit financial settlements, only 16 cases were settled on monetary terms in 2019 (2018: 18).
Last year was a true test of the health of the bank’s labour relations environment. We saw an increase in optimisation processes as digitisation and automation impacted many roles in some of the bank’s operations, leading to an increase in redundancies, albeit most impacted staffmembers were successfully redeployed in other roles. We continued to reshape our operations in response to changing client demands while being responsible about the impact on our staff. Despite the fluidity of the environment, we managed the changes without disruptions from industrial action.
DISCIPLINARY AND GRIEVANCE PROCEDURES After the adoption of a revised Employee Relations Policy and disciplinary code in 2018, we continued to see great improvements in consistent treatment of staff across the bank’s operations. Training and targeted communications also focused on enhancing the capacity of line managers and HR to handle grievances and day-to-day disciplinary processes. This resulted in a positive trend of reduced workplace grievances and disciplinary incidents.
There was, however, an increase in the number of dishonesty incidents addressed through disciplinary processes in 2019, and 40 staffmembers were dismissed as a result (2018: 30). Incidents of sexual harassment were encouragingly few, while negligence remained prevalent. Overall, however, 2019 saw a slight reduction in misconduct incidents: 4 376, compared with 4 764 in the previous year.
Grievances A stable employee relations climate depends in large part on the ability of staffmembers to resolve their workplace grievances effectively. To this end our grievance policy encourages resolution of grievances as quickly, informally and close to source as possible, with escalation allowed where resolution has failed. There were 252 grievances reported and addressed in 2019, which is a downward trend year on year (2018: 306).
COLLECTIVE BARGAINING Our promise to staff is to be fair to them always. This means respecting the rights of staffmembers, including their right to freedom of association. The bank’s position is reflected in a number of documents, including the Employee Relations Policy and the Recognition Agreement between the bank and its trade union partner. Nedbank recognises the South African Society of Banking Officials (Sasbo) as the collective bargaining agent for staff in the defined bargaining unit, and together we have negotiated terms and conditions of service for staffmembers. In a difficult economic and trading environment, we have jointly concluded a wage increase of 6,3% on the guaranteed package for 2020.
On issues where negotiation with the union is not a requirement, such as the introduction or revision of policies, the bank still consults with the union to ensure buy-in and/or alignment.
Nedbank ensures that all staffmembers are not only aware of their right to freedom of association, but that they are also informed of the relationship with Sasbo. The Recognition Agreement and other references to the union are published on our intranet, which is accessible to all staffmembers. Collective agreements with Sasbo are also published bankwide.
The union is very involved in the affairs of staffmembers in the bank. Sasbo officials can access any Nedbank site to conduct union affairs, including recruiting new members, without any hindrance from management. As testament to this cooperation, we have not had a single dispute or grievance about trade union activities being thwarted by the bank.
There are monthly meetings between the bank and the union where operational activities that affect staffmembers are addressed. The agenda is set by both management and the union. Accordingly, the union is at liberty to propose anything that impacts the working conditions of staffmembers. These meetings bring alignment on key issues, which is key to avoiding or minimising disputes and contribute to a stable employee relations climate.
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RESTRUCTURING AND RETRENCHMENTS Nedbank has embraced fully the need to respond to changing client behaviours and demands due to the influence of new technologies. This has resulted in some roles being affected through automation and digitisation. Despite this, we have always been responsible about retrenching affected staffmembers. Through consultations with Sasbo and affected staffmembers, we have implemented changes successfully with minimal redundancies. Out of thousands of impacted roles, only 158 staffmembers could not be accommodated. This confirms our commitment to retrench only as a last resort, while stepping up efforts to assist impacted staffmembers with improving their skills to better position them for alternative opportunities in or outside Nedbank.
Where retrenchments are inevitable, Nedbank offers severance pay that is set above the legislated minimum of one week’s pay per completed year of service. For staffmembers with very few years of service we also guarantee that their severance pay will not be less than the equivalent of two months’ pay, regardless
of how long they have been in service. Moreover, depending on circumstances and discussions with the representative trade union, the bank has been flexible on the notice period offered to retrenched staffmembers, which assists them with additional income during a difficult period.
Staffmembers facing possible retrenchments are also offered confidential counselling services through our contracted professional service provider, ICAS. The services are available free of charge to our staffmembers and their families.
Other forms of assistance offered to affected staffmembers include the right of first refusal for reemployment if a suitable vacancy arises within a reasonable period following their retrenchment.
INDUSTRIAL ACTION Despite a threatened banking sector strike in September 2019, there were no hours lost due to industrial action as the strike did not proceed. Nedbank and Sasbo continue to engage on the reasons for the aborted strike to ensure stability and peaceful resolution of concerns.
MANAGING OUR EMPLOYEE RELATIONS continued
OUR PURPOSE
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