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  • IN THE
    SPOTLIGHT
    2018
    This section of the report provides a summarised review of the year’s performance and a snapshot of the highlights and challenges of 2018.
    About this report 2018 highlights and challenges Chairman’s report
  • INTRODUCING
    CLOVER’S
    STORY
    If you want to get to know Clover as an organisation, read this section to gain insight into the fundamentals of our business: Who we are, what we do, how we create value and how we are governed. This is an analysis of Clover’s internal operating environment.
    Meet Clover Clover’s business model Directorate and management
    Governance structure Report on governance, risk and compliance Reputation as a value driver
  • ANALYSING
    CLOVER’S VALUE
    CREATION
    In this section we take you through the process that we follow in analysing our ability to create value. We unpack the external variables that impact on our ability to deliver value; we present the findings from a process of stakeholder engagement; we define the material issues and we analyse the top risks and opportunities. We then use this information to help us determine and evaluate a strategy that will ensure sustainable value creation.
    How our stakeholders’ needs inform our reality Our strategy
  • LEADERSHIP
    REVIEWS
    Using the analysis from the section above, our CEO and CFO provide a review of the Group’s performance by taking a closer look at how the operational, strategic and financial performance have translated into value-enhancing outcomes. This section also provides a summary of the board’s milestone achievements for 2018.
    CEO’s report CFO’s report
  • PERFORMANCE
    OUTCOMES OF
    THE SIX CAPITALS
    This section of the report provides a detailed account of the outcomes achieved as a result of our strategic initiatives in 2018. We unpack the input and outcomes for each of the six capitals.
    Report on the six capitals Human capital Natural capital Manufactured capital Intellectual capital
    Social and relationship capital Financial capital Six year Review Combined assurance on the six capitals
  • REMUNERATION
    REPORT
    This section of the report presents our remuneration report and remuneration policy for the year ended 30 June 2018.
    Letter to Shareholders Report on Remuneration Clover’s remuneration policy
  • ANNUAL FINANCIAL
    RESULTS
    The annual financial statements provide a touchstone to Clover’s ability to perform and create value. This section provides the audited financial statements for the 12-month reporting period from the 1st of July 2017 to the 30th of June 2018.
    Audit and risk committee report Approval of the financial statement Certificate by Company Secretary Independent auditor’s report Directors’ report Directorate and statutory information Consolidated statement of comprehensive income Consolidated statement of financial position
    Consolidated statement of changes in equity Consolidated statement of cash flows Notes to the consolidated financial statements Notes 1 - 10 Notes 11 - 20 Notes 21 - 30 Notes 31 - 34 Abbreviations Definitions
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  • IN THE SPOTLIGHT 2018
  • INTRODUCING CLOVER’S STORY
  • ANALYSING CLOVER’S VALUE CREATION
  • LEADERSHIP REVIEWS
  • PERFORMANCE OUTCOMES OF THE SIX CAPITALS
  • REMUNERATION REPORT
  • ANNUAL FINANCIAL RESULTS
  •   BACK
  • About this report
  • 2018 highlights and challenges
  • Chairman’s report
  •   BACK
  • Meet Clover
  • Clover’s business model
  • Directorate and management
  • Governance structure
  • Report on governance, risk and compliance
  • Reputation as a value driver
  •   BACK
  • How our stakeholders’ needs inform our reality
  • Our strategy
  •   BACK
  • CEO’s report
  • CFO’s report
  •   BACK
  • Report on the six capitals
  • Human capital
  • Natural capital
  • Manufactured capital
  • Intellectual capital
  • Social and relationship capital
  • Financial capital
  • Six year Review
  • Combined assurance on the six capitals
  •   BACK
  • Letter to Shareholders
  • Report on Remuneration
  • Clover’s remuneration policy
  •   BACK
  • Audit and risk committee report
  • Approval of the financial statement
  • Certificate by Company Secretary
  • Independent auditor’s report
  • Directors’ report
  • Directorate and statutory information
  • Consolidated statement of comprehensive income
  • Consolidated statement of financial position
  • Consolidated statement of changes in equity
  • Consolidated statement of cash flows
  • Notes to the consolidated financial statements
  • Notes 1 - 10
  • Notes 11 - 20
  • Notes 21 - 30
  • Notes 31 - 34
  • Abbreviations/li>
  • Definitions
 
 Clover Industries Limited Integrated Report 2018
home / performance outcomes of the six capitals / human capital

HUMAN CAPITAL OUTCOMES

HUMAN CAPITAL REFERS TO OUR EMPLOYEES, THEIR TALENT, SKILLS AND PERSONAL ATTRIBUTES THAT PLAY A VITAL ROLE IN CREATING VALUE FOR ALL OUR STAKEHOLDERS. CLOVER SEES HUMAN CAPITAL AS ONE OF ITS MOST VITAL ASSETS IN CREATING SUSTAINABLE VALUE.

The Company has revisited it’s human capital strategy in the light of changing demands and the need to align with the evolving labour market. The human capital strategy has been branded as Summit Step up.

 

FOCUS AREAS FOR 2018

Legislative compliance
Attraction and retention of employees
1 Change of labour landscape
1 Productivity and alignment of employees
1 Workforce planning
1 Employment equity
1 Innovation and technology
1 Learning and development

 

COMPOSITION OF THE CLOVER TEAM


INPUTS

Inputs  Change  2018  2017 
Total number of employees (and contractors) (7.89%) 8 044  8 733 
Total amount paid in salaries and wages (R’000) (6.07) R1 794m  R1 910 m 
Total number of employees trained  (19.64%  2 030  2 526 
Rand value of training spend  +25.63%  R20 647m  R16 435m 
Percentage of permanent employees belonging to a trade union  +22%  61%  50% 
Number of employees enrolled on learnerships, skills programmes and apprenticeships  (2.71%) 682  701 
Number of employees on formal workplace experience and in-service training programmes  +12.20%  46  41 
Number of bursaries (employed/ unemployed) granted for degree and diploma studies  (88.89%) 1  9 


OUTCOMES

arrow Fully compliant with relation to all human capital and legislative requirements.
1 arrow Attraction and retention of employees received continued focus and the turnover rate remained low at 7.79% for the year.
The Company, in partnership with PWC embarked on a national salary benchmarking exercise to ensure alignment with external market norms.
1 arrow Union relations improved in the period under review and days lost due to industrial action were limited.
1 arrow Structures were optimised and business restructuring commenced in the latter part of the period under review.
1 arrow Talent management processes were improved and recruitment cost was substantially reduced.
1 arrow Continued progress towards employment equity targets and objectives were made.
1 arrow Approval was obtained to invest in new human resource information system technology and the development commenced.
1 arrow The Company’s competence profile was improved in specific focus areas and aligned with national skills development priorities.

MATERIAL TRADE-OFFS

Due to the constrained economic environment in South Africa, and the challenging trading conditions, the Group implemented various initiatives, to streamline and optimise business operations. This unfortunately resulted in a number of employees being retrenched.

While this benefitted financial capital due to lower costs, it had a negative impact on human capital.

FUTURE OUTLOOK

The revised human capital strategy has been rebranded as Step up, and includes the following focus areas:

  • Visionary leadership
  • A Way Better performance culture
  • Talented and competent employees
  • A performance-based management system
  • A Way Better employee experience
  • Empowerment through advanced technology
  • A stable labour landscape

 

THE FOCUS AREAS UP CLOSE

Legislative compliance

The legislative environment remained a prominent focus and various initiatives were undertaken to ensure compliance. The Company’s master data, payroll processes and controls were subject to an audit by Deloitte and compliance was confirmed. Process improvement suggestions are being implemented where justified. A framework has been established that will guide the implementation of POPIA once promulgated. The management of working hours remains a key focus given the Company’s challenging operational requirements.

1 Attraction and retention of employees

Various mechanisms are in place to ensure the attraction and retention of suitable talent. The Company’s working climate is such that it supports stability in workforce turnover. This results in adequate depth in the scarce and critical skills areas of the business. The revision of service providers in the talent sourcing space was undertaken to ensure alignment with the Company’s talent acquisition needs. The Company has embarked on various initiatives to enhance its attraction and retention methodologies. These initiatives are focussed on strengthening the Company’s employment brand and systems to improve employee experience.

1 Change of labour landscape

The Company has managed the transition to a multi-union environment positively with minimum disruption to the business. Relations with the various unions remained complex. Management had to find practical and innovative ways to communicate with employees in the absence of a dominant union. The Company believes in sound relations with trade unions based on mutual respect and collaboration on issues of mutual interest and will continue to take steps in this regard.

1 Productivity and alignment of employees

During the year under review initiatives were implemented to streamline and optimise structures and operations. This resulted in a number of positions being abolished. Affected employees were identified and where possible re-deployed in other parts of the business where deployment opportunities existed. In addition, a number of employees exercised the option to accept voluntary severance packages. Formal restructuring processes took place at the Nelspruit and Clayville sites.

Alignment of employees to the business strategy and objectives is of vital importance. Business objectives are cascaded down and result in individual performance agreements which are formally managed. This business process is well embedded in the Company and is the foundation of the Company’s incentive scheme for the recognition of individual performance. Various communication platforms are utilised to engage employees on challenges facing the business and the strategy and plans to ensure sustainability and growth.

1 Workforce planning

The Company continuously focus on roles and structures to ensure optimal integration and alignment of functions. Talent acquisition, staff movement and succession management is a planned process to ensure the appointment and development of the right people. The Company is currently investing in new technology that will improve its capability to manage these processes more effectively.

1 Employment equity

Clover fully supports employment equity in the workplace and various measures are in place to contribute to our employment equity objectives. Consultation is taking place at employment equity forums at different levels in the business. Clover continues to make progress in establishing a more diverse workforce profile. Numerical targets at junior and middle management level for the year under review have been met. Clover supports the relevant codes of good practice and does not accept unfair discrimination of any type. The Company purposefully strives to provide equal opportunities for employees to grow and develop, based on merit and ability. Clover’s employment equity policy clearly sets out responsibilities for different levels of management in managing employment equity.

1 Innovation and technology

A detailed Learning Management System (LMS) was scoped and the Company will be rolling out the system in the new financial year with focus on the following modules: recruitment and onboarding, learning and talent management. This will assist Clover managers to better manage these critical business processes in line with best practice. Once fully implemented, LMS will greatly improve the reporting capability in respect of compliance and management requirements. The Company additionally embarked on a project to identify, define and implement a standardised reporting framework and to enhance all human resources user system and reporting capability in order to provide accurate and insightful human resources analytics to the business.

1 Learning and development

Clover remained committed to the broadening of the competence levels of their employees in alignment with the growth strategy of the business. Skills development initiatives in the year under review focussed on:

  • Management and leadership development

  • Scarce and critical skills with a job technical focus

The development of skills in partnership with government skills development initiatives was continued for the period under review. The Company is continuously exploring opportunities to support viable programs in alignment with business needs that will contribute to the National Skills Development Strategy.

 

CASE STUDY

CLOVER’S SUMMIT STEP UP PROJECT

 

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Report on the six capitals
Natural capital
downloads
Integrated Report
Annual Financial Statements
AGM

Date: Monday, 26 November 2018 at 10am
Venue: Clover Headquarters
Notice to AGM
  Proxy

CONTACT

Head Office
200 Constantia Drive, Constantia Kloof,
1709, Johannesburg
Tel: +27 (0)11 471 1400

downloads
 

   Integrated Report
   Annual Financial Statements
AGM

Date: Monday, 26 November 2018 
at 10am

Venue: Clover Headquarters

 Notice to AGM
  Proxy

SHAREHOLDER INFORMATION

Head Office

200 Constantia Drive,
Constantia Kloof, 1709

Tel: +27 (0)11 471 1400

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