Human capital: Investment and development

Our employees are essential to business performance and competitive strength and, ultimately, the sustainability of our business. Our human resources strategy is to attract and retain talented people who enhance the pools of leadership and skills for long-term growth, and strengthen the group’s reputation as a good corporate citizen.

We seek to add value to the lives of all our people by providing an engaging environment for professional growth, competitive remuneration, training support for further qualifications and an inclusive and enabling culture. We work to unlock and nurture each employee’s highest potential, to reward performance and address non-performance. We foster a culture of respect with zero tolerance for discriminatory behaviour.

Hyprop fully complies with employment laws and practices and is committed to protecting human rights. Our code of ethics and the disciplinary code are communicated to all employees.

Performance targets, training and skills development are reviewed annually and aligned with the group’s strategy.

We are committed to creating and maintaining an environment that provides equal opportunities for all employees. Our employment equity policy codifies our commitment and stipulates the promotion of equal opportunity, elimination of unfair discrimination and implementation of measures to redress disadvantages experienced by designated groups.

Workforce breakdown

Total number of employees 2015   2014  
Hyprop Investments Limited – permanent employees   199*     206  
Hyprop Investments Limited – contract and casual employees (mainly information kiosk and event staff) 43   81  
Percentage of employees who are “permanent” (%) 82   72  
Percentage of employees who belong to a trade union (%) 0   0  
Total Hyprop workforce 242   287  
Word4Word – employees at Hyprop sites   39     22  
Word4Word – head office and regional staff 14   13  
Word4Word – staff outsourced to external business 68   37  
Word4Word – total employees 121   72  

Employment equity and transformation

We are committed to promoting equal opportunity and fair treatment by eliminating discrimination and implementing measures to redress disadvantages experienced by designated groups and to ensure their equitable representation in all occupational categories.

Hyprop’s five-year employment equity plan was approved by the Department of Labour in 2013. An annual progress report is submitted in January each year. Hyprop complies with the Employment Equity Act and is committed to ongoing organisational transformation to diversify its workforce.

Our challenge is that the current workforce is not growing, and due to extremely low staff turnover, very few vacancies become available.

Employment details

                2015                  
    Male       Female     Foreign
nationals
  Total     Total  
Occupational levels (%) A C I W   A C I W   Male Female       A C I W
Top management 0,49 0,00 0,00 2,94   0,00 0,00 0,00 0,49   0,49 0,00   4,41   0,49 0,00 0,00 3,92
Senior management 0,49 0,00 0,49 2,94   0,00 0,00 0,00 6,37   0,00 0,00   10,29   0,49 0,00 0,49 9,31
Professionally qualified and experienced specialists and
mid-management
2,94 0,00 1,47 6,86   0,98 0,00 0,98 6,86   0,00 0,00   20,10   3,92 0,00 2,45 13,73
Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents 1,96 2,45 0,49 3,92   5,39 3,92 2,94 9,31   0,00 0,49   30,88   7,35 6,37 3,43 13,73
Semi-skilled and discretionary decision making 2,94 1,96 0,98 0,49   4,41 2,45 0,49 1,96   0,98 0,00   16,67   7,35 4,41 1,47 3,43
Unskilled and defined decision making 10,78 2,94 0,00 0,49   2,45 0,98 0,00 0,00   0,00 0,00   17,65   13,24 3,92 0,00 0,49
Total permanent 19,61 7,35 3,43 17,65   13,24 7,35 4,41 25,00   1,47 0,49   100,00   32,84 14,71 7,84 44,61
Percentage of total employees by designated groups 2015   2014  
African 32,8   31,7  
Coloured 14,7   14,8  
Indian 7,8   7,0  
Percentage of total staff from designated groups 55,4   53,5  
White 44,6   46,5  

Percentage of total employees by designated groups

Percentage of total employees by designated groups

Employee earnings ratio

Performance per employee by net operating income and distributable income, as a measure of productivity, is benchmarked annually against peers

Number of employees     Net operating income per employee Distributable income per employee
  2015   2014   2013 * 2015
R000 
2014
R000 
2013*
R000  
2015
R000 
2014
R000 
2013*
R000  
199 206 209   7 029
21% increase year-on-year
5 824 2 525 6 631
19% increase year-on-year
5 576 2 474

Employee retention

Motivated by a stimulating working environment, competitive remuneration and fair reward, the commitment of our people to the group is reflected in high retention, especially at senior level. While low staff turnover ensures continuity and aligns group performance with our long-term strategic objectives, we remain mindful of the value of fresh insight and aim for an appropriate balance between internal and external appointments.

Employee retention 2015 Hyprop
%
Average
service
(years)
 
Top management 100 12  
Senior management 91 8  
Middle management 92 9  
Administration 91 9  
Maintenance 98 9  
Total 93 9  

Movement

  (number of employees)
  2015 2014  
Internal placements 7 4  
New appointments 16 17  
Dismissals 1 2  
Resignations 13 8  
Section 197 transfers 11 0  
Employee turnover (%) 7 5  

New appointments

  2015 2014  
Black 44 63  
Coloured 37 13  
Indian 7 6  
White 12 18  

Skills development and training

Our training and development programme takes account of our own requirements, skills shortages in the property industry and transformation imperatives.

Training needs are identified during the employee review process. In addition, the group-wide skills base is objectively assessed to identify focal areas for training in the year ahead.

The objectives of our training strategy include:

Enhancing knowledge and the skills base
Enabling employees to contribute to our business and growth
Encouraging further education to enhance competence in current positions and increase eligibility for promotion
Supporting employment equity initiatives.

One of our primary objectives is to establish a succession plan by developing junior managers for middle management roles.

During the year, a combination of internal and outsourced training sessions covered key areas:

Training spend*

  2015
R
  2014
R
 
Leadership 690 634   312 474  
Business operations 536 753   292 782  
Graduate programme 85 250   87 652  
Green building leasing principles 9 789   60 101  
Leasing and administration 63 000   31 500  
Health and safety 6 406   137 786  
HIV/Aids training and information 52 349   53 153  
Total 1 444 181   975 448  

Value of training

      2015           2014      
  Cost of
training
R
Training
cost as a
%
Number
of people
trained
Number
of
training
interventions
Average
spend per
training
intervention
R
  Cost of
training
R
Training
cost as a
%
Number
of people
trained
Number
of
training
interventions
Average
spend per
training
intervention
R
 
Black 152 392 10 83 249 612   212 539 22 60 160 1 328  
Coloured 37 363 3 40 120 311   118 131 12 37 100 1 181  
Indian 223 063 15 16 51 4 374   64 421 7 10 32 2 013  
White 1 022 378 71 103 309 3 309   580 357 59 92 320 1 814  
Non-South African 8 985 1 3 11 817     0        
Total 1 444 181 100 245 740 1 952   975 448 100 199 612 1 594  
Male 657 007 45 114 336 1 955   439 592 45 93 254 1 731  
Female 787 174 55 131 404 1 948   535 856 55 106 358 1 497  
Total 1 444 181 100 245 740 1 952   975 448 100 199 612 1 594  

Performance management

Performance reviews of individuals are conducted annually, with biannual performance reviews against targets set out below:

Performance against these targets carries a 90% weighting at executive and senior management level. Employees are rewarded on company targets, as well as an individual performance assessments, which are conducted annually with employees on the self-service system, after performance discussions.

Individual performance evaluations cover:

Professional conduct
Business processes
Customer service
Business operations
Employee management
Implementation of company strategy

Bonuses are approved by the remuneration and nomination committee and are payable in December. More detail on our remuneration policy appears in our Remunertaion report.

Group key performance deliverables (KPDs)
Outcome
June
2015
%
  June
2014
%
 
Western Cape region 110,7   106,23  
Pretoria region 115,2   106,2  
Johannesburg region 112,13   114,62  
Group Performance against KPDs 122,0   115,9  

Scoring methodology  
Underperformed Achieved 70% of target
Below expectations Achieved 80% of target
Solid performance Achieved 100% of target
Above expectations Achieved 115% of target
Stretch Achieved stretch targets (130% of target)

Additional human capital measures    
Total working days 55 352  
Total number of person days lost due to absenteeism (sick, family responsibility and maternity leave) 1 321  
Percentage of total person days lost due to absenteeism – calculated or reported (%) 2  
Total number of person days lost due to industrial action (ie strike action) 0  
Percentage of total person days lost due to industrial action – calculated or reported 0  

Employee relations

The national human resources manager is responsible for employee relations. A disciplinary and grievance policy governs these employee relations and is available on the company intranet, in hard copy at each management office, and on the website.

There were four disciplinary cases during the year, resulting in one dismissal. One grievance was reported.

Employee benefits

To entrench Hyprop as a preferred employer, we offer a range of employee benefits that exceed legislated minimum standards, including:

Membership of a defined contribution pension fund with death, disability and funeral benefits
Four months’ partially paid maternity leave (paid at 55% of cost to company)
Annual leave rises to 20 days after five years with the group
Employees qualify for six days’ paid study leave for approved qualifications.

Non-discrimination

Discrimination is not tolerated. Any reported instances are immediately and appropriately dealt with under our code of ethics and conduct and related disciplinary procedures. Relevant policies are regularly reviewed, updated and distributed to employees.

No incidents of discrimination were reported during the year.

Labour relations

Hyprop has no unionised employees and there was no impact on business from industrial or labour unrest during the year.

Hyde Park Corner, Johannesburg  

Health and safety

Our policy is to create a safe and healthy working environment, with procedures to manage occupational incidents and compensation claims in line with legislation. In brief, we aim to:

Provide a health and safety programme that is effective, of high standard, and continuously reviewed and improved
Comply with relevant statutory provisions for health, safety and environmental matters that affect employees, customers, contractors and the public
Ensure all employees are properly informed of their responsibilities for health, safety and environmental matters and discharge these effectively
Encourage employees to participate in preventing accidents and preserving health
Provide the resources and training to achieve these objectives.

Each shopping centre is responsible for executing this policy on site through its operations manager. At group level, the national facilities manager is responsible for bi-annual audit reports, drawing on reports from each centre.

All centres conduct regular health and safety training for employees, while third-party suppliers perform annual health and safety audits.

All construction projects have health and safety consultants who represent Hyprop and monitor activities on site regularly. On large and complex projects such as Rosebank Mall, the contractor has its own health and safety officer managing contractor teams and subcontractors.

There were no serious casualties or injuries during the year at any of our properties or projects.

HIV/Aids    
Number of employees and contractors who were able to access and receive voluntary counselling and testing (VCT) for HIV/Aids 247  
Number of employees and contractors tested for HIV/Aids 200  
HIV/Aids prevalence rate among employees (%) 5  

HIV/Aids remains an issue in South Africa that could affect the wellbeing of our employees, leading to emotional distress, absenteeism, employee turnover and lower productivity. As a formal risk assessment found the impact of HIV/Aids on the group to be negligible, Hyprop does not have targets for addressing its direct impact, nor does it have strategies for addressing indirect business risks (eg effect on customer base/supply chain).

Our formal HIV/Aids policy, reviewed annually, provides guidelines on creating a non-discriminatory workplace, dealing with HIV testing, confidentiality and disclosure, providing equitable employee benefits, dealing with dismissal and managing grievance procedures. It also ensures affected employees’ rights to confidentiality.

Where employees willingly disclose their status, Hyprop encourages openness, acceptance and support.

Every year, HIV/Aids awareness days are held at each centre office by professional nurses, with an external healthcare service provider conducting voluntary counselling and testing programmes. This offers the opportunity to test for HIV, cholesterol and stress levels.

 
REGISTERED OFFICE AND BUSINESS ADDRESS

Registration number: 1987/005284/06
2nd Floor, Cradock Heights, 21 Cradock
Avenue, Rosebank, 2196
PO Box 52509, Saxonwold, 2132
Tel: +27 11 447 0090
Fax: +27 11 447 0092
Website: www.hyprop.co.za

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