Human capital

Highlights

	Share incentive scheme approved by shareholders with first allocation in December 2013 (page 71)
	Improved productivity: net operating income per employee of R5,824 million, distributable income per employee of R5,576 million

Our employees are fundamental to the success of our business and to delivering a quality service for our tenants and customers. Accordingly, we aim to attract and retain key talent to build organisational competencies and leadership capacity for long-term growth and to cement the group’s reputation as a good corporate citizen.

We uphold the highest standards and seek to add value to the lives of employees by providing an engaging environment for professional growth, competitive remuneration, training support for further qualifications and an inclusive and enabling culture. 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 disciplinary code are communicated to all employees.

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

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 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 the ongoing organisational transformation to diversify its workforce.

Staff earnings ratio

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

Staff retention

The commitment of our people to the group, motivated by a stimulating working environment, competitive remuneration and fair reward, is reflected in high retention, especially at senior level. Equally, low staff turnover ensures continuity and aligns group performance with our long-term strategic objectives.

Skills development and training

Our training and development programme considers our skills requirements, as well as skills shortages in the property industry and transformation imperatives.

Training needs are discussed during the employee review process and training requirements are established. The 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 abilities 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 (see graduate programme).

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

The actual training spend for the year exceeded budget by around 8%.

Graduate programme

We introduced a graduate programme four years ago aimed at developing staff into middle and senior management roles, and ultimately board positions where viable. The programme develops and incentivises candidates while advancing Hyprop’s succession planning. Nine employees participate in the programme (eight from designated groups, with four women). Employees applying for the programme must meet certain criteria to be considered, including length of service, performance and financial situation. Successful applicants are assisted with tuition and related costs.

Our first graduate completed her studies in December 2013 and has been promoted.

Performance management

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

Performance against these KPDs carries a 90% weighting at executive and senior management level.

Employees are rewarded on company KPDs, as well as individual performance assessments, which are conducted annually with employees on the self-service system after performance discussions.

Individual performance valuations include:

	Professional conduct
	Business processes
	Customer service
	Business operations
	Staff 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 on page 70.

Health and safety

Our policy is to create a safe working environment and develop procedures to manage occupational incidents and compensation claims in line with occupational health and safety legislation. In brief, our policy aims to:

	Provide a health and safety programme that is effective, of a high standard, and is continuously reviewed and improved
	Comply with relevant statutory provisions for health, safety and environmental matters as these 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 on-site execution of this policy through its operations manager. At group level, the national facilities manager is responsible for biannual audit reports, drawing on reports from each centre.

All centres conduct regular health and safety training for employees and 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 who assists in managing contractor teams and subcontractors.

No serious casualties or injuries occurred during the year at any of our properties or projects.

HIV/Aids

We acknowledge that the HIV/Aids pandemic in South Africa could affect the wellbeing of our employees, leading to emotional distress, absenteeism, employee turnover and lower productivity. Hyprop has conducted a formal risk assessment of the impact of HIV/Aids on the group, which was found to be negligible.

Given the low level of risk, Hyprop does not have targets for addressing the direct impact of HIV/Aids, nor do we 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.

During the year, HIV/Aids awareness days were again 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.

Employee relations

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

There were five disciplinary cases during the year, resulting in two dismissals. One grievance was reported, with the outcome pending.

Employee benefits

To entrench the group as a preferred employer, Hyprop offers a range of employee benefits that exceed legislated minimum standards. These include:

	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 increases 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 in terms of our code of ethics and conduct and related disciplinary procedures. Related policies are regularly reviewed, updated and distributed to employees.

No incidents of discrimination were reported during the year.

Labour/management relations

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