Tiger Brands: Integrated annual report 2019

Unleashing the power of our people

Our people strategy seeks to unleash the power of our people and embed the winning mindset needed to deliver long-term growth. To realise this objective, we have prioritised the following three focus areas:

• Building a diverse talent base to deliver our growth strategy
• Developing leadership capability to inspire winning performance
• Creating a great place to work to energise a consumer-obsessed agile Team Tiger.

These focus areas are underpinned by a commitment to execution excellence, and technology to enable winning performance.

CHALLENGES

• During this period a protected strike lasting seven weeks was experienced in Albany Pretoria and Secunda negotiating cluster. The strike was marred by acts of intimidation and violence
• To balance production supply with seasonal or fluctuating market demands, Tiger Consumer Brands has traditionally relied on contingent labour; to ensure that we remain compliant with relevant labour legislation, we continue to improve the employment conditions and treatment of contingent labour.

BUILDING A DIVERSE TALENT BASE TO DELIVER OUR GROWTH STRATEGY

Numerous initiatives were undertaken this year to further strengthen our diverse talent base and develop our core capabilities to deliver on our growth strategy. We reviewed the management structures to improve efficiency and effectiveness. We developed and implemented a standardised talent management framework, supported by targeted talent strategies for marketing, R&D, Bakeries and Africa. We reviewed our learning and development framework, and developed an employer brand and employee value proposition aimed at attracting and retaining talent. To provide a compelling work environment that recognises and rewards talent, we have embedded action-based talent reviews and accelerated talent mobility.

Recognising the critical importance of driving diversity across all management levels, we have developed and approved a five-year employment equity plan, as well as a gender equity strategy. Key initiatives include a focused management trainee and leadership development programme. During the period, we had 25 management trainees and 881 learnerships across Tiger Brands.

To attract talent for our Africa operations, we have developed a talent sourcing strategy that includes partnerships with LinkedIn, in-country distributors and tertiary institutions. We have developed a customised Africa management trainee programme, and this year we sourced management trainees from Mozambique, Zambia and Nigeria. A priority talent focus area for the year ahead is to continue to build commercial and supply chain capability. We will continue to work on implementing a fit-for-future organisational structure, embed digital learning, and execute a clear career development framework and appropriate learning and skills development.

DEVELOPING CORE CAPABILITIES THROUGH THE TIGER BRANDS ACADEMY

In FY19, we invested R127 million or 4,19% of total payroll on overall training in South Africa, through our refreshed Tiger Brands Academy, as well as learnerships.

The Tiger Brands Academy is an internal skills development vehicle that develops core capability through various academies for the disciplines of supply chain, finance, IT, customer, human resources, marketing and R&D. It also offers learnerships in manufacturing, logistics, supply chain and management to school leaving youth. The academy includes the Leadership Academy, that delivers leadership development programmes for leaders across the business.

Tiger Brands creates opportunities by providing workplace experience for selected candidates in food technology, engineering, marketing, production and operations. We provide bursaries for the children of qualifying black employees. In 2019, we spent R7 million on bursaries for 164 students (2018: R6,3 million and on bursaries for 188 students). A total of 423 students have graduated since 2007 and 42 graduated in 2018.		Gender diversity profile

 

Our EE profile FY19

			Workforce profile as at 30 September 2019 (South Africa)
			Male					Female					Foreign nationals
Occupational levels		Band	African	Coloured	Indian	White		African	Coloured	Indian	White		Male	Female		Total
Top management		FL-FU	1	–	2	4		2	–	–	–		1	1		11
Senior management		EL-EU	14	2	13	31		11	3	13	13		2	1		103
Middle management		DL-DU	76	29	55	123		86	18	50	58		11	1		507
Junior management		CL-CU	529	138	113	206		261	75	63	113		12	6		1 516
Semi-skilled		BL-BU	2 219	167	141	37		642	139	82	83		8	1		3 519
Unskilled		AL-AU	3 622	170	49	5		1 457	149	61	4		12	3		5 532
Total			6 461	506	373	406		2 459	384	269	271		46	13		11 188
Employees with disabilities			14	–	1	–		2	–	–	–		–	–		17

DEVELOPING LEADERSHIP CAPABILITY TO INSPIRE WINNING PERFORMANCE

The current business environment is experiencing a shift in leadership focus away from functional specialised teams, towards purpose-driven cross-functional teams that leverage the broader ecosystem. This shift has informed the work that we are doing to develop the right leadership capability to lead the company into the future.

Guided by this understanding, we focused our leadership development efforts this year on developing an executive leadership succession plan, undertaking leadership capability assessment for key successors, and reviewing the leadership development framework. Informed by the benchmark assessment of our senior leadership team, we have prioritised various focus areas for leadership development in FY20, including driving winning business performance and embedding a culture of consumer obsession.

We have developed a leadership competency framework that outlines our unique leadership brand and that is aligned to drive and sustain a winning performance culture across our operations and geographies.

To achieve this ideal, we have designed a stratified leadership development curriculum as part of our framework. The curriculum comprises five customised programmes that are focused to equip leaders at all levels of the organisation, starting with first-time line leaders to executive leadership levels.

Our leadership competencies

LEADS PEOPLE Inspires winning performance Nurtures and grows talent

LEADS PERFORMANCE Shapes strategy Achieves results through others

LEADS SELF

LEADS INNOVATION Market focused Consumer obsessed

LEADS PARTNERSHIPS Builds partnerships Builds teams

Our leadership development programmes

Intervention			Target audience
LIFT leadership programme			Lead operators
EDGE leadership programme			Frontline leaders
GAME CHANGER leadership programme			All leaders
SOAR leadership programme			Leaders of leaders
REIMAGINE Tiger Leadership Development programme			Enterprise leaders

We will continue to accelerate the roll-out of these programmes across the organisation to build the required capability and capacity to embed our winning performance and culture through our leaders.

To improve our talent pipeline and strengthen business performance, we are ramping up talent rotation. We are embedding coaching and mentoring practices as part of the Tiger development approach, and we will embed the outcomes of our women in leadership programme – RISE.

CREATING A GREAT PLACE TO WORK

Creating a great place to work is critical both to attracting and retaining talent, and to ensuring that we have an agile culture that inspires innovation and drives winning performance. The key focus for the year under review was to establish a strong foundation to enable the One Tiger winning culture transformation journey. Leader-led dialogues were held with our leadership teams to equip them to lead the journey in their teams. These were followed by Heart of the Tiger dialogues where team members had the opportunity to openly engage and develop a team pledge on how they will bring the company's values and winning behaviours to life. Overall, 214 culture dialogues were held and 6 786 employees impacted.

Our strategic focus for the year ahead is to continue to improve the employee experience and accelerate business performance. We will continue executing a Tiger-wide employee experience and engagement survey and employer brand campaign, further embedding the reward and recognition strategy and well-being programme while continuing to drive the modernisation and harmonisation of benefits.

We will also be implementing our people with disabilities framework to enable an inclusive great place to work, as well as delivering our employee relations strategy to maintain employee relations stability.

REWARDING WINNING PERFORMANCE

During the year under review, we continued on our journey of ensuring that our remuneration policy is competitive and agile; enabling the attraction, motivation and retention of key skills to drive our business strategy.

Some of our highlights include:

• Aligning Tiger Brands' annual and long-term performance to the delivery of the strategy by creating an STI balanced scorecard, as well as revising performance conditions in our LTI scheme
• Cementing the foundation we have already built for fair and responsible pay
• Ensuring that reward mechanisms are simple and provide line-of-sight to all employees.

EMPLOYEE RELATIONS

Tiger Brands' employee relations (ER) approach seeks to promote a harmonious and collaborative working environment and instil a winning culture that ensures stability and business sustainability.

Stability of our employee relations environment:

• A total of 20 wage negotiations were planned and 10 have been settled with at least 50% achieving multi-year agreements. The balance will be concluded during the balance of 2019. To continuously improve equity and fairness, the disciplinary and grievance procedures were reviewed during FY19. Continuous direct engagement with all our employees remains a key focus. Leaders are expected to engage and consult directly with employees on matters of mutual interest.

Our employees have full freedom of association, with 67% of our bargaining unit employees who are members of trade unions. Site management and union partner representatives meet monthly to address issues of mutual interest. At each site, union partners are represented on forums that monitor employment equity, skills development and related employee matters.

Tiger Brands complies with South African legislation on labour relations, basic conditions of employment, employment equity, skills development, among others. We also comply with International Labour Organisation conventions, and relevant regulations in operating areas in Africa. In FY19, there were no instances of non-compliance with labour standards.