SPUR CORP. LIMITED INTEGRATED REPORT 2014

Strategy, risks and key performance indicators (“KPIs”)

Head office employees

HEAD OFFICE EMPLOYEE ROTATION (%)

TOTAL SOUTH AFRICAN-BASED PERMANENT EMPLOYEES
 
EMPLOYEE TRAINING COSTS (R)

Successful execution of Spur Corporation’s strategy is critically dependent on our ability to identify and attract passionate people with the right attitude and cultural fit. Our skills development initiatives demonstrate our commitment to investing in the growth of our people. Retaining employees depends on creating a work environment that is stimulating and rewarding, and linking good performance to competitive remuneration. The group values the diversity of its workforce as an asset to the company and seeks to create equal opportunities for all deserving employees. We do not tolerate discrimination of any form.

The group has a formalised disciplinary and grievance policy and procedures in place and these are communicated to all employees.

The main human capital challenges the group faces are ensuring the continued transformation of the workforce, attracting and retaining high-calibre people and ensuring that the group’s management and leadership pipeline has the skills, support and diversity to meet the requirements of our business strategy.

Total South African permanent employees increased 32% to 368 in 2014, due largely to the acquisition of the three The Hussar Grill retail outlets in January 2014.

The number of learners attending the group’s adult education training (“AET”) programme increased and the training courses were extended to include Gauteng employees. We continued the management assessment process and began developing the contents of the management development programme. The group’s standard performance appraisal process includes a training and development analysis, which is to be completed by all local corporate employees and their respective line managers. A focused employee engagement initiative was rolled out across the sauce factory and décor manufacturing divisions.

The leadership skills needs analysis initiated last year continued. This project forms part of the group leadership development programme and will be extended to include more managers in the year ahead. Succession planning progressed as the focus narrowed to include only the identified core, critical employees for monitoring, support and coaching. A Spur Group Competency Framework has been designed and crafted, which forms part of our leadership journey. This competency framework is intended to act as a compass in all recruitment, development and talent retention engagements.

Refinements to our operational health and safety programme have been rolled out in the décor manufacturing division and will be extended to the sauce factory during 2015.

The group’s employees are not unionised and there were no strikes at group operations during the year.

The group offers financial support to assist employee upliftment, including paying for business-related studies and offering loans for education, housing and other requirements.

The group invested R1 053 145 in employee training during the financial year (excluding internal time), an increase of 53.9% on 2013 and ahead of our target for the year of R718 600. This figure includes group funding of tertiary studies for employees and bursaries for the education of employees’ dependants. Retrenchments linked to the closure of the Captain DoRegos distribution centre at the end of October caused head office employee rotation to increase to 17% in 2014 from 8% in 2013, well above our long-term target of 10%.

GOALS FOR 2014 ACHIEVED IN 2014 GOALS FOR 2015
Head office employee rotation 10% 17% 10%
Employee loans R500 000 Employee loans R412 957 Employee loans R500 000
Employee training costs (including bursaries to dependants) R718 600 R1 053 145 R1 470 000

CASE STUDY

The basic skills of reading and writing are not only fundamental requirements for work, they are critically important tools to enable personal and career development.

It is estimated that close to four million South Africans are unable to read and write. Spur Corporation’s AET programme not only boosts productivity and performance, and creates meaningful opportunities for employees, but it also builds self-esteem in the individual and helps to make South Africa a better country.

Our AET programme is available to head office employees in Cape Town and Johannesburg as well as to employees from the sauce factory and décor manufacturing divisions. The programme includes both computer-based and book-based learning as well as facilitation once a week. The company accommodates two hours per week during working hours, and the learner needs to complete one hour in their own time. The courses begin with English literacy and once learners have completed these modules they move onto mathematical literacy.

The second phase of the project completed in September 2013 with 17 learners enrolled, of which 14 completed the course. All those who completed the course passed their final exams. All the learners were from historically disadvantaged groups, 29% were women and 71% men.

The third phase of the project ran from November 2013 to June 2014 and 16 learners wrote and passed exams, while seven rolled over onto the next level of studies. Women comprised 47% of the learners and all learners were from historically disadvantaged groups.

The AET course has strong support within Spur Corporation and at the end of each course participants are recognised at a ceremony where the chief executive officer personally hands out the certificates of achievement. As a direct result of the programme, employees have been able to access opportunities that were previously closed to them.