CASE STUDY

Peter Blond

Over the years, clothing manufacturer Peter Blond has developed into a respected supplier of high quality ladies outer garments for the Woolworths and Truworths retail chains.

Investing in human capital

People growth and development

The training costs as a percentage of staff costs are detailed below:

IDC **Staff costs
(R million)
Training expenditure
(R million)
Training expenditure
as a % of staff costs
Number of
employees trained
Average training
cost per employee
801 15.7 2.0 740 R21 216

Skills development summary  2013 2012 2011 2010
Number of employees trained 740 739 706 527
Black employees as a % of employees trained 81% 80% 78% 79%

On average, our full-time employees received 10.7 training hours per employee for the year ended 31 March 2013.
A breakdown of the average training investment per employee per level is detailed below:

Female (375) S Band A Band P Band M Band E Band Average per employee
Total in days 6 181 184 115 4 1.3
Total in hours 48 1 448 1 472 920 32 10.5

Male (365) S Band A Band P Band M Band E Band Average per employee
Total in days 7 42 214 218 21 1.3
Total in hours 56 336 1 712 1 744 168 11

* S Band is support; A Band is administrative; P Band is professional; M Band is management; E Band is executive
** Staff costs include normal salaries, bonuses, provident fund contributions and training


IDC operational training programme

The programme focuses on the training and development of IDC operational staff in deal-making skills, which includes the evaluation of business proposals during due diligence investigations. This training is provided to both existing operational staff, as well as to business analysts, who are newly appointed into the IDC New Dealmakers Training Programme, which occurs bi-annually, to ensure a constant supply of quality trained personnel to the IDC’s Operational Business Units as well as to cater for the growth of the IDC in its role of industrial development.

A summary of the programmes progress over the last three years is provided below:

Operations training programme 2013 2012 2011
Number of business analysts remaining in the programme 27 20 9
Number of business analysts that successfully completed their training in the programme 19 22 14

A summary of further operational training is provided in the table below:

Number of delegates 2013 2012 2011
Business analysts (new deal makers) 11 20 9
IDC operational employees 132 86 202
Total trained 143 106 211

Assisting IDC affiliated organisations/other DFIs in up-skilling operational staff

Core to the IDC mandate is capacitating other institutions in the industrial development landscape. The Operational Training unit is involved in this capacity building by providing training to staff from other local and African DFI’s. During the year, 85 staff from seven local DFIs and 17 Institutions from the rest of Africa attended training.

Formal staff education (bursaries)

Internal staff
It is important that staff continuously pursue their professional vocation through studying tertiary qualifications. In supporting staff wishing to obtain formal qualifications, the IDC currently supports 65 staff members, investing approximately R1.2 million annually.

External bursary recipients
Currently the IDC supports 243 students studying for various tertiary qualifications that will support the development of critical and scarce skills in our country. Bursary recipients (84%) are from designated groups and the financial investment amounted to R15.9 million for the 2013 financial year.

Employee Wellness Programme

The Employee Wellness Programme (EWP) is designed to enhance employee health and wellness through the prevention, identification and resolution of personal and family problems. The IDC has partnered ICAS Southern Africa to provide the service to our employees and their immediate family members. 47% of staff engaged with and accessed the EWP services provided.

Other initiatives we supported include the observance of Breast Cancer Awareness Month, an employee health and wellness day and a healthy lifestyle campaign. HIV counselling and testing was made available to all staff. 10% of staff participated in this voluntary service offering.

Retire fit

To support individuals to prepare for retirement the IDC provides Retire Fit training to assist and provide awareness for staff to effectively plan for retirement. In addition employee wellness support through IDC’s appointed wellness provider (ICAS) is available to counsel and advise staff preparing for retirement. Through IDC’s remuneration and benefits unit and through the financial advisor, Alexander Forbes, IDC provides guidance and advice on financial management requirements for retirement.

Management Medical Programme

This programme provides annual medical screenings to encourage our management team to live healthy and productive lifestyles. This service is also extended to all employees over the age of 40 years. To date, 21% of eligible employees have participated in this initiative.

Progress on the specific objectives to support the management of talent as well as future plans is detailed below:

Objectives Progress made Future objectives
Assessments in place to attract the right talent Leadership assessments in place

Approach to assess technical/operational assessments concluded

Enhance competency assessment tools to assess and attract the right skills

Roll out of technical/operational assessments

Defined Employee Value Proposition (“People Promise”) in place EVP strategy approved for implementation Internal and external people promise (EVP) communicated and embedded into people initiatives
Workforce planning system to manage demand and supply of talent System has been developed and tested for implementation Implementation aligned to client awareness and support planned
Focused talent management strategy to identify high potentials (HIPOs) and successors Talent management assessments implemented for all leadership levels Implement competency assessments for HIPOs and successors

Implement tailored and needs specific development interventions to develop identified talent

Drive employee engagement Action plans developed and implemented from 2011 survey results

2013 survey conducted to compare performance against baseline results

Alignment of action plans to latest results and drive implementation to enhance employee retention and a high performance culture

Attracting and retaining the right people

To drive sustainable, rapid and inclusive development, having the right people with the right skills set at the right time is essential. The increased demands placed on the IDC as well as expansion into focused industries aligned to the sectors identified in the Industrial Policy Action Plan has seen the overall staff numbers increase by 10.2% over the last three years.

Staff turnover over the last three years has been fairly consistent as indicated by the graph alongside. The average turnover rate for the last three years was 6.3%, which compares favourably with the national financial services turnover average of 18.6%.


Staff movement numbers over the last three financial years are indicated below:

Total IDC Actual end March 2013 Actual end March 2012 Actual end March 2011
Employees at start of period 768 737 691
Added: Recruitment 92 88 87
Lost: Resignations (35) (46) (35)
Lost: Deaths (1) (1) (2)
Lost: Retirements (6) (9) (2)
Lost: Dismissals (4) (1) (2)
Lost: Ill-health 0 0 0
Lost: Expiry of contract (1) 0 0
Lost: Absconded (1) 0 0
Total employees at end of period 812 768 737
* All employees based in South Africa

Employee engagement

The IDC needs to engage its employees in order for them to work productively and feel connected to the organisation. Employee engagement is the extent to which employees are committed to the organisation, how effectively they work and how long they stay as a result of that commitment. In 2011 the IDC embarked on an initiative to track the employee engagement levels on an ongoing basis, managed and supported through an independent external party.

After the release of the 2011 results, a rigorous process of sharing the results, obtaining staff input on ways we could improve as well as the development and implementation of detailed action plans was undertaken. We then conducted our second employee engagement survey early in 2013, achieving an overwhelming response rate of 81%.

Our Employee Engagement Index score for 2013 increased marginally from 76% in 2012 to 77%. This is against the South African High Performance Norm of 73%, indicating that overall IDC employees are better engaged to the Corporation in comparison to other organisations.

Coega Dairy Holdings

The IDC has identified increased competition in the dairy value chain and import substitution in the cheese industry as key sector development goals. We also singled out the need for increased farmer (and specifically B-BBEE) participation in dairy value-adding initiatives.

Windtown Lagoon Resort 

The newly built Windtown Lagoon Resort and Spa reflects the IDC’s focus to funding community-based projects that have potential to create employment opportunities in far-flung regions.


APPROVALS
R13.1 billion
DISBURSEMENTS
R16.0 billion
JOBS FACILITATED
18 922
JOBS SAVED
3 950
© The IDC 2013. All rights not expressly allowed are reserved. P.O. Box 784055, Sandton, 2146, South Africa