Our stakeholders fall into three categories: our people, our clients, and others. They affect and influence the Corporation in various ways. Engagement with our stakeholders is critical in helping us in the development of our strategies, and in the implementation of processes that ultimately help us to deliver on our mandate.

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We continuously engage our stakeholders by establishing and maintaining good lines of communication between them and ourselves. Managing stakeholder relations is fundamental to our corporate strategy and is a planned and deliberate process.


Ongoing collaboration with and engagement of stakeholders is imperative, as our success and theirs are interdependent. We rely on these partnerships in order to effectively fulfil our mandate of accelerating industrial development and facilitating job creation.

From a process point of view, a corporate stakeholder strategy was developed both to guide our engagement and to ensure consistency in the way that we engage with our stakeholders. This strategy defines stakeholder categories, identifies key stakeholders and their interests and involvement, and determines issues on which the Corporation should engage them. The implementation plan also outlines the mode and frequency of interactions for each stakeholder and determines the IDC representatives responsible and accountable for each stakeholder.

SBUs, departments and regions have stakeholder management strategies and plans that are part of their annual business plans. These are reviewed annually and as and when required.


Given our mandate, and as a leader in industrial development finance, we recognise the need for an appropriate skills set that is driven by a high-performance culture. This is critical in helping us to deliver on our mandate to serve industries, business partners, stakeholders and, more broadly, the South African economy.

In facilitating competitive industrialisation it is necessary for us to have competitive and capable resources to deliver on our strategic intent. We do this through a number of key strategic pillars:

• Capacitation;

• Ensuring an enabling working environment for our people to thrive;

• Providing the necessary development and growth opportunities;

• Supporting broader skills development in our country; and

• Ensuring customer-centric values-based service delivery to internal and external stakeholders.

Project Evolve necessitated the focus on ensuring effective and efficient capacitation to prepare the organisation for future challenges. The ultimate objective is to enable the efficient and optimum utilisation of resources ensuring that the Corporation does more with available resources.

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Our staff remain the key driver of our strategy, with diversity enabling us to maintain a competitive edge in delivering to a diverse market.

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 During the year under review, our staff complement increased marginally by 3% to 848 employees (2015: 825). Of the 848 employees, 831 were full-time permanent employees and 17 were on three-year fixed-term contracts. Twelve of these were trainee accountants on a chartered accountant learnership and six were supporting the Presidential Infrastructure Coordinating Unit. Of the 17 fixed-term contractors 41% were female and 59% male. Furthermore, 94% of the fixed-term contract employees were from designated groups, and the services of 5% temporary contractors were used. On the assumption that economic activity will increase significantly, we project a staff complement not greater than 930 employees by the end of the 2017 financial year. A comprehensive breakdown of staffing numbers by level is provided on our website in section 5 of the Integrated Report.

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 We continuously strive to ensure that our staff profile is representative of the broader society. Our overall equity representation increased by 1% to 91% (2015: 90%). Gender diversity is an imperative and, reflecting this, 53% of all employees are female and 47% male, a ratio that has remained constant since the previous reporting period. The number of people with disabilities decreased slightly by 0.2% to 1.5% compared to the previous year.


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The IDC five-year employment equity plan was concluded at the end of March 2016. A new three-year plan has been approved and will continue to focus on enhancing diversity and representivity, not only overall, but also in areas where we lag behind the economically active population figures. A detailed breakdown of our planned and actual numerical targets for employment equity is available on our website in section 5 of the Integrated Report.

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 We firmly believe that a healthy generational age mix within the organisation stimulates new and divergent thinking and enables us to capitalise on the tacit and explicit knowledge, skills and experience among our employees. As at the end of March 2016, 49% (2015: 52%) of employees were younger than 40 years of age, a further 49% were between 40 and 60 years of age (2015: 46%) and 2% were 60 years or older (2015: 2%).


Our regional staff complement represents 7.1% of our staff population (2015: 6.8%), and our national footprint ensures that we respond to the specific business needs and opportunities in all regions. As at the end of March 2016, we employed 60 staff in regional offices compared to 56 in the previous year. This increase was due mainly to extending our presence to outlying areas in a number of provinces. A detailed breakdown by region is provided on our website in section 5 of the Integrated Report.


We strive to be recognised as an employer of choice, and one that creates value in the work lives of current and future employees.

During the reporting period, we were recognised as a top employer through the Corporate Research Foundation (CRF) employer accreditation process. This independent audit assesses employers on planned people practices in place, as well as on the consistency and application of those practices in the workplace. In the year ahead, we will continue to focus on improving those areas where we fall short in our people practices and will also aim for reaccreditation in the financial year.

Given the competing jobs market, our talent is highly sought after in the market place. This has resulted in natural attrition which we are consistently managing to ensure that we keep it within a reasonable limit.

In as much as skilled and talented people want to join the IDC, attracting and retaining the best skills set from sectors and industries with more flexible remuneration practices remains a challenge, specifically with regard to senior staff with critical and scarce skills. Our overall staff turnover has decreased quite significantly by 5.1 percentage points to 5.6% for the year under review. (2015: 10.7%). This reduction can be attributed to potentially fewer opportunities in the current economic climate, but could also be as a result of our having bedded down our strategic realignment process, as this may have resulted in uncertainty among staff in the previous financial year. A detailed synopsis of staff movements and turnover for the last three financial years is available on our website in section 5 of the Integrated Report.

In the specialist/expertise management and executive positions where the majority of critical roles exist, we experienced a reduction in turnover to 7.7% (2015: 9.7%). The challenge remains, though, to manage and retain talented employees in these categories. Encouragingly, our turnover levels compare favourably with industry norms where the average market turnover for State-owned enterprises was 12.7%, and 17.1% for Financial Services for the period 1 January to 31 December 2015. According to the Remchannel Survey conducted by PWC in 2015, the overall labour turnover was 22.6% – a figure higher than the 18.2% reported in March 2015. Losing skilled talent, particularly at the senior level, could impact significantly on our ability to serve our stakeholders and successfully transition and drive the strategically realigned intent of the Corporation. (To read more about our strategy, please see under Our strategy on page 22.)

To attract and retain talented individuals, we strive to provide an enabling and supportive environment for our staff.


In order to embed the strategic realignment process, we needed to ensure all staff were “on-board” and committed to our strategic focus. In support of the change journey, our employees were capacitated through change management workshops to equip them with the required skills to adapt to and embrace the changes brought about by Project Evolve. This capacitation was further supported through the appointment of internal change advocates, the facilitation of team enablement and strategic alignment sessions, and executive and leadership coaching necessary to drive the leadership engagement and behaviours required to support the business.

In addition, we compiled and approved a change index measure to ascertain the success and impact of the change journey.

Through our change advocate network, we will continue to remain close to the change impacts happening “on the ground” so we can respond accordingly.

As the IDC gradually adopted Project Evolve, initial analysis indicated that, in order to realise the new strategic intent successfully, we needed to minimise the gaps between the current culture and the desired corporate culture. In order to ensure that we drive towards the desired culture, we conducted a diagnostic culture survey using the Barrett’s Culture Values Assessment (CVA) tool. 63% of our staff members participated, and results were shared at corporate and divisional levels. While these results revealed the positive aspects of our culture that support the Corporation, they also demonstrated those limiting behaviours which, if not addressed, may compromise the achievement of our business objectives.

In addition to this initiative, we also undertook facilitated leadership sessions to determine the priority culture shifts that need to be addressed and these interventions, as indicated below, will be a focus in the next financial year.

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Managing employee conduct in a dynamic and professional environment as a responsible employer requires firm and decisive action, and the year under review saw a total of 13 internal disciplinary matters being managed and resolved. Through the employee grievance process, employees have the right to report any incidents of discrimination, and these are addressed through our formal process and policy. In addition, the employment equity forum reviews our people practices to highlight any potential areas of discrimination. During the period under review, no incidents of discrimination were recorded. We resolved four formal grievances about employee practices and no grievances remained unresolved from the previous financial year. The IDC operates within the provisions of all relevant labour legislation including the provision of minimum notice periods regarding operational changes should these arise.


Our employee wellness initiatives aim to educate employees about the importance of identifying, preventing, managing and resolving wellness matters to ensure continued and sustained productivity.

Independent Counselling and Advisory Services (ICAS) Southern Africa and Discovery Health are our partners in giving effect to our Employee Wellness Programme, and employees and their immediate family members have access to voluntary counselling and support as may be required. Our employees also participate in the annual Wellness Day where they can interact with healthcare professionals for a detailed lifestyle audit to enhance their personal awareness and understanding of health-related matters.

We provide voluntary testing for HIV/Aids to all our employees and annual medical screenings to encourage all employees over the age of 40 to adopt a healthy and productive lifestyle and proactively manage their health risks. Participation by eligible employees in this initiative has grown by 4% year-on-year (2015: 68%). IDC employees also have access to “retire fit” training to plan effectively for retirement. Our wellness support partner, ICAS Southern Africa counsels and advises those preparing for retirement, while an appointed financial adviser advises about financial management for retirement.


The IDC recognises the need to have the right people with appropriate skills to help us deliver on our mandate. Against this background, we identified a set of capabilities to support the implementation of Project Evolve. These are aspects at which we need to excel in order to drive our strategy and high performance. The identified capabilities which will be prioritised for development purposes are reflected below.

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We implemented several interventions to build and enhance the skill sets of our people. These include leadership development, core operational skills training, functional and behavioural training and academic training through staff bursaries. A new initiative aimed at knowledge harvesting was introduced in support of the new business focus and operational structure. Successes and failures were recorded through our Lessons Learnt portal which can be accessed by all employees. New mini-sites on our intranet, SharePoint, were also designed and rolled out to all business units and departments and we envisage further support for the desired levels of communication in the business.

While we continue to ensure that our employees are adequately skilled and capacitated, our focus on the year ahead will be on building the required leadership competencies and supporting behaviours, and on embedding a customer-centric culture.

The number of employees trained during the year under review increased to 673 (2015: 593). The graphs below reflect by race and gender the number of employees trained, as well as the equity percentage split.

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The tables below are an indication of the time spent in training segmented by gender and employee band.

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The total staff cost during the year under review was approximately R1 billion. The training expenditure as a percentage of staff costs increased to 2% (2015: R903 million, 0.6%). A comparative summary of investment in staff training is available on our website in section 5 of the Integrated Report.


Since our employees are integral to achieving our corporate objectives, we strive to keep them engaged, motivated and appreciated and we endeavour to attract and retain high-calibre, high-performing individuals who subscribe to the values and culture of the organisation.

Performance management and development are key enablers in establishing and reinforcing employee behaviours and outputs that will help achieve our business goals and objectives. This requires continuous formal and informal feedback as part of an ongoing performance improvement process.

The Corporation’s remuneration philosophy is designed to ensure that employees are remunerated fairly, equitably and consistently based on individual performance, market remuneration trends and relative value of each position within the business. The principle of performance-based remuneration is one of the cornerstones of the remuneration policy and it is underpinned by sound governance principles which are reviewed periodically to drive alignment with changes in remuneration trends and practices.

The remuneration policy was changed during the course of the financial year to enhance the focus of the IDC on its core development and sustainability imperatives, and to affirm the incentive principle that bonuses should only be paid for exceeding objectives and not merely for meeting them.

On the new short-term incentive (STI), bonuses are paid for exceeding objectives. In order to remain market-competitive, so that the IDC can attract and retain talent of requisite calibre, a portion of the on-target STI that was payable in terms of the previous policy has been incorporated into base pay by means of a once-off increase in the annual guaranteed pay (AGP) and the introduction of a non-pensionable allowance (NPA).

The Board and Shareholder has directed that the performance management system should reward increased efforts and sustainable successes and that incentives should only be payable for exceptional performance. In addition, targets for certain strategic indicators will have to be met for incentives to be considered, in particular those indicators related to jobs, disbursements and impairments.

The NPA is only payable to employees with acceptable performance ratings in terms of the Corporation’s performance management system. While the overall impact of these changes is the reduction of the on-target remuneration, especially for senior employees, there is enhanced guaranteed pay for employees that meet performance expectations. The value of the package in the case of exceptional performance remains the same as before so as to encourage and reward excellence.

The new long-term incentive (LTI) is based on performance against the IDC's long-term objectives as per the development and sustainability index (DSI). In line with emerging local and international trends, the award will now vest in three years and be paid over three years from year of vesting. The amounts for the subsequent two years will be paid provided the DSI does not drop below the target performance level in any of the years. The allocation of awards is discretionary and the Board has the authority to change or withdraw the awards. The Board also has the discretion to withdraw a vested incentive on the basis of a material event occurring.

The new policy was introduced with effect from 1 April 2015, and as a transitional measure to support effective implementation, a once-off increased non-pensionable allowance was paid. The allowance will revert to target in the 2017 financial year. In addition, the amount that would have been payable in 2016 under the previous LTI policy will be paid over three years, with the second and third amounts paid at the discretion of the Board.

The STI is aligned to recognise and reward performance which exceeds expectations, in terms of short-term corporate indicators, as well as team and individual performance indicators. The on-target STI amounts have been aligned to that of other State-owned entities as provided for by the remuneration guidelines for State-owned entities.

In respect of the new LTI, the overall on-target incentive over the three-year vesting cycle has been aligned with the remuneration guidelines for State-owned entities.

In recognising our people, the IDC Star Awards function was held in November 2015 to pay tribute to our “Star” performers as identified and nominated by fellow employees. Understanding that teams are also critical to business success, we recognise teams that have made a difference to various aspects of the IDC and furthered our mission in a positive way.

In addition, we maintain our tailored recognition programme e-Wards, which shows our appreciation for staff who go the extra mile to serve our clients, both internally and externally. This platform has grown approximately 38% over the last reporting period and remains a positive means for staff to recognise their colleagues.



Customer service is integral to the IDC’s operations in ensuring that the Corporation achieves high levels of customer satisfaction. We strive to provide excellent service so that the customers’ experience of interacting with the IDC becomes a pleasant and value-adding one. To that end, prompt responses, efficiency and quality are among the goals that we have set for all our interactions with our customers.

In line with our proactive approach and taking the lead in industrial development, we aim to provide our clients with quality products and services. This includes ensuring that we are accessible to do business with, and also that we are continuously working on improving our turn around times.


In 2015, we developed a Service Charter that provides a framework on how to deliver on the IDC mandate through enhanced interaction with our customers and adherence to service delivery standards. This includes the steps that we will take when our service fails to meet clients’ expectations.

In the period under review, the Charter was implemented and communicated internally through a customer service campaign aimed at acknowledging staff members who rendered sterling service.

In line with putting the customer first, the added bonus of the customer service campaign was that it showcased employees who received compliments from clients for offering excellent service.


While still in its infancy, the communication of the Charter has ensured that the focus on service excellence is a top priority and has highlighted the aim of making the client experience seamless and consistent throughout the Corporation’s value chain, and at all touch points.

Encouragingly, we have noted a renewed commitment and passion for customer service from staff who are now going the extra mile to delight customers. The campaign has gone a long way towards embedding the core elements of the Service Charter, while showcasing people who, on a daily basis uphold excellent customer service.

We have a good base from which to launch customer service initiatives. A Culture Values Assessment that was conducted among staff members during the period under review, showed that customer-centricity was one of the desired behaviours. In this regard, a customer-centricity workstream has been established to promote the focus on service excellence.


In the period under review, we received 84 compliments that can be grouped into the following themes:

  • Excellent interaction with clients;
  • Ensuring that clients understand IDC products;
  • Providing solutions;
  • Professionalism;
  • Timeous feedback to clients;
  • Responding to customer queries promptly and effectively; and
  • Providing advice and expertise in line with funding needs of clients.


75 complaints were received. These mainly centred on turnaround times, the reasons for applications being declined and lack of communication/updates during the application process.


During the period under review, we intensified our business development efforts. One of the initiatives in this regard was the development of a customer segmentation approach that allows for alignment between the Corporation’s objectives and client needs through a targeted, differentiated service and product offering.

The approach provides for a win-win scenario where we are in a better position to achieve maximum development impact while enhancing interaction with clients and potential clients, leading to increased client satisfaction. The desired goal is to add value to clients, bring about sector and market development, and to bring about a consistent, differentiated experience. The focus for the next financial year will be the implementation of the customer segmentation initiative to complement as well as improve our business acquisition and retention efforts.


Customer feedback is part of our customer experience strategy to assist us in improving our service levels at every touch-point. In this respect, we conduct satisfaction surveys to measure service performance, and identify service issues and remedial actions.

We have consolidated our intelligence gathering activities to avoid survey fatigue, and a regional stakeholder survey, which we reported on in the past financial year, has thus been included in the short-term survey.


This study is aimed at determining service levels among clients and potential clients who recently interacted with us. This has allowed us, where applicable, to implement corrective actions with speed and thereby address service issues that might have arisen during the interactions.

The results from the 904 respondents who participated in the short-term customer satisfaction surveys during the period under review are reflected in the survey findings below.

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The majority of respondents (81%) are satisfied with our service offering. This is a notable improvement from last year’s results which pegged the percentage of satisfied clients at 73%.


The number of respondents who are willing to recommend the IDC to business partners and associates has remained constant at 82%. Of significance is that respondents whose applications were declined indicated that they would recommend us as they were advised timeously of the reasons for our decision. This indicates that quick feedback remains a key driver of satisfaction, regardless of its content.

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We are pleased to note that the number of respondents who reported that they are satisfied has increased significantly, from 25% in the last financial year to 47%. Although there has been an increase in the percentage of clients highlighting turnaround times as an area for improvement, fewer respondents have cited communication, information requirements and staff expertise as issues that need attention.

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