ONLINE ANNUAL REPORT 2010

HUMAN CAPITAL

COMMENTARY

Massmart’s emphasis remains on increasing permanent employees’ access to private medical benefits and early detection of priority illnesses. As a percentage of current permanent employee headcount, medical benefits coverage has increased by 3% over last year. This is lower than what is required to meet the Group target of medical benefits coverage for 60% of permanent employees by June 2011. The main reason is that recent acquisitions have increased our staff complement by 2,000 employees who don’t have medical cover. Legally, we are prevented from enforcing the adoption of Group health benefits to these employees. On a like-for-like basis (excluding staff from new acquisitions), however, 10% more permanent employees now have access to medical benefits.

Massmart is pleased that HIV/Aids prevalence has dropped by almost 1%, although we are unable to attribute the specific cause of the decline. One hypothesis is that we are reaping the positive results of five years of ongoing awareness efforts, but it’s too early to attach significance to this statistic. Disturbingly, up to 30% of HIV-positive employees are not registered on our treatment programme. Recent changes, including providing human resources directors with better, more regular reporting data and increasing the intensity of follow-up with HIV-positive employees, place us in a better position to improve this.

During the financial year, the Group experienced industrial action related to a re-engineering exercise at Massdiscounters and wage-related industrial action at Masscash. In this context, it is worth noting that the Group minimum average wage of R2,555.00 is greater than the highest minimum wage of R1,947.24 prescribed by the Sectoral Determination for the Wholesale and Retail Sector in Area A.

 

For additional reading refer to http://www.massmart.co.za/additionalreading

Insight

1.   Sectoral Determination for the Wholesale and Retail Sector in Area A is promulgated annually by the Department of Labour and sets minimum wages and basic employment conditions for workers in the sector with different wage levels being set for urban, rural and intermediate geographic areas, of which level A is the highest prescribed minimum wage level
  • Massmart’s Talent Management framework (website video). A 30-second video in which the Group Human Capital Executive identifies the Group’s three primary talent management focus areas.
  • Massmart encourages early detection of priority illnesses (website pdf). A two-page article providing insight into in-store testing protocols that have been implemented to facilitate the early detection of illnesses such as diabetes and cardio-vascular disease.
  • Massmart aims to provide employees with greater access to private health benefits (website pdf). A two-page article that describes the various Group subsidised health options that have been introduced to provide staff with lower cost access to private healthcare benefits.
  • Building diversity is important at Massmart (website pdf). A two-page article providing race and gender diversity statistics and discussing transformation successes and failures in the Group.

HUMAN CAPITAL PERFORMANCE INDICATORS

Graph legend

--- Comparative data

  No data available for that year

   
   
   
   

Notes

1.   Comparative data represents the best available performance disclosed by South African retailers, except for:
    Employees with medical benefi ts sourced from 2009 South African General Household survey
    HIV prevalence which represents published national prevalence rate.
    Average minimum wage sourced from Sectoral Determination for Wholesale and Retail Sector

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