AT A GLANCE
|At the end of the 2011 financial year, Sun International had a total of 10 897 employees across our operations, which is an increase of 159 employees on last year. Employee turnover for the year was 12%, comprising mainly voluntary turnover.|
Review of HR strategy and direction
|Sun International relies on its employees to deliver superior customer
experiences in line with our “A Million Thrills. One Destination.”
customer proposition. In our focus on human capital, our primary
aim is to ensure that every job in the organisation is necessary
and adds value to the organisation through the achievement of
business objectives; and that every job is filled with a fully-performing
Our permanent employees comprise core and scheduled employees. Core employees work full time whereas scheduled employees work on a roster basis, according to business levels, and are guaranteed a minimum number of hours a month.
Total number of permanent employees
|The number of scheduled staff dropped during this year because the company agreed with the union to revisit the ratio of core versus scheduled staff. A number of scheduled employees were converted into core employees as a result of this exercise.|
|During this financial year the Group continued with the implementation of the HR Strategic intervention designed to complement the Group’s strategic direction. The components of the project included the following human resources elements: job profiling, recruitment and selection, performance management, learning and development, succession planning, change management, employee engagement, employee relations, human capital management systems and transformation. Progress on these interventions is covered in the report.|
|Human capital strategy|
|Our human capital strategy focuses on attracting and retaining the key
skills needed to achieve organisational objectives, improving individual
capabilities, placing the right people in development programmes,
the focus on achieving organisational goals through performance
management, identifying a pipeline of leaders needed by
the organisation now and in the future, improving change capability,
fostering sound employee relations, and organisational transformation,
improving employee engagement, promoting the wellbeing of our
employees, and ensuring competitive rewards for employees.
The net increase in employees during the year under review came principally from Monticello, with a net 131 extra employees being brought on board to ensure the operation is adequately resourced following the re-opening from the earthquake and certain concessionaires businesses being brought in-house.
Total workforce by region and gender
|We conduct an Employee Engagement Survey on an annual basis.
The purpose of the survey is to measure how committed employees
are to their jobs, their managers, their team and the organisation.
This commitment is what drives effort, performance and retention.
Highly committed employees are more likely to seek ways to improve
the efficiencies of their work so improving the performance of the
Last year all units communicated the results of the employee engagement survey to staff through road shows and in departmental meetings. The CE also communicated the results of the survey at the annual executive conference. We identified four dimensions from a Group perspective to focus on in order to improve employee engagement namely communication, managerial engagement, performance management and leadership involvement. Guidelines and action plans are to be distributed to all units for implementation.
This year we conducted the third Group-wide employee engagement survey. The response rate was similar to last year with 62% of employees completing the survey. This year overall engagement score was an improvement from last year moving from 2.69 to 2.76 (2.6%) against an ideal targeted score of 3.00. Overall 18 dimensions are measured in the survey and out of the 18, 17 of them went up with only one dropping compared to last year. This indicates that the efforts and initiatives put in place after last year’s results were effective.
The 3 dimensions which performed the best (similar to last year but in a different order) are Challenging and Meaningful work, commitment to Sun International and Impact of own work. The dimensions which showed the most improvement are Employee Strength, Fair Remuneration and Clear understanding of the job.
Feedback will be given to employees in November once all unit scores are received focusing again on areas which needs improvement to enhance the overall engagement score to reach the targeted score of 3.00 throughout the whole group.
Achieving organisational goals through performance management
|The company’s performance management system was launched
during 2010 to all management and supervisory employees. The first
full cycle was successfully completed, in all areas of the organisation
except bargaining units, in 2011. The performance cycle consists
of 4 steps: performance contracting, monthly performance reviews,
interim reviews, and final reviews.
The second phase of the performance management programme is now being launched to “Manage Self” employees, i.e. all employees who are not in managerial, supervisory, technical or specialist positions after consultations with the unions.
The company is now able to use the results of performance management to identify key gaps in employee development and to identify potential future leaders and successors for key positions – which is a critical component of the human resource strategy.
Learning and development
|Improving individual capabilities|
|Developing our employees’ skills and competencies remains a critical part of our learning and development strategy. Over the past year, significant effort went into the development of programmes to address skills gaps at foundational levels. In addition, we focussed strongly on the development of our management teams at various levels of our leadership pipeline.|
|Over the past year we invested a total of R5.6 million in developing our in-house learning programmes and learning systems as well as rolling out leadership and management development programmes.|
|Learning initiatives development spend|
|80% of our developmental budget, a total of R4.5 million, was spent
on “run-the-business” initiatives; with 20%, a total of R1.1 million,
spent on “change-the-business” initiatives.
In addition to investing in learning programmes, we focused on developing a learning infrastructure which supports our goal of becoming a true ‘learning organisation’. We set aside a total of R923 760 to implement a learning management system (LMS) and a learning dashboard which will better enable us to: manage the learning function, gather business intelligence, and track trends across the Group. We will continue to invest close to R1.8 million on LMS user licences over the next three years.
Learning initiatives development spend
|The development of our employees’ skills and competencies follows a curriculum that is structured into formal and informal learning interventions, as indicated by the diagram below.|
|Skills development spend|
|As a result of having a focused curriculum per job, and per pipeline level, our commitment to spend on skills is demonstrated by our spend increasing slightly from last year’s R46 million to R47 million for this financial year. This is in line with our commitment to develop the skills and competencies of all our employees across the Group; as well as to ensure that we maintain a competitive edge in the gaming and hospitality industry, while complying with relevant legislation and obligations.
The increase in investment on both formal and informal learning interventions meant that 9 169 of our employees benefited from learning interventions that were run across the Group during the financial year, 439 more than last year. A marginally higher percentage of these beneficiaries were female than in 2010.
Beneficiaries of learning interventions
|In striving to meet the specific needs of our people, we increased the range of training interventions from 392 in 2010 to 403 in 2011. A total of 55 289 courses were delivered, a significant increase from 38 020 in 2010. On average each beneficiary attended 6 different learning interventions.|
Training costs as a percentage of leviable payroll*
|* The detail in the table only applies to South Africa.|
|Our training costs as a percentage of payroll also increased, as compared to the previous year. The high training costs reflect the introduction of a learning curriculum that targets each job and each level of our Leadership Pipeline.|
|Grants and levies|
|In order to access skills development grants from our SETA under the levy grant scheme, we were required to pay a Skills Development Levy, submit a Workplace Skills Plan detailing all learning interventions to be undertaken for the year under review and submit an Annual Training Report confirming successful implementation of the WSP for the previous year.|
Grants and levies
|The Group received the maximum recovery of 50% from CATHSETA for mandatory grants. This has remained the same as previous years.|
|Strengthening our Leadership Pipeline|
|To help us build leadership bench strength at each Pipeline level, we
focused our greatest investment on the development of management
and leadership skills across the Group.
We prioritised the training of the ‘Manage Others’ pipeline level for the management programmes as this is the layer that has the greatest impact on the operational effectiveness. We spent a total of R20 million rolling out leadership and management learning programmes and interventions, compared to the R602 413 spent in the previous financial year.
To date, 673 (46%) ‘Manage Others’ level employees have completed the management programme, out of a total of 1 458.
Further to our commitment to building our leadership bench strength, management capacity and specialist skills at the Manage Others pipeline level, we piloted a graduate development programme with an initial intake of 6 graduates in Slots and Gaming Marketing. We invested R1.4 million on the pilot. All six graduates on the pilot programme were offered full time employment by the hosting units at the end of the programme.
Human Capital Management Systems (HCMS)
|Our primary Human Capital Management System (HCMS), PeopleSoft,
continues to serve us well following a major upgrade to the current
version. All post “go live” training was completed.
The Spanish translation of PeopleSoft for Monticello was successfully completed and deployed in November 2010. A high level of user acceptance was achieved.
We continue to upgrade our Human Resources Analytics Tool (QlikView) and are currently migrating to the current version. This will be followed by end-user training.
The automated Performance Management System (PMS), “SunSpec”, has now been successfully deployed across the Group, with the second year of performance contracting about to commence. An upgraded version of the system will be utilised, including additional interfaces into PeopleSoft, so as to minimise double input.
The CERTPOINT™ Software as a Service (SaaS) model was selected as the optimum choice for our Group because it provides for a faster implementation, reduced cost of ownership, and appropriate upfront investment. The system was configured to best suit the Group’s needs and a test site was installed during the year under review. The model has been piloted and the system has been successfully implemented at Sibaya, Boardwalk, Sun City and Morula.
The e-recruitment site (Jonti), available via our corporate website, continues to evolve and serves as a portal to external and internal job applicants assisting with our talent acquisition strategy.
Kronos is the Group standard in respect of time and attendance, and is used at most units. A project is currently underway to centralise the system (and data) onto a server housed at head office; and to upgrade all participating units onto the most current version. This will allow better utilisation of the available licences and ensure standardisation of application and processes.
|Improving Organisation Change Capability|
|Sun International initiated a change management drive in 2010 to
build change capability in the organisation. The reason for this was
twofold. Firstly, to assist employees in managing change in themselves,
their teams and at all levels of the organisation from supervisors to
senior executives. Secondly, to enable the organisation to be flexible,
change-ready and responsive to market place shifts.
There were two types of change training interventions that were implemented: two-hour briefing sessions and two-day workshop sessions. The aim of the sessions was to create awareness and understanding, within all levels of management, about how change impacts upon us as individuals, what we can do about it, and how we can help others through change.
The two-hour briefing sessions were primarily aimed at leaders and communicated a broader understanding of change management. The two-day sessions focused on in-depth change management training. These sessions enabled employees to better understand how to apply change management techniques when implementing projects.
Training was conducted across the different business units. The total number of employees trained on both initiatives was 1 012, which constitutes 9.3% of the total staff complement of the organisation.
In addition, following a correct change management approach, formal networks have been trained up in a number of units that support business on an ongoing basis. These networks will assist us in reaching key objectives; and saving money and time as more of our employees move through changes quickly and smoothly.
|Fostering sound employee relations and transformation|
|Sun International has a recognition agreement with one trade union
(SACCAWU) in its South African operations, and all non-managerial
employees are included in the bargaining unit which currently constitutes
59% of the total employee base. This is an increase in the bargaining
unit membership of 4%, when compared with 2010. In terms of the
agreement with SACCAWU, all organisational changes are referred for
consultation and Sun International strictly conforms to the requirements
of the Labour Relations Act.
Sun International has Union engagement in the other regions in which it operates as shown below:
|In regions like Chile, the recognised union has submitted its draft
recognition agreement. Monticello did not have formal union representation
within Sun International in 2010 and it has now risen to
11% in 2011.
Formal recognition agreements enable the trade unions within Sun International to negotiate improved wages and other terms and conditions of employment.
The SFI union (Sindicato Base Casino Monticello) was formed in September 2009. The union and the company did not have an existing collective bargaining contract which meant that the negotiations could not start without a contract. The parties agreed to commence with the negotiations once a draft contract was agreed. The draft contract was presented to the union (SFI) on 30 July 2010. The collective bargaining processed involved a total of 743 employees of which 213 were union members and 523 joined the collective bargaining process during the month prior to the submission of the draft contract.
The demands presented to the company from the union contained 49 demands which included a salary increase of CPI (3%) plus 10.2%, settlement bonus, various other bonuses, soft loans, free transport, housing allowances and various other demands. The company responded to the union on 21 September 2010 and negotiations commenced in earnest on 27 September 2010.
|The union rejected the last company offer and called for a strike
ballot. The ballot was conducted on the 14 to 16 of October in which
94% of the participants voted to strike. Subsequent to this, the
union shop stewards requested goodwill from the labour department
and delayed the commencement of the strike. As a result of this,
further negotiation was held with the union which included the
participation of the labour department until 22 October but no
agreement was reached. The strike commenced on 25 October.
From Day 16 of the strike, participating members were allowed to return to work on condition that they signed acceptance of the last company offer. The strike was finally broken by the afternoon of 24 November 2010 with 50% + 1 of the striking workers having returned to work and accepting the last company offer.
In order to return operations to normal as soon as possible, improve communication and rebuild employee relations in the workplace, an employee re-integration plan was developed and is currently being rolled out.
We endeavour, at all times, to maintain fair, open and constructive relations with all employees within the legal framework of the countries in which we operate.
The core objective of our employee relations is to enable the establishment of values-driven partnerships with organised labour organisations, improving employee engagement and embedding a democratic employee relations culture.
Human Rights and freedom of association
|At Sun International we recognise that we have a responsibility to
ensure the effective management of Human Rights.
The principle of freedom of association is formally endorsed in our employee relations policy statements and in our recognition agreements with all trade unions in South Africa and the other countries where we do business.
Employee relations policies
|Sun International’s employee relations policies are available on the Group’s intranet and are regularly reviewed by the Human Resources department to ensure that they are effective and that they meet legislative requirements.|
|Job profiles for the entire organisation were completed during this financial year. In total 724 jobs were profiled. All employees were given copies of their job profiles to sign. All new employees are given copies of their job profiles when they join the company and performance contract objectives are informed by the job profiles as well as Leadership Pipeline performance standards.|
Recruitment and selection
|The effective and efficient acquisition of key skills plays a critical role in
ensuring Sun International’s success. To enhance the efficiency of the
acquisition process, Sun International has launched an e-recruitment
platform. Having successfully implemented this online e-recruitment
platform over the past two years, we are now in the process of
introducing enhanced functionality. This is intended to assist both the
internal and external user in applying for a vacant position within the
Group; facilitating the recruitment and selection process. At the end
of this year, the Sun International talent database was approximately
30 000 applicants and to date the e-recruitment platform has enabled
400 vacant positions to be filled by the Group.
To enhance the effectiveness of the recruitment and selection process in identifying the best job-person match, a standardised competency-based assessment programme has been implemented across the Group. A competency and assessment framework is identified and described within standardised job profiles. This has been implemented to enhance the reliability, validity and objectivity of our candidate assessment processes. Through the standardisation of competency-based assessment practices, not only is the degree of fairness within the recruitment process greatly improved, but from an employee’s perspective, the feedback provides invaluable insight into one’s personal development. Thus far, over 500 competency-based assessments have taken place across the Group.
The augmentation of the e-recruitment platform together with the standardisation of competency-based assessment forms part of Sun International’s continued commitment to improving our recruitment and selection practices to ensure that we appoint competent, talented individuals across the Sun International Group.
|During the course of 2011, there were 1 269 terminations, the majority of which were resignations.|
2011 Reasons for termination
Occupational health and safety
|Sun International has a moral duty to play a leading role in the communities in which we operate. One of the ways we do this is through the sustainable management of the health and safety impacts of our business. We embrace good governance in our responsible management of health and safety concerns. Specifically, the Group strives to achieve “zero injury” to people through the effective management of health and safety in all our operations. Effective management is established through the implementation of a robust OH&S (Operational Health and Safety) management system, based on a foundation of three principles:|
|The Group has a “new employee” and a “contractor/visitor” OH&S induction programme in place in each operation:|
|It is made clear to all Sun International contractors that safety is not negotiable on our premises. All line managers, heads of departments (HODs) and supervisors who have contractors, concessionaires or suppliers reporting to them, are held responsible for ensuring compliance with this Group standard before allowing them on site.|
|The near-hit indicator acts as a warning sign for management that intervention is required in order to prevent injuries. Near-hits were reported by 68% of our operations in 2010. The Group’s average in 2010 was calculated at a frequency rate of 12.2 per 200 000 hours worked or 100 employees. In 2011, 57% of our operations reported near-hits and the frequency dropped to a rate of 2.71.|
|All line managers, HODs and supervisors are responsible for informing OH&S officers of injuries/incidents involving employees, contractors, concessionaires, suppliers or guests within their areas of responsibility. OH&S manuals and instructions specify that all injuries/incidents must be captured on a monthly basis, as a minimum. The outcomes of all OH&S incident/injury investigations are reported to the OH&S Committee and/or unit executive.|
|Legal compliance is the minimum requirement in all our units. Our Internal Audit department monitors OH&S compliance and reports back to the Group Engineer if any “non-conformances” are observed. There are no “non-conformances” at present.|
|We are pleased to report that there have been no fatalities to employees or contractors for the second year running. This is attributed to Sun International’s policy of zero tolerance with regard to safe working procedures.|
|Management-worker Health and Safety Committees|
|The percentage of the total workforce representing the formal joint management-worker Health and Safety Committees, exceeds the number required by OHSAS 18001. Average representation is 17% while the required figure stands at only 2%. Most units have increased their percentage representation from 2010 to 2011. The general managers of the units are the individuals responsible for ensuring compliance with the appointed GMRs.|
|Occupational Diseases Rate (ODR)|
|The hospitality industry provides a relatively safe environment in comparison with many other industries. We ensure that all our employees are equipped with the personal protective equipment relevant to the jobs they are performing. This is closely monitored and corrective action is taken where non-compliance is observed. The ODR for the year under review was zero.|
|First-aid cases (FACs) vs medical treatment cases (MTCs)|
|MTCs involve treatment by a medical professional. MTCs have continued to be grouped into three categories denoting incremental severity. MTCs increased by 8% over the period, from 293 to 316. The FACs increased by 5.5% from 487 to 514. The Group strategy to achieve and maintain a favourable ratio of lower-severity injuries (first-aid) to higher-severity injuries (medical treatment) was achieved in the past year. The 2010/2011 ratio of FACs to MTCs is 62%: 38%, the same as the previous year’s ratio.|
|Trauma Induced Stress Disorder|
|There were no cases of Trauma Induced Stress Disorders reported.|
|Total Recordable Injury Frequency Rate|
|This is an all-inclusive index of the higher severity incidents and is the sum of work-related fatalities and all injuries (exclusive of first-aid cases) caused by the working environment. The Total Recordable Injury Frequency Rate decreased by 15% from 3.42 to 2.89.|
|Lost Time Injury Frequency Rate|
|This is an index showing the number of injuries which rendered the injured unfit for duty for one shift or longer. It is the sum of restricted and lost workday injuries and is calculated per 200 000 hours worked or 100 employees. The lost time Injury Frequency Rate decreased by 17% from 2.06 to 1.72.|
|Lost work day rate|
|This measure indicates the number of lost workday cases for every 200 000 hours worked by employees and is an international OH&S industry norm for performance. The lost days are calculated in calendar days and the lost time starts from the beginning of the injured person’s shift. The Lost Work Date Rate was reduced by 4% from 1.5 to 1.44 during this reporting period.|
|Sun International is focusing its efforts on the proactive identification of hazards, the assessment of risk and the implementation of controls in accordance with the accepted risk-management hierarchy. This approach has resulted in risk assessment training and the review of risk assessments on all properties. There were no incidents of noncompliance with regulations or voluntary codes concerning health and safety impacts of products and services during their life cycles; neither were there any warnings or penalties.|
|Hygiene and legionella risk management|
|The Group employs the services of SANAS accredited laboratories to minimise these risks. Preventative maintenance procedures have been put in place to alleviate the possibility of legionella in the potable, hot water and chilled water systems. Our water systems are dosed with the necessary chemicals and the water is regularly monitored. The results are logged to ensure that there are no harmful elements that could cause water-borne diseases.|
|Achievement of objectives and targets set for 2011|
|New targets for 2012|
|The key driver of our wellness strategy is our commitment to work
together with our employees to achieve enhanced health and wellbeing.
The wellness strategy arises out of our responsibility to show
conscious leadership and to prioritise health issues. There is compelling
evidence that healthier employees are more engaged in their work
environments and in their communities.
The Sun International wellness programme, One Sun Wellness, started in 2009. Our service provider is Life Assist. All employees and their immediate families (spouses and children), are eligible to participate in our wellness programme. Employees have access to Life Assist 24/7/365 either telephonically, via SMS or by email through the website. The scope of their services includes financial advice, legal advice, wellness and health, HIV/AIDS support, trauma (including trauma response), substance abuse, depression, stress and burnout and psycho-social issues.
The programme encourages all employees to voluntarily seek help for personal problems, and it is not compulsory. Managers, however, have the option to refer employees where necessary. Employees are informed about the programme during induction, in the one Sun Magazine, via posters on notice boards at all units, and a monthly newsletter which is distributed via the internet to all employees who have access to computers.
At present 8 562 employees of Sun International and their immediate families are eligible for the One Sun Wellness programme. There were 8 376 points of contact with Life Assist during Year 2, representing an awareness penetration of 98% compared to 72% in Year one. Year 2 engagement was higher than in year 1, primarily owing to the phased roll-out to business units during that time, which constituted phase 1. All Business Units came on board with effect from 1 July 2011 as phase 2 was completed.
Telephone contact seems to be preferred by employees. Below are the categories of cases handled by Life Assist over the period. The categories are continuously evaluated and where necessary, further interventions are promoted (e.g. the majority of personal cases have to do with financial difficulties, and we responded by introducing personal financial management sessions for staff).
|The communication of the Group’s sexual harassment policy to all
employees is ongoing. The Group’s formal records indicate that there
have been no reported offences during the past year.
In addition, the Group has embarked on a process of auditing the policy and further changes to the policy will be made. This will be followed by awareness workshops conducted with all staff. We are also making sure that the channels available to report any sexual harassment cases are well known to all staff and that they will be comfortable to use them to report any cases.
|The company, through One Sun
Wellness, focuses on HIV/AIDS
prevention strategies. These
include information and awareness
campaigns and programmes,
education, voluntary testing,
free counselling, clinical management
and comprehensive medical treatment
programmes. The programme is driven
centrally and is constantly reviewed to
ensure that it remains relevant to employees
and is aligned to best practice. Employees have access to
information, support and referral through our intranet, wellness
website, printed newsletters, posters and HIV/AIDS awareness days.
Employees and their dependants who are members of any of the company-appointed medical schemes are entitled to HIV/AIDS treatment benefits including anti-retroviral therapy, in terms of their respective medical aid scheme rules.
The vast majority of our medical aid members belong to the Quantum Medical Aid Society, which in total covers some 7 642 Sun International employees and their registered dependants. Members need to register with the programme to access the benefits. Of the total membership, 192 (2.5%) are presently enrolled on the programme. Once registered, the programme provides comprehensive disease management for members living with HIV and AIDS; and members have access to unlimited hospitalisation and anti-retroviral treatment, according to the schemes medicine list. Members are assured of complete confidentiality.
Employees, who are not members of a medical scheme, have access to the broader Aid for AIDS (AFA) programme, which has been running since 2006. The programme is an HIV/AIDS awareness and intervention programme, which includes HIV/AIDS Clinical Management and registration on the Expert Treatment Programme (ETP). 35 employees are presently registered members of the programme, at an annual cost to the company of R520 000. Our proactive approach to HIV/AIDS enables employees to deal positively with the pandemic.
During this financial year, we conducted an AIDS prevalence survey through Alexander Forbes Health. The survey examined the likely demographic and financial impact of HIV/AIDS. The survey considered the impact over a 15-year period from 1 July 2011 to 30 June 2026 and indicated that Sun International’s HIV/AIDS prevalence, as at 1 July 2011, was estimated at 13.6%, without ART, (Anti-Retroviral Therapy); and 12.7%, with ART, as compared to a 12% prevalence in 2005. It also found that the financial benefit of ART intervention by Sun International among its staff is R32.6 million, for the period 1 July 2011 to 30 June 2013.