Human capital

IN THIS SECTION:

♠	Review of HR strategy and direction
♠	Employee engagement
♠	Achieving organisational goals through performance management


♠	Learning and development
♠	Human capital management systems
♠	Occupational health and safety

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.

OUR ACHIEVEMENTS

OUR OBJECTIVES

♠	We successfully implemented our Performance Management System linked to the Leadership Pipeline, throughout the whole organisation, including Performance Contracting, Monthly Performance reviews, Interim Reviews and Final Performance Reviews after the end of the financial year.
♠	Job Profiles were completed for all positions in the organisation.
♠	We worked on areas identified for improvement in Employee Engagement, namely communication, managerial engagement, performance management and leadership involvement. We also conducted the third employee engagement survey.
♠	We successfully completed the 2010 Group B-BBEE Verification exercise with Empowerdex.
♠	We successfully introduced Change Management to the business and trained 1 012 employees – including change agents and change networks at business units, who will be able to support the business during change processes.
♠	We invested R5.6 million in developing in-house learning programmes. This included the acquisition of a learning management system which will enable us to better manage the learning function and to track learning and development trends across the Group.
♠	We spent R20 million rolling out management learning programmes, including the Graduate Development Programme.

HR strategic objectives for 2012 are the following:

♠	Improve employee engagement.
♠	Implement phase 2 of the performance management project which involves rolling out performance management to Manage Self (non-management) operational positions.
♠	Hold succession review sessions using the performance results of managers from the performance management system.
♠	Roll out the Learning Management System throughout the whole Group.
♠	Roll out leadership programmes aligned to the leadership pipeline and succession strategy.
♠	Align the current on-boarding programme to the talent strategy including designing an on-boarding programme for senior management and directors.
♠	Successfully conclude the Director General Labour Department Employment Equity Review.

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 employee.

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

	2011	2010

Core	9 053	7 913
Scheduled	1 844	2 825
Total	10 897	10 738

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.

Strategic realignment

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, increasing 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

	2011					2010

Country	Female	%	Male	%	Total	Female	%	Male	%	Total
Botswana	213	57%	159	43%	372	209	57%	159	43%	368
Chile	878	47%	993	53%	1 871	769	44%	971	56%	1 740
Lesotho	201	52%	187	48%	388	214	54%	179	46%	393
Namibia	183	59%	129	41%	312	167	58%	120	42%	287
Nigeria	161	32%	343	68%	504	161	34%	310	66%	471
South Africa	3 372	51%	3 251	49%	6 623	3 366	51%	3 246	49%	6 612
Swaziland	122	37%	210	63%	332	131	38%	217	62%	348
Zambia	171	35%	324	65%	495	191	37%	328	63%	519
Grand total	5 301	49%	5 596	51%	10 897	5 208	49%	5 530	51%	10 738

Employee engagement

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 organisation.

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.

Investments

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

“Operational” Run-the-business		“Strategic” Change-the-business initiatives

Learning systems & tools	Development spend (R million)	Learning programmes	Development spend (R million)
Learning management systems	R0.6	Management & leadership	R0.6
U-Count dashboard	R0.3	Coaching programme	R0.4
	R0.9	Sales, marketing & public relations	R0.1
			R1.1
Learning programmes	Development spend (R million)
Gaming programmes	R1.3
Hospitality programmes	R0.8
Compliance programmes	R0.0
Finance programmes	R0.1
Learning & development	R0.2
Opera systems training	R1.2
	R3.6
Run-the-business total	R4.5
		Overall spend on development	R5.6

Skills development

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.

Formal learning

Informal learning

Learning events

e-Learning

On-the-job learning

Knowledge management

♠	Impact conference
♠	ASTD conference
♠	Management programmes
♠	Coaching for performance programme
♠	Introduction to Front of House & Housekeeping
♠	International exec programme
♠	Compliance programmes
♠	Entry-level programmes in Gaming

♠	Opera systems training
♠	IT Microsoft online courses
♠	Anti-money laundering
♠	Single view of customer

♠	Work within role
♠	Exposure to working at other units
♠	Action learning
♠	Touchpoints training

♠	“ getAbsract” book summaries
♠	Professional subscription
♠	Policies and procedures
♠	Standard operating procedures

Structured work experience

Certifications & qualifications

Mentoring

External experience

♠	Graduate programme

♠	Various degrees/diplomas
♠	Specialist certificate in rooms division
♠	Specialist certificate in food division
♠	HRD master class

♠	Mentors for graduates

♠	Professional memberships
♠	Speaking engagements

Structured coaching

♠	Executive coaching

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

	2011	2010
Beneficiaries	9 169	8 730
Beneficiaries as % of headcount	87%	81%
Females as % of beneficiaries	50%	49%

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*

Rm	2011	2010
Leviable payroll	1 079	1 028
Training costs	41	35
% of leviable payroll	3.8%	3.4%

* 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

	Rm
Skills development levy paid	10.8
Mandatory grants received from Culture, Art, Hospitality and Sports Education and Training Authority (CATHSETA)	(5.4)

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

Trade Unions

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 company tabled its final offer on 8 October 2010 which included the following:

♠	Annual increment linked to CPI.
♠	Independence day bonus and Christmas bonus of CLP 35 000 each to increase by CPI annually.
♠	Commitment to deal with the uniform, transport and staff meal issues.
♠	Commitment to maintain all other current benefits.
♠	Request for a four year agreement.

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.

2011 Highlights

♠	Successful two-day relationship building to restore and sustain our relationship with SACCAWU after the strike action of December 2009/January 2010.
♠	Successful acceptance of the Increased Wage Agreement in Botswana and Swaziland. These agreements were implemented on 1 July 2011.

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 profiling

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.

Terminations

During the course of 2011, there were 1 269 terminations, the majority of which were resignations.

2011 Reasons for termination

Termination reason	Botswana	Chile	Lesotho	Namibia	Nigeria	SA	Swaziland	Zambia	Other	Total
Death	2	1	5	1	1	23	5			38
Dismissal – Incapacity, health					1	3				4
Dismissal – Incapacity, poor work performance	1				1	5				7
Dismissal – Misconduct	6	104	9	7	23	132	2	25		308
Dismissal – Operational requirement, voluntary		39				1				40
Dismissal – Operational requirements		73				7		1		81
End SIML management contract					1					1
End temporary employment		5			1	5				11
Resignation	30	155	12	41	20	431	14	34	1	738
Retirement		1	4	1		28	4	2		40
Unforeseen circumstances						1				1
Total	39	378	30	50	48	636	25	62	1	1 269

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:

♠	A “zero injury” mindset. We believe that all fatalities, injuries and occupational diseases are preventable. We fully embrace the vision of zero injury and will exercise zero tolerance for any breach of our OH&S standards and procedures. Each of us is responsible for correcting behaviour that could result in an injury.
♠	No repeats. All health and safety incidents need to be investigated to ensure that root causes are identified, and corrective and preventative measures are implemented. We share information and learn from incidents to avoid recurrences wherever possible.
♠	Simple, non-negotiable standards and procedures. We have adopted the principles of OHSAS 18001 as the foundation of our Group OH&S management system. OHSAS 18001 is an international OH&S management system that commits to the prevention of injuries and occupational diseases; as well as continual improvement of performance and compliance with applicable legal requirements.

OH&S awareness

The Group has a “new employee” and a “contractor/visitor” OH&S induction programme in place in each operation:

♠	Before commencing his/her new job, all new employees are made aware of the OH&S hazards on site, the general OH&S rules and the procedures and instructions applicable through OH&S induction training.
♠	An OH&S induction programme, which takes approximately 15 minutes, has been implemented for all contractors and visitors entering an operation’s premises to conduct work for the first time; irrespective of the duration of that work.

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.

Near-hits

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.

Injuries/incidents reporting

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

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.

Fatalities

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.

Risk management

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

♠	We have achieved our target of zero fatalities in the workplace.
♠	We have reduced our Total Recordable Injury Frequency Rate (TRIFR) by 15% from 3.4 to 2.89. We have thus missed our reduction target by 10%.
♠	We have reduced our Lost Time Injury Rate from 2.06 to 1.72 per 100 employees. We have, however, missed our target to reduce the rate to 1.5 per 100 employees by 15%.
♠	We have reduced our Incidence of Workplace Injury Rate to 9.7 per 100 employees. Although this is a reduction of 9.77%, we have not achieved our target of 5.35 per 100 employees.
♠	We have not managed to improve our report-writing performance as planned, owing to a 26% turnover of staff. There is still significant coaching and assistance necessary to deliver the correct reports and comply with report-writing requirements. However, the legal appointments are in place.

New targets for 2012

♠	Maintain a fatality rate of zero.
♠	Reduce our Total Recordable Injury Frequency Rate by 10%: from 2.89 to 2.59 per 100 employees.
♠	Reduce our Lost Time Injury Frequency Rate to 1.5 per 100 employees.
♠	Reduce the Incidence of Workplace Injuries to 2.5 per 100 employees.
♠	Ensure that legal appointments are compliant at all times
♠	Phase-in reports on gender and region.

Employee wellness

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).

Sexual harassment

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.

HIV/AIDS

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.

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