Our people are one of three enablers that assist the group in executing its strategy. They are fundamental to our business sustainability. Recognising our responsibility to the wider employment context, we also employ from, and upskill, the communities surrounding our operations.
Our employees are critical in achieving the group’s vision for business growth and stakeholder value. All our policies and procedures, which are reviewed by human resource managers on-site and at our corporate office, align to South Africa’s labour legislation, with any changes reported to the board through the SHEQC sub-committee. The group’s remuneration policy also ensures that employees are fairly remunerated to attract and retain motivated employees who help achieve our strategic objectives. Mining rights regulate our operations and each operation has developed a SLP. These SLPs are comprehensive documents discussed with various external and internal stakeholders, including unions, municipalities, mine management, shaft employee representatives, disabled representatives and women in mining representatives. All operations submit a SLP progress report to the DMR annually. An annual workplace skills plan and training report, and employment equity plan, is also submitted to the Mining Qualifications Authority (MQA) and the Department of Labour respectively. Employees have individual development plans in place that are regularly monitored and updated.
Pan African Resources embraces and abides by the human rights conventions of the International Labour Organisation, as supported by the South African Constitution. Human rights adherence is monitored at each operation and centrally by the executive committee, which reports to the board.
“The group is committed to upholding the human rights of all our employees, contractors, suppliers and the communities in which we operate.”
Our people are the primary driver of our four-pronged business strategy. At financial 2017 year-end the group’s total staff complement including contractors was 5,284. For the same period, the group staff turnover was 6.4%..
To ensure our employees live the group’s vision and values, we engage them continuously so they understand:
• How their individual roles influence operational performance
• How external factors impact the operating environment
Managers and executives engage with our employees through one-on-one meetings, staff and production meetings, and other methods such as emails, print (internal newsletters and posters) and digital (intranet, corporate website and social media). Pan African Resources’ workforce is unionised and complies with all applicable legislation and bargaining arrangements. Each operation has a strategic, proactive and consultative engagement process with unions and employees to strengthen relations. Evander Mines is a member of the Chamber of Mines. Barberton Mines is not a member of the Chamber of Mines and conducts its own wage negotiations.
Skills development and training
The group is committed to human resources development and training and spent ZAR32.1 million (2016: ZAR33.3 million) during financial 2017. Barberton Mines and Evander Mines have on-site accredited training centres offering a range of occupational skills training programmes. Learnership and bursary programmes are also in place for the operations.
ZAR32.1 million spent on development and training at operations.
Managing and reviewing employee performance and fostering employee development is critical to achieving our strategic priorities and overall success. All group employees from a head of department and above have defined key performance indicators (KPIs), which align with the group’s strategic objectives. These KPIs include production and personal-related KPIs, the weighting of which depends on the employee’s role and position. Assessments take place annually with the employee’s line manager and remuneration is linked to the score achieved by the employee.
Talent management and succession planning
Talent management is essential in attracting, developing, motivating and retaining productive, engaged employees. Our talent management approach aims to create a high-performance, sustainable organisation that meets its strategic and operational objectives.
We have implemented a succession planning policy to provide a continuous talent pipeline that can meet the group’s strategic objectives and minimise the risk of critical skills depletion. The group policy covers middle management positions and above.
Employees must be fairly remunerated for their roles. Remuneration depends on the individual job grading, and the group undertakes relevant research to ensure its remuneration is market related.
Remuneration for employees consists of a basic salary and benefits, including medical aid and pension for certain employees. Short-term incentive rewards are also paid monthly, quarterly and annually, depending on the level of the employee. All remuneration and incentives are measured objectively against predetermined targets.
The group’s share appreciation bonus plans are in place to appropriately incentivise selected employees at managerial level within the group.
This ensures we retain critical skills for sustainable performance and to align management and shareholder interests.
The group is committed to providing equal opportunities for individuals in all aspects of employment. Pan African Resources gives every consideration to applications for employment by disabled persons where a disabled person may adequately fill the requirements of the job. Where existing employees become disabled, it is the group’s policy, wherever practical, to provide continuing employment under similar terms and conditions and to provide training, career development and promotion wherever appropriate.