creating value by using our financial expertise to do …...nwow – to be scaled in 2019. redesign...

Creating value by using our financial expertise to do good

People Report for the year ended 31 December 2018

CONTENTS1 Overview

2 Our workforce in review

4 Leading in transformation4 2018 Employment equity demographics – African and Black (AIC)4 2018 Employment equity demographics – male and female for Black

(AIC)4 Creating opportunities for gender equity5 Community initiatives

6 Right-fit culture that unlocks value for Nedbank7 Performance management8 Recognition9 Leadership, Values and Culture Assessment Tool

10 Equipping our leaders to lead

12 Managing our talent12 Strategic workforce planning12 Talent management12 Talent mobility13 Talent acquisition and onboarding13 Redeployment centre

14 Developing our workforce for the future14 Training expenditure14 Continuous professional development15 Learnerships and graduates15 New ways of learning

17 Healthy and high-performing staffmembers17 Employee Wellbeing Programme19 Employee benefits

20 Occupational Health and Safety20 Occupational Health and Safety Committees20 Occupational Health and Safety recognition20 Emergency preparedness20 Compliance audits and baseline risk assessments20 Training and awareness20 Emergency medical facilities20 Incident reporting and attendance

21 Managing our employee relations21 Disciplinary and grievance procedures21 Grievances21 Disciplinary action21 Incapacity or underperformance21 CCMA referrals21 Settlements and legal costs21 Collective bargaining22 Industrial action

23 Looking forward

22 Learnerships programmes were implemented organisation-wide, with 1 376 learners (92% black).

Digitalisation of banking services and processes is gaining ground, not only to enable smoother client journeys, but also to reduce wastage and optimise internal processes. The financial services landscape is further being disrupted by new, non-traditional competitors and fintechs. Their innovative solutions leverage robust digital strategies, leading to more efficient operating models and enhanced client experiences, as clients expect services to be delivered with greater speed and efficiency and with less effort.

At Nedbank, our strategy requires us to be more client-focused, more digital, more agile and more competitive. During 2018 we accelerated our efforts to introduce new Ways of Work (nWoW) in our digital design and execution arm, where a number of crossfunctional teams are now working together, designing client-centred digital solutions. As our digital journey evolves there will be a material impact on the nature of work, capabilities and skills. New roles requiring skills that are scarce and critical to our future

success are being introduced. Our transition from a traditional to a new, agile organisation, offers us many opportunities to renew our value proposition as an employer of choice.

In reSponse to the changing context within which we operate, our People Strategy (People 2020) was refreshed to ensure that our direction remains relevant, for SA and internationally (including the rest of Africa). Talent, leadership and culture remain core pillars of our strategy, with employer brand added as a fourth pillar in 2018/19.

OVERVIEWThe emergence of the fourth industrial revolution introduced exponential change across industries and geographies. The banking industry is at the forefront of this change.

In this report we will unpack the existing headcount and movement of our workforce during 2018, together with the progress made against Nedbank’s strategic goal of leading in transformation. A more responsive organisation calls for an ongoing evolution of the culture and climate within which our workforce operates, pulling on levers such as performance management and recognition, as well as leadership. We will focus on how we aim to manage talent and develop our workforce to ensure a steady supply of employees with the relevant skills to

execute on Nedbank's strategy. Employee wellbeing and employee benefits, as well as Nedbank’s management of safety in the workplace, will be examined – key factors in ensuring sustainable business performance. And finally, we will reflect on how we have managed employee relations and provide our preview of 2019.

Launched a new integrated talent management approach with multiple strategic objectives

We designed and developed a strategic workforce planning practice, methodology and toolsets

Achieved 14,38 BBBEE points for skills development 2018.We achieved black (AIC) representation of 77,44% of Nedbank for 2018

Launched an informal recognition programme. 28 176 virtual recognition badges were awarded

RefreshedPerformance management approach

New, Agile people practices piloted in nWoW – to be scaled in 2019. Redesign included: The Learning Approach, new performance management, redesigned recruitment process

Received an international award from LinkedIn learning for the ‘Best learning culture in SA’ based on our staff takeup of the digital learning offering

People highlights for 2018 include the following:

Nedbank People Report 2018

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Nedbank is identifying critical skills and roles that are needed within the organisation over the next few years. By doing this, we are able to quantify the gap that we need to close between current and future skills. Leveraging the current skills and strong learning culture in Nedbank, we have begun upskilling staffmembers to enable delivery on our digital strategy. We have also brought in young, skilled talent to infuse creativity and innovation beyond what we have created previously.

We are driving the need to retain young talent within Nedbank. Based on the data below, most of our talent is in the age category of 20 to 39, making the millennials the largest group in our organisation. However, in line with the behavioural trends of this generational grouping, they are also the group where the highest turnover is experienced. We will continue to bring in fresh, young talent so that we can reach our strategic goals.

Workforce profile2018 2017 2016

Total number of employees – opening balance 31 887 32 746 31 689

SA permanent employees at the beginning of the year 27 417 28 106 2 781

Recruitment 1 934 1 851 2 657

Reclassification of staff category (changed to permanent) 383 409 364

Terminations (actual year to date) 2 734 2 931 2 684

Resignations 2 056 2 222 2 083

Deaths 46 41 50

Dismissals 241 288 253

Retirements 255 271 232

Retrenchments 23 22 8

Emigration 28 27 –

Disability 71 51 44

Other 14 9 14

Reclassification of staff category (changed from permanent) 47 18 50

SA permanent employees at the end of December 26 953 27 417 28 106

Permanent headcount change on previous year 464 (689) 287

Attrition rate (%) 10,06 10,56 9,61

Add other employee categories

Contractors and financial planners 981 1 249 1 603

Temporary staff* 400 356 345

International employees (including Africa)** 2 878 2 802 2 628

External entities 65 63 64

Total number of employees 31 277 31 887 32 746* Reported on the basis of fulltime equivalents.** Reporting of staff information is subject to country specific legalisation.

OUR WORKFORCE IN REVIEW

As our digital journey continues, we must ensure that our employees are equipped and skilled for the transition to a more client-focused, digital, agile and competitive organisation.


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Staff terminations

Age

Average number of

staff

Number of

termina-tions Rate

< 20 25 2 8,00%

20 – 29 5 824 678 11,64%

30 – 39 11 276 1 226 10,87%

40 – 49 6 484 447 6,89%

50 – 59 3 332 183 5,49%

60 – 69 290 198 68,28%

We have managed to minimise the use of retrenchments within the organisation during times of major change, rather managing our workforce responsibly by leveraging natural attrition and using a redeployment pool within Nedbank, which allow us to reduce headcount and costs in a sustainable way with minimal negative impact to our staff. Our permanent headcount has declined from 27 417 (December 2017) to 26 953 (December 2018), which at 10,06% (2017: 10,60%) is well within what we consider to be an acceptable attrition rate of between 11% and 13%.

Headcount movement

At December 2017 our headcount was 31 887. Nedbank hired 3 572 new employees across the different employee groups and executed 379 inter-business transfers. We aim to increase cross-business mobility so that we are able to increase experience, knowledge and ideas and collaborate more closely across the organisation. The 4 182 terminations (a net decrease of -1,90%) reduced our headcount to 31 277 (representing 13,4% of our total 2018 headcount), continuing on the same trend of 2017.

December 2017

Newhires

31 887(2017)

VS

32 746(2016)

3 572(2018)

4 138(2017)

-379(2018)

458(2017)

-4 182(2018)

-5 028(2017)

-458(2017)

379(2018)

Terminations2018

Types of movement

Hea

dcou

nt m

ovem

ent

HeadcountDecember

2018

Interdepartment movement –

in and out

2017 comparitive view of headcount movement

31 2

77

A comparative view of terminations in 2017 and 2018

Disability Dismissal Other

Resignation Retirement

Pie graph: Independence69% Independent non-executive director12% Non-executive director19% Executive director

Headcount terminations – 2018(%)

399

4

75

Disability Dismissal Other

Resignation Retirement

Headcount terminations – 2017(%)

299

4

76

Terminations were divided into five categories, with resignations making up 75% of the terminations in 2018.

The ‘Other’ category includes abscondment, deceased, relocation and retrenchment.

With the reduction in headcount year on year, we need to ensure that our workforce continues to represent the population of SA fairly, which means that driving transformation is always a business imperative.

Disability

Dismissal

Other

Resignations

Retirements


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2018 Employment equity demographics – African and black (AIC)

Occupational levelsTotal

population AfricansAfrican

%Black (AIC)

Black (AIC) %

Black (AIC) females

Black (AIC) females

%

Top management 17 5 29,41 7 41,18 3 17,65 Senior management 981 140 14,27 394 40,16 173 17,64 Middle management 9 039 2 484 27,48 5 493 60,77 2 977 32,94 Junior management 15 934 9 150 57,42 13 962 87,62 9 424 59,14 Semi-skilled 1 996 1 253 62,77 1 795 89,93 1 280 64,13Temporary employees 93 53 56,98 78 83,87 49 52,67 Total 28 060 13 085 46,63 21 729 77,44 13 906 49,56

2018 Employment equity demographics – male and female for black (AIC)


populationBlack (AIC)

maleBlack (AIC)

femaleBlack (AIC)

%

Top management 17 4 3 41,18Senior management 981 221 173 40,16Middle management 9 039 2 516 2 977 60,77Junior management 15 934 4 538 9 424 87,62Semi-skilled 1 996 515 1 280 89,93

In three of the five occupational levels, Black (AIC) employees make up more that 50%, and there is a strong representation of females of colour within Nedbank at most levels in the organisation.

Creating opportunities for gender equityThe Nedbank workforce comprises 61,81% (including foreign nationals) females, which are well represented at junior- and middle-management levels.

Gender breakdown per management level


population MaleMale

% FemaleFemale

%

Top management 17 11 64,71 6 35,29Senior management 981 639 65,14 342 34,86Middle management 9 039 4 303 47,60 4 736 52,40Junior management 15 934 5 175 32,48 10 759 67,52Semi-skilled 1 996 551 27,61 1 445 72,39

In an effort to fast-track our transformation journey we take the demographics of the workforce into consideration in our skills development planning. Skills development progress for 2018 is unpacked further in the 'Developing our workforce for the future' section.

LEADING IN TRANSFORMATION

We view transformation as central to the success and sustainability of the bank and have made headway in ensuring strong black (AIC*), and specifically African, representation within the organisation as indicated in the table below.

* African, Indian and Coloured.


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Community initiativesNedbank is committed to making a contribution to value-adding programmes and initiatives in the bank and in SA. Below are a few initiative and programmes that have been started or continued during 2018.

Managing diversity through the LGBTQI community: We have been at the forefront of diversity and inclusion and continue to respond to the challenges marginalised groups are faced with. The plight of the LGBTQI (gay, lesbian, bisexual, transgender, queer and intersex) community has compelled Nedbank to embark on an awareness campaign focusing on the rights of this community. An event supported by the Human Rights Commission and attended by Nedbank employees was held at Nedbank 135 Rivonia Campus, at which event members of the LGBTQI community and Nedbank leadership shared their personal experiences to encourage workplace inclusivity.

Cell C Take a Girl Child to Work: A total of 130 girls from Cosmo Secondary School and Thomas Mofolo Secondary School visited Nedbank 135 Rivonia Campus and Nedbank Selby. In the Western Cape over 80 girls and boys were hosted at an entrepreneurship workshop at Zeekoevlei Primary School.

Voices of Change: The Women’s Forum partnered with Accenture and Thomson Reuters to host a Voices of Change event with more than 200 female attendees. The event emphasised synergy – how men and women should work together, how companies need to foster synergism to everyone’s benefit – and some of the main barriers to this.

Women Professional Development: From June 2018 to November 2018, altogether 50 female staffmembers (across junior, middle and senior management) undertook a six-month group and personal coaching journey.

As part of this initiative Nedbank was the first bank in SA to undertake maternity transition coaching. This is a strategic intervention aimed at supporting key professional women though this significant life event as a measure to retain them. For the pilot 14 senior female leaders were coached before, during and after maternity leave. Taking a systemic approach, the line managers of these women also received coaching to help them navigate this transition period.

Creating opportunities for people with disabilities: Employees with disabilities represent 2,96% of Nedbank's workforce. On 3 December Nedbank observed the International Day of Persons with Disabilities at Menlyn, Kingsmead and Clock Tower campuses. The events were used to raise awareness on our inclusion journey, focusing on the rights of people with disabilities.


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A challenge shared by many other organisations, regardless of industry or location, is the speed and extent to which they are able to respond to change by implementing the required behavioural and practice shifts, underpinned by supporting values and leadership. As organisations evolve their designs, structures, products and services to be fit for the future, leaders must take charge and navigate the required culture shifts. Nedbank’s challenge regarding leadership and culture is no different than those of other financial institutions and we recognise the role that culture plays to continue to unlock value through our people.

Culture is made up of a collection of the assumptions, values and behaviours of our staffmembers. An important driver to retaining our talent is to ensure a healthy working culture.

The Barrett Values Survey is run every two years and is one of the tools we use to gain a better understanding of culture. It measures the levels of alignment between

personal, current and desired organisational values, as well as the levels of limiting values such as control and beaurocracy in the system (referred to as entropy). The 2018 results indicated a strong focus on Nedbank being competitive and sustainable as a business. However, it also reflected an increase in entropy at 20% (2016: 12%).

We realise that our people face many challenges in the macro environment (work and personal lives, social economic pressures, etc) and that a higher entropy level is indicative of an organisation in transition. Nedbank is taking the feedback from staff seriously and is responding at both an enterprise and cluster level.

At enterprise level focus group discussions were conducted with representatives from Nedbank’s top 500 leaders and staffmembers who are part of the nWoW pilot. A targeted action plan is being developed to address root causes of entropy at both an enterprise and a cluster level.

During 2018 three levers were deployed to target behaviour change in Nedbank, namely performance management, recognition and an assessment tool for leaders, called Leadership, Values and Culture (LVC).

RIGHT-FIT CULTURE THAT UNLOCKS VALUE FOR NEDBANK

For organisations to remain competitive in a changing industry, organisational culture needs to evolve to support the new world of work.


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Performance managementA refreshed performance management approach was launched to support the development and sustainability of our culture. This approach emphasises meaningful conversations around impactful work and focuses our efforts on creating value, rather than merely rating performance. Our refreshed approach commenced in 2017 at senior levels (as a pilot), with a phased rollout to be completed for all staffmembers in 2019. By the end of December 2018 altogether 4 600 staffmembers were moved to the new approach and approximately 10 000 staffmembers were trained through formal workshops on this new approach. The rollout was further supported by a rigorous communication campaign and a variety of change management tools. Considering that both the refreshed and the old performance management practices applied in 2018, it is impressive that 96,76% of staffmembers made use of necessary performance management practices (2017: 86%).

In addition, with SA and the United Kingdom having implemented the new performance management approach, Nedbank aims to roll out the new approach in our Rest of Africa subsidiaries in 2019.

Regular, on time and meaningful performance conversations are a significant culture shift and we have recognised that our managers need support and training to develop their coaching skills. During the nWoW pilot programme the new performance management practice was tested and further enhanced through the introduction of a team-based performance management practice.

The performance management process includes:

z Planning work and setting goals. z Continually monitoring performance. z Developing the capacity to perform. z Periodically evaluating performance. z Recognising and rewarding good

performance.

A well-executed performance management process recognises desired behaviour and provides clear guidelines on how we manage underperformance. For this reason, our approach to managing underperformance was also refreshed as follows:

Equipping managers with the know-how to manage under-performance through, for example, classroom training and e-learning tools.

Increasing understanding of the overall approach to managing under-performance in the bank.

Developing leaders as coaches in alignment with the refreshed performance management practice and coaching enterprise ecosystem to improve performance and manage under-performance.

Enabling manager to apply performance corrective measures fairly across the bank to ensure that we comply with the relevant labour legislation.

1

2

3

4

A practice guide for refreshed underperformance management was launched to explain the new approach and extensive formal and online training is planned to embed the practice. In 2019 Nedbankers will further be developing their skills and confidence to practice the new performance management approach in their day-to-day interactions.

Recognition It is important not only to manage underperformance, but also to acknowledge the outstanding contributions of our staffmembers in order to encourage an increase in discretionary effort, the role-modelling of preferred Nedbank behaviours, as well as teamwork. Both Nedbank’s formal recognition programme (Top Achievers) and our informal recognition process were redesigned and launched in 2018.

Formal recognitionNedbank’s formal recognition approach enables anyone to recognise a staffmember or a team with a motivation why they need to be considered for a nomination. The nominations are considered through a well-governed process, following which Top Performers are announced.

The changes introduced in the updated Top Achiever programme to achieve the necessary behavioural and cultural change can be summarised as follows:

z People 2020 is about culture shift – recognition is a key enabler for this shift.

z The enhanced recognition approach supports the transformational journey.

z Enables the required shift from an annual recognition event to a behavioural change all year round.

z Better governance and compliance through a single recognition system.

Why the change?

z Recognition criteria aligned and integrated with the strategic drivers.

z Groupwide recognition standards for consistency of employee experience and fairness.

z Rewards in the form of days off, Krugercoins and incentive trips.

How are we changing?


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A total of 467 (1,6%) of our staff were formally recognised for their contributions in the 2017 calendar year with an international trip in 2018.

By 31 December 2018 the new recognition programme saw 7 621 (2017: 1 423) formal individual recognition nominations being received, which is a 436% increase on the number received under the old programme. There was also a significant increase in formal team nominations from 560 in 2017 to 1 984 in 2018.

The introduction of virtual recognition badgesTo drive new behaviours ‘on the spot’ and ‘in the moment’ virtual badges have been introduced, which allow employees to acknowledge their colleagues informally for the great work being done. There are seven badges that can be given at any time and there is no limit to the number of badges given to a staffmember:

z I create a high-performance environment z I am action orientated z I am agile z I deliver value-adding ideas z I am a Nedbanker z I am client driven z I am team savvy

The informal recognition programme encourages staff to recognise the positive behaviours of others and we are extremely proud of the takeup of this initiative. Since the launch of the new recognition programme in April 2018 a total of 28 174 virtual badges have been awarded, clearly indicating that our staffmembers are embracing the new approach of thanking and recognising their colleagues for performance excellence delivered with the right behaviours. Note that the ‘team savvy’ badge was introduced later in the year as a result of continuous feedback received around the increasing importance of teams in achieving overall performance.

The types of badges and numbers awarded are illustrated below:

Our new approach, combined with an extensive change and awareness campaign and the fact that it is accessable to all staff, significantly increased the number of employees being recognised for the great work done for Nedbank in 2018 (formally and informally).

Formal recognition – 2017 vs 2018

Formal individual

0

500

1 000

1 500

2 000

2 500

DecemberMarch

Individual 2017Individual 2018

Total 2017 = 1 423Total 2018 = 7 621This represents a 436% increase in individual award nominations in 2017 from 2018

Formal teamFormal Team

0

200

400

600

800

1 000

DecemberMarch

Team 2017

Team 2018

Total 2017 = 560Total 2018 = 1 984This represents a 254% increase in award nominations in 2017 from 2018

Formal individual

During 2019 we will continue to embed the new recognition practice as this is considered to be one of our key levers in driving the desired culture change.

Leadership, Values and Culture Assessment Tool For us to shape the desired culture change, behavioural shifts are required from our leaders. These leadership behaviours, underpinned by supporting values, will create the right environment for success. In this regard a new goal – Leadership, Culture and Values (LVC) – was piloted and introduced in the 2018 goal commitment contracts of the Group Executive members. The introduction of the new goal was done in alignment with the refreshed performance management process and this measurement will be cascaded to the next level of executives in 2019, creating strategic alignment and building the necessary leadership capabilities to drive a cultural shift in Nedbank.

Several learnings were taken from the Nedbank nWoW pilot programme around the cultural and leadership requirements for a more agile and competitive organisation. These learnings, together with the refreshed Nedbank strategy, will be integral in shaping the way forward for culture and leadership in 2019. It is critical for us to equip our leaders not only to lead the culture change, but also to help navigate our staffmembers through exponential change, using the LVC tool as well as the personal development plans of our leaders.

Team savvy

NedbankerAgileAction orientated

Value-adding

High performance

Client driven

5 70

0

5 60

7

7 70

4

4 90

7

1 36

2

2 59

4

300

Total badges given 2018


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Executive development remained a focus area in 2018. The Executive Business Transformation Programme was designed and developed in partnership with Duke Corporate Education and in 2018 a total of 30 Nedbank executives participated in and completed the programme (2017: 42). The Africa Expansion Programme (AEP) is a BANKSETA-funded programme in which five Nedbank executives are currently participating. The International Executive Development Programme (IEDP) is designed to complement the existing executive development programmes implemented by employers in the banking and microfinance sector. This BANKSETA-funded programme adds a South African, African and international perspective to the development of high-potential senior managers. Six Nedbank executives are currently participating in the IEDP.

In Corporate and Investment Banking the focus on leadership development has been on building strategic core capabilities of leaders. The four leadership development programmes, which began in 2018 and will continue into 2019, are focused on building and enabling leadership capabilities and were attended by 30 leaders:

Digital Leadership Programme: A programme with strong emphasis on entrepreneurship, which prepares leaders to lead in a changing world that is moving towards a more innovative and digital environment.

Oxyor Executive Banker Programme: Focusing on product knowledge to enable solutioning towards cross- and upselling.

Makanyane: Focusing on personal mastery, empowering leaders to lead in a commercial environment.

DnX: EQ and the DNA of leadership.

The rollout of focused master classes continued in 2018, with the objective of building future organisational and leadership capability. Design thinking and client centredness were the two key capabilities concentrated on for 2018:

z Design thinking: 282 delegates attended and completed the master classes.

z Client centredness: 110 staffmembers attended advanced master classes and 447 delegates attended three-hour learning sessions.

During 2018, two management development programmes were presented through Henley Business School, with 47 delegates receiving a postgraduate or higher certificate in management practices.

The Nedbank LEAD (leadership, evolution, alignment, development) journey is the vehicle through which we reach Nedbank leaders to create strategic alignment and build the necessary leadership capabilities. The LEAD journey was launched in April 2017 and continued in 2018, with a key focus on:

Encouraging our leadership team to drive and live our new desired Nedbank culture through a key focus on the client, agile ways of working and an environment where risk and innovation practices are balanced while managing individual’s, team and enterprise performance.

LEADERSHIP

Orientating leaders across the enterprise to what is required of leaders to win, given the specific context at that stage and in alignment with the Nedbank Leadership Persona.

ALIGNMENT

Providing digital and immersible development opportunities to build leadership capabilities as embodied by the Nedbank Leadership Persona.

Development interventions are based on 360 feedback and psychometric assessments.

DEVELOPMENT

Continuously evolving leadership mindsets and behaviours that are required to navigate the changing world of work, financial services and clients through worldclass talent management practices, including performance management, reward and recognition.

EVOLUTION

EQUIPPING OUR LEADERS TO LEAD

Leadership remains one of the pillars of our People Strategy as it is a significant contributor to shaping the culture of the organisation. The new world of work demands a new way of leading and managing our people.


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The Leadership Portal was developed in 2018 to serve as an online leadership development solution which is aimed at enabling Nedbank leaders to represent the Nedbank Leadership Persona. The portal was designed to unpack components of the Leadership Persona into core behaviours and guide leaders towards the application of these behaviours through virtually simulated coaching conversations.

Online Management and Leadership Development Programme: In August 2018 Nedbank commenced participation in an international, online pilot programme that will result in delegates receiving a postgraduate diploma in digital business. The programme is tailored to guide business leaders to effectively bring about digital

transformation in their organisations. The feasibility of the programme will be assessed after completion to determine future relevance and participation.

In 2019 the LEAD journey will be focused more on the most relevant leadership behaviours required to support the execution of Nedbank’s strategy. We will source, build and implement learning solutions that enable the required leadership capabilities and behaviours.

Nedbank’s leaders are being equipped with a better understanding of the skill requirements for their businesses and to use streamlined talent management practices to help them build their workforce.

Proactivity is required to ensure a steady supply of right-fit talent, especially for new roles that require scarce skills. In response, we have launched a new integrated talent management practice in 2018, with the aim of moving beyond tactical succession plans toward more strategic tools and processes to manage our talent.

Strategic workforce planningIt is important to identify the demand for specific talent and skills proactively, especially in a time when certain skills are scarce. We recognise that strategic workforce planning makes this possible and in 2018 we designed and developed the required practice, methodology and tools. Building internal capability to implement strategic workforce planning has started and will continue in 2019. The practice, which did not exist in Nedbank before, now enables us to be more forward-looking and proactive by identifying skill gaps.

Talent managementNedbank has launched a refreshed talent management approach to ensure a steady supply of right-fit talent. The rollout of the new approach was enabled through our existing investment in the SAP Success Factor Succession module and supported by capability-building master classes with HR professionals and line managers.

We also established a Young Talent Advisory Forum to add the innovative and dynamic perspectives of millennials to matters of strategic importance to Nedbank. The forum was launched in February 2019.

The following additional bursar and graduate highlights were achieved in 2018:

z Our external bursary programme (sponsored by the Nedbank Education Trust) granted bursaries aligned to the scarce and future skills required by us and our country to the value of R12,5m for the 2018 academic year. These bursaries include eight bursaries for honours students and 80 bursaries for undergraduates (41 first-year bursars for the 2019 intake). Bursars who have attained an aggregate of 75% and above for the funded academic year, receive a Top Achiever award of R5 000 to encourage excellent performance. Altogether 20 bursars who graduated in 2018 attended a work readiness programme to prepare them for the world of work, which included insights into creating business plans, entrepreneurship 101, CV writing, interview tips, social-media behaviour and personal branding.

z The Graduate Recruitment team facilitated the attendance of career fairs at 17 universities countrywide to market the various graduate programmes. The team also worked with the career offices to advertise in university handbooks and target relevant faculties to showcase the niche/specialised graduate programmes.

z The scope for our investment in the Youth Employment Service (YES) was determined. YES recognises the critical role the youth plays in shaping our economy and our country, and seeks ground-breaking ways, through innovation and technological best practice, to create one million jobs for SA’s youth. We are committed to playing a positive role along with other leading CEOs and the government, and is participating and bearing the costs of internships for previously unemployed youth as part of YES.

In 2019 we will focus on establishing functional talent forums to create talent visibility and review the development and retention of key talent. In addition, we will continue to focus on reviewing talent policies and embedding the integrated talent management approach.

Talent mobilityWe apply differentiated retention and development strategies aligned with staffmembers’ career and development aspirations, as well as retention drivers. Talent mobility, which we view as an important retention driver, will receive increasing attention. The practice of talent mobility, which includes extended tenure within certain roles, is also a key lever in managing organisation challenges and opportunities such as the need for skills transfer and the aspirations of younger emerging talent.

A policy on international talent mobility was developed and launched specifically to enable crossborder talent sharing within the group in a manner that is consistent with the group’s talent strategy so that we can build and deploy talent in response to business needs.

One of our enterprisewide talent measures is the mobility of talent within and between clusters and across our presence in the United Kingdom and the rest of Africa, and we will continue our focus on increasing talent sharing in 2019. This mobility framework and strategy will ultimately impact talent acquisition, onboarding and the redeployment centre.

MANAGING OUR TALENT

Nedbank has recognised the need to anticipate and plan for future skills requirements in a changing world of work where roles are continuously evolving and people need to be developed for the future roles.


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Talent acquisition and onboardingAlthough Nedbank aims to prioritise the development of internal talent for vacant roles, given the evolution of the skills landscape, there will always be a need for us to top up our internal talent pool with top talent external to the organisation. This being said, finding the right talent and attracting them to your organisation can be challenging, especially when scarce skills come into play.

The Nedbank career page (nedbank.co.za) that is used by prospective external candidates was updated in 2018. This update simplifies navigation for career opportunities and has improved the overall candidate experience.

LinkedIn Talent Solutions has been key in our talent attraction approach and identification strategies. We have placed over 600 candidates over the past years through LinkedIn Recruiter and the group enjoys non-financial value purely from the brand reach in the passive-candidate markets. We have also seen that over 56% of new employees were directly influenced through the Nedbank LinkedIn investment before starting their careers with us. The latest LinkedIn data confirms that Nedbank’s employer brand has had a far wider candidate reach through LinkedIn than other traditional talent attraction and sourcing platforms. Our strategy with LinkedIn is aligned with the current enterprise skills requirements (scarce and future).

We aim to demonstrate an improvement in speed, agility, cost and quality in attracting and acquiring key talent in an innovative way, while positioning the Nedbank brand with a renewed digital recruiting approach. Nedbank was the first financial institution in SA to host the HackerX talent event, taking innovation to new heights by adopting a fresh approach to sourcing top local talent. HackerX is a global events and branding company that facilitates over 300 networking and recruiting events in more than 125 cities every year, working with more than 3 000 tech companies. Its mission is to help build up the tech ecosystem globally by connecting people with technical skills to organisations with job opportunities. We saw this as an opportunity to transform the way we recruit for technology positions and engage with potential employees.

At our HackerX talent event 398 interviews were conducted in 90 minutes, with 40 potential new hires having been identified with a cost saving, as no placement fees are required. Due to the success of this event and the opportunity to transform the way in which we recruit and engage with potential employees, a second event will be hosted in June 2019 to attract more top talent.

During the nWoW pilot Nedbank also piloted a new centralised process to cater for the fast-paced need to fill technology roles in particular, as well as to improve the candidate experience. An integrated assessment reporting solution was implemented to enable greater efficiencies in producing feedback reports for recruitment and developmental purposes. In addition, two robots were implemented in the talent acquisition and onboarding process, resulting in an efficiency gain. Although early-process improvement results were achieved in 2018, further improvement to sourcing and onboarding remains a key strategic priority in 2019 to ensure that we can compete for top talent in the market. This will include digital enablement to ensure new staffmembers are operational on their first day in their new role.

Redeployment centreTo keep up with exponential change, the organisation and its people must be constantly reinvented. We have not had any material retrenchments over the years. We proactively managed to keep the number of retrenchments down to 23 in 2018 (2017: 28) through the effective use of our redeployment pool and effective management of staff turnover. This has allowed us to reduce headcount and costs sustainably in a way that has a minimal impact on our staffmembers.

Given the forces of change and the downward economic cycle, operational expenses will continue to be in the spotlight and Nedbank will continue to use retrenchment only as a last resort. In line with our philosophy of being a responsible employer, we will be able to identify the skills gaps more proactively through strategic workforce planning. Throughout our transition we are equipping our staffmembers by providing fit-for-purpose learning opportunities to ensure their skills sets are relevant for the future.


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This is evident from our continued commitment to addressing skills development of our staffmembers as well as our support of multiple initiatives in the broader society. Differentiated learning investment in key transformation initiatives ensures that the development of black staff, including prioritised focus on black female staffmembers. This commitment is also reflected in Nedbank’s financial investment for 2018 in this regard.

Training expenditure Item 2018 2017 2016

Total basic payroll R14 131 011 851 R13 602 411 699 R12 434 089 277Total training spend R468 128 368 R338 615 730 R413 801 698Training spend as % of basic payroll 3,3% 2,5% 3,3%Training spend for black staff R370 069 058 R270 106 808 R319 755 713Training spend for black female staff R228 013 860 R173 021 509 R198 311 395

Training spend for black staff with disabilities R6 066 974 R3 571 775 R6 212 080Training spend for black female staff with disabilities R3 813 704 R2 267 321 R3 584 204

In 2018 Nedbank achieved 14,38 BBBEE score card points for skills development, which is a notable increase on the 12,65 points achieved in 2017 and a testimony to our commitment to the growth and development of our people.

The 2018 training spend for black staff exceeded the 2017 spend recorded as result of the investment in differentiated skills development.

Due to the ongoing investment in skills development 31 691 training beneficiaries were recorded in 2018, with an average of 35 hours of training per staffmember (this included compliance training). The number of beneficiaries trained in 2018 represents a 27% increase from 2017. With the introduction of digital learning platforms giving staffmembers easier access to training, face-to-face classroom training is expected to continue to decline. In 2019 we will be investigating options to improve our ability to keep record of and acknowledge digital learning completed.

Continuous professional developmentNedbank is committed to enabling all staffmembers to perform to their full potential through continuous professional development. Awarding internal bursaries remains an important driver of professional development, and bursaries are granted to permanent Nedbank staffmembers who wish to acquire academic

qualifications from recognised and accredited institutions. In 2018 we removed the requirement that qualifications must be linked directly to an employee’s current role. This has been done to acknowledge that roles are rapidly changing and that such a requirement limits our ability to develop our workforce for the future. In addition, Nedbank is widening the special study leave benefit to include additional learning options. The benefit of these changes will only really be experienced in 2019 due to the timing of the academic year.

During 2018 bursaries to the value of R12 505 311 were awarded to 804 staffmembers.

Occupational levelNumber of

staff members Actual

payment

Senior management 8 R357 436Middle management 372 R6 036 290Junior management 387 R5 527 162Semiskilled 37 R584 421Total 804 R12 505 311

Continuous professional development was also enabled through several additional programmes resulting in 90 staffmembers benefiting from formal qualifications.

DEVELOPING OUR WORKFORCE FOR THE FUTURE

An investment in the development of our people remains a strategic imperative for Nedbank that supersedes regulatory compliance in this regard.


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Learnerships and graduatesLearnerships are key vehicles through which we can help address SA’s skills shortages and infuse young talent into the organisation to enable a future-fit workforce. In 2018 Nedbank increased its learnership participation through 22 learnership programmes, with 1 376 learners – a significant increase from 765 learners in 2017, with black representation remaining at 92% for both years. The increase in participation is due to the addition of a number of learnerships targeting internal staffmembers, in line with our commitment to develop our existing workforce. Four of our learnerships, Letsema (168 learners), Kuyasa (54 learners), Business Analyst Learnership (seven learners) and FMI (one learner), targeted unemployed graduates and matriculants. Nedbank’s appointment rate across the four programmes stands at 15,2%, compared with 4,9% in 2017. While this is an acceptable rate given the lower skills of the learners, it is desirable to increase this rate to achieve the full target, as set out in the DTI scorecard, and to make a bigger contribution towards the government objective of providing employment opportunities for unemployed youth.

Our various Nedbank Graduate Programmes provide candidates with workplace experience and a platform to apply theoretical knowledge to real business problems. It aims to build foundational skills for young talent, while supporting Nedbank’s journey of becoming more digital and client-centred. During 2018 Nedbank employed 61 graduates across four graduate programmes, ie the Nedbank Graduate Programme, CIB Graduate Programme, CA Programme and Quants Programme (2017: 70).

Programme 2018 2017 2016

Nedbank Graduate Programme 18 16 15CIB Graduate Programme 20 30 12CA Programme 14 11 12Quants Programme 9 13 9

Total participation 61 70 48

The organisation welcomes the opportunity to infuse young diverse talent and thinking into the organisation, and the following appointment rates have been achieved: Nedbank Graduate programme (58%, with two graduate appointments pending at the time of the report being published); CIB Graduate Programme (100%, graduates are appointed permanently at the onset); CA Programme (60%); and Quants Programme (35%).

New ways of learningConsidering the demands of the changing world of work and the need to provide our staffmembers with the skills they need for the future, we further invested in digital learning infrastructure and solutions in response to the demand for self-directed learning. Digital learning gives staff the opportunity to learn where and when it suits them and break down the contents in consumable parts. The uptake of this offering was so successful that we received an international award from LinkedIn Learning for the ‘Best learning culture in SA’. Digital learning is core to enabling a future-fit workforce, and in 2019 extensive time and energy will be invested in building a comprehensive digital-learning landscape focused on those future and scarce skills highlighted in our strategic workforce plan.

Even though the average hours of learning have dropped, we have seen more people trained, as they now study in a more focused way with less time in classrooms.

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Additional formal-programme participants

White femaleWhite maleIndian femaleIndian maleColoured maleColoured maleAfrican femaleAfrican male

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0

4

0

9

6

0

1

7

1

15

10

0

0

0

0

2

2

0

2

1

0

1

2

3

0

0

1

3

2

0

0

4

0

1

1

0

0

0

1

0

3

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3

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Property Finance AcademyPostgraduates Diploma in Management PracticesHigher Certification in Short-term insuranceHigher Certificate in Management PracticesHigher Certificate in Financial ProductsAdvance Certificate inFinancial Planning


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The following digital-learning platforms have been made available to our staffmembers:

z LinkedIn Learning was piloted in Retail Business Banking and Group Technology. A total of 3 218 licences were issued in 2018 and 32 316 hours were spent on learning content that covered a wide variety of subjects ranging from technical training, leadership and management to problem solving and design thinking. Following the successes of this platform, we have invested in 30 000 licences to enable the entire organisation to participate in this learning experience going forward.

z Altogether 246 Udemy licences were issued in 2018, with a 100% learner adoption and an average of 102 hours spent on learning. In total 103 362 hours were spent viewing content in 444 courses. The majority of the courses covered technical skills focusing on methodologies such as Scrum Design Thinking, Agile and Coding.

z A Nedbank Agile 101 Boot Camp was designed and developed by us and for us to upskill our staff. In the year under review 1 037 staff members attended the boot camp and peer-led Agile learning and master classes have been added to learning journeys for new Agile roles.

A key focus in 2019 is to develop and implement a learning and development approach that will grow our skills base in line with our strategic workforce plan to meet future and scarce skills requirements through differentiated and prioritised funding approaches.

In line with our commitment to being people-centred, the wellbeing of our staff has always been and will always be a top priority for us. We recognise that employee wellbeing is a cornerstone for sustainable business performance and our holistic approach focuses on career, social, mental and emotional, financial, physical and community wellbeing.

Employee Wellbeing Programme Through our Employee Wellbeing Programme (EWP) we provide confidential counselling services to help staffmembers and their direct family members deal with personal and professional problems that might adversely impact their work performance, health and wellbeing. In 2018 we had 24,40% of our staffmembers and their direct family members making use of confidential counselling services (2017: 21,30%). This increase may be attributed not only to an increase in wellbeing concerns, but also to our efforts to promote ICAS counselling support in 2018. Although health concerns are on the rise, it should be noted that less sick leave was taken in 2018 than in 2017, while annual leave taken, increased in 2018 (refer to the following table):

Overview/Summary 2018

% shift from

2017 to 2018 2017

Annual leave man days 454 055 0,5% 451 851Sick leave man days 137 147 (1,9%) 139 776

As Nedbank’s workforce decreased by -2,1% year on year, a -1,9% reduction in sick leave is understandable. Annual leave man days have, however, increased by 0,5% – a positive sign that staffmembers are taking the required time off, which contributes to work-life balance.

Deteriorating health conditions are further evidenced in the number of people placed on disability, which increased from 51 in 2017 to 71 in 2018. An increase in disability claims can be correlated to financial stress, brought about by the weakening economy, leading to both physical and mental illness. In 2018 the highest cause of claims on our disability scheme has been linked to mental illness. We are also noting an increase in claims from the higher income earners.

Nedbank encourages staffmembers to stay healthy, engaged and fit through preventative health management (early detection or prevention of disease). During 2018 we saw 2 744 staffmembers participating in preventative health interventions (2017: 2 171), including 180 executive health assessments (2017: 210). A total of 730 (2017: 1 369) staffmembers attended wellbeing talks by experts on a variety of topics such as relationships, gender violence, mental health and cancer. We had 1 149 staffmembers accessing financial education, debt counselling and other support tools and services through Staff Banking and our EWP (2017: 606). In addition, five pilot sessions of the #FutureMe programme were held and focused on the individual’s holistic wellbeing to manage transition during times of change.

To promote community wellbeing we support causes in the community that our staff care about. Our volunteerism community programme is an important part of the Nedbank culture. It builds staff morale and adds tremendous value to our corporate social investment (CSI) efforts. The programme takes the different needs, preferences and capabilities of our Nedbank volunteers into account. Opportunities range from once-off volunteer projects, team efforts, long-term volunteering and financial donations. Most of the projects chosen by staff seek to address poverty, hunger, wellbeing and education. To encourage and enable our staffmembers to contribute to social upliftment we offer each of them two days paid volunteer leave per year. Currently, more than 20% of our staffmembers make use of these two days to work in their communities.

Financial wellbeing

Career wellbeing

Physical wellbeing

Socialwellbeing

Community wellbeing

Holistic wellbeing approach

Mental and emotional wellbeing

HEALTHY AND HIGH-PERFORMING STAFFMEMBERS

Change in the workplace, as well as the state of the SA economy and landscape, means that staff have to deal with more stress at work and in their personal lives. Nedbank aims to support all staff to ensure a healthy work-life balance.


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LOCAL HERO

To provide financial support to the organisations where staffmembers

volunteer and to recognise staffmembers' efforts.

Number of local heroes in 2018: 94 (2017: 89)

Number of NPOs that benefited: 94 NPOs (2017: 89)

PAYROLL GIVING

A structured and efficient programme to facilitate regular

financial donations from staff to non profit organisations (NPOs).

Payroll givers in 2018: 4 679 staffmembers (2017: 5 104)

Number of organisations that benefited: 12In 2018 R2,8m was donated by staff

TEAM CHALLENGE

Staffmembers form teams to support a variety of NPOs over a period of 10 months, with seed funding made

available to get the project off the ground.

Number of team challenge participants in 2018: 650 staffmembers in 43 teams

(2017: 48 teams) Number of organisations that

benefited 43

SATURDAYSCHOOL

To provide extra tuition in English and Maths in grades 5 to 7.

Number of Saturday School volunteers in 2018: 16 (2017: 16)

Number of learners benefiting: 50 (2017: 50)

PROGRAMME OBJECTIVE IMPACT

z 43 hygiene packs made up from 727 donated toiletry essentials. z Transforming the space by, among other things, painting the back walls surrounding the garden. z Creating an awareness video on addiction and the incredible work done by Breaking the Chains.

A financial fitness session as well as a resume-writing and interview skills workshop will kick off early in 2019. Skills development programmes in hospitality, electrical engineering, coding, plumbing, carpentry and furniture-making have also been identified to help the recovering addicts enter mainstream society and the workplace.

Team Care Bears partnered with Breaking the Chains, a drug and substance abuse rehabilitation centre based in Lenasia South. Care Bears, together with the centre management, identified several projects for 2018, including:

Case study

Below are some of the projects staffmembers were involved in:


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membership of the NMAS received the subsidy towards their medical aid premium. If a staffmember left Nedbank before retirement, they forfeited all contributions made. Many staffmembers did not therefore value this ‘conditional benefit’, which was also regarded as outdated. After extensive consultation with staffmembers, the union, regulators and other key stakeholders, a fair and equitable solution was developed and successfully implemented. This solution offers staffmembers several options that allow them to stop the monthly deduction. Depending on staffmembers’ terms to retirement, the replacement benefit includes a lump sum injection into their retirement fund, with the option of continuing to grow their retirement savings with ongoing contributions from their guaranteed package. The PRMA benefit has now been successfully closed.

z The retirement fund and infund life insurance offer our staffmembers good value for money. We continue to review the offering to remain relevant to the market and meet our employees’ diverse needs. The following was reviewed and enhanced during 2018:

| The default retirement contribution rate was reduced from 17,5% to 15,5% in response to staff requests.

| We have integrated retirement-related information, formal policy and the associated process to ensure alignment across the enterprise with regard to early retirement, normal retirement extension, etc.

Financial wellbeingWe continued to enhance the financial wellbeing of our employees through the following:

z The Dr Holsboer Benefit Fund, which assists with medical shortfalls, supported 1 180 staffmembers to the value of R4 448 884 (2017: 1 139 staffmembers – R4 077 640).

z Nedbank staffmembers, their families and pensioners booked 1 490 holidays with Dr Holsboer Vacations, with more than 7 505 nights spent on holiday.

z The Gerry Muller Fund assisted 342 Nedbank pensioners (2017: 393) with medical grants for shortfalls to the value of R987 466 (2017: R866 812). In 2019 marketing will increase to raise awareness on this benefit to pensioners.

z Nedbank study grants assisted 174 staffmembers, to the value of R2 386 930 (2017: 219 staff members, R3 189 543), with obtaining a first-time degree or diploma. In 2019 the earning threshold for the Dr Holsboer Study Grant will be raised from R500 000 to R600 000, enabling more people to apply. Awareness of this grant will be driven this year.

z The Dr Holsboer Education Fund assisted 2 226 staffmembers (2017: 2 384) with a once-off grant for their children, increasing the total amount of R3 931 000 contributed in 2017 to R4 058 480. In 2019 this benefit will be marketed more aggressively, with additional time given to complete applications.

In 2019 we will continue with our efforts to improve benefit understanding. In addition, the flexibility and range of our benefit will be reviewed and tested to improve our talent-value proposition.

As part of ensuring a holistic wellbeing approach, it is important for Nedbank to create a safe and accessible environment, with access to medical attention when needed.

Employee benefitsIn 2018, to attract and retain talent, the focus was on educating existing and potential staffmembers on employee benefits that could improve the quality of their lives at each critical life stage. Under the banner of ‘My Benefits’, a website was launched for targeted awareness communications to improve our staff’s understanding of available benefit offerings. Our Employee Day was once again hosted at 27 sites across SA to promote available benefits through face-to-face engagement and prepare staffmembers for the two annual benefit selection periods. Altogether 3 800 staffmembers and pensioners participated, giving us insights into their needs, as well as potential focus areas for 2019.

With more employees calling for greater work-life balance, many of our staffmembers make use of our option to work flexible hours. This is just one more tool our leaders can use to manage a more dynamic workforce.

In line with our current workforce needs, we are continuously reviewing employee benefits, with the following having been enhanced in 2018:

Annual statutory leave z Removing the requirement to take 10 consecutive leave

days provided staffmembers with more flexibility to manage their work-life balance and empowered line managers to plan workload more effectively.

z Operational requirements may require employees to adhere to 10 consecutive days leave, excluding public holidays.

Family responsibility leave z The definition of family responsibility leave has been

widened to consider the context of care demands in SA based on the diverse culture and customs of our staffmembers. The current offering is more inclusive and provide more flexibility.

z The paternity leave category was further extended from three to 10 days.

Gap cover z Nedbank changed the supplier relationship for the

administration of medical gap cover, effective 1 December 2018. Premiums will remain unchanged until June 2019.

Our other employee benefits include the following:

Minion Kids Crèche In 2018 Minion Kids Crèche at Nedbank 135 Rivonia Campus continued to make it easier for some of our staffmembers to achieve work-life integration, catering for between 160 and 174 children.

Compulsory benefitsThrough Nedgroup Medical Aid Scheme (NMAS) our staffmembers continue to enjoy a medical aid that has been recognised as an effective healthcare partner, with a variety of fit-for-purpose plan options.

For many years the bank has offered a postretirement medical aid (PRMA) subsidy. This subsidy was funded by a compulsory monthly deduction from the guaranteed packages of our staff. Staffmembers who retired from Nedbank and retained their


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The division guides the group on all health and safety matters and ensures compliance with legislation and regulatory updates. In this regard Nedbank has to comply with the Occupational Health and Safety Act, 85 of 1993, and its regulations, as well as the Compensation for Occupational Injuries and Diseases Act, 130 of 1993.

In the case of Nedbank foreign subsidiaries, all these must adhere to the relevant occupational health and safety laws and regulations in the countries in which they are located. It is also compulsory for Nedbank’s subsidiaries to comply with the Nedbank Group OHS Policy.

An important milestone was reached in 2018 with an agreement having been reached with SASBO relating to the appointment of health and safety representatives as required in terms of regulation 6 under the Occupational Health and Safety Act.

Occupational Health and Safety committeesIt is compulsory for the Nedbank headoffice, regional offices and branches to have fully functional health and safety committees. Management is responsible for ensuring that OHS appointees are available and trained for their health and safety roles as part of their daily work-related activities, with refresher programmes having to be attended regularly. In 2018 a total of 640 OHS appointees (2017: 462) received this training. The increase is as a result of the focused efforts of the OHS division to raise awareness of the importance of qualified representatives across the group.

Occupational Health and Safety recognitionOHS Awards events were hosted in Gauteng, KwaZulu-Natal, Free State and Western Cape to recognise individuals and teams demonstrating their commitment to occupational health and safety.

Emergency preparednessEvacuation drills take place at all sites at least twice a year. Local disaster management, emergency medical, fire and traffic services form part of our emergency preparedness procedure. In 2018 evacuation drills were completed at 449 sites (2017: 332).

Compliance audits and baseline risk assessmentsIndependent OHS compliance audits are conducted internally once a year, and the results of these audits are reported to Nedbank Group management. In the year under review 277 sites were assessed (2017: 186) and the findings were presented to the relevant heads of various portfolios so that they could manage them properly.

Six standard operating procedures (SOPs) were developed to remediate common findings.

Training and awarenessIt is compulsory for all our employees to complete online OHS training and acknowledge the Nedbank Group OHS Policy and the Incident Reporting and Investigation Procedure.

Emergency medical facilitiesOur medical emergency (advanced first-aid) rooms are equipped with the latest emergency equipment and our first-aiders are fully trained to assist during any emergencies. The total number of first-aiders trained during 2018 was 570 (2017: 205).

Incident reporting and attendance All injuries on duty (IODs) are attended to by our trained and accredited first-aiders. These incidents are then recorded and reported monthly in the executive reports. IODs are immediately reported to the Compensation Commissioner in terms of the Compensation for Occupational Injuries and Diseases Act. The table below reflects IODs recorded in 2018:

Incident category

Number of incidents

2018 2017 2016 2015

Medical 191 261 153 196Workman's compensation claims – Nedbank 100 86 64 53Workman's compensation claims – contractors 0 5 1 1Injuries – public/visitors 59 24 10 9Fatalities – Nedbank 0 0 1 0Fatalities – public/visitors 0 0 3 0

In 2018 there were 184 (2017: 163) first-aid cases, which included IODs leading to minor treatments such as administering a plaster.

Our lost-time injury frequency rate for the period under review was 0,86 (2017: 0,19). The total recordable injury frequency rate is 0,32 (2017: 0,27). The increase in this rate can be contributed to the greater awareness created among staff of the injury reporting process and the importance of reporting all injuries. Medical conditions such as migraines, nausea and asthma attacks are not included in this figure as they are primary health issues and not occupationally induced cases. Only injuries that occur while a person is on duty are included in the injury rate.

OCCUPATIONAL HEALTH AND SAFETY

The vision of Nedbank’s Occupational Health and Safety (OHS) team is to be a Centre of Excellence that focuses on creating, promoting and maintaining a work environment where appropriate programmes are implemented to embed a positive health and safety culture, thereby ensuring a safe and healthy environment for all our staff and stakeholders.


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Management of employee relations, at both an individual and a collective level, continues to be a strategic and integral part of risk management in Nedbank. We believe in fair treatment of all our staffmembers, which enhances their engagement levels and positively impacts productivity in the bank. We measure the stability of the labour relations environment by, among other things, the number of grievances and disputes involving staff, as well as any negative impact on work due to union work stoppages. The appropriate management of changes in the bank, especially due to the increased focus on digitisation and automation, ensured our continued evolution without incidents during 2018.

Disciplinary and grievance procedures We revised our employee relations policy and disciplinary code during 2018 in line with industry developments. After upskilling our disciplinary chairpersons, we have seen a steady improvement in the quality of disciplinary findings and outcomes, as evidenced by the significant majority of cases that went to the Commission for Conciliation, Mediation and Arbitration (CCMA) being decided in our favour.

Of the typical contraventions by staffmembers, ‘negligence’ and ‘failure to follow company policies and procedures’ remain the most prevalent in 2018. With constant corrective action and the embedding of the renewed performance management processes in the bank, we are confident that 2019 will see an improvement on this front.

GrievancesOur policy encourages informal resolution of workplace grievances as close as possible to the source. However, we do have processes for unresolved issues to be formally lodged and considered. In 2018 we processed 306 grievances (2017: 269), with only two having been escalated externally to the CCMA. We continue to build capability among HR business partners and line managers to manage and resolve complaints before they are escalated.

Disciplinary actionOur policies promote corrective discipline as a way of remedying non-conforming behaviour. In 2018 the bank addressed 4 764 (2017: 5 075) incidents of misconduct, including informal disciplinary discussions and formal disciplinary enquiries. In 2019 we will continue to focus on reducing the number of incidents that escalate to formal disciplinary enquiries and/or CCMA disputes.

MANAGING OUR EMPLOYEE RELATIONS

Our employee relations policies are aligned with SA labour legislation.

Incapacity or underperformanceAs part of our commitment to creating a high-performance culture, we revised our performance management processes in 2018, which will be further embedded during 2019. There were 793 incidents of incapacity or underperformance addressed during 2018 (2017: 1 372). Of these, 30 resulted in formal Performance Corrective Plans, which are tracked regularly to ensure sustained improvement in performance.

CCMA referrals Staffmembers have a right to refer disputes to the CCMA if they perceive unfairness in the way they are treated or in their dismissal. In 2018 we saw a slight increase in the number of disputes referred to the CCMA from 142 in 2017 to 157 in 2018. However, only 81 disputes were subsequently referred for arbitration (2017: 92), with the majority of them decided in our favour. Our focus in 2019 will be further reducing the number of disputes referred to the CCMA and or increasing our success rate for cases that are referred.

Settlements and legal costsWe assess prospects of success in all cases referred to the CCMA, including the value of time invested compared with monetary settlements. Eighteen cases were settled in 2018 (2017: 19). While the decline is insignificant, a prudent approach to settlements protects the bank’s reputation while also mitigating against other risks such as greater financial losses. Nevertheless, our focus in 2019 will be on achieving reasonable value of settlements and reducing unnecessary legal costs.

Collective bargaining We recognise that, to ensure a sustainable business for our employees, shareholders and other stakeholders, we have to enter into partnerships that contribute to our strategic objectives. The bank recognises staffmembers’ right to freedom of association and the importance of unions representing the interests of their members, including the right to organise, represent, consult and/or negotiate on behalf of union members or specific constituents within a defined bargaining unit, in accordance with the law and any collective agreement. To this end a recognition agreement was entered into with SASBO to formalise and regulate the relationship between the parties. At 31 December 2018 a total of 62% of our employees were covered under the collective-bargaining agreement with SASBO.

SASBO continued to maintain a significant level of membership in the defined bargaining unit in 2018. Several collective bargaining matters were covered during the year, including consultations about organisational restructures in the bank. The bank and the union also agreed average wage increases of 7% for bargaining unit staff in 2018.

The focus in 2019 will be on continued and strengthened cooperation with the union on all matters affecting union members and the bargaining unit.

Industrial actionThe fact that no hours were lost due to industrial action and that no collective disputes were lodged with the CCMA during 2018 is a testament to the strong relationship between the parties.

Our operations in the other African territories also experienced relative stability in 2018, with hardly any serious incidents of employee relations challenges. We aim to establish and maintain strong working relationships with key stakeholders, such as trade unions and relevant authorities, in all the countries where we operate.


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In addition, the People Strategy emphasises the need for strategic workforce planning to guide people proactively and ensure their skills sets remain relevant.

Given the significant impact of digitalisation on financial services, our challenge in anticipating the required future skills of the workforce and readying our people for the future cannot be underestimated. Employee wellbeing challenges will be exacerbated in this volatile time and we will have to have a more holistic approach towards wellbeing programmes to secure our position as a responsible employer of choice and to ensure sustained business performance. Traditional redeployment practices are no longer sufficient and, to this end, we will

develop current redeployment practices so that impacted people can equip and repurpose themselves for their future.

The automation of people practices that require intensive administration (HR) will receive heightened attention in our Rest of Africa subsidiaries in 2019 to reduce time doing admin and creating a platform for easy access to HR data.

We will continue our efforts to lead in transformation, while focusing on a right-fit culture and leadership so that we can become more agile, digital, client-centred and competitive. Our People Strategy is based on the assumption that improved employee experiences will translate into improved client experiences, to the benefit of the bank and all its stakeholders.

External and internal factors increase the need to focus on the Nedbank employer brand. Our People Strategy enables us to keep our staffmembers at the centre of all we do and equip our leaders to navigate this exciting period of change.

LOOKING FORWARD


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Nedbank is proud to have won The Banker magazine’s 2018 fintech partnership award for our ‘Satellite and drone imagery analytics experimentation’. Together with Aerobotics (Pty) Ltd, a disruptive technology company that builds advanced analytics on top of aerial drone and satellite imagery, we deliver precision farming tools for our agricultural clients.

Fintech partnership of the year

creating value by using our financial expertise to do …...nwow – to be scaled in 2019. redesign...

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