Massmart’s Approach to Diversity & Inclusion

Pearl MaphosheFebruary 2013

Massmart Structure

Massmart Holdings

Mass

build

Mass

warehouse

Mass

discounters

Masscash

Wholesale

Masscash

Retail

Warehouse

Express

Trade Depot

MakroGame

Dion Wired

Browns & Weirs

Shield

Jumbo

Cambridge Food

Attraction & Acquisition

Performance Management

Learning & Development

Total Rewards

Retention & Engagement

Risk & Compliance

Workforce Diversity & Inclusion

Strategy

Service

Tech

nolo

gy

Programm

es

TalentManagement

Business strategy and objectives

People and business results

VisionCulture Values

Integrated Talent Management Strategy

Alignment

Processes

Stru

ctur

e

delivery

We Value Diversity by:

• Accepting, respecting, celebrating and valuing individual differences;

• Capitalizing on the diverse backgrounds and experiences of our staff, customers, suppliers and stakeholders.

We Value Inclusion by:

• Identifying, addressing and removing

barriers in our environment;

• Facilitating opportunities that result in

effective and meaningful participation;

• Drawing ideas and creating solutions that are multidimensional and universal.

Legislative Framework

• Black Economic Empowerment Act 53 of 2003;

• Employment Equity Act 55 of 1998;

• Skills Development Act 97 of 1998;

• South African Constitution.

Key Diversity and Inclusion Questions

• How can we use the way we think, the way we do business and the way we are, to create competitive advantage in the market place?

• How can we attract top talent that reflects the rainbow nation to position Massmart for current and future success?

• How can we drive innovation and growth by leveraging the rainbow nation?

• How can we create an environment that is supportive of collaboration and that promotes superior performance for all our people?

The Business Case: Diversity alone is not enough

• Economic marginalization leads to social and political instability;

• Businesses that are successful in leveraging the diversity of their people and supplier base are better able to adapt to changes in the external environment;

• Inclusive companies score higher on customer satisfaction, productivity index, profitability and generally have lower stuff turnover.

SA Specific Business Case

• The changing demographics of SA are transforming the culture and the buying habits of our nation;

• Business involvement in these

communities, from supplier-diversity

(BEE/local sourcing) to CSI initiatives to

recruitment and retention of diverse

employees sends a strong signal of

support to potential customers within

these communities.

Creating a sustainable competitive advantage

Organisational maturity

Co

mp

lexi

ty

Culture

Enhancing “how we do things around here” and improving the way people think. Behave and perform in organisations

Inclusion

Making the fullest and best use of the diverse talents, skills, perspectives and experiences

Diversity

Increasing the richness of different talents, skills, perspectives and experiences

Source:Price Waterhouse Cooper Open University

What Diversity is NOT

NOT just a good idea;

NOT only about non-commercial CSI;

NOT just a moral imperative.

Bottom-Line Business Benefits

• Attraction and retention of top quality

talent: Employer of Choice;

• Improved morale among employees;

• Talent optimization: Improved productivity due to better leveraging of skills and competencies within the organization;

• Stronger relationships with strategic stakeholders;

• Increased ability to compete in the market place.

True Value of Diversity and Inclusion

• An Employer of Choice;

• A Business Partner of Choice;

• A good Corporate Citizen;

• A Global Business.

Virtual Cycle of Diversity & Inclusion

Diverse & Inclusive Work Culture

Employer of Choice

Market Leader & Business Partner

of Choice

In a NutshellMarket Focus

Leadership and People Focus

Culture Transformation

Recruitment and Retention

Diversity and Inclusion

Marketplace(Community)

Workforce InclusionWorkforce Diversity

Commitment Communication Measurement Accountability

To create a culture that fosters innovation, productivity and respect for all people

CorporateMission

StrategicPillars

ChangeDrivers

Massmart’s D & I Strategic Framework

Scope of Diversity & Inclusion

The way we are

The way we think

The way we do

things

Diversity & Inclusion Goals

Have a workforce broadly reflective of the demographics in South Africa

Identify and address barriers within Massmart

Attract, develop and retain talented people from all population groups including designated groups

Create processes, policies, plans and practices that promote Massmart as an Employer of Choice

Diversity & Inclusion Framework

Accountability

loop

Executive sponsorship

Coherent strategy

Alignment of D&I with

Talent Management

Socialization

Policy Review &

Development

Measurement

Diversity & Inclusion

Framework

Our Guiding Principles

• Demonstrated leadership commitment;

• Effective communication;

• Continuous education, awareness and skills development;

• Shared accountability and responsibility for D & I;

• Effective measurement of D & I efforts.

Diversity & Inclusion Scorecard

Undertake regular culture survey; Review recruitment, Learning &

Development and retention practices to ensure the identification removal of barriers to employment and

Create mentorship & job shadowing opportunities.

Ensure that senior leaders are consistently visible and vocal in communicating their commitment to diversity as a performance standard and a business priority;

Create awareness of Massmart’s Diversity & Inclusion strategy;

Use the information from the employee surveys to identify barriers to inclusion in our environment and

Development customised plans to address identified barriers.

Recruit the best & most diverse talent available & to develop & retain that talent at all levels of Massmart;

Implement the Employment Equity Act; Implement the Skills Development Act; Establish Diversity & Inclusion Council Further roll out of Black Scarce Skills

Share Trust (BEE shares).

Social Entrepreneurship Employee value proposition; Actively promote our employer brand

and Promotion of all tenants of Broad-

Based Black Economic Empowerment.

Survey results demonstrate that over time Massmart has a diverse workforce and

Representation of diversity in top management levels & succession plans.

Participation rate; Diversity & Inclusion index on

recruitment & promotions and Survey results.

Diversity councils and circles and Diversity & Inclusion training.

Diversity & Inclusion discussion throughout the organisation, twice per annum;

Integration of D & I as an integral measure of performance management and

Visible demonstration and observance of D & I.

A workforce that reflects the rainbow nation;

Lower staff turnover and Sustained investment on the

development of designated groups.

Sustainable competitive advantage through Diversity & Inclusion in our workforce and supplier-base.

Progress on representation of designated groups on the Massmart workforce especially in top management;

Equitable representation on all L & D programmes on the Massmart Corporate University and

Improved retention rate.

Targeted Corporate Social Investment

Bursary Scheme; Massmart GDP and Procurement spend on Small Medium

Enterprise, black owned companies & women owned companies.

Goals

Have a workforce broadly reflective of the demographics

in SA

Identify and address Diversity & Inclusion barriers:

Workforce Inclusion

Attract, develop and retain talented

people from diverse backgrounds:Workforce Diversity

Create processes, and practices that

Position Massmart in a positive light in the

Marketplace

Activities Performance Indicators Desired Outcomes

Conclusion

• Strategic imperative;

• Commercial value and leverage of D & I;

• Multi-dimensional and not a numbers game;

• Internal and external focus;

• D & I is the key to business success.