In compiling its employment equity (EE) plan, Foschini - the winning retailer in the FM's Top Empowerment Companies survey - started out by commissioning an EE audit.
This involved auditing business practices across all trading and service divisions, by means of employee and management questionnaires. All staff at head office and at 1 200 stores across SA were consulted in drawing up an EE plan that details both qualitative and quantitative goals, as well as measures to ensure their attainment.
The group utilises substantial resources in identifying and developing talent within the group through initiatives such as the Foschini Retail Academy. As far as recruitment is generally concerned, most new employees (75%) are sourced from previously disadvantaged groups.
Overall progress towards the targeted workforce profile is on track for African employees and has already been met for coloured, Indian and white employees. Though good progress has been made at junior and middle management levels, the focus is now on further progress at senior management level.
In tandem with the Employment Equity Act, Foschini has fully complied with all requirements of the Skills Development Act. All divisions have established skills development forums that meet regularly to review and monitor progress against their workplace skills plans.
Empowerdex has recently compiled a full audit of Foschini's BEE profile and is expected to present its analysis early in 2005.
In the case of Edcon, its EE strategy is based on the following principles: establishing structures and resources to co-ordinate and monitor the implementation of EE; ensuring that the profile of employees at all levels reflects the demographics of SA; implementing policies, procedures and practices that are equitable; promoting a company culture that is conducive to EE and sustainable business growth; ensuring equal opportunities are in place for women; eradicating discrimination against the disabled; and meeting all legislative requirements regarding EE.
An EE forum chaired by CEO Steve Ross, with representation from all stakeholders, meets quarterly to review the progress and effectiveness of the group's EE strategies.
Though progress has been made to change its demographic profile, Edcon failed to meet all its targets in 2004 because of a lower staff turnover as well as inheriting the management of acquisitions made during the year. Nevertheless, 83% of the workforce is black and 71% are women. Half the management is black and 60% are women. The biggest challenge this year and beyond is to accelerate the representation of senior management. At present 21% of all senior managers are black and 24% are women.
Additional measures are being taken to ensure that targets are met this year. These measures include the recruitment of black executive trainees who have the potential to be appointed to senior management; the expansion of bursary and graduate development programmes; and the focusing of Edcon's talent management programme on designated groups. Black employees also own 1,9m Edcon share options as part of an employee share ownership scheme.
Edcon has fulfilled the requirements of the Skills Development Act and has received full reimbursement of costs from the wholesale and retail sector education & training authority. Though 3% of the payroll is invested in training for all staff, 2,4% of that figure is for black staff development.
Black-owned enterprises are being identified as potential suppliers and are nurtured where appropriate.
