Transformation

ADvTECH is committed to addressing the inequalities of the past and ensuring sustainable development into the future. While we make use of external accredited empowerment rating agencies, our focus is on the spirit rather than the letter of transformation. The BTC reviews the Group’s progress on the pillars of transformation: employment equity, black share ownership and management control, skills training and development, Black Economic Empowerment (BEE) procurement, enterprise development and corporate social investment.

Employment equity

ADvTECH regards equal opportunity in employment as both a strategic and business imperative. We recognise that diversity will enable us to use the differing skills, experiences and cultures of staff to create a richer working environment that will enhance our ability to deliver consistently excellent value to all our stakeholders. The Group’s employment equity policy sets out yearly targets and is monitored by the Group Executive Committee, the BTC and HESIO Committee. The Group continues to benchmark itself against the relevant Department of Trade and Industry codes, the Employment Equity Act and the JSE SRI Index.

ADvTECH’s employee profile has improved from 34% of total staff being black in 2006 to 40% black in 2010. In the year under review the number of black staff employed increased by 5% compared to an overall increase in staff
of 1%.

Employment equity %

Black share ownership

Our black shareholders currently own 26 million (2009: 39 million) ADvTECH shares, representing a 7% (2009: 10%) shareholding. While the Group itself has not embarked on a specific ownership empowerment initiative, it has facilitated the creation of an empowered recruitment enterprise as explained under the enterprise development section.

Management control

In 2010, management structures were realigned to improve operational efficiencies. Although no ground was lost in real terms, percentage transformation did not improve with black staff representing 22% (2009: 24%) of management in the year under review.

Skills development and training

The Group considers the skills requirements of staff to guide the formulation of our skills development strategy, according to which the necessary resources are invested in staff training. Employees from previously disadvantaged backgrounds are given preferential participation in all staff development programmes offered by the Group. Skills development expenditure for 2010 was R9.4 million (2009: R7.3 million), reflecting an increase of 29%.

Our internal skills initiatives include a Management Development Programme and Management Progression Programme which are used as vehicles to accelerate the development of black managers in the Group. These programmes provide the platform to promote employees from within the Group when management positions become available.

BEE procurement

The Group has an affirmative procurement process which supports suppliers from historically disadvantaged communities. The policy encourages procurement from BEE suppliers and motivates the Group’s suppliers to become BEE compliant. These policies are actively implemented and have resulted in the Group increasing its weighted BEE procurement spend by 44% from R149 million in 2009 to R215 million in 2010.

Enterprise development

Since 2002 ADvTECH has provided expertise as well as financial and infrastructural support to Kapele Appointments (Pty) Ltd (Kapele), an empowered recruitment enterprise incorporating Inkokheli HR Appointments, Vertex-Kapele and The Working Earth. This has enabled Kapele to build a strong reputation as a preferred BEE service provider in the recruitment market.