INTEGRATED REPORT 2019

Business enablement

Human capital

Our human capital enables the business to achieve Vision 2025. This defined purpose is to co-create an environment within which our employees can realise their full potential, thereby creating individual and company prosperity, in a sustainable manner. The essence of our approach is underpinned by these five key elements:

In executing our human capital strategy, five key focus areas have been identified as pivotal in developing an HR identity as well as shifting the human resource dial:

  • Contribute to growing the footprint
  • Strengthen business
  • Build an enabling culture
  • Always-on people management
  • Transform to new frontiers

Furthermore, our human capital purpose and strategy is aligned to the Group’s strategy, Vision 2025, as well as key global human capital trends. The strategy is implemented by means of a service delivery model and performance is measured against Human Resources frameworks and KPIs that dovetail with the Group’s main performance metrics. We have identified six key drivers which we aim to excel at:

Our human capital purpose is to co-create an environment within which our employees can realise their full potential, thereby creating individual and company prosperity, in a sustainable manner.

The focus for this financial year was largely on strengthening the Group’s capability towards realising its strategy, realising the intents of the operating model and contributing positively towards the availability of critical skills in South Africa.

Material matter: Acquisition and retention of skills

Description

Airports Company South Africa strives to attract, develop and retain critical skills.

Strategic response

Airports Company South Africa has developed an ambitious growth strategy with a vision to become a world-leading airport business. A key aspect of achieving this vision by 2025 is identifying critical skills and putting measures in place to attract and retain key talent segments.

Impact of the acquisition and retention of skills material matter on our business

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Strategic pillar

Run airports

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Our response to risks and opportunities in FY2018/19

  • Fostering a positive workplace and a culture of Values-based leadership.
  • Revised remuneration and reward policy to attract and retain skills.

Impact of our response on stakeholders in FY2018/19 and beyond

  • Our reputation as an employer of choice has improved and we have maintained Top Employer certification for eight (8) years in a row, enabling us to attract key talent.

Strategic pillar

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Our desired outcome

  • Achieve strategic objectives by attracting and retaining key talent.

Trade-offs to achieve our desired outcome

  • We continually measure and implement interventions to live up to a compelling employee value proposition.

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Strategic pillar

Develop airports.

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Our response to risks and opportunities in FY2018/19

  • Talent management ensures that skills requirements match our planning and development needs.

Impact of our response on stakeholders in FY2018/19 and beyond

  • Tariff certainty until 2020 presents window of opportunity to roll out infrastructure investment to expand airport facilities.

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Our desired outcome

  • Achieve strategic objectives by maintaining ready-now successors with updated development plans.

Trade-offs to achieve our desired outcome

  • Constant alignment of Workforce Planning and Recruitment Strategies and Processes.

We are committed to attracting and retaining key talent through the effective management of employment equity, focusing on people with disabilities, youth development, improving the lives of our employees and ensuring a stable employee relations environment.

Our FY2018/19 Employee Satisfaction (ESAT) score was 3.55, exceeding our KPI target of 3.31 (FY2017/18: 3.54). The ESAT score, combined with an employee turnover rate of 6.0% (FY2017/18: 6%), indicates that we are an employer of choice and are retaining key talent. Having achieved a leadership culture index of 80% against our KPI target of 70% (FY2017/18: 78.8%), this is further evidence of our leadership’s commitment to creating an environment and culture that attracts and retains key talent.

Other key metrics that warrant mention:

  • There were 266 (FY2017/18: 198) promotions.
  • The skills development spend increased to R48 million (FY2017/18: R40 million).

Employment equity

Airports Company South Africa is committed to developing a workforce which reflects the demographics of the economically active population of the country. We have identified, investigated and addressed any barriers to transformation and have driven conversations about employment equity issues at all leadership levels and across the HR value chain.

Black employees represent 93.9% (FY2017/18: 93.3%) of our total workforce profile as at the end of March 2019, of which black males represent 50.9% (FY2017/18: 51.4%) and black females 42.9% (FY2017/18: 41.9%). Read more on transformation. Our female representation improved to 45.9% of the total workforce of 3 110 (FY2017/18: 44.7% of 3 067).

People with disabilities

The Group made significant progress in employing people with disabilities in FY2018/19, largely attributed to the implementation of the Persons with Disabilities Employment Strategy. We employed 82 people with disabilities (FY2017/18: 50), which is 2.4% (FY2017/18: 1.6%) of our total workforce and well in line with our target of 80. Progress made on the accessibility, reasonable accommodation and representation of persons with disabilities are attributed to the following initiatives:

  • Developed a strategy on the employment of persons with disabilities, supported by a tactical plan.
  • Compiled and implemented an “Awareness Campaign” approach to create awareness as it relates to persons with disability including newsletters, screensavers, brochures, etc.
  • Identified vacant positions per site for recruitment of persons with disabilities.
  • Commenced with disability sensitisation training at sites.
  • Commenced process of engagement with Disability Sector organisations with a view to establish a memorandum of understanding.
  • Focused recruitment approach of persons with disabilities.
  • Establishment of a quarterly Disability Network Support Group meeting.

Youth empowerment

At Airports Company South Africa, we are determined to go beyond compliance. Skills development is a critical driver of transformation, so our focus on youth transformation looks not only at building skills for the organisation, but also for the country at large. This can be seen in our bursary scheme for employees’ children, where we cover fields of study that span beyond the aviation industry, focusing on all critical and scarce skills in the country.

In the year under review, we invested substantial resources focused on youth training and development, which will ultimately benefit Airports Company South Africa in the provision of a future talent pipeline. We also contributed to youth empowerment by providing bursaries for tertiary studies and offering learnerships and internships for 275 candidates (FY2017/18: 259). We intensified focus on the commercialisation of our Training Academy through a business and implementation plan which has been approved and which will be implemented in 2020.

Key focus areas

Tabulated below is the report on our performance against each human capital focus area, the alignment with the Group’s strategic objectives and our plans for the year ahead.

Human capital strategy in action

Focus areas Performance FY2018/19 Planned 2020
Contribute to growing our footprint

Leveraging our human capital to enable the business to grow its footprint

Aligned to:Diversify the business portfolio
An International Mobility Plan and Policy has been developed to support and enable business development

Training academy business plan and implementation plan developed as part of the commercialisation strategy

Determined technology and training facility requirements to deliver on a commercialised academy
Deploy talent to international assignments or concession investments

Implement the training academy business plan

Secure Information Technology partner to support in delivery of a Learning Management Platform
Develop business capability

Vision 2025 requires that we optimise our capacity and capability, we will ensure that appropriate skills and experience are obtained

Aligned to: Increase stakeholder satisfaction through effective partnership; foster a positive employee workforce and environment
64% of employees identified as successors for critical roles are defined as ready within 12 months to assume the roles

94% of identified successors have development plans and 71% of these development plans have been executed successfully
Ensure development of talent profiles for high potential employees and management thereof

Implement Supervisory Development Programme (SDP) and Management Development Programme (MDP)
Create an enabling culture

Create a culture of growth, accountability and innovation to support the achievement of 2025 goals

Aligned to: Leadership Culture Index
Measurement of Leadership Culture Index (LCI) successfully rolled out to middle management level

Rolled out individual and team coaching, for identified senior teams

Inclusion of our Group values (PRIDE) in performance contracting to embed values-based leadership
Roll out focused initiatives to improve leadership effectiveness based on outcomes of the Leadership Culture Index (LCI)

Implement the roll out of coaching and mentoring to the rest of the business

Continue to contribute to the intended culture through implementation of PRIDE values initiatives and behavioural strategies
Always-on people management

Operating in a manner that keeps the end user in mind and ensures that people and the employee experience are positively managed.

Aligned to: Foster a positive employee workforce and environment
HR processes developed and consolidated to support the identification of key HR business intelligence metrics and set the basis for automation of the total employee experience

Successfully launched employee self-service kiosks to enable access and convenience for employees and alleviate pressure off routine operational functions
Optimise HR business metrics reporting and People Analytics capabilities to enable automation of the HR employee experience

Conduct stakeholder engagements to assess functionality of the self-service kiosks with a view to improve employee experience
Transformation

Developing a Group mindset that goes beyond compliance.

Aligned to: Achieve a demographically representative workforce; maintain and improve our contribution to B-BBEE
Achieved a demographically representative workforce score of 93.9%, exceeding the KPI target of 92.4% Implement employment equity plan to progress towards achievement of the employment equity targets
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