https://ir2018.suninternational.com

Our employees are important enablers of the group’s ability to achieve its strategic objectives. We operate in a highly governed and competitive service-oriented industry. It is important that we continually develop and motivate our employees to perform well and provide memorable experiences to our guests.

HIGHLIGHTS

  • Rolled out an improved HIV management programme to encourage and monitor adherence to appropriate ARV therapy
  • Implemented a leading ELMS
  • Improved employees’ retirement outcomes by moving from our in-house membership provident fund to an external fund
  • Rolled out a financial literacy programme to employees in conjunction with the ASISA Foundation
  • Achieved 92.2% black employment in our South African operations
  • 55.27% female representation across our South African operations (94% of whom are black females) and 51.17% for the group
  • Rolled out a coaching programme for senior and middle management
  • Successfully onboarded about 1 200 temporary employees.

CHALLENGES

  • Ensuring our employees understand the alignment of remuneration and benefits
  • Aligning recruitment practices with the group’s employment equity plans
  • Improving the representation of people with disabilities and increasing black representation across middle and senior management to align with B-BBEE targets
  • Keeping abreast of proposed amendments to sections of the Employment Equity Act and its impact on the group, particularly mandatory sectoral targets and the national minimum wage framework.

FOCUS AREAS

Our focus for 2018

What we achieved

 

Self-assessment

Embedding our succession management practices and integrated management strategy group-wide.

Completed and implemented the group’s talent management programme that informs succession planning.

 

In progress

Developing leadership skills throughout our workforce and strengthening the manager’s role as coach and mentor.

Rolled out a coaching programme for senior and middle management.

 

In progress

Formulated a manager learning journey with core training programmes to guide managers.
Developed and implemented a performance management programme for all line managers to enhance effective performance management.

Aligning our employee remuneration following the ‘equal pay for work of equal value’ review.

Continued working around ‘equal pay for work of equal value’ and applied these principles when appointing new employees and promoting existing employees.

 

In progress

Embedding the EVP within the group and addressing challenges employees have identified.

Embedded the EVP and SunWay culture programme through presentations and competitions at all South African units.

 

In progress

Managing employee productivity to avoid unnecessary absenteeism costs.

Implemented a WAM programme to reduce absenteeism.

 

Limited progress

Actively engaging with employees and addressing concerns as they arise.

Ongoing active engagement through the SunTalk and OneSun platforms.

 

In progress

Focusing on disabled people at the workplace.

 

Increased targets for employing persons with disabilities in the new employment equity plans.   In progress

Implemented phase two of the group’s disability strategy.

KEY PERFORMANCE INDICATORS

   

December 2018

December 2017

Total group employees

Number  

14 632

12 959

– South Africa including SunSlots

Number  

9 001

8 244

– Other Africa

Number  

543

548

Latam

Number  

5 088

4 167

Employee turnover

%  

23.3

24.1

Female representation

%  

51.17

51.5

Black representation[1]

%  

92.2

91.5

1 South African operations.

PERFORMANCE OVERVIEW

The prior financial year was earmarked with good progress in bedding down our SunWay culture journey; empowering employees through talent, learning and leadership development initiatives; intensive employee engagement; and maintaining transformation progress. These focus areas were our guiding principles in supporting the business and enabling the group’s ‘our people’ strategic objective.

Workforce profile

At 31 December 2018, we had 14 632 (2017: 12 959) employees across our operations, a 13% year-on-year increase. The increase was mainly as a result of the employment of 1 200 temporary employees, following a constitutional ruling in July 2018 that required employees earning below the Basic Conditions of Employment Act threshold, and who worked for a three-month period to be permanently employed. We engaged extensively with labour brokers and trade unions, which resulted in an amicable outcome for all affected parties. The onboarding process at our various units was managed seamlessly and without any complications. We acquired 315 employees following the group’s acquisition of a casino and hotel in Mendoza, Argentina. Our permanent employees in South Africa comprise:

  • permanent full-time employees
  • permanent part-time employees, who are paid the same hourly rate as full-time employees; and work according to a roster that guarantees minimum monthly work hours.

For more details on our workforce by employee statistics and region and gender for 2018 refer to Annexure A.

Employment equity at our South African operations

Our approach is to achieve legislative and substantive transformation through numerical and non-numerical targets aligned to the group’s strategic objectives. These targets are tracked and monitored quarterly and included in line managers’ performance contracts. The social and ethics committee is responsible for monitoring our progress against set targets.

During 2018 we established and adopted a property-specific, three-year employment equity plan that supports the group’s strategic objectives. It also accounts for our transformation and talent management strategies, succession planning, talent attraction, career progression and retention. It takes account of the demographics in the provinces where we operate. Each property is positioned to set its own goals and objectives for employment equity, while meeting the provincial gaming boards licensing criteria.

We increased our South African black employee representation to 92.2% (2017: 91.5%), exceeding the distribution of the national economically active population. The management team is made up of 82% (2017: 80%) black people, of whom 46% (2017: 45%) are females. This was mainly due to the increase in black representation at junior and middle management levels. However, there are still challenges at middle and senior management levels, where representation of black people, particularly black females is lower than white people.

To mitigate our previous challenges in retaining persons with disabilities, we introduced disability capacity building workshops and disability awareness days. This resulted in the retention of persons with disabilities and provides us with an opportunity to increase representation.

Our SunSlots operations’ black representation is at 89.6% (2017: 90.6%) and black people make up 82% (2017: 85%) of the management team with 45% (2017: 40%) being female.

Workforce profile by gender (2018)

Workforce profile by race (2018)

Diversity profile South Africa[1]

Employee class

Occupational levels

Male

Female

Foreign nationals

Total

A

C

I

W

Total

A

C

I

W

Total

Male

Female

 

Permanent

Top management

2

1

1

3

7

1

1

0 0

2

0 0

9

Senior management

18

6

24

45

93

12

8

12

21

53

8

0

154

Middle management

96

33

37

98

264

93

24

20

44

181

13

9

467

Skilled technical/supervisor/junior management

709

169

93

121

1 092

660

169

73

100

1 002

31

9

2 134

Discretionary decision-making

2 046

210

61

39

2 356

3 173

278

54

55

3 560

59

31

6 006

Permanent total

2 871

419

216

306

3 812

3 939

480

159

220

4 798

111

49

8 770

Temporary

176

28

5

21

230

210

30

2

12

254

3

1

488

Total

3 047

447

221

327

4 042

4 149

510

161

232

5 052

114

50

9 258

1 Excluding SunSlots’ headcount of 231

Employee turnover

During the year under review there were 3 257 (2017: 3 178) employment terminations employment group-wide, and group turnover was 23.3% of the total headcount (2017: 24.1%).

The tables below provide the reasons for employment termination by region and by age.

Consolidated labour turnover

 

  2018

2017

Region  

Average headcount

Terminations

Turnover

Average headcount

Terminations

Turnover

South Africa

 

8 870

913

11.0%

8 019

1 214

14.6%

SunSlots

 

231

43

19.0%

225

53

23.5%

South Africa total

 

9 001

956

11.5%

8 244

1 267

14.87%

Africa

 

543

56

10.2%

548

40

7.3%

Latam

 

5 088

2245

44.0%

4 167

1 871

46.6%

Total

 

14 632

3257

23.3%

12 959

3 178

24.1%

Reason for termination by region

Reason

South Africa

South
Africa
SunSlots

Swaziland

Nigeria

Argentina

Chile

Colombia

Panama

Peru

Group

Death

32

1

1

1

1

4

0

0

2

42

Dismissal – Incapacity health

6

2

0

0

0

0

0

0

0

8

Dismissal – Incapacity/poor work performance

0

0

1

0

0

0

0

0

0

1

Dismissal – Misconduct

268

5

2

10

38

782

32

64

223

1 424

Dismissal – Operations requirement

8

0

0

0

0

0

0

0

0

8

Mutual agreement separation

3

1

0

0

14

62

19

14

1

114

Resignation

538

34

19

19

48

420

22

17

482

1 599

Retirement

58

0

3

0

0

0

0

0

0

61

Total

913

43

26

30

101

1 268

73

95

708

3 257

Reason for termination by age band

Reason

18 – 20

21 – 30

31 – 40

41 – 50

51 – 70

Total

Death

0

5

10

17

10

42

Dismissal – Incapacity health

0

1

0

1

6

8

Dismissal – Incapacity/poor work performance

0

0

0

1

0

1

Dismissal – Misconduct

30

605

538

193

58

1 424

Dismissal – Operations requirement

0

1

5

3

0

9

Mutual agreement separation

0

30

54

20

9

113

Resignation

28

770

550

203

48

1 599

Retirement

0

0

0

0

61

61

Total

58

1 412

1 157

438

192

3 257

Improving our organisational culture

SunWay formula for success

Sun International’s SunWay formula for success gained traction across all South African units. As part of the process to measure the SunWay formula, employees provided feedback on how they identified with the formula and gave ideas on how to improve process and efficiencies.

Employee value proposition

Our EVP ensures that our people remain at the heart of everything we do. We attract and retain the very best talent group-wide by delivering world-class benefits and a positive work culture and value system at every level of our business. We positioned our EVP externally to attract talent. This was achieved through external presentations and various recruitment platforms.

people

Sharing the Sun campaign

Our Sharing the Sun campaign is a senior leadership that grants wishes to some of employees. The senior leadership team engaged directly with employees, who give a lot of themselves to our business every day. The senior leadership team personally gave something back and realised some of our employees’ wishes. Sun International matched the personal funds pledged by leadership to deliver a truly impactful campaign that created lasting memories from within.

Wishes were granted for: medical assistance; shelter, food; education; and security.The initiative commenced in December 2016 and wishes are granted in January of the following year:

  • 2016: 134 wishes received – 34 wishes granted across all South African properties.
  • 2017: 164 wishes received – 54 granted
  • 2018 306 wishes received – 103 granted

Employee and union relations

Employee communication

We engage with our employees in an open, honest and transparent manner through our SunTalk and OneSun platforms. The SunTalk mobile communication platform launched in the prior year continues to gain traction, with 5 300 employees having registered to date. Registered members from The Table Bay, GrandWest and Sun City are the most active on this platform. One of the most popular sections on the platform is the ‘questions and answers’ section. Other popular sections include competitions, news, leadership messages and digital stories from One Sun magazine.

Union relationships

64% (2016: 61%) of our South African workforce (excluding SunSlots, Africa and Argentina) is covered by collective agreements. It is imperative to maintain healthy relationships through meaningful engagements with the various unions. During 2018, all employee relations policies were reviewed and implemented.

Human rights and freedom of association

The group recognises that it has a responsibility to ensure the effective management of human rights. The principle of freedom of association as it relates to the constitution of each country where we operate is formally endorsed in our employee relations policy statements, and in our recognition agreements with the trade unions in South Africa and other countries where we operate.

Creating a high-performance culture

Talent management is an important process in rolling out the business strategy. The 2018 talent management process comprehensively addressed the senior management level across the organisation. Talent reviews were held for the executive, general and group management levels in all units, with a focus on succession for executive management level.

Talent management initiatives

Initiative

Description

Talent management

  • Revitalised the performance management processes by redesigning performance management training aligned to employee feedback.
  • Redesigned performance evaluation ratings to provide a comprehensive understanding of the differentiation between various ratings.
  • The performance evaluation was rolled out through the organisation and adopted in the 2018 performance cycle.

Organisational Design

  • Reprofiled all jobs to ensure alignment to the business strategy with clear and defined roles and responsibilities for each job.
  • Introduced the organisation design committee to enhance organisational structures and the optimise deployment of human resources in the organisation.
  • Controlled headcount costs by streamlining the process for approval to ensure a systematic and proper planning approach for our workforce.

Learning and development

To ensure that our employees are equipped to carry out their responsibilities, Sun International has several learning and development initiatives aimed at empowering and developing our talent group-wide. Several of these initiatives were developed, implemented or piloted during the financial year as tabled below.

Food and beverage training

The food and beverage executive team launched a training manual that is available in three languages (English, Zulu and Xhosa) on the Sun International Intranet. They partnered with the International Hotel Training School to produce training videos, featuring Sun International employees, to create an accredited Sun Academy programme.

Learning and development initiatives

Initiative

Description

Leading the SunWay

We rolled out the International Hotel Training School to present a revised and more functional leadership programme.

Managing the SunWay

We continued to embed the Managing the SunWay initiative that offers foundational management skills and knowledge customised to the SunWay of leading and managing.

Customer experience

We continued to embed Sun International’s standard operating procedures across all units. This was reinforced by implementing a reward and recognition programme that rewards employees who focus on and invest in improving our service delivery and on our brand promise, of ‘creating lasting memories’.

The outcome we seek is engaged people who can and want to engage with our customers and create the lasting memories for which we are renowned.

The CLEAR serving is another way in which we want to entrench:

  • our service principles
  • our interaction process
  • our people paying attention to detail and focusing on our customers.

Onboarding

An online onboarding module is complete and will be embedded as part of the employee learning journey.

Coaching for performance

Rolled out a coaching for performance programme with the University of Stellenbosch Business School for senior to middle managers, that includes practical application to create maximum impact.

Performance management

Developed and implemented a performance management programme for all line managers to enhance effective performance management by setting objectives and incorporating coaching.

B-BBEE skills plan

Learning management system

We implemented the PeopleSoft ELMS that stores learning records for legislative reporting.

We scoped an end-user learning solution with the International Hotel Training School. This solution will enable better learning engagement.

Training needs analysis

The group-wide training needs analysis was conducted at all units to ensure a more qualitative and proactive approach to our employees’ learning needs and B-BBEE skills plans.

Skills development spend

Group training spend was R133 million (2017: R110 million), an increase of 21%. Total employees trained was up 17% (2018: 9 588 vs 2017: 8 221). Our skills development spend across our South African operations, excluding SunSlots, increased by 23% to R117 million compared to R95 million in 2017. This investment included formal and informal learning interventions, with 4 714 South African employees (2017: 4 249) benefiting. Interventions are targeted at employees’ roles and growing the leadership pipeline. The number of employees trained per region includes employee terminations during this period.

Skills development spend per region and country

Region

Country

 

Total expenditure
December 2018
R million

Total learners
December 2018
Number

South Africa

South Africa

 

117.42

4 714

SunSlots

South Africa

 

1.80

220

Sun Dreams Latam

Argentina

 

0.02

840

Chile

 

13.09

2 737

Colombia

 

0.06

78

Panama

 

0.00

193

Peru

 

0.03

764

Africa

Nigeria

 

0.15

27

Swaziland

 

0.11

15

Total    

132.69

9 588

Training costs as a percentage of leviable payroll (South African units only, excluding SunSlots)

 

December 2018

December 2017

Leviable payroll (R million)

 

1 753

1 682

Training costs (R million)

 

117

95

% of leviable payroll

 

6.7

5.6

Grants and levies

To access skills development grants from the Culture, Art, Tourism, Hospitality and Sport Sector Education and Training Authority under the levy grant scheme, we are required to:

  • pay a skills development levy to SARS
  • submit a MGP detailing all learning interventions to be undertaken for the year
  • submit a mandatory grant report confirming the implementation of the MGP for the previous year.

The group received the maximum recovery for mandatory grants, which is 20% of levies paid to SARS.

South Africa: Grants and levies

 

December 2018
R million

December 2017
R million

Skills development levy paid

 

17.5

16.8

Mandatory grants received   3.5 3.4

Remuneration and benefits

We participate in and consider market remuneration surveys and align our pay decisions to the principles set out in our remuneration policy. We made progress in aligning our ‘equal pay for equal work of value’ legislative requirements following an extensive benchmarking exercise. We addressed anomalies in the March 2018 increase process. We aim to conduct an annual ‘equal pay for equal work of value’ process to ensure that we remove any disproportionate income differentials over time.

Retirement benefits

Management decided to move from the in-house restricted membership provident fund to an external and more comprehensive umbrella fund. We conducted extensive research during 2018 to determine a suitable provider, which was approved by the remuneration committee. This new fund will improve members’ retirement outcomes. The transfer to the new fund will take place in 2019.

Performance management

We accurately measure and provide feedback on performance by linking employee performance to business objectives through a KPI scorecard. The scorecard includes KPIs for managing and developing people and transformation, as these are important areas of our business.

Individual employment contracts include minimum requirements and standards for each role. Reward is directly linked to performance at group, team and individual levels. Performance feedback sessions provide opinions on achieving or exceeding the standards set, and are used to address performance that fails to meet requirements. These sessions include a review of development needs and the setting of plans for future development, talent and career management discussions.

Employee wellness

In 2018, we maintained the favourable case utilisation at a rate of 10.2% of headcount, which is above the employee wellness programme norm. This confirms that there is a need in our business units for support in psychosocial matters, and that, through proactive interventions, the propensity for referrals to the programme will increase. It confirms that the business units are responding to the needs identified within the workplace and therefore positioning activities that are relevant to the employees.

Top five reasons affecting employee wellness (2018)

Workplace absenteeism management (2018)

The WAM programme was rolled out to all South African units. We made 2 666 contacts with employees who were flagged for being absent. Most employees contacted by WAM had musculoskeletal, respiratory, digestive and HIV issues. We identified employees with domestic and personal problems that resulted in absenteeism which are referred to the employee wellness programme for further counselling and advice. The WAM service assists with sick note verification to ensure that sick leave is managed appropriately.

Reasons for workplace absenteeism (2018)

Healthcare cover for union employees

The healthcare cover introduced for our union employees commenced in January 2018. This programme is tailored for eligible employees who are not on a Sun International appointed medical aid scheme. It allows access to quality healthcare screening and treatment for achieving personal health. It also provides annual health screening, hospital trauma cover and other benefits. A comprehensive maternity benefit was tailored for eligible employees.

HIV management programme

We rolled out an improved HIV management programme in January 2018. The purpose of the programme is to assist HIV-positive employees on primary healthcare with maintaining ARV treatment adherence; to help them overcome any barriers; and ensure they live a healthy and productive life. This improved programme had significant success in its first year.

The on-site testing service is active at all units. A total of 2 995 (2017: 2 002) on-site tests were conducted (which includes HIV and health risk assessments) during the year. The prevalence of HIV is approximately 2.95%, but TB symptoms are low. Ongoing awareness campaigns on employees knowing their HIV and TB status continued. Units also include the post-exposure prophylaxis programme, which can prevent employees contracting HIV through accidental exposure.

Smoking, obesity and hypertension remain a focus at all units.

The comprehensive offering of the OneSun wellness strategy helps mitigate the risk of psychosocial and health problems. All business units need to ensure their annual wellness strategies focus on the inclusion of the above interventions to help control these risks. The focus going forward will be on financial wellbeing and HIV management.

Financial assistance programme

We acknowledge that employees are impacted by the difficult economic climate. To assist employees with financial literacy training and retirement planning, we rolled out financial literacy workshops, in conjunction with the ASISA Foundation, to employees earning R20 000 or less per month. During 2018, more than 1 300 eligible employees attended these workshops, with the overall objective of equipping them with knowledge and skills about finance to influence a behavioural change, and to improve their financial wellness. We will continue with this programme going forward.

Waya Waya WageWise

A new savings initiative was launched in 2018 in partnership with the ASISA Foundation as an additional offering under the OneSun Wellness Programme. The initiative’s objective is to teach personal financial literacy. We aim to reach all Sun International units in South Africa by August 2019 through targeted workshops.

LOOKING AHEAD

  • Tracking proposed amendments to Employment Equity Act and ensuring that current practices are aligned
  • Integrating the new employment equity plans with our processes and practices
  • Embedding a multilevel succession roadmap
  • Introducing a dynamic and innovative approach to talent management and skills development
  • Enhancing the employee experience to improve customer service levels
  • Continuing to provide a balanced working environment for employees, conducive to a healthy lifestyle
  • Continuing to manage human resource risks and leverage opportunities for optimising people-driven business performance.

ANNEXURE A: EMPLOYEE STATISTICS

Regional employee statistics

South Africa

   

December
2018

December
2017

Permanent full-time employees

Number  

4 773

4 928

Permanent part-time employees

Number  

3 997

3 091

Skills development spend

R million  

117

95

Female management employees

%  

45

45

Employee turnover

%  

11.5

15

Employees in bargaining unit

%  

64

60

SunSlots

   

December
2018

December
2017

Permanent full-time employees

Number  

229

223

Permanent part-time employees

Number  

2

2

Skills development spend

R million  

1.8

2

Female management employees

%  

38

40

Employee turnover

%  

19

24

Employees in bargaining unit

%  

0

60

Africa

   

December
2018

December
2017

Permanent full-time employees

Number  

543

548

Permanent part-time employees

Number  

0

0

Skills development spend

R million  

0.27

0.17

Female management employees

%  

38

38

Employee turnover

%  

10

7

Employees in bargaining unit

%  

21

22

Sun Dreams Latam

   

December
2018

December
2017

Permanent full-time employees

Number  

4 512

3 612

Permanent part-time employees

Number  

576

555

Skills development spend

R million  

13.17

13

Female management employees

%  

32

27

Employee turnover

%  

44

47

Employees in bargaining unit

%  

35

25

Number of employees

December 2018

December 2017

Region

Country

 

Female

Female
(%)

Male

Total

Female

Female
(%)

Male

Total

South Africa

South Africa

 

4 847

55.27

3 923

8 770

4 416

55.07

3 603

8 019

SunSlots

South Africa

 

100

43.29

131

231

105

46.67

120

225

South African total

 

4 947

54.96

4 054

9 001

4 521

55.84

3 723

8 244

Other Africa

Nigeria

 

105

30.88

235

340

107

32.13

226

333

Swaziland

 

78

38.42

125

203

82

38.14

133

215

Africa total

   

183

33.70

360

543

189

34.49

359

548

Sun Dreams

Argentina

 

295

48.36

315

610

0

0

0

0

Chile

 

1 562

48.20

1 679

3 241

1 664

48.47

1 769

3 433

Colombia

 

23

50.00

23

46

53

43.44

69

122

Panama

 

71

39.89

107

178

71

37.97

116

187

Peru

 

406

40.08

607

1 013

176

41.41

249

425

Sun Dreams Latam total

 

2 357

46.32

2 731

5 088

1 964

47.13

2 203

4 167

Group total

 

7 487

51.17

7 145

14 632

6 674

51.50

6 285

12 959