Focusing on
transformation within our operations
What it's about
Broad-based black economic empowerment (BBBEE) is a key requirement for sustainable growth and social development in South Africa. We integrate BBBEE into our everyday business activities by monitoring our employee diversity profile on a quarterly basis and discussing it monthly at every business unit's Equity Forum.
Each human resources manager and hiring manager is required to recruit in accordance with the employment equity plan in place at their site. An online diversity awareness training module is available on the internal Learning Management System. Management control and employment equity continue to be focus areas with targets being set for management linked to the performance bonus scheme. Our BBBEE governance structure is set out below:
As at year-end (30 September 2019), we held a level two BBBEE contributor rating.
Our BBBEE scorecard
| Element | Target | 2018/2019 audited score |
|
| Ownership | 25+2 | 27 | |
| Management control | 19 | 10.60 | |
| – Management level | 9 | 6.48 | |
| – Employment equity level | 10 | 4.12 | |
| Skills development | 20+5 | 12.63 | |
| Enterprise and supplier development | 43+6 | 36.81 | |
| – Preferential procurement | 23+2 | 16.05 | |
| – Supplier development | 10+2 | 9.76 | |
| – Enterprise development | 10+2 | 11.00 | |
| Socio-economic development | 5+3 | 8.00 | |
| Total | 112+26 | 95.04 | |
| Contributor level | 2 |
Key developments
Our employment equity progress over four years
Shared value impact
A diverse, transformed workplace is more successful. It makes sense: ask a team of individuals from the same ethnic group with similar backgrounds to solve a problem and more often than not, they're likely to come up with the same solution. Research shows that diverse teams are as much as 158% more likely to understand their targeted consumers when they have at least one member who represents their target's gender, race, age, sexual orientation, or culture.1 When a workforce reflects the racial/ethnic diversity of its consumer base, employee productivity increases.2 Research also shows that diversity of thinking enhances innovation by about 20%.3
Organisations with inclusive cultures are: 4
2x
as likely to meet or exceed financial targets
3x
as likely to be high-performing
6x
more likely to be innovative and agile
8x
more likely to achieve better business outcomes
| 1 | Sylvia Ann Hewlett, Melinda Marshall, Laura Sherbin, and Tara Gonsalves, Innovation, Diversity, and Market Growth (Center for Talent Innovation, 2013). |
| 2 | Derek R. Avery, Patrick F. McKay, Scott Tonidandel, Sabrina D. Volpone, and Mark A. Morris, "Is There a Method to the Madness? Examining How Racioethnic Matching Influences Retail Store Productivity," Personnel Psychology, vol. 65, no. 1 (2012): p. 167-199. |
| 3 | Bourke, Juliet, Which Two Heads Are Better Than One? How Diverse Teams Create Breakthrough Ideas and Make Smarter Decisions (Australian Institute of Company Directors, 2016) |
| 4 | As above |
What it's about
A skilled workforce is essential in positioning us to keep up with the demands of an increasingly competitive global marketplace, particularly as we entrench our presence in South Africa over the next six years through our planned ZAR14 billion investment. (See Investing in a more prosperous future.)
Key developments
- In addition to the existing online Udemy system, SSA deployed a suite of 554 online pulp and paper industry specific online courses, thereby enabling a much shorter time to competence for new operators and maintenance personnel in our plants.
- Online content was sourced from an industry leader in plant reliability and maintenance and made available to all engineers.
- The Manager in Training (MIT) programme continued to help new and existing managers grow their managerial capability. A total of 71 people who started their programme in 2018 are due to complete it in November 2019, with a further 90 joining the programme in 2019.
- Our youth development initiatives are outlined in the table opposite.
- A new leadership development programme was launched in November 2019, shortly after year-end.
"It is a great stepping stone towards becoming a manager, I not only learnt a lot about myself, but also had the opportunity to be exposed to various other fields within Sappi."
Zelna Harman, the first graduate on the MIT programme
Youth development initiatives
| Type of trainee | Total number | Number from previously disadvantaged groups | |||
| External bursars studying full time at university | 43 | 30 | |||
| Trainees with diplomas | 27 | 25 | |||
| Graduates in training | 20 | 14 | |||
| Sappi apprentices | 118 | 93 | |||
| Learners - post qualification or part of their qualifications | 67 | 65 | |||
| Work integrated learners - learners requiring work experience to earn their qualifications | 37 | 35 | |||
| Process trainees | 46 | 46 | |||
| Total | 358 | 308 | |||
Shared value impact
From a business perspective, skills development leads to higher levels of employee engagement, productivity and profitability. From an individual point of view, skills development leads to enhanced employability and career prospects.