Implemented amendments to the Employment Equity Act and the Regulations of the EEA4 Income Differential Report
Completed employment equity plan integration
Succession management plans and processes were reviewed for senior management across the organisation.
Conducted bi-annual talent engagement discussions with unit general managers and operational managers as part of our talent management review
Relaunched a refreshed CLEAR principles (connect, listen, engage, act and reconnect) approach to all employees through the leadership engagement roadshows. Incorporating CLEAR principles in customer services training to embed the principles
Partnership with LifeAssist continues to show growth in utilisation
Promptly implemented the onboarding of all temporary employee service staff ensure compliance with the recent labour law changes regarding temporary staff. Launched a group reward and recognition programme based on Sun International’s values, CLEAR principles, SunWay and unit-specific requirements
|Total group employees||Number||14 706||14 632|
|– South Africa including SunSlots||Number||9 340||9 001|
|– Other Africa||Number||550||543|
|– Latam||Number||4 816||5 088|
|1||South African operations.|
Our employees are key value drivers to achieving the group’s strategy and providing memorable guest experiences. While it is essential that we continue to operate efficiently in this difficult economic environment it is essential to be cognisant of any uncertainty this may create among employees. Following various surveys and major operational changes over the past few years, the group’s central office was restructured during 2019. This restructure was necessary to improve collaboration across the business, avoid silo thinking and duplication of efforts; all to achieve positive financial outcomes. During this process about 80 employees were impacted.
Our approach is to achieve legislative and substantive transformation by aligning numerical and non-numerical targets 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 2019 we achieved good progress against our unitspecific, three-year employment equity plan that supports the group’s strategic objectives. Each property is positioned to set its own goals and objectives for employment equity, while meeting the provincial gaming boards licensing criteria.
The Department of Labour introduced amendments to the Regulations governing the income differential report (EEA4) in 2019. These amendments assess the remuneration gap between the highest and lowest income earner (vertical gap), as well as revise the reporting on remuneration to include not only the fixed remuneration, but also the variable remuneration. Variable remuneration comprises shortand long-term incentives which consist of share-based rewards (with a vesting period of more than one year), cash settlements, discretionary lump sum payments, bursaries, scholarships and dividends. A further requirement included an assessment of the income gap between the 10% of the highest earners, and the corresponding 10% of lowest earners. As this process is relatively new, there has not been feedback from the Department of Labour as to the whether the methodology followed for calculating the income differentials is consistent across all companies. There may be some anomalies.
We marginally increased our South African (including SunSlots) black employee representation to 93% (2018: 92%), exceeding the distribution of the national economically active population. The management team is made up of 84% (2018: 82%) black people, and 45% (2018: 46%) are females. Challenges remain 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.
|Employee class||Occupational levels||A||C||I||W||Total||A||C||I||W||Total||MEN||WOMEN|
|688||158||88||102||1 036||664||155||68||83||970||25||6||2 037|
|2 193||202||53||33||2 481||3 519||272||53||40||3 884||73||39||6 477|
|Permanent total||2 989||398||200||261||3 848||4 292||459||145||182||5 078||116||53||9 095|
|TOTAL||3 154||425||203||281||4 063||4 516||480||150||192||5 338||117||53||9 571|
|1||Including SunSlots’ headcount of 245.|
During the year under review there were 2 951 (2018: 3 257) employment terminations employment group-wide, and group turnover was 20.1% of the total headcount (2018: 23.3%).
The tables below provide the reasons for employment termination by region and by age.
|Reason||South Africa||South Africa SunSlots||Swaziland||Nigeria||Argentina||Chile||Colombia||Panama||Peru||Group|
|Dismissal – Incapacity/ health||10||10|
Dismissal – Incapacity/
poor work performance
|Dismissal – Misconduct||388||3||2||6||9||490||2||49||70||1 019|
|Dismissal – Voluntary||22||5||483||510|
|Dismissal – Voluntary early||6||1||1||8|
Dismissal – Operations
|TOTAL||1 150||29||15||20||57||867||15||76||1 737||2 951|
|Reason||18 – 20||21 – 30||31 – 40||41 – 50||51 – 70||Total|
|Dismissal – Incapacity/health||0||1||1||3||5||10|
|Dismissal – Incapacity/poor work performance||1||31||16||6||2||56|
|Dismissal – Misconduct||34||410||376||139||60||1 019|
|Dismissal – Operations requirement, voluntary||37||317||120||27||9||510|
|Dismissal – Operations requirement, voluntary early retirement||1||3||2||0||2||8|
|Dismissal – Operations requirement||18||60||30||23||35||166|
|Mutual agreement separation||0||18||48||19||17||102|
|TOTAL||134||1 234||974||364||245||2 951|
Sun International implemented a progress assessment against the SunWay culture across our South African operations. Employees provided feedback on how they identified with the formula and gave ideas on how to improve process and efficiencies. The SunWay culture has being integrated and embedded in learning interventions to reinforce the message. In 2020, we will commence with a group-wide SunWay measurement to gather feedback from our employees, service provides and concessionaires.
The Employee Value Proposition (EVP), ‘The Home of The Game Changers’ is continually reinforced within the group through our employee processes. Sun International’s EVP incorporates various components such as development opportunities as well as a challenging and an enabling work environment. We positioned our EVP externally to showcase Sun International’s brand and attract talent.
Sun International won an award from the Community of Human Resources Officers under the category ‘Celebrating Excellence in Human Resources’. This award recognised how Sun International’s EVP programme shaped the organisations culture and rewarded employees through various incentives and benefits.
Our Sharing the Sun campaign is a senior leadership initiative that grants wishes, at the end of each year, to some 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:
We engage with our employees in an open, honest and transparent manner through our SunTalk platform. This mobile communication platform continues to gain traction, with 7 088 employees having registered to date. To enhance the SunTalk platform it was included on the Apple App and Play store in February 2020, with improved digital functionality. The App is also used to create awareness around the group’s various campaigns and initiatives.
67% (2018: 64%) of our South African workforce (excluding SunSlots) is covered by collective agreements. It is imperative to maintain healthy relationships through meaningful engagements with the various unions. During 2019, we shifted our employee relations landscape from a reactive approach (industrial relations) to a proactive approach (employee relations). Sun International’s employee relations goals include:
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.
Talent management is a critical enabler to the business strategy. During 2019, talent reviews were held with exco to discuss senior management roles in the business units.
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.
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.
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’.
In 2019, the interactive customer service training was launched. It incorporates a best practice approach to delivering memorable experiences to all our guests while upholding the Sun Values. Learners are exposed to the importance of customer interaction at all touchpoints by literally ‘walking in their shoes’ and role-playing a variety of typical customer experiences. The CLEAR theme is included throughout this training to reinforce excellent customer service.The CLEAR serving is what we do to entrench:
We launched the Sun Academy training journey that incorporates face-to-face training as well as virtual training (blended learning) for specific functions within the group. In 2019, the food and beverage, gaming and managers learning offering was made available. Going forward, this offering will be expanded to include other core functions within the organisation such as front of house, financial gaming and shared services.
Group training spend was R116 million (2018: R133 million), a decrease of 13%. The total number of employees trained was down 5%. Our skills development spend across our South African operations, excluding SunSlots, decreased by 13% to R100 million (2018: R117 million). This investment included formal and informal learning interventions, with 4 100 South African employees (2018: 4 714) 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.
|SOUTH AFRICA||South Africa||100.3||4 100|
|SUNSLOTS South Africa||2.1||245|
|SUN DREAMS LATAM||Argentina||0||840|
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:
Mandatory grants recovery, which is 20% of levies paid to SARS, decreased to 83% due to changes in company registration numbers at three business units as well as outstanding tax payments to SARS in respect of Wild Coast Sun.
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 have again addressed anomalies in the March 2019 increase process. We continue to conduct an annual ‘equal pay for equal work of value’ process to ensure that we remove any disproportionate income differentials over time.
Following a detailed process, which was approved by the remuneration committee, management moved from the in-house restricted membership provident fund to a large commercial umbrella provident fund, while retaining its bespoke investment strategy and insured benefits Contributions to the umbrella fund commenced in July 2019 and we anticipate Financial Sector Conduct Authority approval to transfer the assets across in due course.
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.
In 2019, the case utilisation increased and reached 11.5% of headcount, which is above the employee wellness programme norm. This confirms that there is a continued need in our business operations for support in psycho-social matters and through proactive interventions, the propensity for referrals to the programme is likely to increase.
Current utilisation levels confirms that the business operations are responding to the needs identified within the workplace and therefore positioning activities that are relevant to the employees. The five top reasons that impacted on our employee wellness are:
Focus areas for 2020 include obesity, hypertension, mental health, HIV management and financial wellbeing.
The WAM programme is available to all South African units. Contact was made with 3 048 employees who were flagged for being absent. Most employees contacted by WAM had musculoskeletal, respiratory, digestive or HIV issues. Employees who identified with domestic and personal issues that resulted in absenteeism were referred to the employee wellbeing programme for further counselling and advice. The WAM service assists with sick note verification to ensure that sick leave is managed appropriately. The most prevalent absenteeism reasons relate to musculoskeletal, respiratory, digestive and domestic/personal matters.
Commencing in 2018, Sun International rolled-out comprehensive primary healthcare cover to all employees (in South Africa) that were not already covered by a compulsory medical aid membership. During 2019, we conducted extensive awareness campaigns resulting in a significant uptake in benefit utilisation. This is a clear indication of the need for quality, private medical services provided by the programme.
In South Africa we rolled out an improved HIV management programme commencing in January 2018, applicable to employees who are not members of a medical aid scheme. The purpose of the programme is to: assist HIV-positive employees on primary healthcare with maintaining ARV treatment adherence; help them overcome any barriers; and ensure they live a healthy and productive life. This improved programme had significant success in its first year. Since inception, 131 Sun international employees have been enrolled onto the LifeSense HIV Disease Management programme. Currently 121 members are active. Members of medical aid schemes are covered by their specific scheme’s HIV rules.
The onsite testing service is active at all units. A total of 2 296 onsite tests were conducted (which includes HIV and health risk assessments) during the year. The prevalence of HIV is approximately 2%, while TB symptoms are low at 1.65%. Ongoing awareness campaigns on employees knowing their HIV and TB status continued. Post exposure prophylaxis cover is also provided which can prevent employees contracting HIV through accidental exposure.
|SOUTH AFRICA||SUNSLOTS||AFRICA||SUN DREAMS LATAM|
|Permanent full-time employees||Number||4 501||4 773||244||229||550||543||4 229||4 512|
|Permanent part-time employees||Number||4 594||3 997||1||2||0||0||587||576|
|Skills development spend||R million||100.3||117||2.1||1.8||0.05||0.27||13.1||13.17|
|Female management employees||%||46||45||37||38||39||38||34||32|
|Employees in bargaining unit||%||67||64||0||0||19||21||37||35|
|DECEMBER 2019||DECEMBER 2018|
|South Africa||South Africa||5 131||56.42||3 964||9 095||4 847||55.27||3 923||8 770|
|South African total||5 236||56.06||4 104||9 340||4 947||54.96||4 054||9 001|
|Chile||1 529||48.22||1 642||3 171||1 562||48.20||1 679||3 241|
|Sun Dreams Latam total||2 212||45.93||2 604||4 816||2 357||46.32||2 731||5 088|
|GROUP TOTAL||7 629||51.88||7 077||14 706||7 487||51.17||7 145||14 632|