Human capital investment and development

Highlights

R4,691 million net income per employee

R4,655 million distribution per employee

64,37% of staff outperformed delivery targets

Total staff movement for the year only 4%

214 permanent employees

Our people are a critical driver of our business performance and sustainability, and a key competitive strength. The high calibre of current management at head office and senior operational levels is instrumental in creating stakeholder value and long-term sustainability.

Following the Attfund Retail acquisition, a full integration of all human resource activities was implemented, ensuring that strategy and approach are aligned with the core strategy and values of the company.

Workplace profile by occupation level

We are committed to creating and maintaining an environment which provides equal opportunities for all employees, with special consideration to previously disadvantaged groups. The formal company employment equity policy codifies this commitment and stipulates the promotion of equal opportunity, the elimination of unfair discrimination and the implementation of positive measures to redress disadvantages previously experienced by designated groups. A new employment equity policy is currently under review.

Hyprop submitted a consolidated equity report at the end of January 2013 as set out below:

Earnings ratio per number of staff

Hyprop’s performance per employee in terms of net operating income/distributable income is benchmarked annually against competitors/peers in order to determine maximum efficacy. For the year under review, Hyprop exceeded the industry benchmark in both regards.

Allocation of employees in the group

Staff retention

The high level of retention of staff, especially at senior level, reflects our people’s commitment to the group. The performance of the group reflects an accurate and appropriate alignment of interests with those of unitholders.

The management team of Southcoast Mall was transferred to Redefine on 25 July 2012 (the effective date of the sale of the centre).

During the year, a complete system of performance benchmarking, training and leadership development was introduced. Future planning will focus on expanding and improving these systems taking into account the skills shortages in the property industry and transformation requirements.

Skills development and training

Training and skills development are ongoing in light of their importance to our sustainability and the progression and growth of our people, and the focus on the needs of our business together with those of individual employees. These are the responsibility of the Group’s National Human Resources Executive.

A key principle of our training strategy is to upskill our junior management to middle management to enhance succession planning. Further objectives include:

The 2012 training plan was based on the outcome of performance reviews in the last quarter of 2011. There were 847 training sessions held during the year and 98% of employees participated. Managers and staff were consulted on perceived training needs, and the skills base was objectively assessed. From this the focal areas requiring training during the year were identified, and 96% of the training planned was completed. Business communication will continue into 2013.

Training included both outsourced and in house training.

Graduate programme

In 2010, as part of an employee investment initiative, Hyprop introduced a graduate programme aimed at developing staff into middle and senior management roles. The vision of the programme is to develop and encourage candidates while enhancing the group’s succession planning. The graduate programme established in the previous year is underway, with the number of candidates having increased from two to five. In terms of this programme, suitable candidates are identified and groomed to move through the ranks from administration to mid-management to senior management, and ultimately board positions.

Employees applying for the programme are required to meet certain criteria to be considered. Length of service, performance and financial situation are taken into account. Successful applicants receive assistance with tuition and tuition related costs.

vaLue of training inveStMentS

2012 training spend per designated group

Performance management

Three performance reviews were conducted during the year.

Deliverables were calculated on a measure that was agreed by senior management and the board, and included considerations of:

caSe Study Tumi Sebone Hyde Park Employment date 1 December 2009 Current job title Assistant Marketing Manager Previous performance rating Above expectations Studying BCom Marketing Tumi won a bursary through the South African Shopping Centre Council in 2010 and successfully completed the Certificate in Shopping Centre Marketing Fundamentals. She is currently completing her 2nd year BCom Marketing degree and to date has received 8 distinctions in various subjects. Tumi was promoted to Assistant Marketing Manager for Hyde Park in June 2012. “ I am honored to have been given the opportunity to further myself in the marketing field and there is so much potential and growth in Hyprop for me. I chose marketing because it offers a variety of interesting and challenging career opportunities. Further it has enlightened and broadened my knowledge and changed how I view my surroundings. Studying a degree in marketing has enabled me to experience the ins and outs of every department including accounts. What motivates me the most is learning and improving my existing knowledge base. I am also driven by being the first young black marketing manager for Hyde Park. I believe this will bring diversity while also attracting a new market and most importantly growing the brand ‘Hyde Park Corner’. As the saying goes ‘knowledge is power’. I am hoping to complete my degree by the end of 2013.”