In this section
The remuneration practices in the Group are aimed at supporting the business objectives geared towards diversification, growth and sustainability.
Remuneration philosophy and principles.
The business landscape has changed considerably over the last decade, with all stakeholders in the value chain demanding greater outputs (Jensen, 2010). Shareholders are expecting sustainable returns on capital investments; top management is expected to achieve greater efficiency and sustainable financial growth; and employees and organised labour are demanding equitable rewards (financial and non-financial).
With the rise in social consciousness and economic pressures, management sees the need for their organisations to adapt more rapidly. News headlines are dominated by organisations engaged in labour disputes around wages, reorganisation initiatives (retrenchments) or internal employee announcements regarding business process re-engineering projects. In June 2015, unions ‚ąí representing around 1.3 million public servants, inclusive of nurses ‚Äď threatened to walk out from wage talks, raising the risk of a protracted strike (Reuters, 2015).
Remuneration strategy, policy and systems to support the modern business environment are of great importance and come under increasing scrutiny. This is evident where management seeks to motivate employees to deliver on shareholder expectations and improve efficiency and effectiveness. The practical reality is that an organisation‚Äôs performance (financial or non-financial) can be positively or negatively influenced by employees in various ways. The combination of employees and IT sets the tone for an organisation‚Äôs core capabilities. Competencies or capabilities are essential for the execution of organisational strategy, and these competencies are mainly the sum total of education, experience, knowledge and skills. Therefore, if a company is to compete on its intangible assets ‚Äď its employees ‚Äď it has to be informed and demonstrate thought leadership around what motivates employees to achieve and exceed their full potential.
Consequently, the Remuneration Committee (‚Äúthe Committee‚ÄĚ) completed a detailed analysis of the reward principles for the organisation. The principles and supporting strategies may be amended, based on ongoing analysis conducted during the creation of reward practices, policies and procedures that support the business strategies.
Total reward philosophy statement
The AfroCentric Group is committed to developing, implementing and upholding sound total reward strategies and practices and applying reward principles consistently across the entire organisation and within those businesses where it owns the majority shares.
The reward strategy and philosophy:
Is consistent with and aligned to the vision, mission, values, and business objectives of the Group
Pursues the best interests of the Group, its shareholders, and its broad internal and external stakeholder base
Offers an appropriate mix of remuneration
Is fair, equitable and transparent
Is driven by and shows a commitment to rewarding performance, integrity, quality and innovation
Articulates a distinctive value proposition for current and prospective employees, which assists in:
Enabling the attraction, motivation and retention of high-calibre employees who have the skills, capabilities and values needed by the organisation
Allowing for the development of the full potential of all employees
Recognising and encouraging exceptional and valueadding performance
Achieving maximum motivational impact and desired behaviour through remuneration and reward programmes and practices
Creating sustainable employee satisfaction and engagement