CHRO Magazine 2021, Issue 1 by CHRO Magazine

FOR HR EXECUTIVES 1 | 2021 | CHRO.CO.ZA

HR Director, Nestlé ESAR Athol Swanepoel And the chocolate factory HR Executive, Autoboys Kyle Chetty Putting in the work HR Director, Ntiyiso Consulting Disebo Ramonyalioa Still in shock

BYE-BYE BUILDINGS The future of the office

TIGER BRANDS CHRO

S’NE MAGAGULA RISE OF THE TIGER

Find out how more than 45% of the ® FORTUNE 500 adapt to change. The world’s most successful companies use Workday to keep pace with constant change. Our finance and HR system helps companies surface better insights, be more productive, and adapt quickly to a changing world. See what more than 45% of the FORTUNE 500 already know about the enterprise cloud from Workday. Workday. For a changing world.™

From FORTUNE. ©2020 FORTUNE Media IP Limited. FORTUNE and FORTUNE 500 are registered trademarks of FORTUNE Media IP Limited and are used under license. FORTUNE and FORTUNE Media IP Limited are not affiliated with, and do not endorse the products or services of, Workday. © 2020 Workday, Inc. All rights reserved. Workday, the Workday logo, and “Workday. For a changing world.” are trademarks of Workday, Inc., registered in the United States and elsewhere.

CHRO

You are all invaluable

awards judge

Welcome The beginning of a new decade will always bring change, and sometimes it is not so predictable. Given that you are reading this, means you have made it through one of the most difficult years of the last century. It is my pleasure, therefore, to welcome you to the first edition of CHRO magazine for 2021. Many are still recovering from the effects of the pandemic, and businesses around the world have undergone an immense transformation in workplace structure, operations, and people management. Life as we know it has changed forever but one thing was made clear during this time: the chief human resources officer continues to be a crucial role in these trying and uncertain times where resilience in business has become a critical skill. The move to digital was quickened in a matter of weeks and CHROs now need to consider the increased focus on cloud, innovation, customer experience, security, cost containment measures, the adoption of artificial intelligence and more in numerous industries. With more people working remotely and an overall change in people management, HR processes have no doubt become ever more digital and CHROs must keep up with the latest tools available for the efficient running of their department. Meanwhile, the “new normal” requires us to learn new skills, collaborate with machines and take on higher-value work. Companies must therefore ensure that their talent is well skilled to work alongside machines and be resilient to take on new work roles that require an innovative approach. At Accenture, we propose a human-centred, systems-minded approach that promotes shared workforce resilience. This is not a one-time process. It requires the development of persistent capabilities and relationships across stakeholder groups. Furthermore, people are looking to leaders to guide them with empathy, compassion and wisdom. CHROs need to ensure this culture permeates across the company – especially during times where boundaries between work and home life have blurred and people are feeling burnt out as a result. Amid the global health crisis, people are increasingly and more intensely struggling with depression, anxiety, and even suicidal ideation. Grappling with worries about job security, the economy, social isolation and disrupted daily routines, many employees are experiencing psychological distress. CHROs have the responsibility and the skills to guide them through this. The year 2021 promises to be an exciting journey and I am adamant we will adapt swiftly to this new way of life. I hope you will find this edition inspiring as you reimagine and mould a new world in HR.

VUKANI MNGXATI CHIEF EXECUTIVE OFFICER ACCENTURE AFRICA | CHRO AWARDS JUDGE

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contents

18 Still in shock Ntiyiso Consulting HR director Disebo Ramonyalioa found the world of work changed upon returning from an eight-month sabbatical.

26 First love Tshepo Yvonne Mosadi was among the first employees at Heineken SA when the beer maker set up offices in South Africa.

62 A tale like the Titanic’s Darryl Feldman, former divisional HR executive at Edcon, shares his experience of the iconic retailer’s collapse.

Athol and the chocolate factory Nestlé’s Athol Swanepoel reflects on a career that started with sorting letters at the South African Post Office page 22

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Insight

CHRO community

50 Karen Wentzel 58 Guy Chennells

32 Biggest virtual HR expo on the continent 40 CHRO Awards: A night to remember

Cover story

Features

12 Rise of the Tiger Tiger Brands CHRO S’ne Magagula says being part of the team leading the organisation’s recovery from the listeriosis crisis was one of the things that attracted her to the role

36 Beyond the buzzwords 44 The long walk to financial freedom 52 Bye-bye buildings

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publishing info

Community manager Sungula Nkabinde snkabinde@chro.co.za +27 72 741 6171 Editor in chief Georgina Guedes gguedes@cfo.co.za +27 83 651 2789 Photography Patrick Furter Other contributors Victoria Williams, Puseletso Mompei, Guy Chennells, Vaphi Lungile, Karen Wentzel Advertising Nick Smith nsmith@chro.co.za +27 72 202 1071 Managing director Joël Roerig jroerig@chro.co.za +27 76 371 2856 Publisher CFO Enterprises (Pty) Ltd 1 Wedgewood Link | Bryanston | Johannesburg | 2191 | South Africa +27 11 083 7515 CHRO community CHRO South Africa is the organisation for HR executives in South Africa. Our goal is to connect finance professionals online and through events and this magazine in order to share knowledge, exchange interests and open up business opportunities. For more information and membership options please visit CHRO.co.za. Design & Layout Elizabeth Ferraris Printing Novus Holdings © 2021 CFO Enterprises (Pty) Ltd. All rights reserved. No part of this publication may be reproduced, distributed or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law.

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Here we go again It’s only March and I already feel like it’s been a full year of activity, perhaps because 2021 has carried on right where 2020 left off. It is the age of disruption on steroids. Seldom before has the quote from ancient Greek philosopher Heraclitus – that the only constant in life is change – rang more true. Even as I pen this introductory note, I wonder how much our reality will have changed by the time these words meet your eyes. But the show must go on, pandemic or no pandemic. Gone are notions of the Fourth Industrial Revolution being something for which to prepare. It is here. Nations and organisations the world over have accelerated into the future, and now, it’s "do or die" for them. There is no doubt in my mind that the leaders who thrive in this VUCA world are those who enable agility and a willingness to adapt to change. In this seventh issue of CHRO magazine, HR leaders share stories of how they rose to the challenges of a very tough year. On page 52, HR leaders and experts weigh in on whether the normalisation of remote working will mark the end of office buildings. S’ne Magagula, the Tiger Brands CHRO, who took home the Learning and Development Award at the recent CHRO Awards, explains how she and her team introduced an approach to leadership development that will leave a lasting legacy at the fast-moving-consumer-goods giant (page 12). Last year, Edcon met its demise, and, on page 62, former divisional executive Darryl Feldman shares his experience from the iconic retail group’s collapse. And Ntiyiso Consulting’s HR director Disebo Ramonyalioa, who spent most of the year on a sabbatical, talks about how shocked she still is to see how Covid-19 has changed the world of work (page 18). I hope this issue will serve as both a healthy distraction from all the fires that need putting out and as a source of inspiration that will shift your mindset to one that focuses on the silver lining. Happy reading.

SUNGULA NKABINDE SNKABINDE@CHRO.CO.ZA +27 72 741 6171

CHRO

movers

Maruping as group executive: human capital, with effect from 1 February 2021. This will be a dual function with her current role as head: human capital in Altron Rest of Africa, a role she has held since July 2018. She was responsible for leading and providing human capital strategic oversight across Africa & Middle East with a key focus on Botswana, Kenya, Mauritius, Middle East, Mozambique, Namibia and South Africa. Njabulo Mashigo

Vodacom SA appoints Njabulo Mashigo as HR director Njabulo Mashigo has been appointed resources director and executive director of Vodacom South Africa with effect from 1 February. Njabulo has 18 years' experience in the HR management value chain, nine years of which have been in senior leadership roles. The Vodacom Group has simplified its structure following the recent expansion of its African portfolio, and accelerated growth ambitions on the continent. Vodacom South Africa is now a standalone company with a new managing director and board. Njabulo joins the telecoms giant from Heineken headquarters in Amsterdam where she has been on assignment as a talent management lead and Opco span breaker for the Africa, Middle East and Eastern Europe (AMEE) region since September 2018.

Nametsegang has over 15 years’ human capital experience spanning multiple industries with deep insight and knowledge of multinational (including multidimensional and matrixed) corporates. Prior to joining Altron, she worked at companies such as Absa, Standard Bank and Unilever, as well as a state-owned enterprise.

Kgomotso Molobye joins Massmart Formerly the CHRO for Telkom’s Openserve business, Kgomotso Molobye joined Massmart as the vice president: people partner for Massmart's wholesale business in November 2020. Massmart operates more than 423 stores in South Africa and 12 in other sub-Saharan countries. It is the second-largest distributor of consumer goods in

Nametsegang Maruping, Altron's new group executive: human capital

Darryl Feldman

Africa, the leading retailer of general merchandise, liquor and home improvement equipment and supplies, and the leading wholesaler of basic foods.

Life Healthcare appoints Avanthi Parboosing as CPO Life Healthcare Group has announced that Avanthi Parboosing has been appointed as its chief people officer. Formerly the group company secretary, Avanthi will have overall responsibility for HR and take executive responsibility for the additional portfolios of communications and marketing, stakeholder engagement, diversity & inclusion and sustainability. The company said in a statement that the appointment establishes the role of the CPO as a vital part of the executive management committee, which strengthens critical elements of a progressive “people” function and is integral to its strategy.

Darryl Feldman appointed as Oasis Group’s Head of HR Kgomotso Molobye

Altron Group has announced the appointment of Nametsegang

Darryl Feldman has been appointed as head of human resources at Oasis Group Holdings. Darryl brings

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over 20 years of work experience, 19 in the human resources field, to the position. His career has spanned the banking, retail and the information and communication technology sectors. Mostly recently, he was the divisional executive for HR and transformation at Edcon. Says Darryl: “I am extremely excited to have joined Oasis Group Holdings during such a challenging time in our country and the world.”

Nomaxabiso Teyise appointed head of DTI at Takealot Nomaxabiso Teyise has been appointed head of diversity, transformation and inclusion at the Takealot Group. Having joined the e-commerce giant in January, she has been tasked with creating strategies and driving programmes that increase diversity and empower and create access to opportunities for those who are still excluded from meaningful participation in the main economy. Previously group HR, transformation and CSI executive at Oceana Group until March 2019, she was also an independent consultant for over a year prior to joining Takealot. Before that, she fulfilled various roles at Nedbank, including executive head of HR, divisional executive

Nomaxabiso Teyise

CHRO.co.za Tania Hector

and organisational development consultant.

Tania Hector the new corporate head of L&D at Nestlé

CHRO.co.za is the online hub for South African HR professionals, a daily virtual pitstop for high achievers who want to stay ahead. The content portal of CHRO South Africa is experiencing spectacular growth in readership every month and is now the number one HR website in South Africa. The unique offering includes:

Nestlé has appointed Tania Hector as its corporate head of learning & development. A creative problem-solver and decision-maker with strong communication, coaching, negotiation and problem-solving skills, Tania has successfully managed various turnarounds within a variety of HR departments in South Africa, Malaysia and Singapore.

• Interviews with prominent HR executives

With a deep passion for enabling potential, Tanya started her career as a social worker, eventually specialising in marriage and family therapy in South Africa, before making the move to HR in 1996. In 2006, she moved to Nestlé as an employee wellness manager and, over the next seven years, fulfilled a variety of roles within the HR function, including talent acquisition, learning and development, as well as talent management. She later moved on to Nestlé Malaysia for two years before relocating to the UK in early 2016 to become the head of talent, engagement and leadership at Nestlé UK and Ireland. She then became the HR director at Nestlé East and Southern Africa, before her current appointment. 

• Information about CHRO South Africa events

• Exclusive guest articles from leading experts • Profiles of the CHRO Top 100 • All new appointments of HR leaders • Fresh and often provocative trend articles

• Online access to CHRO Magazine • The latest and greatest HR training • A free online membership with a weekly newsletter Contribute Do you know an HR director who has great insights to share? Do you want to contribute your expertise? Do you have ideas that can help CHRO.co.za get bigger and better faster? Then contact community manager Sungula Nkabinde today. Sungula Nkabinde | snkabinde@ chro.co.za | +27 72 741 6171

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"Tiger Brands turns 100 years old this year and the strategy and culture review began with this milestone in mind.”

RISE OF THE

TIGER

Tiger Brands CHRO S’ne Magagula joined the group at a time when it had just been through a reputational crisis after the listeriosis outbreak. Fast-forward two years and it is evident how far the pendulum has swung in the other direction.

BY SUNGULA NKABINDE

When S’ne Magagula joined Tiger Brands as CHRO in 2018, the group was recovering from a reputational crisis as one of its factories had been linked to the listeriosis outbreak in that same year. Surprisingly, S’ne says being part of the team leading the organisation’s recovery from the crisis was one of the things that attracted her to the role. That and the Tiger Brands purpose, which is “to nourish and nurture more lives every day”. When S’ne came on board at Tiger Brands, she worked with the leadership team, her team and the organisation to shape a simple people strategy anchored on three pillars of ‘Talent’, ‘Leadership’ and ‘Great place to work’ with the aim of improving business performance exponentially and bringing the company's purpose to life. To enable the company’s growth strategy, S'ne and her team put in place rigorous talent management aimed at ensuring that Tiger Brands started to “grow its own timber” by moving key

talent across its very diverse businesses so that succession to leadership roles came from within the company. This resulted in the company exceeding its target of filling 40 percent of leadership positions internally, reaching 79 percent internal placements in 2020. This, of course, was balanced with targeted sourcing of key strategic capabilities from the external market when these could not be accessed internally. S’ne and her team worked with selected partners to design fit-for-future core capability and bespoke leadership development programmes that could be delivered virtually and digitally, to further enhance Tiger’s execution of its strategy as well as to ensure that its people were at the leading edge of the industry. “When I joined, our reputation was at a low point and there was a lot of reflection happening within the organisation around the strategy that was going to take us into the future and ensure that we remained the leading FMCG company in Africa. It was around the same time that

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we began exploring the value set and behaviours that we wanted to drive within the organisation to attract, develop and retain consumer-obsessed, innovative and agile people who were excellent at execution,” says S’ne, adding that the company turns 100 years old this year and that the strategy and culture review began with this milestone in mind. She and the executive leadership team have since led the refresh of Tiger’s values and winning behaviours which were co-created with over 80 enterprise-wide leaders and people across the company’s more than 40 sites in 2018. This formed a firm foundation for the culture transformation journey that Tiger is currently on and also informed a sharpened employee value proposition and employer brand, giving life to the company’s three-pronged employer brand slogan: “Igniting your tomorrow; Igniting our tomorrow; Igniting Africa’s tomorrow”. Based on the strategy and values, S’ne and her team worked with leaders across the organisation to define a leadership brand and competencies that would define the “Tiger leader of the future”.

Tiger Leader of the Future This led to the creation of Tiger’s leadership capabilities set that would shape the ‘Tiger Leader of The Future’. These focused all leaders on: leading people, leading performance, leading innovation, leading partnerships and leading self. “We asked the question: ‘What kind of leader do we need to lead the transformation of Tiger into an African FMCG giant that earned its stripes over the next 100 years?’ We defined the transition that we wanted to see in leadership. This included moving from command and control leaders, leaders that wanted to be ‘bosses’, to leaders who are true multipliers and whose passion is to inspire winning performance, consumer obsession, agility and innovation. We also wanted leaders who could look beyond their business unit and think about Tiger as a whole enterprise.” S’ne and her team worked with leaders across the organisation to develop programmes to build the

leadership capabilities and mindsets that were needed to create a future-fit Tiger. These were developed in partnership with fit-for-purpose external partners. The L&D programmes and curriculums across the group catered to frontline leaders, high-potential leaders, mid-level leaders and senior executives. This included an enterprise-wide programme geared to specifically shift the mindset of leaders across Tiger Brands to align it with the desired winning culture, leadership style and unconscious bias – Game Changer. Most leadership teams, including the executive leadership team, have already experienced the programme and it has been well received.

Anybody can run a leadership programme Beyond the formal programmes, a key focus was to start driving leadership mobility in the organisation. S’ne says it was this differentiated approach that really changed the game at Tiger Brands. Says S’ne: “Any organisation can run leadership development programmes, but the challenge with those is that people attend them, and they momentarily feel ready to change the world. But when the rubber hits the road, the reality is that people will maybe implement one or two of the learnings from a programme that they have attended and forget the rest or at worst revert to the behaviour or mindset that the programme was designed to shift in the first place.” The company’s current approach to developing leaders and talent in general, is to actually give people different, hands-on experience, which really stretches them and develops new capabilities and mindset in real-time. “So, moving people around every three to four years so that they do not stay in one job for too long is a practice that we are working very hard to embed across the organisation,” says S’ne, adding that this allows Tiger to leverage their advantage of having multiple brands and business categories. “It means there is always a different challenge for talent to be deployed towards.” And every category or

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“It’s given us the advantage of really growing our own timber and nurturing our own talent within Tiger.” S’ne Magagula CHRO, Tiger Brands Work: Sinenhlanhla Magagula, affectionately known as S’ne, is a well-rounded and highly experienced HR and business leader with a proven track record. She joined Tiger Brands as the CHRO in 2018 after spending 10 years at Sasol, where she held various HR leadership roles, including Senior Vice President for Group Human Resources. Prior to Sasol, she spent several years at Shell in various roles both in South Africa and in the Netherlands. Education: B Social Sciences (SW) (Rhodes University). MBA (University of Cape Town) Certificate in Human Resources (University of South Africa)

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“It was a real honour for the team to be recognised. I don't do this work on my own. As a leader, you are more like the conductor of an orchestra.” market comes with its own opportunities and challenges from a leadership and intellectual perspective. “When I got to Tiger, we conducted focus group conversations with our people across sites and one of the biggest areas of improvement our people spoke about was the need to have more opportunity to move around the business and develop their capabilities so that they were ready for challenging leadership roles when they became available.” Since changing its approach to succession, Tiger has started a journey to create a more robust talent pipeline through targeted career moves and placements. The group has reduced the number of external appointments from 80 percent to 20 percent, with the rest of the roles being filled internally. “It’s given us the advantage of really growing our own timber and nurturing our own talent within Tiger. Even if an individual is not 100 percent ready for a role, we take a chance on them instead of bringing someone from the outside and that alone has created a lot of really good energy within the organisation.”

was quite basic to a comprehensive and transparent growth and talent development machine that enables the delivery of the business strategic agenda. This was recognised at the CHRO Awards when she was awarded the Learning and Development Award. Says S’ne: “It was a real honour for the team to be recognised. I don't do this work on my own. As a leader, you are more like the conductor of an orchestra. The real work is done by the team, who develop the practices and bring passion, blood, sweat and tears to the execution of the plans and engaging with teams across our sites. That’s why I took my team with me to the awards. It made for a fantastic end to a very challenging year and they all had a great experience despite the pandemic and, I have to say, CHRO SA did a great job of ensuring that Covid-19 protocols were observed.” Reflecting on what her legacy will be, S’ne says she hopes to have been part of an executive leadership team that redefined how Tiger achieved its purpose of “nourishing and nurturing more lives every day” and set up Tiger Brands for sustainable success and contribution to the unleashing of the potential of Africa into the next 100 years. She says, “I also hope that I really inspired all Tigers to ignite and develop their own potential in a great place to work that lit up a fire in them to fulfil their own purpose at the same time as they fulfil our purpose as a company.”

In the last year and while navigating the Covid-19 pandemic, S’ne and her team have partnered with the leadership team to deliver a review of the Tiger Brands operating model and structure to achieve efficiencies and improve focus on the consumer, innovation, agility and speed of execution.

Ultimately, S’ne says the CHRO Award is a testament to the amazing talent at Tiger Brands. It is a recognition of all the Tiger Brands people who have passionately “seized the day” and the opportunities that have been offered to them to grow, thrive, innovate and roar into the future.

In her two years at the FMCG giant, S’ne and her team have transformed the people agenda and talent development approach from something that

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Tiger Brands’ operations suffered indirect and direct Covid-19-related costs of about R400 million in the year to the end of September 2020. Nevertheless, throughout the pandemic, the company's exco and board made salary sacrifices that enabled the organisation to implement the following measures to safeguard employees and consumers: •

Engagement and communication campaigns to raise awareness of all staff on the pandemic, protocols, guidelines and regulations.

• In the event of a positive Covid-19 case, the group conducted an intensive decontamination process through an approved and accredited service provider, and were issued with a certificate for the work done. This was done in line with government regulations and protocols. • Tiger facilitated contact tracing to expedite the process of finding and testing exposed individuals to help prevent the spread of the virus. The Department of Health, National Institute for Communicable Diseases, and union partners were kept informed of how the situation was being managed. •

All employee Covid-19 tests conducted by Tiger Brands were paid for by the company.

• There was no loss of income to any employee who had either tested positive or had to self-isolate as a result of being a close contact of a Covid-positive employee. • All employees had access to 24-hour counselling support (individual, group and family) through the company’s THRIVE wellbeing programme. •

Resilience training was made available to all teams to enable them to manage their mental health during the pandemic.

• A Covid-19 support pulse survey was conducted to solicit employee feedback so that the pandemic support programme could be enhanced further.

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till in hock

Ntiyiso Consulting Group’s newly appointed HC director Disebo Ramonyalioa took an eight-month sabbatical and is “still in shock” at how the world of work has changed. BY SUNGULA NKABINDE

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“One really feels the spirit of ubuntu as a member of the Ntiyiso family.”

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“The challenge is to keep people motivated and performing amid these exigent conditions."

tiyiso Consulting Group HC director Disebo Ramonyalioa was on a sabbatical for eight months last year before taking up her new role in December. A week after leaving Unilever, where she was the HC director for Functions Africa and the transformational lead for South Africa, the country went into national lockdown. The sabbatical was initially meant to last for three months but she extended it because organisations were putting out fires left, right and centre. The national lockdown and constant uncertainty around Covid-19 meant it wasn’t the right time to take on a new HC leadership role. Disebo joined the firm with the expectation that the country had stabilised somewhat and she would be able to steer the organisation’s people agenda without the turbulence of 2020 to worry about. “I think it was the right choice to wait. I am still in shock at how much the world of work has changed in such a relatively short time frame,” she says. “I was busy with our annual HC budget the other day and being new to the role, after a year like no other in terms of the business environment, I didn’t have much with which to compare 2021. I, however, picked up that wellness was not only at the top of the strategic agenda but also that it needed extra focus and planning because of the shift to mental health and wellness caused by the year that was.” Whereas in the past, most organisations would have taken a holistic approach, leaning more towards physical than mental and financial wellness, Disebo has noticed that mental wellness is now a very big factor when it comes to employee engagement and performance.

“Having to homeschool young children, particularly those who are still learning to read, has been an immense source of frustration for our employees trying to juggle this with work,” she says. “The challenge is to keep people motivated and performing amid these exigent conditions.” Her priority since joining Ntiyiso Consulting, a management consulting firm with a focus on empowering organisations that enable Africa’s development, has been safety. Most of their employees are based at clients’ sites, therefore, beyond ensuring the safety of employees at head office, she has also had to introduce protocols that must be observed whenever their employees are not well.

Monday reflections Eight months may seem like a very long time to not be working but Disebo says the extended sabbatical could not have come at a better time. She started journaling every week, writing down her ‘Monday Reflections’ based on lessons from her grandmother, which she posts on LinkedIn. Says Disebo: “If I didn’t take that sabbatical, I would be a very different person from the one I am today. It was the most re-energising eight months of my career because I had an opportunity to really reflect on the kind of a leader that I had been and the kind of a leader I want to become given the challenging times in which we operate. I think that because we often get caught up in the midst of getting things done and delivering value to the organisations we serve, we sometimes forget to ‘stand on the balcony’ and take time to reflect on what has worked and what hasn’t and what’s next.” In addition to that, she also took the time to do

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“If I didn’t take that sabbatical, I would be a very different person from the one I am today." the things she enjoys, like reading. Whereas before she would only get around to reading two or three books a year, Disebo read eight books, reconnecting with her love for fiction, inspirational autobiographies and business reads. She also did courses on LinkedIn Learning, preparing herself for the new world of work, and helped those who reached out to her looking for jobs by reworking their CVs, helping them to prepare for interviews, and so on. She spent a lot of time with her family, having deep conversations with her 83-year-old mother and bonding with her 14-yearold son, Oratile. “I have a passion for cooking and I used the time to try out new dishes and sharing recipes on social media with family and friends. I know it’s very clichéd, because everybody and their mother seems to have taken up baking as a new hobby during lockdown but that’s not my forte, so I stayed away from the ‘magwinya’ [vetkoek] crew, unashamedly so,” she laughs.

“You know how companies always say they are a family and they live by African values? This is the first time I’ve actually felt that kind of energy throughout the business, from the leaders to the lowest-level employee. One really feels the spirit of ubuntu as a member of the Ntiyiso family,” says Disebo. “Look, the leadership did not lie to me about the amount of work that needed to be done. But I love that it’s a black-owned firm that has been around for 16 years, and has a zeal to bring people along on their growth story.” Disebo says she was also encouraged that the leadership understands the importance of having HC playing a strategic role in all facets of the business. “They already understand the ‘why’ when it comes to the people agenda, and that’s going to make my job much easier, enjoyable and impactful,” she concludes. 

Family values On why she chose Ntiyiso Consulting, Disebo says she was drawn by the culture, which is rooted firmly in family values. During her interview, which was so long they had to take a recess, Disebo was asked if she could stay for lunch afterwards. She could not take the leadership team up on their offer as she had a prior engagement, but it was when they gave her a s’khaftini (lunchbox) – and warned her to make sure she didn’t return it empty – that she knew it was the right company! The firm’s purpose of empowering institutions that enable Africa’s development resonates with her love and passion for our beautiful continent.

Disebo Ramonyalioa Human Capital Director, Ntiyiso Consulting Work: Disebo Ramonyalioa has 15 years’ experience as an HR leader across different industries ranging from fast-moving consumer goods to insurance. Prior to her current role, she held executive human capital roles at Unilever and Tsebo Solutions Group. Education: BA Social Sciences (Durban Westville), Post Grad Diploma in Industrial Relations (University of KwaZulu-Natal)

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ATHOL & THE CHOCOLATE FACTORY Fresh into his role as the HR director for East and Southern Africa at Nestlé, Athol Swanepoel reflects on a career that humbly began at the South African Post Office.

BY VICTORIA WILLIAMS fter completing his degree in social work with psychology as a major, Athol Swanepoel, HR director for Nestlé East and Southern Africa, struggled to find full-time employment. He finally found casual work at the South African Post Office where he spent a year and a few months sorting letters. This job often included night shifts when Athol would question why, with a completed degree, he was doing menial work. “The inside of a mail centre is a dusty place. You dress down for work because you come out looking pretty dusty and probably unkempt. I’m sure there are a few people who saw me after varsity and wondered ‘what went wrong?’” He needed a mind shift change to embrace the work. “I got the best piece of career advice at this time: It doesn’t matter what you do as long as you try and be the best at it. I took this lesson into my job of sorting letters. I wanted to be the best letter sorter. It wasn’t long before experienced postal workers came to me to ask where letters needed to go,” says Athol. Once he became a permanent employee at the Post Office he shifted into a role as a training officer. Within a year he was appointed as an HR practitioner at the

organisation. This was when his HR career started – despite having no qualifications in HR. “Some HR material is deeply theoretical, including organisational design and change management. While I never had the theoretical background, I made sure that I read continuously to stay up to date with the latest trends. As a trained social worker, I added a new dimension to my work by also considering how our HR decisions impact society and communities,” he says.

A parastatal champion In 1998, Athol left the Post Office to join Transtel, the then telecommunications arm of Transnet. Transtel provided the telecommunications services for the railway, the oil pipelines and the rest of the Transnet stable. During his nine years at Transtel, he held several HR positions in both Cape Town and Johannesburg. In 1999, his position was made redundant but he had the opportunity to move to Johannesburg to take over from a colleague who had taken a retrenchment package. “As a typical Capetonian, I dreaded the move up to ‘big, bad Johannesburg’ but the alternative was to be unemployed,” he says. In 2002 he resigned to move back to Cape Town to be closer to his family in the wake of his father’s passing.

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“I always joke that I went out to do some industry research at Edcon.” Then, after four months working as a freelance consultant, he re-joined Transtel, living in Pretoria and commuting into Braamfontein each day. He enjoyed his time at Transtel, believing in serving his country. “I very much respect the work that people do in parastatals. It is honourable work. But after so many years at Transtel, I needed to explore something different that was going to stretch me professionally,” says Athol.

The business of doing good Athol applied for a position at Nestlé, attracted by the company’s values and its record of excellent community work and commitment to improving the environment. Nestlé is striving to meet the company’s 2030 goal of having zero environmental impact in its operations. The company has many initiatives to meet this commitment, ranging from carbon reduction projects, water stewardship efforts, environmental efficiency projects in its operations, and working closely with its agricultural supply chain to minimise the impact on the environment. “It is critical that your personal beliefs align with the values of the company. Business is in business to do business and ultimately satisfy the stakeholders. This school of thought is becoming outdated. Today business is also in business to do good and to contribute to society. You can’t be successful today without understanding how you positively impact the ecosystem around you.” For Athol, Nestlé exemplified a business that is also a good corporate citizen.

At the factory level He joined Nestlé in August 2006 as an HR business

partner. Much to his surprise, he was placed near Hammanskraal in Northern Gauteng at Nestlé’s Babelegi factory, which manufactures the coffee creamer Cremora. “I signed up without knowing where in South Africa I would be placed. I had never heard of Babelegi before in my life. I drove out on a Sunday before I started to see the factory. I remember seeing loads of dilapidated factories and as I was driving those streets, I asked myself ‘what have I done?’ Then I turned a corner and saw Nestlé’s immaculate factory and felt immediately reassured. Nestlé prides itself on the cleanliness and safety of its factories,” he says. The time spent at Babelegi proved to be a pivotal moment in Athol’s career. The factory had been without a dedicated HR business partner for almost 18 months. He worked hard to set up HR as a credible department again and built strong relationships with trade unions. This achievement was especially noteworthy considering he came from a telecoms background into an FMCG environment at a factory level. In 2008, he moved back to an HR business partner position at Nestlé’s Belville plant in Cape Town. Then, in January 2009, he moved back up to Johannesburg to take an HR role at Nestlé’s head office.

A local retail icon In 2013 Athol’s itch to try something else returned. In August, he joined Edcon – an experience that gave him insights into working at an iconic, home-grown business that employed about 35,000 permanent and part-time employees. At that stage, the business was already experiencing financial difficulties and carrying a debt burden of R19.5 billion. It was also a time of increased competition as international brands like Zara and Cotton On entered the local retail scene. For HR, the main objective was to steady the ship and keep the people costs down. In the years to come, the company was set to experience several rounds of retrenchments. “I did a bit of homework before I joined but probably not as much as a should have.

Athol Swanepoel Human Resources Director, East and Southern Africa, Nestlé Work: Athol Swanepoel is the incoming human resources director at Nestlé for the East and Southern African region. During his 26-year career, Athol has spent time in the postal service, telecommunications, retail and more than 11 years at FMCG giant Nestlé. Education: BA Social Work (University of the Western Cape)

CHRO

interview

Edcon’s primary focus was on securing business continuity and that came with a very different people agenda than what I had anticipated,” comments Athol. He spent three years with Edcon before being approached by Nestlé to return to the organisation in a different capacity. “Being asked to return to a company is a sign that that value you added was recognised,” says Athol.

Back to Nestlé In October 2016 Athol returned to Nestlé as a regional HR business partner at Nestlé Nutrition. For him, the continuous learning curve that Nestlé offers keeps him engaged. As a result, he has worked as an HR generalist across at least eight portfolios while at Nestlé. This new position gave him new perspectives into working on the African continent. Athol was responsible for HR in the nutrition business in Central West Africa, Equatorial Africa and South Africa including Lesotho, Botswana, Namibia and Swaziland. “The position was a good opportunity as it gave me exposure to sub-Saharan Africa with a reporting line outside of South Africa. It came with global experience and touchpoints,” he adds. During his four years in the role he was also the HR lead on a large transformation project at Nestlé – a project that went live successfully and something of which he is very proud.

In November 2019, Athol was appointed as the talent manager at Nestlé, looking after East and Southern Africa. He was preparing to take up a new role in Ghana when he was approached to take over from Tania Hector in the position of human resources director for East and Southern Africa. Athol jumped at the opportunity. He shadowed Tania for three months before taking over the role officially on 1 February 2021. The challenges ahead of him include preparing the organisation for the second year of the Covid19 pandemic. “Last year made it clear that HR is indispensable. It has also accelerated the digital transformation of many organisations. I am under no illusion that 2021 is going to be an easy year, but we are more prepared now despite the challenges ahead. Covid-19 made flexible work come to life. It gave us a glimpse of what future skills are required. The ageold conversation of HR having a seat at the table has been put to bed. It is clear that HR is at the forefront and leading organisations.”

Embracing Johannesburg Athol spends his spare time with his wife and three boys as well as his mother who is based in Johannesburg. “My two younger kids were born in Johannesburg and I’ve grown to appreciate this city. With my life and career, I count myself as being incredibly blessed,” concludes Athol. 

“It doesn’t matter what you do as long as you try and be the best at it.”

CHRO

Interview

FIRST LOVE Tshepo Yvonne Mosadi was among the first employees at Heineken SA when the beer maker set up offices in South Africa. Today she has returned as the company’s HR director.

BY SUNGULA NKABINDE

hen Tshepo Yvonne Mosadi was appointed as the head HR business partner for the supply chain division at Heineken SA, months went by before the company name had even been registered. Even in those early days, there was a sense of excitement about what the future had in store and a sense of achievement in establishing the local presence of one of the world’s biggest manufacturers in this sector. “The company started engaging with me in 2015 before Heineken South Africa was even born. When I got the offer letter, the letterhead read ‘DHN Drinks’. I was hired as the head HR business partner for supply chain, but I spent most of the time setting up the operating company,” Tshepo recalls. "It was only when Heineken SA launched in April 2016 that I began focusing fully on the supply chain side of things.” This experience of being there since the very beginning is the reason why Tshepo (or Yvonne – she uses both her names interchangeably) refers to Heineken

as her first love. She would have stayed in the organisation for the entire period had it not been for the fact that growth opportunities at the time only existed in global markets. However, she wanted to remain close to her family in South Africa, so that was not an option for her. Consequently, she accepted an HR executive role at Imperial – another company that she had previously worked for, and soon after, was promoted to HR director for Hyundai Automotive South Africa. On why her former employers seem to always want her back, Tshepo says it’s down to her work ethic and willingness to always go the extra mile. At the age of 29, she was approached by the MD of Imperial Distributions to head up HR for the division, despite having only held roles in middle management prior to that. She accepted and thrived in this role, coming into her own as a bonafide HR leader. Years later she rejoined the organisation, just as she did with Heineken in February 2020. Says Tshepo: “I suppose that once a leader has an excellent experience with an HR professional, they will always have them in the back of their mind. That’s why I wasn’t surprised when Heineken came for me. I’ve always wanted to learn. I’m very opinionated. I will never sit at a table and keep my opinions to myself. Some of the HR professionals I’ve come across haven’t been very forthcoming with their ideas. It’s also important to have credibility and reliability because people are counting on you, whether it’s Saturday or a public holiday. Beyond your knowledge and skills, you have to show your value through little things, like always being available to put out fires as and when they arise.”

“I’ve always wanted to learn. I’m very opinionated. I will never sit at a table and keep my opinions to myself.” 26

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Tshepo Yvonne Mosadi HR Director, Heineken SA Work: Tshepo Yvonne Mosadi was previously the head HR business partner for supply chain and support functions, as well as employee relations lead for Heineken SA. She returned to the beer maker in January 2020 from car manufacturer Hyundai Automotive South Africa, where she had held the role of HR director. She also held HR leadership roles at Imperial Retail Logistics and RCL Foods. Education: MBA (MANCOSA), B Tech (University of South Africa), Certificate in Labour Dispute Resolution (University of Stellenbosch), Management Development Programme (Gordon Institute of Business Science).

Managing talent during a pandemic Soon after her return to Heineken, the Covid-19 pandemic hit South Africa’s shores. It’s been a difficult road, but Tshepo says she’s been able to leverage her ability to adapt quickly and go the extra mile. Also, Heineken has always been a people-centric organisation and in the context of a pandemic, that has been a blessing for her, because the business understands when she has championed the need to put people first. “It was challenging because we needed to shift resources earmarked for executing our strategy in order to put the health and safety of our people first and protect the livelihood of our employees. But that is why HR has such an important role to play in today’s world,” she asserts. Among Tshepo’s primary concerns regarding the pandemic is the loss of talent during times of uncertainty

to organisations that have thrived over the last few months. She further challenges leaders and HR professionals to pay special attention to building a culture of resilience during these turbulent times. She suggests that leaders move away from a traditional reward and recognition approach, which is usually based on performance accrued. In its place, she suggests that they adopt an intrinsic rewards system, as it is forward-looking and sets the foundations of engagement and motivation required to nurture the future wellbeing of each team member and their productivity. “Although having a culture of reward and recognition is very positive, in times of distress such as these, we must appeal to the most intimate needs for the recognition of human beings. In addition, we should not forget to foster a very strong sense of tribe among our staff, rather than just a feeling of belonging,” she concludes. 

CHRO

D&I

interview

IN THEIR

DNA

Cebile Xulu, people lead at Mondelēz International and co-chair of the Mondelēz International sub-Sahara African D&I Council, which was instituted in October, discusses the company's three-pillar strategy for enhancing diversity and inclusion.

BY SUNGULA NKABINDE ebile is the co-chair of the Mondel z International sub-Sahara African D&I Council, which was instituted in October.

“When I joined Mondel z International around three-anda-half years ago, the organisation already had a substantial representation of women. Although there needed to be more of us in leadership positions, it was clear then that gender equality was viewed as an important priority for the business,” says Cebile, HR director of Mondel z International's newly-formed Sub Sahara African business unit. When she joined as the HR director for South & Central East Africa in 2017, the representation of women on the leadership team was between 30 and 40 percent but, over the last few years, that figure has soared to 55 percent within the South African business. “And that was not something that happened by chance. It was a result of deliberate efforts and a

strong leadership drive for transformation within the organisation,” she says.

Three pillars Since then, Cebile has played a critical role in advancing the diversity and inclusion agenda at the American multinational snacking company. The D&I Council, which includes representatives from SSA main markets such as South Africa, Nigeria, Kenya and various other smaller markets, collates outcomes of engagement surveys and other employee insights to set D&I priorities and monitors D&I targets and achievements, including employment equity, succession plans, skills development, representation of women in leadership roles and so forth. Mondel z SSA has already seen success in a number of these areas – the SSA leadership team is made up of 63 percent women. The South African business also does well in bringing different types of talent into the business, specifically through investment in its early careers programme, which enables a pipeline that is truly diverse. There is still a concerted

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“Leaders should take action and not simply pay lip-service to these conversations." 29

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“The D&I agenda is more than just race and gender – we want to build a culture where all our colleagues can thrive by just being themselves.”

The second pillar of focus speaks to Colleagues – and this is about the representation of women and other underrepresented demographics, ensuring diverse candidate slates for all external hiring, as well as bringing in a diverse talent pipeline at early careers stage. “For Mondel z International, the D&I agenda is more than just race and gender – we want to build a culture where all our colleagues can thrive by just being themselves and where the makers and bakers of our products are a true reflection of our consumers and the communities in which we operate,” says Cebile.

focus around the underrepresentation of black candidates in certain functions of the business, and it remains a priority. “The D&I Council is not a new idea. Mondel z has long had D&I councils for each of the regions in which it operates and that bears testament to the fact that this is something that has been entrenched in our company and makes up the fabric and DNA of our organisation. It is embedded in our values and flows into our hiring processes, performance management and succession planning,” says Cebile. Overall, the SSA business’s D&I approach is based on three pillars, which flows from the Global D&I Strategy. First is the focus on Culture – which aims at introducing KPIs/metrics that foster a culture of accountability at people manager level to ensure collective responsibility for creating an environment where people feel a sense of inclusion and belonging. It is also about mobilising brands and marketing partners to drive change, equity and inclusion.

Cebile Xulu

People Lead, sub-Saharan Africa, Mondelēz International

It is also critical to truly understand the macro socio-economic dynamics of each market when setting these D&I priorities. In Mondel z Nigeria, for example, there is only a 10 percent women representation in the workforce, primarily because of legislation that prevents women in certain occupations from working night shifts – as well as societal expectations and concerns around women going into sales roles, centred around safety issues, as well as the impact of extensive travel on the family structure. The third pillar focuses on Community – and this is about fostering and investing in multi-cultural partnerships that enrich the communities where we live, work and play. “We also want to actively cultivate our reputation, thereby ensuring we are an employer of choice for diversity,” adds Cebile. “In addition, we have been making a concerted effort to ensure that we develop and mentor a diverse range of service providers and suppliers in the communities to ensure that fruits of our D&I efforts are enjoyed beyond our internal environment. Because society needs this kind of transformation as much as, if not more than, our organisations. Our purpose is what drives our focus on these issues to make sure that we leave a lasting economic impact in the communities we engage with,” says Cebile.

Stop ticking boxes

Work: Cebile’s vast experience as an HR leader has been acquired from working with multinational and local private entities, within South African borders, as well as parastatal and government institutions in Sub-Saharan Africa. She has previously worked in Amsterdam at the headquarters of Heineken International, where she was the Leadership and Capability Development Manager for Africa, the Middle East and Eastern Europe. Before that, she had been at Masonite Africa, Sara Lee HBC, the A-Cubed Institute and Tongaat Hulett.

“The SSA business unit operates in a complex context where we need to maintain a consumer-centric approach across a large geography with different cultures, a fragmented portfolio and varying emerging demand spaces, and this makes diversity and inclusion even more critical,” says Cebile.

Education: Leadership Development Programme (Wits Business School), BA Honours (University of Zululand)

Being diverse and inclusive enables a business to benefit from the power of different thinking and

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categorie

“Diversity and inclusion should not be a tick-thebox exercise, or about the bottom line – it needs to be a business imperative.”

life experiences. This drives innovation and creative problem-solving, as diverse points of view come together. More than creating a workplace that simply brings different types of thinking and talent together, Cebile says it is critical for organisations to create an inclusive workplace – where people feel they belong and that their point of view and voices are valued, valuable and heard. People need to feel that they do not need to wear a mask to be successful at work. This can definitely drive a business to more success because it is able to retain the right talent as people feel enabled to do their best work and truly be themselves. “Diversity and inclusion should not be a tick-the-box

exercise, or about the bottom line – it needs to be a business imperative that is deeply ingrained in the values and purpose of an organisation,” says Cebile. Cebile believes it is vital to have regular conversations around these issues, listen to people when they feel excluded, as well as solicit insights on what would make them feel a sense of belonging. Leaders should take action and not simply pay lip-service to these conversations. By doing that, and then making diversity and inclusion measurable – and the business and its leaders accountable for driving that change – companies can ensure that they are on the right track in effecting change and making diversity and inclusion an integral part of doing business. 

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hr indaba network

BIGGEST VIRTUAL HR EXPO ON THE CONTINENT The HR Indaba Network launch was the largest-ever virtual gathering of HR practitioners in Africa.

CHRO

hr indaba network

ith more than 3,000 attendees, the HR Indaba Network launch was the first and largest-ever virtual gathering of HR practitioners in South Africa. Attendees were treated to 10 superb Impact Sessions with world-class speakers, live engagement, and a selection of leading HR service providers. In addition to finding out about the latest in HR tools and services, attendees heard from top HR leaders, who shared their experiences on how Covid-19 has affected organisations’ management of remote workforces, safety culture, and revealed their plans for returning to the office.

below exco. I wanted to bring many people along so that they could return with understanding and buy-in to the strategy.” Throughout the day, attendees were treated to knowledge sessions about how organisations are adapting to the fast-paced and rapidly changing environment that is the world of work. Each session left attendees feeling a little more educated about how HR can be part of the solution that will drive business performance in a post-Covid-19 world.

High praise

Altron CEO Mteto Nyati kicked off the day’s events by unpacking the tale of the company’s herculean turnaround that transformed Altron from a family-led company to an independently managed one that united nine brands under one umbrella.

One attendee said, “The session was profound. HR is a very complex and undermined service, hence it is very challenging to and/or difficult to demonstrate value add in monetary terms. I like how the session enlightened the means and strategies an HR representative may use to achieve this working with managers.”

He talked about how he started by inviting the top 80 leaders within the organisation to participate in a three-day, off-site strategy session, saying, “We had to extend the inviting way beyond our exco. Our problems were pressing, and we did not have the time to sell the strategy to the leadership layers

Another attendee said they enjoyed the virtual event even more than the “actual HR Indaba Network that I have attended. With the virtual Indaba, you are in your comfort zone with no distractions. You can focus on the guest speakers, ask questions, send comments and there is not that

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hr indaba network

rush when you have to go to the rooms. With the physical event, there were times when one wanted to attend a session, only to find that it was fully booked and there was no space. So you would simply have to miss that session.” A young graduate who attended the event said the live sessions with top-tier HR professionals from different companies were exceptional and that, “It was truly an excellent learning experience for me and it put a lot of things into perspective for me as a graduate.” In one impact session, Avanthi Maharaj, market HR cluster head at Google, talked about how it was important to ensure that their employees were able to access and leverage supportive benefits that the company had made available during quarantine. Search engine company Google gave employees worldwide $1,000 each to set up offices at home. “Our Googlers have been phenomenal in their approach of utilising their allowances to set up the infrastructure of a home base to be optimal to what would allow them to be productive and to deliver,” said Avanthi. In the same discussion, Michaela Voller, chief HR executive at Dimension Data, said South Africa faced unique challenges compared with other countries. “Power cuts, multiple people living in one household as opposed to single-family units per home, or the more sordid side where home is not safe: we were very conscious of supporting our staff in these circumstances,” said Michaela. Another impactful session drew aspirant HR practitioners who heard from Mondel z International HR director Cebile Xulu, Autoboys HR executive Kyle Chetty, and Startek country HR head Philip Tshikotshi about what it takes to become a great HR practitioner before the age of 40.

Gamified experience In the midst of all this, attendees flocked to the virtual auditorium where they were thrilled by the gamified experience that required them to look

for 10 Diamond Partner logos that were scattered across the virtual lobby, exhibition hall and auditorium. Thasmantha Ramiah-Naidoo, learning facilitator at KIA Motors SA, Darryl Feldman, head of HR at Oasis Group, and Zhane Barnard, HR business partner at RSA Market Agents, each won a R5,000 cash prize. In addition, there were engagement rewards for those visiting exhibitor booths and a leaderboard with the names and scores of the most engaged attendees. Points were awarded for attending live Impact Sessions and networking and, at the end of the energy-filled day, Janice Richardson, HR strategy and capability director at Tiger Brands, remained at the top of the log and thus received a R10,000 cash prize along with an exclusive invitation to the CHRO Awards and a signed copy of Mteto Nyati's best-selling book, Betting on a Darkie.

Happy exhibitors Exhibitors were also impressed with engagement with attendees, because the virtual nature of the event meant they were not only able to book meetings and swap contact details more seamlessly, they were also able to fully demonstrate the capabilities of their HR solutions. “It was a phenomenal day, which provided plenty of evidence that HR professionals need a place to come together to learn, network and advance their careers – whether it is face-to-face or online,” said Joël Roerig, managing director of CHRO South Africa. The HR Indaba Network launch marked a clear shift around the popular HR Indaba brand, pivoting it from a two-day conference to a year-long engagement for HR professionals. This year, the HR Indaba Network will boast regular webinars, another online event on 30 March 2021 AND an in-person event in October, pandemic permitting. Another exciting development is the HR Indaba Academy, but Joël remained tight-lipped about the nature of that initiative. “Connecting professionals with knowledge and with peers will always be at the core of what we do, so watch this space.” 

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feature

BEYOND THE BUZZWORDS

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feature

Transformation, diversity and inclusion have been in the lexicon of HR leaders for many a year, but what does it take to move beyond paying lip service to an issue that remains pertinent in a country like South Africa?

BY PUSELETSO MOMPEI rganisations are increasingly becoming aware that merely having a rainbow of faces and accents without a meaningful cultural shift means genuine inclusion is never realised. Enter the era of belonging, which aims to deepen the lived experience in the workplace. But what do these terms mean and how do we make sure these are not just buzzwords, but real calls-toaction that transform our organisations? According to JSE director of human resources Donald Khumalo, who is leading this journey at the stock exchange, they have achieved the first step in the journey, which is creating an interesting environment where colleagues from diverse backgrounds can coexist to work together to deliver JSE objectives. He identifies the next step of belonging as, “a feeling of being fully accepted, knowing that as an employee, I matter and that my value is recognised and a sense that am I being cared for.” Donald points to the recently launched ‘One JSE’ initiative as an example of on-the-ground action. The drive is predicated on the concept of ‘diversity plus

“It is about leading from the heart with empathy and care, not from a spreadsheet…”

inclusion equals belonging’ (D+I=B). “In the key elements of race, gender and related areas we believe that we've done exceptionally well," he says. Sharon Taylor, chief people and culture officer at Standard Bank, says belonging looks like understanding. “If people feel a deep connection with your purpose, in your values and does that resonate with who they are and what's important to them?” She contends that if a company is not able to achieve alignment in that area, you end up with people feeling as though they have to leave their true selves at the door when they arrive at work. “But if you get it right, I think you can really unlock something very special in your people.”

Waking the talk Fortune Gamanya, associate director, Deloitte says belonging came out as a top trend in their 2020 human capital trends report. She asserts that before people could feel a sense of belonging, they first needed to feel a sense of psychological safety, which is based on the science of inclusion. This is comprised of feeling a sense of fairness and respect in addition to feeling valued, having a sense of belonging and that you can bring your whole self to work, that the environment is safe, open and can empower you and allow you to grow. Cebile Xulu, HR director of Mondel z International's newly-formed Sub-Sahara African business unit, says: “Diversity and inclusion should not be a tickthe-box exercise, or about the bottom line – it needs to be a business imperative that is deeply ingrained in the values and purpose of an organisation.”

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Cebile Xulu

Donald Khumalo

“Diversity and inclusion should not be a tick-thebox exercise, or about the bottom line…”

She said: “I've learned that what gets measured gets done and most organisations focus predominantly on tracking financial results. We have included employee engagement as a metric. It gets tracked on an annual basis and internally it gets reported to the board and the leadership and externally it goes into our annual report to shareholders.”

The pivotal role of HR leaders

She believes it is vital to have regular conversations around these issues, listen to people when they feel excluded, and solicit insights on what would make them feel a sense of belonging. Leaders should take action and not merely pay lip-service to these conversations. By doing that, and then making diversity and inclusion measurable and the business and its leaders accountable for driving that change, companies can ensure that they are on the right track in effecting change and making diversity and inclusion an integral part of doing business. Sharon explains that three years ago, Standard Bank introduced a powerful employee insights platform. The tool gives teams as well as leaders immediate access to the results and insights. The insights and actionable data can be assimilated into people strategies at all levels of the business.

All experts agree that the role of leadership is key. Donald says, “On a practical level, this means deliberately choosing a leadership style that is people centred and is oriented around the principles of servant leadership. It is about leading from the heart with empathy and care, not from a spreadsheet, which looks like real conversations and investing time in understanding people’s realities.” Fortune says that the idea of inclusive leadership is complex, “It is hard work, it requires commitment and requires you to really stick with it.” She says the three core drivers that create a sense of belonging in the workplace include comfort in an environment where employees are treated fairly and can bring their authentic selves to work Another factor is connection, which is about having a sense of community and identifying with a defined team (as indicated by 31 percent of respondents in the Deloitte report). Lastly, a sense of contribution,

CHRO

Fortune Gamanya

which feels like being aligned with the organisation’s purpose, mission and values and being valued for their individual contributions (as indicated by 44 percent of respondents). Fortune says that commitment from leaders is important because they need endurance to stay the course. These types of culture shifts often require more work than imagined, and dedicated leaders perform the function of keeping the organisation on track. Cultivating a true sense of inclusivity and belonging requires disrupting longstanding norms in the business environment. For instance, organisations have to find meaningful ways of infusing empathy and care into the management toolkit, which goes against traditional models. Other norms which need to be dismantled include that of competitiveness, which has to give way to a culture of collaboration. These shifts are essential to embedding a sense of belonging because they create room for various voices to be heard. Fortune says cognisance, which is having an awareness of self, plays an important role in being aware of your own biases and she clarifies that “I always say that exclusion is not something that we do intentionally. So, if you're not consciously including someone, you are then subconsciously excluding them.”

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Sharon Taylor

Sharon highlights a change she had observed, saying that “Organisations historically placed a lot of emphasis on what I would call the economic contract, but I think that's not enough anymore. Employees today are discerning; they want to be able to contribute to something greater.” The process of creating an organisation where belonging is prioritised, requires that companies must answer the tough question of whether they have created an environment where people can bring their authentic, true selves to work and be valued for that. Cebile says being diverse and inclusive enables a business to benefit from the power of different thinking and life experiences. This drives innovation and creative problem-solving as diverse points of view come together. More than creating a workplace that simply brings different types of thinking and talent together, Cebile believes, "It is critical for organisations to create an inclusive workplace – where people feel they belong and that their point of view and voices are valued, valuable and heard. People need to feel that they do not need to mask their personalities to be successful at work. This can definitely drive a business to more success, because it is able to retain the right talent as people feel enabled to do their best work and truly be themselves.” 

CHRO

awards

A NIGHT TO

REMEMBER

Held on 26 November 2020, the second annual CHRO Awards recognised five outstanding CHROs for the work that they are doing on the people side of the business. BY PUSELETSO MOMPEI

iscovery chief people officer Tswelo Kodisang was named South Africa’s CHRO of the Year at the second annual CHRO Awards, which were held at Inanda Club in Johannesburg on 26 November.

The second annual CHRO Awards were a (socially distanced) evening of celebration and gratitude where the winners received their awards before their peers at an elegant gala dinner held at the prestigious Inanda Polo Room, which provided a tranquil backdrop. With 150 of South Africa’s top HR executives gathered, the evening served as a reminder of the calibre of excellence the fraternity enjoys and, after months of being apart due to Covid-19 lockdowns and restrictions, South Africa’s top CHROs revelled in seeing their counterparts in person. Under the skies of a gorgeous Joburg summer evening, guests were treated to marimba music, delicious canapés and cocktails as they mingled.

Vote now Nominations are now open for the third annual CHRO Awards. Visit www.chro.co.za to nominate HR executives who have been in their roles for more than one year and have shown exemplary skills, vision, and results. Once nominees accept their nomination, a thorough interview will take place, and then the panel of judges, comprising seasoned business and HR leaders and specialists, will cast their votes for the winner of the CHRO of the Year award, the young CHRO of the Year award, along with the other prestigious awards.

Adorned in bold black and white decor accented with gold, the ballroom was the perfect setting for the delicious three-course menu curated by leading

CHRO

Johannesburg caterers Word of Mouth. At what was dubbed the “Oscars of HR”, the evening’s master of ceremonies, comedian Loyiso Madinga, regaled the crowd with his side-splitting jokes. Recognising the significance of these awards, the MD of CHRO South Africa Joël Roerig said that the event was a nod to the remarkable contribution the HR industry has made. “The CHRO Awards are the highlight on the annual calendar for HR executives and the teams that support them,” said Joël “HR has gone through a massive transformation over the last few years and HR practitioners have become real drivers of vision and value.” In his opening address, Matimba Mbungela, CHRO of the Vodacom Group and a longstanding member of the CHRO community, invited attendees to give themselves a well-deserved pat on the back for the difference HR practitioners had made in their companies during the Covid-19 crisis. He said that as the people who shape employee experience in organisations, HR leaders had succeeded in inspiring those around them and given them a sense of belonging in the world in an uncertain time. He also highlighted the strategic role HR has served in

awards

navigating tough issues such as pay cuts, retrenchments and other decisions. “HR has shaped interventions that kept the workforce safe, engaged and inspired during the pandemic. We influenced decisions and introduced policies such as no-meeting days to support our people as they had to navigate remote working, delivering to the company and meeting responsibilities for family,” said Matimba.

Excellence all-round This year, 20 nominees vied for the coveted awards and Tswelo walked away with three of the eight accolades, winning the Strategy & Leadership Award, and the HR & Technology Award, in addition to the big one. Tswelo expressed his pleasure at winning, but insisted that his accomplishments are a result of powerful collaborations and teamwork, saying that, “when you surround yourself with great people, they make you greater". Another big winner at the prestigious event was second-time nominee and McDonald’s SA chief people

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officer Brigitte da Gama, who won the Transformation & Empowerment Award and the Talent Management Award. She dedicated her awards to her team and said her role is more than a job but a calling that allows her to fulfil her purpose every day. Said Brigitte: “I would like to thank CHRO SA, not only for organising this event, which has been a highlight in an extremely tough year, but also for the work they have put into organising the weekly conversations that enabled us to share our challenges throughout the pandemic.”

those around her who share a common vision and lead with the desire to make a difference. Tiger Brands CHRO S’ne Magagula won the Learning & Development category and shared how meaningful it is to be able to transform people’s entire careers and how honoured she was to be recognised for her contribution.

Kyle Chetty, the executive for HR at Autoboys, was crowned Young CHRO of the Year and shared how honoured he was to be recognised and acknowledged the people who had guided him and offered him opportunities for growth.

While the awards recognised the winners in their various categories, the purpose of the event was to celebrate the hard work and achievements of the CHRO community as a whole. After a year of very little in-person interaction, the attendees took this purpose to heart and made the most of the first, last and only event on the CHRO community calendar last year.

Investec head of people and organisation Lesley-Anne Gatter won the Employee Value Proposition Award and said that the award belonged not just to her, but

“This year’s 20 nominees are all exceptional leaders in their own right and truly deserve their accolades as nominees and winners,” said Joël. 

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THE LONG WALK TO

INANCIAL REEDOM

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Companies are realising the importance of financial wellness to their employees’ lives and are working to offer more support through corporate wellness programmes. In this article, experts weigh in on how the Covid-19 pandemic has impacted the financial wellness landscape.

BY VICTORIA WILLIAMS

020 will be viewed as a transformational year in many ways. One area impacted by the Covid-19 pandemic is the relationship between employers and their employees. With the pandemic impacting the wellbeing of workers around the world, including their financial wellbeing, employers increasingly recognise the importance of offering financial wellness programmes. They also acknowledge that single-point solutions don’t hit the mark, and how a holistic financial wellness programme can boost employee productivity in a big way.

An economy under strain

A robust financial wellness programme will tick several boxes. It will include access to tools employees need to build their financial wellbeing, such as education on savings or a budgeting calculator. It can encompass workshops on budgeting and personal finance, retirement planning education, savings and credit, and finding ways to cut household bills. A successful programme will also address the cause and not just treat the symptoms of financial stress.

A key finding is that as many as 57 percent of those surveyed are earning less than they were at the end of February 2020, while 40 percent of those currently employed only have enough funds to survive for one month or less should they lose their jobs. As many as 66 percent of the respondents stated that they are constantly worried about losing their income.

“A solid employee assistance programme [EAP] will include financial counselling, debt mediation and budget assistance. In addition, an EAP will provide counselling and trauma support, which is hugely important during these times, as financial strain can have serious consequences such as drug and alcohol abuse, marital problems and even suicide,” says Anne Grunow, CHRO at Fedgroup.

The 2.8 million jobs lost in the first wave of the pandemic in April, according to Statistics South Africa, did not bounce back by June even as the Covid-19 lockdown eased and more of the economy opened up, taking unemployment to lows not seen before. According to the latest Old Mutual Savings & Investment Monitor, a staggering 58 percent of households across South Africa are facing high or overwhelming stress as the Covid-19 crisis knocks savings and raises debt levels.

“An alarming consequence of the financial pressures households are experiencing is that just over 50 percent are currently dipping into their savings just to make ends meet, 37 percent have fallen behind on paying household bills and 23 percent have cashed in a savings or investment policy. Another indicator of the distress the crisis has caused is that only one in two credit card holders are able to comfortably make their repayments every month,” comments Lynette Nicholson, head of research and insights at Old Mutual.

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“...70 percent of working South Africans do not have a will.” Cheryl believes that financial stress impacts a person’s overall health, making them more anxious, irritable and fatigued. This leads to lower productivity, impaired ability to solve problems and poor communication with colleagues and clients. That causes project delays, poor customer service experiences, and, of course, lost revenue. People may resign to tap into their retirement savings as a last resort. For Cheryl, putting the power back into employees’ hands is key to better financial health. “Holistic financial training programmes will help employees to develop an internal locus of control and empower them to take accountability for their actions. Most people often have an ostrich approach (sticking their heads in the sand) when it comes to money management. However, once they are assisted to write things down in black and white, the situation suddenly seems less dire and more manageable,” she says.

Mica Townsend

The levels of dependency have also grown. In 2015, those with other adult dependents (excluding spouse/partner) made up 35 percent. This year it spiked to 52 percent of the sample. The Old Mutual Sandwich Generation Indicator shows that those who are sandwiched between supporting their own children and helping to care for elderly parents or relatives increased from 34 percent to 42 percent, the highest figure recorded for this category.

A customised approach

Poor financial literacy Financial literacy has long been an issue in South Africa. A weak national savings culture, a poor understanding of credit management and high levels of over-indebtedness are just a few common financial issues in this country. “Despite the plethora of financial information available, the application of sound financial habits is not as common. Research indicates that one of the primary causes of disengagement in the workplace is financial stress,” comments Cheryl Benadie, CEO of the Whole Person Academy.

Shelley van der Westhuizen, head of corporate financial wellbeing and engagement at Alexander Forbes, believes that bombarding people with financial wellness information doesn’t work. She says: “You need to have the right information available so that employees can tap into it when they need it. Information needs to be relevant, well-organised and supported by useful tools, for example, affordability calculators.” While young workers may be concerned about saving up for a house or car deposit, older workers will be concerned about providing for their children or their retirement. Shelley believes that employers who tailor their approach to each age group will see the best results. Employees on any part of the salary spectrum should be able to benefit from support, tools and education. Shelley has seen great results from empowering

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“58 percent of households across South Africa are facing high or overwhelming stress.” employees to take charge of their finances – positive changes are often easier than imagined. “There are changes that you can make within your life to put yourself on a better footing. For example, you can trim your costs to feed your household with nutritious but less expensive choices. Employers can support this in creative ways by providing a recommended shopping list for example,” adds Shelley. She has found stories of financial success to be hugely motivating for employees. “We ran a savings scheme where a small amount was deducted off salaries each month. Then after the first year, we asked employees to tell us what these savings meant for them. The response was incredible as people shared what they had achieved with their savings. Sharing these stories resulted in a huge uptick of demand for salary savings deductions.” The end goal of a financial wellness programme is to enhance the employee’s overall financial wellbeing. That’s why financial wellness programmes most often support an employee’s ability to manage both short-term and long-term needs. Definitions of financial wellness stress the importance of striking a balance between planning for immediate needs while also considering long-term goals.

Levels of financial wellness FNB offers financial wellness solutions to its base of one million business clients. These include a retirement fund, group life, disability cover and funeral cover. Elize Giese, the CEO of FNB Employee Benefits, believes that our financial habits are developed in childhood. “Most South Africans grow up without a financial role model to help them manage their money. It’s still taboo to speak about money around the dinner table,” she says. This lack of financial background means that employers need to take on an education role, she continues. They can also support employees’ finan-

Cheryl Benadie

cial wellbeing with staff savings products with a monthly payroll deduction. For Elize, there are several themes of financial wellness that can be explored in employee communications campaigns. These include budgeting and learning how to spend less than you earn, managing down your debt, saving for emergencies, having a will, putting disability and life cover in place, and providing for retirement. She notes that every employee will be at a different stage in their financial life. “Finances are very personal. We hold 30-minute or one-hour one-on-one sessions with employees to give financial advice and help them make better financial decisions," she says. Elize also believes it is important to translate complex information into easy-to-understand, “bite-size” language. “We want to talk to people in plain language and remove all jargon. For employees that bank with FNB, the mobile app provides gamified ways to improve financial knowledge."

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Elize Giese

Shelley van der Westhuizen

Incentivise employees Guy Chennells, head of employee benefits products at Discovery, believes that while access to budgeting tools and financial advice can help employees manage their finances better, behavioural incentives and tailored employee solutions are particularly effective. “In times like these, when so many changes are outside of our control, it’s especially important to focus on those factors we can do something about,” says Guy. “For example, Discovery’s employee benefit solutions drive healthy savings behaviour by motivating employees to save more, for longer, and manage their health and wellness. When they do this, we reward their behaviour by adding boosts to their retirement savings.” Speaking of retirement, it’s important to actively plan for it. According to 10X Investments’ latest Retirement Reality Report, 60 percent of those South Africans who had at some time belonged to a corpo-

rate retirement fund said they knew little or nothing about it. Moreover, around 11 percent of them said they simply were not interested. “This lack of engagement is worrying for many reasons, not least that it shows a total disconnect between how the actions of pension fund members today determine outcomes for their older selves, as well as leaving them open to being taken advantage of by unscrupulous players in the investment world,” says Mica Townsend, Business Development Manager at 10X Investments. “Even when an employer sets up a fund and auto-enrols all staff in it, much of the benefit will be wasted if the employees know little and care less." Individual health and happiness, which includes financial wellbeing and confidence about the future, are key drivers of productivity. Numerous studies back up anecdotal evidence showing a clear connection between employees’ physical and financial health and a company’s success. 

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“Despite the plethora of financial information available, the application of sound financial habits is not as common.”

Five Ways to Kickstart Financial Wellness in the Workplace 1.

Establish a baseline

One of the key reasons why employees experience difficulties when planning their finances is because they don’t dedicate enough time to the subject. With a financial self-assessment programme, HR leaders can begin to understand their employees’ challenges and take the necessary steps to help them build their financial confidence.

Host a budgeting workshop

The Momentum/Unisa Household Financial Wellness Index found that financially well households are 20 percent more likely to have a written budget (handwritten or electronic) than their financially unwell counterparts. Having a budget ensures that employees have a clear picture of their expenses, are appropriately prioritising spending and are not living beyond their means.

Concentrate on small wins

The Master of the High Court estimates that more than 70 percent of working South Africans do not have a will. When a person passes on without a will, they forfeit the privilege of deciding what should happen to their estate, and the estate gets allocated in terms of pre-determined legislated guidelines, known as intestate succession. Working with an attorney or finding a simple will template online for employees is one way to counter this issue.

Explore fintech alternatives

Many employees are trapped in a cycle of expensive personal loans and unscrupulous lenders. Fortunately, there are fintech platforms that allow employees to access the money they have already earned. For example, Floatpays reduces the friction and angst of employers granting employee loans by allowing employees access to a portion of what they have already earned, at no cost to the business and with only a once-off transaction fee for the employee, no hidden costs and no interest. Unlike a loan, this is an advance on the employee’s already earned money. Floatpays technology integrates with the business payroll software to produce payslips that reflect these transactions. At the same time, it eliminates the cost and operational impact of tracking loan arrangements with employees.

Address gender challenges

The World Economic Forum highlighted a worrying trend earlier this year – that women are falling further behind men in terms of planning for their retirement. Global statistics reveal that women across the globe have 30 to 40 percent less money than men in retirement – despite generally living longer. On local shores, Statistics South Africa shows that women earn 30 percent less than their male counterparts on average, a seven percent increase in the disparity recorded in 2019. Women face several headwinds both before and during retirement, typically resulting in dramatically lower financial security in retirement than men. Including financial fitness in female empowerment programmes could go a long way to counterbalance this inequality.

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RETIREMENT SAVING101 Consider the following to guide when advising employees on making important retirement saving decisions.

BY KAREN WENTZEL

020 has been a year that has rewritten the rules of chaos in modern times, nevertheless, it has been a year that we will all remember for generations to come. The likelihood of not having sufficient savings to retire comfortably is mounting for South Africans every day, emphasising the need to start planning accordingly today. Most advice and education given to members focuses on building wealth ahead of retirement. While it is typical that this takes priority, choosing the right annuity at retirement is the single most important decision to make that will influence your retirement.

Know your retirement options and the differences An annuity is a financial product that pays you a regular income at retirement. As a member of Sanlam’s pension or provident fund or any other retirement annuity, once you elect to retire you must use at least two-thirds of your fund proceeds (for provident funds from 1 March 2021, T-day) at retirement to buy an annuity.

What is the difference between a living annuity and a life annuity?

and the ability to draw a higher income from your savings if needed. You also need to select the underlying portfolios of your savings, thus you take on the investment risk should markets fall. With a living annuity, you also face a longevity risk – living longer than expected places you at risk of running out of savings as you may eventually use up all of your retirement capital. A life annuity offers greater security against running out of money and guarantees you a predetermined monthly income for the rest of your life. This product is provided by a life insurance company, where you hand over to the company the lump sum of the retirement saving and they take on the obligation to pay you an income for the rest of your life. Sanlam offers your employees a wide variety of annuity options at retirement to consider, including innovative life and living annuities to meet their income and security needs in retirement. We also provide access to financial advice to help your employees navigate the complexities of the most important financial decision that they will ever make.

Don’t neglect your paperwork In 2020, many people faced the tragic losses of their loved ones. Save yourself and your loved ones from any issues by having your policies, will and personal documentation updated. Understand exactly what benefits are covered by your Sanlam retirement policies.

A living annuity allows you to select an annual income drawdown from your savings of between 2.5 percent and 17.5 percent of those savings per year. This income percentage can be changed annually on the anniversary date, giving you flexibility

TIP: Update your information today. It is also very import-

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ant to keep your spouse updated on retirement and financial matters.

Don’t touch your savings When leaving a job, many people will cash in their retirement savings and pay the tax penalty. Nobody really likes the idea of putting money away for a rainy day in the distant future, but withdrawing your savings two or three times as a young employee means that a large amount of your retirement savings will be sacrificed. The same applies to people who lost their jobs during the pandemic. TIP: Don’t touch your savings. Overspending and not preserving retirement fund benefits are some of the biggest contributing factors to inadequate retirement provision. Consider Sanlam’s preservation fund as one of your options.

Failing to plan is planning to fail The secret of having enough money to retire is not necessarily putting away huge amounts of money during your working life, but simply starting your retirement saving early enough in your life. Compound interest is normally referred to as the seventh wonder of the world. The real benefit of compound interest is that your earnings will be invested as soon as you’ve received it and you will start earning interest on your investment. Make the most of the opportunity to maximise retirement savings and other benefits e.g. trauma, death cover and education benefits offered by Sanlam. Accept the things you cannot change, have the courage to change the things you can, and may you have the wisdom to know the difference. 

“Don’t touch your savings. Overspending and not preserving retirement fund benefits are some of the biggest contributing factors to inadequate retirement provision.”

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BYE BYE BUILDINGS? HR leaders are reimagining the office environment as South African companies embrace remote working or a hybrid model. BY VICTORIA WILLIAMS

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“Flexible work is broader than just where work gets done. It also should cover when work gets done.”

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lmost nine out of 10 leaders (88 percent) at large enterprises in South Africa expect to adopt a more hybrid way of working permanently. This is according to Microsoft's newly launched Work Reworked research conducted together with Boston Consulting Group, KRC Research and Dr Michael Parke of the Wharton School. The findings show that on average, employees would like to spend 58 percent of their time in a traditional office setting. In fact, employees see time spent in the office as a powerful way to maintain bonds with their colleagues.

While the allure of working from home, with its newfound freedom and flexibility, is appealing to employees, there are drawbacks to having an entire team working remotely, and there are very real benefits to the physical office that cannot be overlooked. “When people are physically together five days a week, it’s easy to bond – whether it’s sharing a joke at the watercooler, having a casual team lunch, or hunkering down together to meet a deadline. In an office setting, it’s also easy for senior staff to ‘walk the halls’ and talk with employees in a more informal way. All of these seemingly little things add up and have a big impact on the health of a business and team culture,” says Colin Erasmus, modern workplace business group lead at Microsoft South Africa.

The hybrid model For Michaela Voller, the CHRO at Dimension Data, the pandemic has shown just how adaptable to change employees can be. She describes the switch to remote working as being seamless – largely because of Dimension Data’s capabilities as a tech company. While productivity remained high, for many colleagues the blurred boundaries between home and work made the pace ‘quite relentless’. Dimension Data now has a 60 percent work from home and 40 percent work from the office split.

go back to how it was before,” she says. Michaela sees a long-term future for offices but that they will fulfil a new function. From a practical space perspective, she envisions more workshop and training facilities and less individual cubicle and individual office space. “Having an office also enables that sense of belonging to a company and culture. Many South Africans live with two or three generations under one roof. Being able to come to an office offers a sense of relief to many employees,” she adds. From a pragmatic point of view, Michaela found that employees were desperate for policy and guidance from human resources. The company also ran a campaign to educate employees about managing cybersecurity risks while working from home. From a softer side, the focus was on connecting people to the broader culture. Dimension Data has rolled out a communications platform to assist staff to take better care of their mental and physical wellbeing. This includes being able to login for an online gym session or arrange a virtual lunch get together.

Lessons from lockdown Tamara Parker, the CEO of Mercer Africa, is currently between offices, with the consulting firm due to move into a new space in January 2021. The company has always allowed for flexible working in the broadest definition of the term. “Flexible work is broader than just where work gets done. It also should cover when work gets done. We need flexibility that works with people’s different body clocks,” says Tamara. Science suggests that our preferred sleeping patterns – our chronotypes – are programmed at birth. People are either night owls or early birds. Several studies have found that about 30 to 40 percent of the population are night owls, which means that the modern 9-to-5 workday is sabotaging the creative and intellectual efforts of almost half the workforce. While many employees resent a daily commute, it does provide regular thinking time in the day. Tamara recommends that employees are encouraged to create ‘bookends’ to gear themselves up and wind down after work. This could include listening to a podcast, a meditation session or simply setting aside time to do nothing.

“We encourage team members to come in deliberately to fulfil a purpose – to come together when innovation and creativity is required. For many employees, coming back was a disappointing experience as our offices were sparsely populated. We know that the workspace has shifted and will never

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“...the Covid-19 pandemic has compounded the woes of an ailing office market battling with high vacancy rates and declining rentals.”

Phindokuhle Mohlala

She predicts fewer cubicles, more hot desking and open-plan collaboration spaces. She thinks that deep work is better done at home. She believes in the business case for having an office – here she anticipates conflict between HR and the CFO, where the latter is looking to cut office leases. “If you believe that your culture makes you successful, then you will need an office to amplify this culture. I estimate that you get a 15 to 20 percent productivity boost from having an engaged workforce,” she adds.

Switch to remote

Additionally, although some tasks can be done remotely, they are much more effectively done in person. These activities include coaching, counselling, and providing advice and feedback; building customer and colleague relationships; bringing new employees into a company; negotiating and making critical decisions; teaching and training; and work that benefits from collaboration, such as innovation, problem-solving, and creativity.

Now that office tenants have carried out a largely successful pivot to online, companies are questioning their traditional investment in expensive real estate. “We’ve proven we can operate with no footprint,” Morgan Stanley CEO James Gorman told Bloomberg. Rent, facilities operations, maintenance, and management make real estate the largest cost category outside of compensation for many organisations.

Companies that forgo the office are not off the hook when it comes to health and safety requirements. Tamara points to anticipated ergonomics legislation in South Africa that will regulate certain chair specifications and screen heights. Having a remote workforce will make this compliance difficult.

According to the Johannesburg Office Market Report Q3 2020, the Covid-19 pandemic has compounded the woes of an ailing office market battling with high vacancy rates and declining rentals. The report reveals vacancies at 13.6 percent in Johannesburg. The prime nodes of Sandton CBD, Illovo and Melrose recorded high vacancies of 17.0 percent, 22.4 percent and 13.9 percent respectively.

Vacancy rates indicate that some South African companies have decided not to return to the office at all. For example, Sage has exited leases on its offices in Durban, Cape Town and Pretoria, only retaining its Midrand head office. Cement producer PPC has reduced their office space requirements from three floors to one. “We’ve taken an extreme approach. We

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“Don’t blindly try to go back to the old way and don’t restrict yourself to the limits of a world under a pandemic.” Michaela Voller

realised there was an opportunity to save costs on office space. Our employees would also benefit from less spent on transport. About 99 percent of our head office employees said that they were happy working from home permanently,” says Phindokuhle Mohlala, who was PPC's group executive for HR at the time of the interview but has subsequently moved to GBfoods. Phindokuhle says that productivity has remained high. “Employees are still working hard and producing results. In some cases, we have had to remind team members to take a break,” comments Phindokuhle. During the pandemic, the average workday increased by 48.5 minutes, a recent study among 3.1 million workers across the world by Harvard Business School and New York University found. While PPC employees can work from home as much as they see fit, line managers do call for a face-toface day spent in the office once per month. The office has been redesigned to an open-plan format and employees need to select a desk on a space booking app that PPC has implemented. For Phindokuhle, the move to a remote environment had some unintended consequences. “The one piece

of advice that I’d give to others thinking about downscaling space is to consider the impact on third-party suppliers such as cleaning companies,” she says. Michael Field, COO of Fedgroup, believes that remote working could offer exciting benefits for employees that far outweigh corporate cost-saving: “If you can work remotely and live in an area where the cost of living is lower, the quality of life is higher, and even the air quality is better, your view of the perfect job may shift from financial gain to finding something that is truly fulfilling.” He doesn’t believe that remote working suits every organisation, and predicts that companies are going to overdo their downsizing efforts and should be aware of the hidden cost of trying to re-establish their spaces. “Don’t blindly try to go back to the old way and don’t restrict yourself to the limits of a world under a pandemic. Find the balance and accept that you won’t get it right the first time,” says Michael.

Mega trends The Covid-19 pandemic has accelerated many existing workplace trends including coworking, the gig economy and shorter work weeks.

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Coworking spaces are on the rise. A 2020 study on coworking trends found that coworking spaces worldwide are set to double by 2024, estimating that the number of people opting for coworking over the next four years will climb to five million, an increase of 158 percent compared to 2020. More than just a space dedicated to work, coworking spaces are tailored for comfort, offering everything from practical amenities like soundproof rooms, food and coffee, and inspirational décor. Larger corporates are looking for coworking options to decentralise their workforce and manage remote teams according to Louis Fourie, director of Venture Workspace, who operates three coworking spaces in Cape Town.

ideas to standard practice.

More space is required. One trend undergoing reversal is the increase in population densities in team-based, open-office configurations. Office planning will shift to de-densifying offices to create the physical distancing that we now require. Covid-19 protocols will require greater physical separation in workplaces. Workstations will be spaced further apart, conference rooms depopulated, space-dividing partitions erected, and staff issued rotating schedules.

Condensed weeks are slowly creeping into remote work schedules. After several successful trials among European companies, many employers are testing the concept of a shorter workweek. Working four days a week for eight hours in an environment that allows for maximum production can yield the same output as a full week at a traditional desk job. The way companies operate now, there is no need to own someone’s calendar if you know they have very clear metrics and can hit their goals.

Rethinking collaboration will be key. In-person and remote collaboration spaces (such as virtual whiteboards), and asynchronous collaboration and working models will quickly shift from futuristic

Global recruitment is becoming a reality for South African companies, especially in areas where local talent is scarce. Likewise, South African employees are attractive to international recruiters. 

Travel working is growing among Gen-Z employees or anyone born after 1997. This approach to work is part of the “digital nomad” lifestyle trend, with younger workers choosing to embrace a world without anchors. Travel working allows remote employees to hold down a reputable job while traveling to several countries over an extended period. Gigging is prominent among younger workers who work multiple jobs without the constraints of traditional office hours. They set their own schedule to get company-specific work done but have time to freelance or take a part-time position.

Ahead of the curve? Several prominent companies that have embraced remote working – tech giants such as Facebook, Twitter and Uber – announced that employees may remain remote post Covid-19. Other successful companies who have remote working baked into their corporate DNA include:

GitLab The CEO of GitLab, Sid Sijbrandij, built a business valued at nearly $3 billion without ever opening an office. The company provides a suite of software tools that help developers build, manage and secure their apps. Today, GitLab is the world’s largest all-remote company with more than 1,300 employees across 67 countries. Remote working is deeply embedded into the company’s culture. The only time employees meet in person is for the company’s annual all-hands gathering, held in holiday resorts in locations like Greece. Another pillar of GitLab’s remotework absolutism: radical transparency. It publishes a public online 8,000-page handbook detailing how it approaches pretty much any topic. Downloads of GitLab’s free e-book on remote work have exceeded 70,000 since its March 2020 release. South Africa is one of the top countries where GitLab recruits talent.

Automattic Automattic, the parent company of WordPress (which powers 35 percent of all websites on the internet), employs more than 1,100 people across the globe without a single office. Automattic’s communications are text-based, and so articulate and timely, articulation becomes key. In fact, most of the company’s hiring is performed via text as opposed to candidate phone or video calls. Employees have 11 months of remote work a year and must make time to travel for up to four weeks a year for team bonding and building events. They also make use of custom-built apps which keep track of who has met who, and then assign seats, say at a dinner party, so that people sit with people they have not yet met.

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GUIDING YOUR EMPLOYEES

THROUGH MARCH’S PROVIDENT FUND CHANGES

This March, some of the tax rules relating to how provident funds pay out at retirement are changing.

BY GUY CHENNELLS s you are aware, the main aim of a pension or provident fund is to provide benefits for its members when they retire from the workforce.

The biggest difference between these two funds is the manner in which they pay out – when a pension fund member retires, they receive up to a third of the total benefit in a cash lump sum, while the other two-thirds must be used to buy an annuity.

drawback of the way a provident fund currently operates is that, very often, retirees spend their retirement assets too quickly. They then risk outliving the money meant to sustain them for the rest of their lives. In fact, the National Treasury has noted that a strong link exists between insufficient retirement income for retired members of provident funds and the lump sum payouts made by provident funds at retirement. This is precisely what the South African government hopes to avoid with its new tax rules, which come into effect from 1 March 2021.

This could be an annuity that pays out a monthly income for life, or one that allows the person to withdraw an amount from their lump sum each month. Retirement annuities work in much the same way as a pension fund at retirement.

Standardising the way retirement vehicles work

With a provident fund, however, members are able to withdraw the full benefit in the form of a cash lump sum at retirement. As with everything in life, there are advantages and disadvantages to both. Having the option to cash out a provident fund entices many members with the promise of liquidity, should they ever want or need it.

The risk of outliving retirement savings However, withdrawing too much too soon may well come back to haunt members in time. The biggest

These rules, first mooted in 2013, seek to change the way provident funds operate in order to help South African citizens live healthy, fulfilled lives once they leave the workforce. The way provident fund contributions were taxed already changed a few years ago, to give them the same tax benefits as pension funds. That set them up to be treated the same at retirement. Now, after a few postponements, the retirement rules for each will finally be aligned. As such, as of 1 March 2021, new provident fund

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“The goal of the new laws is to improve uniformity between pension funds, provident funds, and retirement annuity funds.”

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There can also be complications in specific circumstances, so it’s important to discuss your investments with an informed financial adviser, especially if you’re planning changes to your provident fund.

“..withdrawing too much too soon may well come back to haunt members in time.”

Helping citizens retire more responsibly Behaviourally speaking, people tend to resist change. But it’s important to realise that not all change is bad. In fact, our research at Discovery shows that having effective processes in place that promote healthy behaviours, like saving more, can be very powerful in the long run – particularly when it comes to addressing the country’s massive retirement crisis.

members will need to ‘buy’ a pension with at least two-thirds of their benefits in the same way that pension fund members do.

What about existing provident fund members? There is no need to be alarmed if you are an existing provident fund member – you will be no worse off on 1 March 2021 than you are today. Contributions made to provident funds before March 2021, plus all growth on those in the future, can still be withdrawn from the fund as a cash lump sum when you retire. This is true no matter how many times you move between one fund and another. It is only new contributions (and growth on those contributions) that will be treated like pension fund money when you retire. And even here, if these total future contributions amount to less than R247,500 (the current limit) when you retire, this money can be fully withdrawn in cash.

Remember, the goal of the new laws is to improve uniformity between pension funds, provident funds, and retirement annuity funds so that South Africans are better able to support themselves when they are at their most vulnerable. It is the government’s hope that these new tax reforms will assist in making saving an easier and more automatic step for citizens.

Five tips to communicate benefit changes to your employees Here are five practical tips for communicating with your employees about the new changes: 1. Use plain and not technical language when you tell your employees about changes to their benefits.

Provident fund members over the age of 55 will have an even softer transition. If they’re in a provident fund on 1 March 2021, contributions to that fund will continue to be treated like old provident fund money when they retire – it can all be taken as cash.

2. Make it clear whether or not the changes apply to them specifically.

If they move to a new provident fund after 1 March 2021, then their past contributions can be taken as cash at retirement, but contributions and growth made after 1 March 2021 will be treated as pension fund money when they retire.

3. Assure them that their investments are safe. Remember, all savings up to March 2021 are not at all affected.

Implementing the changes

4. Explain the pros and cons of their options, perhaps by using examples of future scenarios to demonstrate how decisions now can affect their life after retirement.

These rules will affect provident funds and their administrators, who will need to keep accurate member records indicating pre-March 2021 contributions and growth, as well as all future contributions and growth.

5. Remember to provide context for the changes so they understand the impact of these changes through the lens of South’s Africa’s poor savings culture. Share information or statistics that can help guide their decisions. 

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CHRO

interview

A tale like the

TITANIC’S

Darryl Feldman, former divisional HR executive at Edcon, shares his experience of the iconic retailer’s collapse.

BY PUSELETSO MOMPEI ales of business collapse and job losses have led 2020 headlines. Last year, Oasis Group head of HR Darryl Feldman had a front row seat to one of the longest-running retrenchment nightmare stories of the Covid-19 pandemic. Darryl was the divisional executive, human resources & transformation at Edcon, which went into business rescue a month after president Cyril Ramaphosa announced the implementation of lockdown level 5 restrictions. In a media statement, the company said it had lost billions in sales and that, combined with the decline in collections of the debtor’s book, they were unable to pay suppliers. Darryl says that, as the company burned around them due to the raging pandemic, their focus turned to salvaging the business. “The HR task team met twice a week to examine the emerging legislation, struggling to interpret what the government required in relation to the Covid-19 pandemic. IT went into hyperactive mode moving operations to home base. We had to rapidly ramp up capacity to work from home for those who could, but also build up capacity to track employees,” he says.

As a retail organisation in a dire state, Edcon desperately needed to trade to pay salaries. While pressure was on to generate income, re-opening and re-entering a retail space during a pandemic presented its own challenges. With employees nervous to come back, communication took priority both within the corporate arm, and also with employees who were store based. “We had to quickly put together a plan to understand the comorbidities or the health issues of all staff. We developed policy and guidelines and how to deal with sick staff, managing operations with limited staff capacity as per government regulations posed its own challenge.” Store-based challenges were not the only ones with which they had to contend. Those working from home were stretching to supplement for not being able to be in the room together strategising and the most common complaint was longer working hours. “We collaborated with our communications team to stay in touch, to proactively push Covid-19 policies to the rest of the team, to provide weekly updates with healthy behaviour, tips and ideas,” says Darryl. Meanwhile despite the valiant effort, Darryl admits that he was faced with the inescapable fact that the business was sinking.

CHRO

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“I have constantly faced difficult situations; when working at Nedbank and Absa, I worked through mergers. Edcon had annual restructures and other ongoing challenges.” 63

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“The executive and management teams took a pay cut for three months to help the business.”

retrenchments starting in August. “As HR, we set the foundation from a people perspective. We worked closely with the corporate doctor in terms of understanding the Covid-19 prevalence in today’s world and took all the steps we could to maintain health and safety,” says Darryl. “It was a rollercoaster ride but being able to help people has been the silver lining. In the last few months, what stood me in good stead and helped me to cope is that throughout my career I have constantly faced difficult situations; when working at Nedbank and Absa, I worked through mergers. Edcon had annual restructures and other ongoing challenges.”

“We went into a challenging business rescue process and in May the executive and management teams took a pay cut for three months to help the business.”

Roller coaster ride Darryl started out his HR career in the financial services sector. He cut his teeth at Nedbank, where he learned the nuts and bolts of HR, under the tutelage of leaders and mentors who set a high standard for him. His time at Nedbank was followed by positions at Absa, a stint at Edcon, a move to Cell C and then re-joining Edcon in March 2018. “All these environments were massive learning curves, defined by a huge merger at Absa and trying to thrive at Cell C, which was the underdog in a competitive environment.” Darryl first joined Edcon in 2012 as divisional human resource manager: Boardmans and Red Square, and took up other positions including divisional executive HR & transformation: corporate IT & strategy. Moving into retail ignited him. Darryl, who thrives off relationships, says: “At Edcon, HR was encouraged to get involved in the store operations and develop business partnerships. This meant that one got to see the impact of your work on the customer in store.” Darryl’s seven years at Edcon have been defined by continuous change. The company went through numerous restructures, suffered through investments which didn’t pay off and had to contend with rapidly changing consumer tastes and behaviours.

Darryl believes that people’s best work often emerges when they are under pressure and he took the challenge at Edcon as an opportunity to develop and be sharpened. "I didn't walk in fear or believe that challenges will hold me back. Also, it's not in my nature to back away from challenges. That mindset has developed a level of resilience that gives me the wherewithal to thrive despite tough times.” Darryl did not escape the knife and was a casualty of the cuts at Edcon himself. Having quickly transitioned into a new role, he looks forward to contributing to another organisation, saying that the conversation about being at the executive table or not has been overturned. “Strategically, HR has more than demonstrated its value. We have shown that having strong leadership in the people management side of a business is crucial.” Darryl says his takeaways and lessons from the recent past and also his career as a whole are that, “if you don’t have the right structure to support your organisation, then whatever strategy you create will not be sufficient, but also, you can’t utilise your people and their talents optimally. The right structure coupled with the right roles and functions is how you set yourself up for success.” His opinion about the post-Covid-19 future is that HR will have to play a big role in helping companies adjust and imbed a new way of working, some of which is unlearning a lot of things, such as the clear distinction between work and home – how do you live in less demarcated spaces in your life?

HR’s pivotal role Covid-19 had a huge impact on Edcon’s people and operational HR had a double role to play; to lead as operations resumed, but to also plan the heart-wrenching process of consultation for

CHRO

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Darryl Feldman Head of HR, Oasis Group Holdings Work: Darryl has 19 years of experience in HR. His career has spanned the banking, retail and the information and communication technology (ICT) sectors. Prior to his current role, he held various senior HR roles at Edcon, including divisional executive HR & transformation: corporate IT and strategy, head of HRBP for various divisions, and divisional human resource manager. Education: Management Advancement Programme (Wits Business School), BCom Honours (University of Johannesburg).

“We talk about a digital world, but we still need connection. We still need that human touch; we still need an HR person to play the role of striking a balance between issues such as work/life balance as tech infringes more on life.” When it comes to leadership, he says all leaders, particularly those who grew up in a time when clocking in was a sign of productivity, need to appreciate the transition to being output based, not time based. “We need to give people the freedom and leeway to deliver in their own way, change our mindsets to output driven – performance management systems must be geared towards outputs. Going forward, we must all be committed to developing people

in the new paradigm. Now is the time to reskill and retool, a process HR must lead. Organisations will have to be reconfigured and we must look for creative, novel ways to teach people in more interesting ways,” says Darryl. Even though 2020 was a rough year, Darryl chose not to wallow, but rather find purpose in assisting others, and being of service. That was a great outlet to him and undoubtedly one that led to him landing the role at Oasis Group Holdings. “I am looking forward to the growth that will accompany this new role, as well as sharing my knowledge and experience with my new colleagues and business partners.” 

CHRO

“I would start work at seven in the morning and finish at midnight and then start again in the morning.”

interview

PUTTING IN THE WORK Kyle Chetty has been working 16 hours a day for a long as he can remember. Now, the Autoboys CHRO and 2020 Young CHRO of the Year, tells the story of what one can achieve if they’re willing to work hard.

BY SUNGULA NKABINDE

yle Chetty has had a remarkable work ethic from a young age. As a 12-year-old boy, he started working at his father’s logistics company, which owned trucks that delivered stock to retail outlets.

“My brother and I would have to wake up at three in the morning to go offload stock at Pick 'n Pay and come back and reload the truck for the next delivery. If we weren't doing that we were fixing the trucks or washing them. I never had school holidays,” says Kyle. “Being in an adult's working environment as a young person, you are forced to mature very quickly. You understand dynamics in the world of work from a very young age.” At the age of 16, Kyle found a part-time job at Foschini. He would pack his work uniform in his school bag and take public transport from home

to school and then to work, only arriving at home around 8pm, which was when he would start doing his homework. “My father was very strict and he wanted us to know the importance of hard work. From a young age, a strong work ethic was instilled in me from my family, and that has stayed with me to this day,” says Kyle.

Always keep a pen There are many lessons that his father taught him that stayed with him, some of which are still bearing fruits. Some lessons were more practical than others. Some were weird. To this day, Kyle is never without a pen because his father always said to keep a pen with him because “you never know when you’ll need one". “Not too long ago, I was with my wife at the traffic department and she needed to fill out a form

CHRO

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to renew her licence and she was like, 'oh no, we don't have a pen.' And then I pulled one out of my back pocket. She was so surprised and asked why on earth I had a pen in my back pocket. It was only then, 15 years later, that the penny dropped, and I realised why my dad gave me that advice.” Like so many HR professionals, Kyle stumbled across the career. He couldn’t go to university at a younger age due to financial constraints. What he did have, however, was a work ethic like no other. After high school, he worked a few odd jobs in retail and ended up working at Six Flags, a theme park where he joined as a retail store assistant and left as a supervisor. After noticing his professionalism, he was promoted to supervisor and later asked by one of the directors to fill in for a gap in a junior HR role. “I always believed that, even if you don't know how to do something, you should always say yes to the opportunity and then learn to do it afterwards,” says Kyle, who later took on an additional role to project manage the concerts hosted at the theme park. “As the supervisor, I was doing scheduling for the employees and a lot of administrative work. But then they needed someone to help project-manage the concerts they held there and I put my hand up for that as well. I would start work at seven in the morning and finish at midnight and then start again in the morning. I never saw anything wrong with that because I was taught that if you want to be successful you have to work hard for it.”

Building a plane is easier It was at JD Group that the HR bug bit. Kyle joined the company as a call centre agent and, again, was thrust into leadership roles first as a team leader and later an HR manager. “I was fascinated by HR because I felt like

it was so complex but so interesting. I would always ask questions regarding why we do things a certain way and I guess the management team saw that curiosity and took a chance on me” says Kyle, adding that he used to keep a quote on his wall which read: "Building an aeroplane is easier than working in HR." “I found that to be quite funny because of course building a plane is an extremely complex endeavour, but what that quote illuminates is the complexity in dealing with people. At any given moment you are contending with thousands of different beliefs, upbringings and personalities. Unlike building a plane, you can't use the same approach every time in order to get it right.” Kyle was working in HR for five years before completing a related qualification. And he may never have studied had it not been for one of his mentors, Sheldon Govender, who told him that his experience would only ever take him so far and that he would need to back it up with qualifications. "Before that, I never really thought about studying further because I had been growing in my career based on learning on the job and working hard." That's when he enrolled to complete a BCom and Honours in HR. He later also became a Gallup Strengths Coach. In this way, Kyle worked backwards, gaining the theory for everything he was already put into practice and that gave him a big boost because he was then able to attach terms and theories to the work he was doing and fill in the gaps along the way. Kyle says it's important that HR leaders are still able to add value to the business and lead people. After winning the 2020 Young CHRO of The Year Award, Kyle was vindicated in his approach, saying all his hard work has borne fruit. 

CHRO

interview

“It was only then, 15 years later, that the penny dropped, and I realised why my dad gave me that advice.” Kyle Chetty CHRO, Autoboys Work: With over 10 years’ local and international experience in HR, Kyle has worked within the financial services, wholesale and retail, and automotive industries in USA, SA, Botswana and Swaziland. He is also registered with the SABPP as an HR Professional and is a certified Gallup Coach. Education: BCom (Regent Business School), BCom Honours (MANCOSA), HR Diploma (Alison)

CHRO

team

Transitioning to the big bad world of work From cafeterias to office parks and from study groups to actual meetings with some of South Africa’s top executives.... These are actual jumps I had to make during my transition from university to the world of work. The fact that I had no work experience increased the pressure tenfold. It’s a leap nobody can prepare you for. Not knowing what to expect on my first day at CHRO South Africa definitely revved my nerves as I had arrived before anybody else in the team. My first thought was to mentally prepare myself for meeting everybody, not to set one foot wrong and to lay as low as possible. I have always been a firm believer in “first impressions always last”, and this was my one opportunity to ensure I made a positive and lasting first impression and I fully intended to grab it with both hands. Due to the fact that I had little to no knowledge regarding protocol in a work environment, I had no idea that I’d be given pointers and support on how to do the job I’d be appointed to. And what a relief that was. I received extraordinary support from all my team members with regards to how to do a certain task, and was told that I should never hesitate to ask for help. That’s how I learned to swim in the deep end. As the global pandemic has turned our lives upside down, one of my friends graduated from the University of Johannesburg. My advice to him and many others starting their first jobs during Covid-19 would be to always ask for help. It’s one of the most difficult things to do but there really isn’t shame in admitting you don’t know how to do something. Secondly, participate. Whether it is team meetings or conversations with colleagues, it’s important to stand up and be counted as a member of the team. Lastly, absorb as much knowledge and information as possible so that you may also pay it forward one day.

VAPHI LUNGILE MARKETING MANAGER CFO SOUTH AFRICA VLUNGILE@CFO.CO.ZA

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welcome to

brighter At Mercer, we believe in building brighter futures. Together, we’re redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and wellbeing. We do this by meeting the needs of today and tomorrow. By understanding the data and applying it with a human touch. And by turning ideas into action to spark positive change. For more than 70 years, we’ve been providing trusted advice and solutions to build healthier and more sustainable futures for our clients, colleagues and communities. Welcome to a world where economics and empathy make a difference in people’s lives. Welcome to brighter. www.mercer-africa.com

CHRO Magazine 2021, Issue 1

Articles inside

Still in shock