Human capital

The capacity and capability of our human capital is a cornerstone of sustainability in Murray & Roberts. The Group aims to be an employer of choice in the construction and engineering sectors and its world class delivery of products and services is a reflection of the capability of its diverse but experienced work force.

The Murray & Roberts employment value proposition is equal to global practices of high performing employers of choice. The employment value proposition focuses on issues that enable our human capital to achieve the strategic objectives of our Group by:

Due to the diversity of Murray & Roberts, individual business entities are encouraged to tailor their human resource plansto their specific needs, but they are required to align their plans with the Group's employment value proposition.

Murray & Roberts endorses employee rights contained within the Constitution of South Africa 108 of 1996, including the right to freedom of association. The Group's policies and procedures are aligned with the constitution and the laws of South Africa and where appropriate, other countries in which we operate.

Human resource policies and procedures, including procedures for the management of grievances, disputes and disciplinary measures, are in place in all group operations.

Diversity and employment equity

Murray & Roberts embraces diversity and is committed to transformation, non-discrimination and freedom of association.

The Group's employment equity approach provides for equal opportunity and fair treatment in employment. While this enables compliance with South African employment equity legislation, the Group emphasises diversity to maximise its talent pool, strengthen capacity and increase innovation by introducing different ways of thinking.

Murray & Roberts has in recent years attracted a number of historically disadvantaged employees and executives who see in the company a long term career rather than a short term opportunity. Skills shortage and the impact of increased credit pressure have created challenges to the retention of experienced black executives, engineers and other built environment professionals.

The Group's main board composition reflects the transformation of South African society. Six directors are black, three of whom are women. 86% of South African-based employees are black, while 11% of all employees are female. Approximately 48% of all levels designated as management in the domestic market are black, and 10% female.

Consolidated summary of the Murray & Roberts employment equity profile in South Africa

Each of the Group's South African business operations compiles employment equity plans and reports for the Department of Labour. Employment equity forums representing employees, contribute to the pursuit of employment equity targets and objectives.

Analysis of the Group's employment equity profile indicates that more work is required if the Group is to make greater progress in achieving its long term targets. An holistic approach aimed at both supply side initiatives (growing the pool, diversifying the source and attracting better than the competition) and demand side activities (retention plans, accelerated development and reconsidering job designs) is utilised across the Group to ensure that it attracts, develops and retains the talent it requires to meet its transformation and growth objectives.

Non-South African operating companies are required to achieve a diverse representation of the people within their geographic location and comply with the relevant legislation in the country in which they operate.

Discrimination of any form, including sexual, racial, religious or age related harassment, is viewed in a very serious light by Murray & Roberts and appropriate disciplinary action is taken against offenders.

Murray & Roberts acknowledges the right of individuals to freedom of association and rejects child and forced labour. A large portion of the Group's employees, particularly in the South African mining activities, are represented by trade unions. Murray & Roberts, through its operating entities, actively participates in national bargaining forums, including its membership of the South African Federation of Civil Engineering Contractors and the Steel and Engineering Industries Federation of South Africa. Site-based forums are established where recognition and procedural agreements are in place and voluntary bargaining forums are often aligned to specific industries.

Murray & Roberts occasionally experiences industrial action within its operating entities. Procedures are in place in the operating companies to manage employee relations, industrial action and trade union negotiations.

Capacity development

A global benchmark study conducted by Murray & Roberts revealed that human capital development is one of five key characteristics of best-in-class engineering & construction companies. Building world class leadership, as well as individual and organisational capability and capacity, is crucial to Globalising Murray & Roberts. The Group complies with prevailing skills development legislation and provides a range of training, learning and career development opportunities for its people. In 2009, investment in formal employee training and development was approximately R96 million, including wages and salaries of participants and capital expenditure in upgrading training facilities. Approximately 10 000 employees undertook formal skills enhancement and training development during the year.

Murray & Roberts plays a leading role in addressing the skills deficit in South Africa through public sector initiatives, including the requirements of the Accelerated and Shared Growth Initiative for South Africa (ASGISA) that govern our involvement in the power generation projects, particularly the Eskom power program. Enhancement of academic knowledge in power related subjects and establishment of large scale skills development capability is prioritised within communities surrounding major power stations and selected other developments.

The Further Education & Training (FET) College partnership with South Africa's Department of Education has been enhanced by this mechanism with a R34 million investment in an Artisan Training Centre at the Lephalale FET College, where 700 artisans will be trained for the Medupi Power Station project. This model will be extended to facilitate localised development of higher level artisan skills for other infrastructure investment programs.

Murray & Roberts actively attracts and develops young talented people to fulfil its human capital and transformation needs. The Group has established an integrated graduate pipeline to supplement the learnerships and traineeships offered by many of its operations. This pipeline comprises a tertiary education bursary scheme, a graduate development program and a campus engagement initiative.

The Murray & Roberts bursary scheme provides financial assistance to full-time students, enabling them to qualify for a degree or national diploma at a recognised South African University or University of Technology, and to contribute to the Group's medium and long term needs for qualified staff. The scheme is aimed primarily at engineering and built environment fields of study. The number of bursaries awarded annually depends on the Group's needs. Murray & Roberts currently has a total of 193 bursars (2008: 223), 55% of whom are black students and 31% female.

The graduate development program (GDP) is part of the leadership pipeline approach to addressing human capacity and transformation issues. It aims to provide a steady pipeline of future leaders. The GDP is in its fifth year with an ex-bursary intake of 90 graduates (2008: 85). Currently, 69% of the graduates are black and 25% female.

Murray & Roberts and its operations offer skills development programs, from adult basic education to learnerships and leadership programs. The Group had 438 (2008: 544) people undertaking learnerships at 30 June 2009, 69% of whom are black, and 276 (2008: 336) black employees on adult basic education and training initiatives.

The Group has implemented a comprehensive leadership performance and development process for its corporate and senior operational leadership teams. Performance reviews are formal and in most instances conducted biannually, and monthly performance and development discussions are encouraged. There are more than 720 managers active in the system. Leadership development initiatives comprising four differentiated and role aligned programs ensure that Murray & Roberts people are well equipped to meet current and future leadership opportunities. The programs are designed to support development of individuals throughout their careers and to help individuals to understand:

The leadership development program has 179 (2008:153) delegates, 34% of whom are black managers and 27% female.

The Group conducts an annual leadership succession review to identify and plan key activities to ensure that the right people assume leadership positions across the Group now and into the future. The leadership review extends the Group's business planning process by solely focusing on people selection, performance, development and succession aligned to the Group's business plans.