46 Capitec Bank Holdings Limited

Employees are kept abreast of company-related issues through the following communication tools:

C.Facts – an electronic communicator that deals with facts and newsworthy information.

C.Alert – an electronic communicator that deals with operational issues relevant to branches.

C.Inside – a full-colour magazine covering the company’s development, products and services and other contemporary issues of interest to employees.

Ecobuzz – an electronic newsletter is used to educate and inform employees on environmental issues.

Other platforms for two-way communica-tion include biannual results presentations by the chief executive officer and finan-cial director to employees at the main and regional offices. At these events employees have opportunities to raise issues and discuss concerns with management either on a one-on-one basis or during the presentation.

Empowering employeesEmpowerment of employees creates an environment where individuals take owner-ship of their work. Various approaches are thus employed to ensure that employees are given the opportunity to develop to their full potential. When people with appro- priate skills and capabilities are employed in the correct positions and are engaged and focused on appropriate activities, targeted business results can be achieved. Strategies are therefore being developed to facilitate the management of the entire employee life cycle to realise maximum empowerment of employees.

As the number of branches increase, the bank continues to appoint people to support its unique service offer. The number of bank employees increased to 7 086 at year-end (2011: 5 233). On average, 221 employees were employed per month. Average employee turnover per month amounted to 1% which compares favourably to the average turnover of 13.7% (Deloitte Salary Movements, Premium and Labour Trends 2011/2012 report). Absenteeism was low and amounted to 1.2% of the workforce per month. No workdays were lost due to strikes.

Material issues How material matters are addressed Page

Brand confidence and trust in the market

ReliableandtrustworthyserviceStabilityIncreasedaccessthroughexpandedretailfootprintAffordability,simplicityandtransparencyofproductoffer

40 – 42, 60

Fraud In-depthinvestigationsbytheforensicauditdepartmentPreventionisfacilitatedthroughtraining,monitoringanderadicationwherefraudoccurs 104

Employment equity

Zerotolerancetoanyformofdiscrimination47

Growth ConservativemanagementofliquidityandqualityoftheloanbookContinuedtrainingandcareerdevelopmentofemployeestofacilitateexceptionalserviceexperienceandthusclientacquisition

18, 20, 29, 49

Remuneration Pre-determinedandboard-approvedremunerationpolicy 50

Integrated Report 2012 47

Employees have access to a variety of benefits:

Permanent

employees

Temporary

employees

Retirement fund √

Medical aid √

Group life √ √

Disability √ √

Leave (including parental) √ √

Share ownership schemes √

Employment equity Capitec policy enforces equal employment opportunities regardless of race, gender or belief. Ability and performance are the only criteria for appointment and promotion. Unfair discrimination in whatever form is not tolerated and is dealt with through the disciplinary processes to facilitate an environment of equal opportunity and fair treatment in the workplace.

The company’s core values are therefore reflected in its drive for employment equity:• Respect for the individual and regard for individual

dignity• Absence of discrimination• High-quality standards in all aspects of the business.• Performance improvement through empowerment and

team work• Obsession with client care

Capitec Bank has contributed significantly to the employment of women and other previously disadvantaged individuals:

Total women 63%

Previously disadvantaged women 57%

Previously disadvantaged men 29%

CAPITEC BANK WORKFORCE

The table above details the Capitec Bank workforce per occupational level according to gender and race as at 31 August 2011 as required in terms of section 22 of the Employment Equity Act, 1998 (Act 55 of 1998).

Male Female Foreign nationalsAfrican Coloured Indian White African Coloured Indian White Male Female

Top management 1 1 0 12 0 0 0 1 0 0 15

Senior management 3 7 3 81 3 1 0 11 2 0 111

Middle management 54 25 10 143 27 16 7 66 3 0 351

Junior management 252 147 31 151 337 184 42 183 0 1 1 328

Semi-skilled 911 298 54 97 2 189 642 85 135 2 4 4 417

Unskilled 58 0 1 0 80 6 0 0 0 0 145

Total permanent 1 279 478 99 484 2 636 849 134 396 7 5 6 367

Temporary employees 0 3 0 5 1 9 1 8 1 0 28

1 279 481 99 489 2 637 858 135 404 8 5 6 395

5281 369

1 7002 456 1 8952 116

1151 173303

435 544304

1 2 3 4 5 6

(Courses)2011 2012

NUMBER OF EMPLOYEES THAT ATTENDED LEARNINGAND DEVELOPMENT OPPORTUNITIES

1 Firm Foundations

2 Management and leadership

3 Projects

4 Sales

5 Business Support Centre

6 Campus

50 Capitec Bank Holdings Limited

way; during the period under review 29 Firm Foundation workshops were held and 2 456 employees received specialised training at this facility. Total learning and development spend for 2012 was R35 million (R25 million: 2011).

The bank has also continued with its drive to enhance its distance learning capability. During the past year, up to 50 learning modules and quizzes have been made available on our e-village system, which enabled the bank to reach more than 5 518 learners.

The bank’s Study Assistance Programme supports employees who wish to obtain tertiary qualifications. During the year under review, 166 bursaries were approved for further studies. Bursary spend amounted to R1.3 million (R1.3 million: 2011).

Health and safetyAn employee assistance programme has been established to support employees in personal health management. Regular communication via internal communication channels is aimed at educating employees on risks relating to serious diseases, prevention measures and how to deal with such illnesses.

A comprehensive health and safety policy is in place. In the branch network, proce-dures are driven by a best practice online management programme, customised to company specifications.

Remuneration reportRemuneration risk is prevalent when remuneration policies do not take into account:• the extent to which a transaction,

concluded by an employee, exposes the company to risk of loss; and

• the time period over which losses can emerge. For example, misalignment exists, if an employee is fully rewarded for a transaction that continues to expose the company to the risk of losses in subsequent periods.

Capitec policies and procedures ensure alignment and do not incentivise risk- taking.

The human resources and remuneration committee (“remco”)Remco consists of three non-executive directors. The chairman is Chris Otto, an exper ienced businessman with in-depth understanding of the nature and complexity of the business of the group. Despite not being independent as defined in King III, the board considers Mr Otto to be the correct person to hold the position. The primary purpose of the committee is to ensure that remuneration policies are established that attract and retain individuals able to create lasting value for shareholders, while at the same time they address remuneration risks inherent in the banking environment. In addition, it is the responsibility of remco to ensure that these policies are adhered to. The remuneration policy covers all divisions of Capitec Bank.

The committee’s mandate Remco’s mandate is detailed in an annually reviewed board-approved charter. In support of its authority, the members of the committee have unrestricted access to all the activities, records, property and employees of the group. In addition, the committee may access external legal or other independent professional advice to execute its responsibilities as detailed in the charter.

The charter was updated during the year to incorporate Basel best practice and now requires the committee to consider, on an annual basis, whether the remuneration structures continue to effectively align risk-taking with remuneration.

The ambit of the committeeRemco is responsible for:• Determining, reviewing and approving

the company’s:– general policy on remuneration, – general annual increase,– policy for determining executive

management remuneration, and– remuneration packages of the

executive management team, chief executive officer and financial director, including bonuses, incentive schemes and increases;

• reviewing the remuneration of non- executive directors including its commit-tees and recommending proposals to the full board in this respect for approval by shareholders in general meeting; and

• fulfilling delegated responsibilities in respect of the Capitec Bank Holdings Share Incentive Trust.