quick overview:

  • Ongoing focus on constructive direct engagement with all employees;
  • structural changes to create a fit-for-purpose organisation;
  • focus on recruitment and management of talent; and
  • clear strategic intent driving all operational plans.

2009 focus

organisational development

Embed the systems, processes and values into the business and concentrate on continuous improvement.

training and development

Establish the Woolworths learning academy to develop the skills required to execute the strategy and build technical, functional and leadership skills.

employment proposition

Woolworths will implement a new total employment value proposition. This includes short-term and long-term retention and incentive schemes and a comprehensive retention strategy.

people

Woolworths strives to be an aspirational place to work and attracts passionate and committed retailers . Prospective and current employees are attracted and retained by the value-based culture which forms the bedrock of the business.

The Woolworths values are consistently reiterated throughout the business, ensuring that all employees’ behaviour and decisions are guided by shared values.

The last year has been characterised by rapid change as the business drives efficiencies, creating an organisation fit-for-purpose and structured for sustainable growth. There have been significant changes in the organisational structure including the senior executive re-structure as well as in the management teams across the business and within many of the divisions.

Woolworths has also brought in experienced retail professionals, local and international, to complement our significant internal talent . This offers significant opportunity to transfer skills as well as the added advantage of infusing new perspectives and energy into the business. Through succession processes some internal senior level appointments have also been made, which complement the fresh new thinking brought into Woolworths.

Rapid change requires a solid strategy underpinned by the necessary systems and management. The framework for the delivery of strategy focuses on:

  • clarity of purpose and direction;
  • structures and roles with clear lines of accountability;
  • a dynamic culture and change leadership;
  • active engagement of people;
  • streamlining processes, systems and people; and
  • a clearly defined measurement and reward approach.

Progress has been made in redesigning and streamlining the organisational systems and processes. These new systems and processes provide an organisational framework that supports the effective execution of strategy, delivering the strategy with discipline and consistency. As an example, the clothing merchandise cycle has been re-engineered to instil a more disciplined approach to the buying and planning processes, gearing the business for sustainable growth.

The Beehive survey is conducted annually to measure perceptions of organisational development towards a modern culture. A sample of 2 602 employees completed the survey in 2008. The results have consistently improved from the initial survey in 2004, and showed an increase of 217% over three years. As expected, the 2008 results show a decline of a few percentage points due to rapid organisational change and new talent. Issues raised in the survey are being actively addressed to ensure continuous improvement of the score.

Woolworths New Long-term Incentive Scheme was implemented. This share scheme is designed to reward senior employees. This is a long-term incentive and retention tool which takes future performance of the business into account. It also supports good financial performance and long-term growth for Woolworths. Grants and/or offers were made to eligible employees in April 2008.

Woolworths offers a compelling employment proposition . Significant opportunities exist for training and development in a modern, exciting and vibrant retail environment. This continued to be a focus in 2008.

STEP

The Selling Team Employment Proposition (STEP) programme meets the need to develop passionate and committed retailers to address operational demands. It provides opportunities for career development and promotes Woolworths as a favoured retail choice among prospective employees. Woolworths is introducing STEP in a phased approach to maximise the benefits for employees and to deliver improved employee satisfaction and customer service. A clear definition of roles, performance standards and the reward system to support this was designed and implemented. Line managers are trained to coach and further develop in-store staff competencies.

TCoE

The total cost of employment (TCoE) remuneration approach was successfully implemented in September 2007 and is achieving the set objectives, including internal equity and market comparability.

employee engagement

Woolworths continues to drive a strong belief in the importance and relevance of long-term, direct relationships with staff, whilst supporting the right of staff to belong to any external organisation of their choice. In engagement with the South African Clothing and Textile Workers Union, Woolworths has consistently indicated that the business will engage appropriately with the union if they show sufficient representivity. Currently union membership within Woolworths is measured at less than 15%.

Further detail of Woolworths people structure and our commitment to growing and nurturing talent is found in the separate Good business journey report.

    Male Female White Foreign nationals  
  Occupational levels A C I A C I Male Female Male Female Total
  Top management 0 0 0 0 1 0 2   0 1 0 4
  Senior management 3 14 11 4 6 6 59 45 12 6 166
  Professionally qualified and experienced specialists and mid-management 52 134 44 55 173 48 250 300 18 12 1 086
  Skilled technical and academically qualified workers, junior management supervisors, foremen and superintendents 350 339 68 450 543 96 234 267 6 10 2 363
  Semi-skilled and discretionary decision-making 2 372 923 125 6 275 2 581 344 174 269 8 19 13 090
  Unskilled and defined decision-making 604 213 29 683 259 20 16 12 1 1 1 838
  Total permanent 3 381 1 623 277 7 467 3 563 514 735 893 46 48 18 547
  Non-permanent employees 3 3 0 10 5 0 0 0 0 0 21
  Grand total 3 384 1 626 277 7 477 3 568 514 735 893 46 48 18 568
  Employees with disabilities 16  8 3 25 15 1 5 10 0 0 83
  Note: A = African, C = Coloured, I = Indian and W = White
Woolworths employment equity profile as at 30 June 2008 by occupational levels