In order to ensure the integrity and legitimacy of the remuneration system, the development and implementation of related policies, programmes, practices and decisions is directed by the main remuneration principles contained in the remuneration policy. The philosophy consists mainly of principles, values and points of departure relating to remuneration. The values guide the remuneration strategy and are more lasting in nature, while the objectives of the remuneration strategy will change as the Group’s business plan is amended. The aim of the remuneration philosophy is to:
- communicate the remuneration commitments and expectations to the staff;
- strengthen the organisational culture and underlying values of the Group;
- guide and facilitate the remuneration implementation plan;
- describe the manner in which the Group manages remuneration at the organisational level so that it is fair and consistent; and
- serve as standard for the evaluation of the successful implementation of the remuneration policy and remuneration strategy.
The remuneration strategy is based on the following eight central principles:
1.1. Transparent communication
All information that is needed to take well-considered decisions regarding remuneration shall be communicated, while the confidentiality of personal remuneration information will be respected. This will improve the quality of decisions, promote openness and honesty and ensure that ownership and accountability are accepted.
1.2. Non-discriminatory practices
All remuneration policy directives and practices will be free of unfair distinction, since unfair discrimination based on race, gender, pregnancy, marital status, family responsibility, ethnic or social origin, sexual orientation, age, disability, religion, HIV status, conscience, convictions, political orientation, culture, language and birth is unacceptable.
Fair distinction, based on performance, scarcity factors and skills, will be applied.
1.3. Internal equity
The Group will remunerate staff fairly and consistently according to their role and individual value. The consistent application of the remuneration system throughout the Group is a priority.
1.4. External parity
Remuneration trends are taken into consideration so as to position the Group strategically to ensure competitive remuneration within the parameters of affordability, as far as is achievable and sustainable.
1.5. Performance-driven remuneration
The Group’s philosophy is to emphasise the link between remuneration and performance. In order to implement the philosophy an appropriate performance management systems will be developed and implemented to differentiate between excellent, average and below average performers. A major objective of the remuneration system is to reward overall contribution rather than status or position.
The Group’s business plan and strategy, subject to budgetary constraints, determine the affordability limits with regard to remuneration and other human resource costs. The limits serve as a guide for what can be spent. The limits can be adjusted taking the following into consideration:
- Necessity of competitive remuneration;
- Available budget funds;
- Inflation rate;
- Desirability of performance bonuses; and
- The need for structural adjustments with regard to the remuneration of individuals and occupation groups.
1.7. Continues learning
The Group encourages its employees to improve their skills and knowledge in arrears that contribute to the achievement of the Group’s strategy.
1.8. “Cost of Employment” package approach
The remuneration of individuals is based on the cost of employment. This approach offers certain flexible structuring choices to individuals, which is the fairest way of managing remuneration and costs within tax legislation.