Transnet Online Integrated Report 2018

Transnet Online Integrated Report 2018
Market Demand Strategy (MDS) themes
  • Financial sustainability
  • Capacity creation and maintenance
  • Market segment competitiveness
  • Operational excellence
  • Human capital
  • Organisational readiness
  • Sound governance and ethics
  • Constructive stakeholder relations
  • Sustainable developmental outcomes
Sustainable Developmental Outcomes (SDOs)
  • Employment
  • Skills development
  • Industrial capability building
  • Investment leveraged
  • Regional integration
  • Transformation
  • Health and safety
  • Community development
  • Environmental stewardship
The Capitals
  • Financial Capital
  • Manufactured Capital
  • Intellectual Capital
  • Human Capital
  • Social and Relationship Capital

Creating value through the capitals

Human capital

Exponential value is created for and on behalf of Transnet and the country through our most critical asset: our people. Through our employees’ collective accomplishments, collaborations, innovations and discipline, we are able to provide innovative solutions to infrastructural logistics challenges, foster lasting relationships with our customers, and build and maintain the infrastructure capacity required to sustain economic growth.

Human capital


1. Inputs
  • Skilled and motivated employees as at 1 April 2017 year-end: 58 828
  • Responsible leadership structure (Governance and Ethics) – Leadership structure
2. Approaches to managing human capital outcomes
  • Training and development > improve capability and capacity
  • Policies and procedures > improve HR service delivery
  • Establish solid labour relationships
  • Performance and talent management within Transnet > reward excellent performance
  • Embed desired culture and safety behaviours (policies, systems, roadshows, procedures) > safety-conscious and responsive workforce
  • Develop critical skills and succession planning > achieve long-term strategic objectives
3. Key factors impacting human capital
  • Two recognised trade unions represent 81,4% of bargaining unit employees: United National Transport Union (UNTU) and the South African Transport and Allied Workers Union (Satawu)
  • Due to recent high retirement rates*, Transnet has improved its race and gender profile: black, coloured and Indian employees represent 86,1% of the Transnet workforce as compared to the NEAP average of 87,7%
  • Transnet has a disproportionately high representation of male employees (71,6%) relative to female co-workers (28,4%)
  • Female employees have more than doubled in the past 10 years
  • Our remuneration philosophy and framework underpins the human resources strategy
4. Human capital value created
  • Direct employer
  • Facilitator of indirect and induced employment opportunities nationally
  • Talent management and development programme > ensures succession plans for critical positions
  • Leadership programmes > target all management levels to build strong leaders
  • Reshape the operational core > support long-term strategic objectives
  • Implement Lean Six Sigma principles in operations > improve operational efficiencies and a safe working environment
5. Trade-offs – Human capital impacts on other capitals

Training and development > build competencies and collective values around safety, operational excellence and innovation

  • Financial
    Intellectual
    Human
  • spend
    on training
    improved
    productivity and
    innovation
    more professional
    people + new employment
    opportunities opening up
    Decreased Increased

Training and development > build competencies and collective values around safety, operational excellence and innovation

  • Intellectual
    Financial
     
     
  • performance-
    driven culture
    savings through
    productivity
     
     
6. Key outputs
  • Total headcount: 55 666 (2017: 58 828)
  • Permanent employees: 51 324 (2017: 53 661)
  • Non-permanent employees: 4 342 (2017: 5 167)
  • Labour cost on skills development: R741 million (2017: R746 million)