Presented by Pearl Maphoshe from Mass Mart

1. Massmart’s Approach to Diversity
& Inclusion
Pearl Maphoshe
September 2012

2. Massmart Structure
Massmart
Holdings
Mass Mass Mass Masscash Masscash
build warehouse discounters Wholesale Retail
Warehouse Browns &
Game Weirs
Express Makro Cambridge
Dion Wired Shield Food
Trade
Depot Jumbo

3. Alignment With Business Strategy
Integrated Human Resource
Management Strategy
Leadership Critical
Pipeline Positions
 Workforce Diversity &
Inclusion
Business HR
 Attraction & Acquisition
Talent Business
Strategy Strategy Outcome Outcome
 Performance Management
 Learning & Development
 Total Rewards
 Retention & Engagement
 Risk & Compliance

4. We Value Diversity by:
• Accepting, respecting, celebrating and valuing individual differences;
• Capitalizing on the diverse backgrounds and experiences of our
staff, customers, suppliers and stakeholders.

5. We Value Inclusion by:
• Identifying, addressing and removing
barriers in our environment;
• Facilitating opportunities that result in
effective and meaningful participation;
• Drawing ideas and creating solutions that are multidimensional and
universal.

6. Legislative Framework
• Black Economic Empowerment Act 53 of 2003;
• Employment Equity Act 55 of 1998;
• Skills Development Act 97 of 1998;
• South African Constitution.

7. Key Diversity and Inclusion Questions
• How can we use the way we think, the way we do business and the
way we are to create competitive advantage in the market place?
• How can we attract top talent that reflects the rainbow nation to
position Massmart for current and future success?
• How can we drive innovation and growth by leveraging the rainbow
nation?
• How can we create an environment that is supportive of
collaboration and that promotes superior performance for all our
people?

8. The Business Case: Diversity alone is not enough
• Economic marginalization leads to social and political instability;
• Businesses that are successful in leveraging the diversity of their
people and supplier base are better able to adapt to changes in the
external environment;
• Inclusive companies score higher on
customer satisfaction, productivity
index, profitability and generally
have lower stuff turnover.

9. SA Specific Business Case
• The changing demographics of SA are transforming the culture and
the buying habits of our nation;
• Business involvement in these
communities, from supplier-diversity
(BEE/local sourcing) to CSI initiatives to
recruitment and retention of diverse
employees sends a strong signal of
support to potential customers within
these communities.

10. Creating a sustainable competitive advantage
Culture
Enhancing “how we do things around here”
and improving the way people think. Behave
and perform in organisations
Inclusion
Making the fullest and best use of
the diverse talents, skills,
Complexity
perspectives and experiences
Diversity
Increasing the richness
of different
talents, skills, perspectiv
es and experiences
Organisational maturity
Source:
Price Waterhouse Cooper Open University

11. What Diversity is NOT
NOT just a good idea;
NOT only about non-commercial CSI;
NOT just a moral imperative.

12. Bottom-Line Business Benefits
• Attraction and retention of top quality
talent: Employer of Choice;
• Improved morale among employees;
• Talent optimization: Improved productivity due to better leveraging of
skills and competencies within the organization;
• Stronger relationships with strategic stakeholders;
• Increased ability to compete in the market place.

13. True Value of Diversity and Inclusion
• An Employer of Choice;
• A Business Partner of Choice;
• A good Corporate Citizen;
• A Global Business.

14. Virtual Cycle of Diversity & Inclusion
Market Leader &
Diverse & Inclusive
Business Partner
Work Culture
of Choice
Employer of
Choice

15. In a Nutshell
Market Focus
Leadership and
People Focus
Culture
Transformation
Recruitment
and Retention
Diversity
and Inclusion

16. Massmart’s D & I Strategic Framework
Corporate To create a culture that fosters innovation productivity and
Mission respect for all people
Strategic Workforce Diversity Sustainability of
Workforce Inclusion
Pillars Diversity and Inclusion
Change
Commitment Communication Measurement Accountability
Drivers

17. Scope of Diversity & Inclusion
The way we The way we do
think things
The way we are

18. Diversity & Inclusion Goals
Create
processes,
Attract, devel policies,
op and retain plans and practices
talented that promote
Identify people from Massmart as an
and all population Employer of Choice
address groups
barriers including
within designated
Have a Massmart groups
workforce
broadly
reflective of the
demographics in
South Africa

19. Diversity & Inclusion Framework
Accountability
loop
Executive
Measurement sponsorship
Diversity &
Inclusion
Policy
Framework
Coherent
Review &
strategy
Development
Alignment of
D&I with
Socialization
Talent
Management

20. Our Guiding Principles
• Demonstrated leadership commitment;
• Effective communication;
• Continuous education, awareness and skills development;
• Shared accountability and responsibility for D & I;
• Effective measurement of D & I efforts.

21. Diversity & Inclusion Scorecard
Goals Activities Performance Indicators Desired Outcomes
 Undertake regular culture survey;  Participation rate;  Survey results demonstrate
Have a workforce  Review recruitment, Learning &  Diversity & Inclusion index on that over time Massmart has a
broadly reflective of Development and retention practices recruitment & promotions and diverse workforce and
to ensure the identification removal of  Survey results.  Representation of diversity in
the demographics barriers to employment and top management levels &
in SA  Create mentorship & job shadowing succession plans.
opportunities.
 Ensure that senior leaders are  Diversity & Inclusion discussion
 Diversity councils and circles and
consistently visible and vocal in throughout the organisation,
 Diversity & Inclusion training.
Identify and communicating their commitment to
twice per annum;
diversity as a performance standard and a
address Diversity &  Integration of D & I as an
business priority;
 Create awareness of Massmart’s Diversity integral measure of
Inclusion barriers performance management and
& Inclusion strategy;
within Massmart  Use the information from the employer  Visible demonstration and
surveys to identify barriers to inclusion in observance of D & I.
our environment and
 Development customised plans to address
identified barriers.
 Recruit the best & most diverse talent  Progress on representation of  A workforce that reflects the
Attract, develop and available & to develop & retain that designated groups on the rainbow nation;
retain talented talent at all levels of Massmart; Massmart workforce especially in  Lower staff turnover and
 Implement the Employment Equity Act; top management;  Sustained investment on the
people from all
 Implement the Skills Development Act;  Equitable representation on all L & development of designated
population groups groups.
 Establish Diversity & Inclusion Council D programmes on the Massmart
including designated  Further roll out of Black Scarce Skills Corporate University and
groups Share Trust (BEE shares).  Improved retention rate.
 Engagement survey;  Survey Results;  Sustainable competitive
Create  Employee value proposition;  Bursary Scheme; advantage through Diversity &
processes, and  Actively promote our employer brand  Massmart GDP and Inclusion in our workforce and
practices that and  Procurement spend on Small supplier-base.
 Promotion of all tenants of Broad- Medium Enterprise, black owned
promoted Massmart companies & women owned
Based Black Economic Empowerment.
as an Employer of companies.
Choice

22. Conclusion
• Strategic imperative;
• Commercial value and leverage of D & I;
• Multi-dimensional and not a numbers game;
• Internal and external focus;
• D & I is the key to business success.