OUR CAPITALS
Our Human Capital
OUR CAPITALS
Our Human Capital
Remuneration Report
Remuneration at SANBS is linked directly to successful execution of strategy and employees are rewarded for value delivered.
The organisation’s remuneration philosophy is aligned to SANBS’ iHEALTh Strategy (read more about SANBS’ strategic priorities in that it ensures that employees can work towards and promote the achievement of strategic objectives within the organisation’s affordability.
Remuneration
Process
Strategic Planning
Develop iHEALTh Organisational Scorecard
Set Measurable Goals (Define KPI's and KPA's for all staff)
Bi-Annual Performance Manangement Discussions
Reward and Remuneration
Our THREAD Values lie at the Heart of our Philosophy
The remuneration approach is designed to support the behaviours, skills and superior/high performance required to underpin and embed the desired ethical organisational culture of accountability, excellence and performance. The SANBS Remuneration framework is designed to support the attraction, engagement and retention of all our employees. It aims to drive business strategy and execution, by motivating employees through:
Rewarding Key Talent
As part of the broader talent management framework, our Remuneration Policy and practice includes pay progression opportunities for eligible employees. Rewards include financial and non-financial components. The revised remuneration approach also includes the development of dual career paths for specialist and certain management roles.
The organisation encourages career growth and mobility for all employees, while the organisation has also clearly identified business imperative roles.
During the period under review, management was able to settle the annual salary negotiations and process salary increases implemented at the start of the financial year.
As part of the total rewards approach, the RAD Academy supports the structured learning opportunities, enhanced digital learning opportunities and career growth to support the employee value proposition.
Employees are encouraged to keep their skills sets updated and continuous professional development is acknowledged, through the issuance of certificates upon completion of studies or programmes . Whether funded by SANBS or self-funded, we appreciate the commitment of our employees to self-development and supporting our learning organisation.
Non-financial rewards (cross collaboration opportunities) such as inter divisional projects and collaborations are considered important for individual development and inclusivity. Individual coaching is available for employees upon their request.
Remuneration Governance
The governance of remuneration falls under the scope of the Human Capital Management division and the Human Resources and Remuneration Committee (HR and Remco), which in turn advises the Board. The Board approves the business strategy and targets at the beginning of every financial year, and thereafter reviews the results at the end of the financial year before making a final decision regarding the payment of any incentives (if applicable).
Equitable Reward and Remuneration (Race and Gender Parity)
SANBS is committed to remaining sustainable while placing equal importance on the equitable rewarding of our valued employees. Our philosophy is meant to attract, develop, retain and celebrate the successes of our individual employees within the context of our altruistic mandate of being ‘Trusted to save lives’.
In the previous reporting period, management conducted a pay equity exercise to determine if there are any inequalities in pay across race and gender. The outcome of the exercise was that there is no material inequality in the way the organisation remunerates employees across race and gender. The differences that were identified were due to the length of tenure of various employees.
It is the organisation’s philosophy that no employee should be paid below the minimum of the applicable salary scale. This is verified intermittently by our internal auditors. Our role profiles are reviewed regularly for accuracy and our job grading process is conducted independently to ensure alignment with industry benchmarks.
The organisation uses the services of independent remuneration service consultants to review and benchmark remuneration levels on a regular basis. During FY23, 21st Century performed this benchmarking of SANBS employee remuneration.
Although SANBS is a not-for-profit organisation and therefore, not ordinarily able to afford to remunerate its employees in accordance with the private sector market-related salaries and incentive bonuses, remuneration scales and policies are benchmarked with similar size organisations nationwide. This is in keeping with the recommendations made by the consultants as SANBS competes in the market for several specialist/specialised skills. See SANBS’ Annual Financial Statements for disclosure of remuneration paid.
The organisation’s rewards programmes are guided by the following policies which are reviewed annually for relevance by the Human Resources and Remuneration Committee.
Remuneration
Performance Management
Discretionary Bonus
Pay Progression (providing a “dual career ladder” opportunity for employees in specialist roles)
The main objective is to ensure that the organisation’s remuneration policies and talent management practices are fair, inclusive, competitive and in line with best practice.
The organisation’s remuneration structure is designed holistically to achieve optimal performance and consists of monetary and non-monetary rewards.
Guaranteed
SANBS employees are remunerated on a Total Cost of Employment (TCE) basis, which is the base pay excluding fringe benefits, and the salary increases for management are performance-based. For employees who are in the bargaining unit, their salary increment is negotiated with the labour partners annually. The SANBS Board approves all salary increases annually.
Benefits
All employees are eligible for fringe benefits such as retirement funds, healthcare, life cover, dreaded diseases and disability cover. Employees within the bargaining unit also qualify for other benefits such overtime and various allowances.
Incentive Bonus
SANBS employees are currently eligible for a performance-related incentive bonus, which is equivalent to a 13th cheque, if specific approved targets and metrics are achieved in the applicable financial year.
Recognition
Informal recognition and celebration of achievement (Long Service Awards). Recently introduced formal awards for recognition of extraordinary achievement and service above and beyond the call of duty. Long Service awards are a unique celebration at SANBS. Birthday vouchers were also introduced from January 2023. Read more here.
Looking Forward
The remuneration landscape in SANBS has been reviewed and looking ahead, various elements of the reward philosophy will be explored to come up with the most appropriate rewards mix to cater for our various employee demographics.
Considering the economic climate SANBS is also exploring ways to give employees more flexibility in their remuneration structure. We will always endeavour to educate our employees about the best options for their future financial security.
We continue to refine our remuneration philosophy and will ensure our pay scales are appropriate through ongoing benchmarking. Working with our labour partners, individual employees inputs through our “family meetings, and based on the THREAD values, we also incorporate employee views on what constitutes appropriate rewards’ mix.
Non-Executive Director Remuneration
Non-Executive Directors (NEDs) who comprise the governing body are remunerated for their work.
To ensure fair remuneration commensurate with their responsibilities, SANBS ensures that the requirements of the Companies Act No. 71 of 2008 and King IV Report on Corporate Governance for South Africa, 2016, Principle 14, are aligned with the organisation’s policy and practices in this regard.
SANBS has a NED Remuneration Policy that outlines the key principles related to the NED fees aiming to attract and retain qualified and experienced NEDs.
The principles that underpin this policy are:
PricewaterhouseCoopers is the independent external consultant that assisted with the Non-Executive Directors (NED) fee benchmarking in FY23. The comparator group chosen for this benchmarking exercise consisted of various companies of approximately the same size from mainly the health and logistics industries. NED fees consist of three components: a monthly retainer, meeting fees and special fees. The National Council with the Memorandum of Incorporation approves these fees.
Accountability and Disclosure
In the interest of transparency, our Directors and Prescribed Officers emoluments are disclosed in our Annual Financial Statements. The number of Board meetings and committee meetings attended by the various NEDs are reported here.