A purpose-driven win-win culture

Performance
summary 2020

✓	Completed our fit-for-future organisational structure
✓	79% of leadership positions filled internally
✓	Key changes made to business leadership at Exco and MD levels
✓	Introduced a digital on-boarding framework
✓	Voted number 1 employer of choice in the manufacturing sector by graduates for the first time
✓	Invested R97 million in skills development

Our workforce and people strategy

To enable us to win in the market through unleashing the power of our people, we continue building a diverse talent base, developing leadership capability, and creating a great place to work, supported by our commitment to execution excellence. Through our people strategy, our goal is to ignite a culture of consumer obsession, agility, and a growth mindset that will accelerate innovation and winning performance.

Building a diverse talent base

We continued our focus this year on building commercial and supply chain capability across the organisation. This was supported by targeted talent strategies, where we prioritised building pipelines for scarce and critical skill roles specifically in bakeries and manufacturing by leveraging key partnership with selected service providers.

As part of our ongoing journey to improve the employee experience and create a great place to work, we undertook various campaigns – both internally through our communication portals and externally via social media – to communicate our employee value proposition and employer brand. These included the Youth Month Campaign, Women's Month Campaign, Rising Star Awards and Rising Star Female Forum. These employer branding campaigns were well received, reflected by the 140% increase in followership on Tiger Brands' LinkedIn profile, from 100 000 in September 2019 to 239 000 in September 2020

In looking to attract talent for our Africa operations, we have commenced the roll out of our Africa talent plan and appointed new talent in some of our African operations. We have developed a customised Africa management trainee programme, and sourced management trainees for Mozambique, Zambia and Nigeria.

We maintained a strong focus throughout the year on promoting employee diversity, with African, Coloured and Indian male and females making up 95% of internal appointments through internal promotions and external hires this year. Through our gender equity strategy, we are working to improve the representation, engagement and development of women in core functions and at leadership levels. The gender equity strategy includes a specific focus on three core areas: our RISE women in leadership development programme that focuses on developing women through action learning business projects, the Tiger Women's Network that focuses on enabling women to overcome the barriers that women traditionally encounter in the workplace, and function-specific development programmes that equip women with core technical skills, strengthen leadership capability and improve the overall talent pipeline of female talent. Through these programmes we aim to increase overall female representation at all levels, especially in management, to 34,8% by 2023. We also aim to increase women participation in leadership development, career growth and progression initiatives to 50% by 2023.

We have recently developed and commenced the implementation of a generational diversity management strategy, where our goal is to ensure coexistence of multiple generations, foster a sense of belonging and connectedness among generations, and improve the employee experience of each generational group at Tiger. Next year we will be launching our young professionals networking forum (NexGen Tiger), as a platform to enable inclusive networking, development and engagement among young professionals across the business. Through this forum we aim to amplify the voices of the young professionals at Tiger Brands, and bring to bear a different perspective that will help deliver winning performance.

To enable us to win in the market and unleash the power of our people, we are building a diverse talent base, developing leadership capability, and creating a great place to work, supported by our commitment to execution excellence. Through our people strategy, our goal is to ignite a culture of consumer obsession, agility, and a growth mindset that drives innovation and winning performance.

Gender diversity profile

Our EE profile

Our talent focus next year will be on further enhancing our marketing, sales and commercial skills and deepening our supply chain capabilities, by executing targeted talent strategies. We will also maintain our focus on executing fit-for-purpose learning and skills development, and further embed just-in-time digital learning across Tiger.

Developing leadership capabilities

To ensure that we develop inspirational leaders who are talent magnets, agile and drive a culture of innovation and winning performance, this year we rolled out two leadership development programmes across the organisation: LIFT and Game Changer. The LIFT programme is targeted at employees who have recently been appointed into a leadership role, or those being considered for such a transition.

The Game Changer leadership development programme was implemented as part of our culture transformation journey to develop leaders with the intention and skills to actively create inspiring winning opportunities in daily interactions with colleagues on all levels.

In line with our promise to continuously develop our leaders and ensure that they receive developmental feedback from multiple stakeholders, we launched the MultiRater feedback tool during the performance year-end review period. This gave leaders an opportunity to receive feedback regarding their behaviour as aligned to Tiger values, winning behaviours and leadership competences. We also recently launched mentorship circles for emerging leaders looking to learn and benefit from more experienced leaders.

Our leadership competencies

Our leadership development programmes

Creating a great place to work

A key focus of our people strategy is to instil an agile performance-based culture that delivers on our identified winning behaviours of consumer obsession, teamwork, empowered accountability and focused execution. We began our culture transformation journey in October 2018 with the alignment of our teams on our aspirational culture, and a refresh of our values and winning behaviours.

We have continued to make progress this year in embedding our winning culture. Our employee value proposition (EVP) has been firmly defined and forms the basis of our actions to improve the employee experience and to enhance our ability to attract, develop and retain talent. An important development this year was the launch of our THRIVE employee wellbeing programme, which covers employee health management, psychosocial wellbeing and broader risk management activities. This was a key enabler in our response to the Covid-19 pandemic and through our comprehensive multi-pronged approach we were able to support both our employees and their families.

Since starting on this culture change programme, we have conducted numerous Heart of the Tiger dialogues with staff to deepen the internalisation of our refreshed values and winning behaviours, learn from their experiences and perspectives, and evaluate our progress in instilling the winning culture. Informed by this feedback we are taking various actions to drive the necessary shift in behaviour.

Although we have established and embedded a clear reward and recognition strategy and have made some progress in making our reward strategy more competitive, we recognise the need to ignite business performance to improve our ability to retain key talent through our short-term and long-term incentive plans.

To this end, we implemented a special incentive to motivate and reward our frontline employees who continued to work during the lockdown. We have changed our long-term incentive instruments from share appreciation rights to performance and restricted shares.

Rewarding winning performance

Reward focus areas

During the year, we continued to implement initiatives in support of our remuneration strategy, which enables us to align with market practices, drive action against key performance indicators critical to the business, and to measure and reward performance against our strategy.

Some of our highlights include:

• Implementing a special incentive to motivate and reward our frontline employees who continued to work during the lockdown.
• Changing our long-term incentive instruments from share appreciation rights to performance and restricted shares.
• Further embedding our employee wellbeing programme THRIVE in partnership with our wellbeing partner, ICAS and implementing various mental health initiatives to build resilience in employees

Employee relations

Tiger Brands complies with South African legislation on labour relations, basic conditions of employment, employment equity, skills development, among others. We also comply with International Labour Organisation conventions, and relevant regulations in operating areas in Africa. There were no instances of non-compliance with labour standards this year.

One of the company's strategic intents is to establish and maintain a meaningful collaborative relationship with our key stakeholders, including our representative trade unions. This year the company held its first top-to-top engagement facilitated by the CEO with key trade union leadership. This engagement was used to reflect on Tiger Brands' performance and to share the company's broad strategy and plans. The engagements were preceded by a collaborative approach with the trade unions on the company's response to Covid-19 within the company's operations across the country.

Early in the year, Tiger Brands initiated fit-for-future, a structure review programme to drive savings and optimise the business towards improved consumer focus, cost-efficiency, ownership, accountability, agility and speed of execution. The implementation of this initiative was initially deferred as a result of the Covid-19 pandemic, but with the impact of the lockdown exacerbating the already challenging business environment, the need for this restructuring became ever more apparent, and the process was initiated in May 2020. A careful and structured workforce transition process was implemented to support our people during the restructuring process. This included upfront engagement with teams and individuals, the prioritising of redeployment opportunities for our people across the organisation through available vacancies, and mindful management of the people exiting their positions with the company. The process resulted in the optimisation of 493 positions and the retrenchment of 393 employees.

During the period under review we launched a sexual harassment campaign aimed at educating and raising awareness of both employees and managers.

Although the employee relations environment remains stable, a challenging operating environment and low inflation has resulted in challenged wage negotiations throughout our operations.

Covid-19 response: People

Our people agenda shifted fundamentally this year, to focus all our efforts and resources on managing the rapidly spreading Covid-19 pandemic and its devastating impact on our organisation, employees, their families, consumers and communities. We have delivered a number of interventions to ensure employee safety, productivity, and physical and mental wellbeing during the lockdown. In addition to the core elements outlined in Our Covid-19 response (see here), the key aspects of our people response included the following:

• Enablement of remote working where possible, suspension of training, and stringent private travel arrangements with sanitation protocols.
• Customised screening, testing, self-isolation, and re-integration protocols.
• Enhanced health, sanitation and cleaning protocols; including provision of PPE and sanitiser to all employees, daily hygiene and cleaning practices, weekly deep-cleaning, limits on employee movement within buildings, bans on physical contact, limits on face-to-face meetings, distancing of work stations, and the canteen operating as a take-away service.
• Active engagement and communication; including establishment of dedicated Covid-19 internal website, safety and hygiene signage, daily awareness campaigns, multi-lingual messaging, announcement of key safety decisions, appointment of site-based communications champions, and conducting a Covid-19 survey to understand our employee experience.
• Special Covid-19 employee incentive to recognise and reward employees working at essential sites during the national lockdown, and an adjustment of annual leave arrangements to enable employees to take leave when necessary without penalty or loss of income.