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this year our South African business migrated to the digital-based

Global Resourcing Process, significantly boosting the efficiency of

our recruitment.

We strive to create a culture of recognition that motivates

employees to deliver performance above-and-beyond what is

expected, not only in terms of individual performance, but also

with the aim of encouraging more effective teamwork and reward

our top performers accordingly.

Each year we conduct an annual People Survey, undertaken by

independent consultants, to track how engaged, well managed

and ‘included’ our employees feel. We compare our scores with a

high-performing peer group and other Vodafone Group companies

to assess whether we are creating the right environment for our

people to excel and grow. This year, our overall workforce

participation rate was 88%, unchanged from last year.

2018

2017

2016

Engagement Index

78

79

76

Digital Index

77

Despite the slight decline in our Engagement Index (from 79 to

78), we remain on par with the high-performing peer group that

we benchmark ourselves against, the results suggest that

employees remain motivated and proud to work for Vodacom.

Areas identified as requiring greater focus include driving

improvement around speed and simplicity in the business,

supporting employee progression and recognition, as well as

ongoing employee communication and engagement on People

Survey actions. We have approved various actions in response to

the results, including: undertaking dedicated CEO-led employee

interactions and targeted leadership engagements, enabling line

managers to recognise staff achievements, and increasing our

focus on employees’ individual development plans. We have also

rolled out a focus group initiative (‘#haveyoursay’) that seeks to

solicit deeper employee inputs across all organisational levels,

and to co-create solutions to some of the challenges identified in

the survey.

Aligned with our ambition of embedding a digital culture, the

People Survey also includes a measure of the digital experience

we offer our employees and customers. This year, we obtained

a score of 77 on the Digital Index, which is on par with the

Vodafone Group. We will be driving the digital culture agenda

through various initiatives that form part of a comprehensive

transformation plan.

Encouraging workforce diversity

We place a strong emphasis on encouraging diversity within our

organisation, not only to address historic imbalances, but also to

enhance our ability to serve our diverse customers more

effectively by broadening our pool of experiences, perspectives

and ideas. As a company with roots in South Africa, we are

committed to delivering on the objectives of BEE and

employment equity. In our South African operation, Black

representation in the workforce is 74%, with 67% at the Executive

Committee level and 56% at senior management level. Women

represent 43% of the workforce, with 31% at senior management

level. We have various initiatives aimed at promoting gender

diversity and supporting women in progressing their careers at

Vodacom. These include our flagship female leadership

programme undertaken in partnership with the Gordon Institute

of Business Science, our women in leadership programme with

the North West University, and the Women’s Network Forum

initiative aimed at promoting cross-gender understanding and

an inclusive culture.

Our safety performance

We are saddened to report the loss of life of three Vodacom

contractors this year, in a road traffic accident in the DRC. On

19 November 2017, a Vodacom contractor driver and two

passengers were fatally injured in a collision with an oncoming

truck. All other markets recorded a fatality free year.

Road-related accidents remain our principal safety risk,

accounting for 43% of all incidents this year, followed by

electrical fires (11%) and slips, trips and falls (11%).

Contractors account for 67% of all reported incidents. We are

continually focusing on initiatives to enhance and improve

our risk mitigation methods. This year, we conducted ‘deep

dive’ audits on all our high-risk suppliers to assess their road

risk controls and promote compliance with our stringent

standards. Our lost time injury frequency rate was 0.03, a

further improvement on our performance in prior years

(2017: 0.05 and 2016: 0.11).

Further details are provided in our Report of the Social

and Ethics Committee at

www.vodacom.com

Leveraging data through

Big Data analytics

Harnessing the power of Big Data analytics is a

critical enabler to delivering on our growth strategy.

We are looking to replicate the success we have

already achieved with machine learning through

our ‘Just 4 You’ offering and smart notifications –

and take this to scale, investing in the people

and platforms needed to accelerate our Big Data

analytics, and to develop our capacity to provide

machine learning as a service. This year, we have

enhanced our core team of data engineers, data

scientists and modellers, and will be looking to

double our capacity in the next year. We also have

made substantial investments in the platform and

technologies that enable Big Data storage and

real-time processing.

Our early efforts in machine learning and partial

adoption of Artificial Intelligence have already

delivered material increases in profit margin,

contributing for example to ‘Just 4 You’ deal

enhancements, valuable leads in fibre sales,

preventing proactive churn on post-pay, and

informing customer value management interactions.

We are looking to broaden the use of Big Data across

the business, to optimise call centre performance

through enhanced voice recognition, to combine

customer information for deeper analytics, and

to more effectively track competitor offerings to

improve our competitiveness.

Strategic Enabler

33

Our business

Our performance

Our governance

Administration