THE QUEST FOR TALENT

Finding and retaining world-class talent in a highly competitive market

Bidvest recognises that smart actions by employees are a primary source of competitive advantage. As processes become more complex, the need for world-class talent intensifies. Fierce competition for expertise and the lure of international markets are a challenge for many Bidvest operations. One significant response is The Bidvest Academy. Seven academy programmes have been held.

The Bidvest Academy is a non-accredited, Group-wide executive training and development programme that fosters strategic skills. Each academy consists of approximately 60 delegates in divisional teams. Candidates are typically young managers working toward transition to general management. A range of practical interventions designed to improve leadership behaviour and performance is taught.

The academy is an ongoing, “rolling” initiative. Workshops take place in major centres, including site visits to Bidvest companies. Bidvest executives and selected external speakers facilitate key elements of the programme. The programme runs for nine months, with 4½-day workshops in Johannesburg, Durban and Cape Town and a final two-day workshop in Johannesburg.

Assessments are conducted at the beginning and end of the programme.

A graduate academy programme aimed at higher management and focusing on key business issues was introduced. Final presentations on divisional “green business” opportunities were presented to the chief executive and divisional management in September. Academy VIII is scheduled to start in March 2009.

Many businesses operate heavy equipment and handle hazardous products. Bidvest is acutely aware of the health and safety risks faced by employees and contractors and places the utmost importance on a safe and healthy working environment.

Responsibility for health and safety is assigned to dedicated senior managers in all operations where safety and health are material issues. South African companies comply with the Occupational Health and Safety Act. International businesses meet relevant standards in their jurisdictions.

	Occupational health and safety Lost time injuries were down by 50,8% to 1 510 The lost time injury frequency rate decreased from 17,4 to 7,4, primarily due to improved reporting procedures and better data quality LTIFR for South Africa decreased from 19,7 to 7,3 Foreign LTIFR increased from 4,4 to 8,0

Health and safety risks are regularly assessed in internal (sometimes externally certified) health and safety audits, including an assessment of senior health and safety responsibility. A table of health and safety indicators is provided in this section while divisional data is given in divisional reviews, as recommended by the GRI.

It is with regret that Bidvest reports the death of six employees (2007: five) in South Africa while on duty. One fatality occurred during the fire at our IVS facility, two occurred during warehousing and stevedoring operations, one in Bidserv and two in Bid Industrial and Commercial Products. Full investigations of fatal incidents are conducted. Where necessary, the operations concerned make appropriate adaptations to health and safety processes. Operations invest in training to develop good safety habits and reinforce awareness of safety risks.

HIV/Aids

Setting up more effective programmes for managing HIV/Aids in the workplace

An HIV prevalence study by an outside specialist used actuarial deduction to estimate HIV/Aids prevalence across Bidvest in South Africa of 17,3%, with significant variations between businesses.

This high incidence – typical for many southern African companies – supports the Bidvest view that HIV/Aids is a significant threat. Affected employees become debilitated, placing stress on co-workers and on carers in the home and community. Operational safety, reliability and quality are also threatened.

	HIV/Aids and TB 26 341 South African employees participated in HIV/Aids awareness campaigns, up 98,4% 202 (2007: 16) TB-infected employees were identified 2 479 (2007: 248) TB-related days were lost

Bidvest has published a policy to guide businesses in the development of appropriate HIV/Aids programmes, but each decentralised company is responsible for implementing responses that fit local circumstances. A number of businesses have outstanding programmes, but many still grapple with the taboos and prejudices surrounding the epidemic.

Bidvest’s new data collection tool has the ability to track HIV/Aids and TB indicators. As businesses improve their programmes, data will improve, encouraging companies to share their strategies and programmes while giving stakeholders a better view of the challenge and our response.

Abrupt power cuts and rising electricity and fuel costs have alerted businesses worldwide to the need for energy efficiency and improved resource management. Developments in the UK and Australia/New Zealand have heightened awareness within Bidvest of the environmental impact of our operations.

The measurement and reporting of sustainability indicators has improved. New Group-wide data collection technology adds range and certainty to our environmental measurement. Organisational innovations such as the sustainability committee will promote better understanding of sustainability. The process will be driven by divisional and business sustainability champions.

	Environmental indicators Total volume of water consumed 2,5 billion (2007: 2,6 billion) litres Total volume of electricity consumed 397,3 million kWh More than 35% of Bidvest’s revenues are generated from ISO 14001 certified businesses

Responses and strategy are shaped not only by legislation and regulation, but because it is the right thing to do. We have become aware of changing dynamics through our voluntary involvement with the Carbon Disclosure Project, The Dow Jones Sustainability World Index and the Global Reporting Initiative. These initiatives provide measurable and attainable goals and the means and timeframes for benchmarking progress. They provide a public platform for review.

Sudden power cuts across South Africa’s electrical supply grid and big increases in petrol and diesel prices have added greatly to cost structures. Many Bidvest operations have had to invest in expensive back-up power supply systems to maintain operations when the national grid fails. The uncertainty of future power supplies has caused many businesses to reconsider their business models, assess new consumer demands and explore new ways of improving energy efficiency.

Most Bidvest operations are based in South Africa, which does not yet have mandatory emission limits, although this is likely to change at the conclusion of the current round of global climate change negotiations. Regulatory pressures in southern Africa are unclear, but are likely to result in rising energy and fuel prices and the implementation of energy efficiency and emission standards.

The UK and other EU countries where Bidvest is active follow more advanced emission-reduction practices. 3663 in the UK has a long history of environmental and energy efficiency projects, ensuring that they remain ahead of the regulatory curve, and secure competitive advantage in the foodservice industry. 3663’s award-winning environmental programmes position the business as a leading performer in this field. The Benelux businesses and Bidvest Australia are also proactive in addressing environmental issues and the challenge of climate change.

	Fines and regulatory non-compliances Fines or penalties amounted to R12,6 million Most penalties were for traffic violations particularly in the UK (R9,6 million) where parking is limited. Tax-related penalties represented the bulk of the balance of fine costs (R2,5 million, across 24 fines) Only one non-material environmental fine was recorded, but 101 notices were received

Risk committees at Group, divisional and business level are charged with staying abreast of evolving regulations that are expected to raise the cost of fossil-fuel-generated energy.