GOVERNANCE

BEE

In 2018, the Group achieved a level eight voting under the revised generic B-BBEE codes. Our performance against the five scorecard elements was as follows:

Ownership
Full ownership points were achieved due to the B-BBEE equity holding in Ellies.

 

Management and control
Black representation among leadership remains a challenge at Ellies. While we are aware of this challenge and are committed to improving diversity in our workforce, several factors have made it difficult to change in the short term:

  • Restructuring within operations means that we are not able to bring in many new employees at present.
  • Turnover at Ellies is quite low, particularly among senior leadership, many of whom have been with the company for service. Few departures mean few opportunities to fill roles with black candidates. As positions become available, however, we are committed to sourcing black talent where possible.
  • Scarce skills in certain disciplines, particularly among black candidates, make sourcing qualified leaders a challenge.

 

Skills development
Sourcing and developing people with the right skills is critical to our ability to innovate. In South Africa, the pool of black talent – particularly in some disciplines – is limited because of the country’s educational legacy. Due to the financial performance of Ellies in the reporting year, including the restructuring across our operations, very limited investment into skills development has been done.

Ellies is committed to playing a role in rectifying this imbalance and in future aims to spend the stipulated 3% of group payroll developing our employees.

 

Enterprise and supplier development
Procurement poses one of the biggest challenges for the Group to maintain its B-BBEE status going forward. Ellies is currently undertaking an exercise to engage with its suppliers and identify those that are black-owned and empowered. Our goal is to channel our discretionary spend to suppliers with a minimum of level 4 empowerment.

The Ellies Training Academy was started on the back of the need for properly trained installers as well as to create jobs for individuals in the immediate Ellies community. The training programme is presented at all our branches.

A total of 628 installers graduated from the Training Academy during this reporting period, an increase of 27 installers when compared to last year’s 601 installers.

 

Socio-economic development
Ellies’ socio-economic development expenditure is done through its corporate social investment (CSI) programme.

The Social and Ethics Committee will continue to focus on Ellies Holdings Limited and the Group companies’ progress regarding B-BBEE and on initiatives that enhance both the scorecard and drive transformation.

 

Employment equity
Employment equity, particularly at the more senior levels, is something that the Social and Ethics Committee continues to focus on. During the year under review, the Group reviewed and updated its Employment Equity Plan, which was approved by this committee. Ellies is not currently compliant with the Employment Equity Act for 2018, but is making every effort to ensure compliance.