LEMUEL CONSULTING Approach to Employment Equity January 2011 Presentation

Lemuel Consulting is an independent consulting company. © 2008 Lemuel Consulting — All rights reserved. EE Strategy_ MSas 3-Oct-15 1:16 AM 2 Rationale behind Employment Equity (EE) Moral obligation Legal compliance Business imperative Transformation Organisations do Employment Equity for different reasons including the following: Successful companies do EE to increase their market share as well as changing their corporate culture.

Lemuel Consulting is an independent consulting company. © 2008 Lemuel Consulting — All rights reserved. EE Strategy_ MSas 3-Oct-15 1:16 AM 3 DTI BBBEE Scorecard ratings Generic ScorecardContributor Compliance Qualifying Small Enterprises (select 4 elements) ElementsWeighting Compliance Targets LevelsPointsRecognitionElementsWeighting Ownership % + 1One≥100135%Ownership25 Management Control %Two≥85 but <100125% Management Control 25 Employment Equity %Three≥75 but <85110% Employment Equity 25 Skills Development 15 3% of payroll Four≥65 but <75100%Skills Development25 Preferential Procurement 2050%Five≥55 but <6580% Preferential Procurement 25 Enterprise Development 153% of NPATSix≥45 but <5560% Enterprise Development 25 Socio Economic Development 51% of NPATSeven≥40 but <4550% Socio Economic Development 25 Eight≥30 but <4010% Non- compliant <300% Note; 1: Multi-nationals have to comply with Statement 103 i.e. equity equivalents

Lemuel Consulting is an independent consulting company. © 2008 Lemuel Consulting — All rights reserved. EE Strategy_ MSas 3-Oct-15 1:16 AM 4 What is in it for You Penetration of market Good corporate citizenship Enhanced company s image Attraction and retention of talent Good BEE rating that leads to more business

Lemuel Consulting is an independent consulting company. © 2008 Lemuel Consulting — All rights reserved. EE Strategy_ MSas 3-Oct-15 1:16 AM 5 EE is a business imperative as well as the tool for transformation Align EE with the company strategy Develop EE Policy Commit budget and resources Appoint Senior Manager reporting to the CEO to champion it Form a Guiding Coalition chaired by the CEO or Exco member Measure Exco and managers on progress made in implementing EE Plan Buy -in from Exco is required for effective EE implementation Successful companies do EE to increase their market share as well as changing their corporate culture.

Lemuel Consulting is an independent consulting company. © 2008 Lemuel Consulting — All rights reserved. EE Strategy_ MSas 3-Oct-15 1:16 AM 6 Ten Steps to preparing & implementing an Employment Equity Plan Phase 1 - PreparationPhase 2 - ImplementationPhase 3 - Monitoring STEP 1 Assign responsibility STEP 5 Corrective ness measures and objectives STEP 9 Monitor, evaluate, and review STEP 2 Communication, awareness and training STEP 6 Time frames established STEP 10 Report STEP 3 Consultation STEP 7 Allocation of resources STEP 4 Analysis STEP 8 Plan communication Drawn from the Code of Good Practice: Preparation, Implementation and Monitoring of Employment Equity Plans The process of developing a plan should have three sequential phases:

Lemuel Consulting is an independent consulting company. © 2008 Lemuel Consulting — All rights reserved. EE Strategy_ MSas 3-Oct-15 1:16 AM 7 EE Transformation Model To effectively transform the culture of Organisations Lemuel Consulting uses the following model: Consultation,Feedback and Recommendations Audit EE Plan Implementation of the EE Plan Monitoring and Embedding Communication Change Readiness Survey Culture Survey Infrastructure Transactional Stuff Road shows Intranet Department meetings Observations Focus groups Questionnaires and observation Interviews Enabling Environment AA Measures Numerical Goals EE Forum Management Staff See Appendix A EE Forum Transformation Forum Departmental BEE Scorecard PM System EE Report WhatHow

Lemuel Consulting is an independent consulting company. © 2008 Lemuel Consulting — All rights reserved. EE Strategy_ MSas 3-Oct-15 1:16 AM 8 Employment Equity Charter ObjectivesOutcomesActivities Equity in the workplace Elimination of discrimination Establishment of AA measures Monitor and measure progress Multicultural workplace EE Audit report EE Plan Guiding Coalition EE Forum EE Report Constitution for Forum Staff competent in EE related issues Spin-offs Good BBEE rating Acceptance and Appreciation of one another's culture Improved customer satisfaction Improved bottom-lines Data collection Data analysis Data interpretation Consultation EE Plan Reporting Forum establishment Developing Forum constitution Conducting EE workshops Meeting various stakeholders Providing EE feedback Mobilisation Communication Plan Stakeholders analysis Scope Divisionally /company wide TimelinesAccountabilitySigned off by GM monthsCEO - Sponsor HR Head –Champion

Lemuel Consulting is an independent consulting company. © 2008 Lemuel Consulting — All rights reserved. EE Strategy_ MSas 3-Oct-15 1:16 AM 9 EE Implementation Plan (Appendix A) ActivitiesJuly 10Aug 10Sept 10Oct 10Nov 10Dec 10Jan 11 1.EE brief to Exco Issue letter assigning Senior Manager EE -CEO Sign EE Charter -CEO Approve EE Budget -Exco 2.Managers Empowerment Communication Awareness Training 3.Employee Empowerment Communication Awareness Training 4.Establish and train EE Forum and Guiding Coalition 5.Develop the EE Constitution 6.Conduct EE Audit

Lemuel Consulting is an independent consulting company. © 2008 Lemuel Consulting — All rights reserved. EE Strategy_ MSas 3-Oct-15 1:16 AM 10 EE Implementation Plan (Appendix A) – cont. Activities July 10Aug 10Sept 10Oct 10Nov 10Dec 10 Feb/Mar 11 7.Develop EE Plan Copy of the EE Plan with input from all stakeholders and signed by the CEO Corrective measures Time frames 8.Implement EE Plan Roll-out 9.Develop and Implement Diversity and EE Programs Diversity workshops Disability awareness Learnership programs 10.Monitoring PMS, Policies and EE structures 11.Submit EE Report Copy of EE report checked by EE Forum and signed off by CEO

Lemuel Consulting is an independent consulting company. © 2008 Lemuel Consulting — All rights reserved. EE Strategy_ MSas 3-Oct-15 1:16 AM 11 How to make it sustainable Measure leaders on EE Plan implementation Assess EE progress through the Guiding Coalition Monitor and evaluate progress through the EE Committee as well Integrate transformation into the Policies and systems of the company Celebrate successes by awarding prizes to EE agents and Ambassadors Use different media to communicate EE related information Publish EE Plan as well as EE Reports on the notice-boards

Lemuel Consulting is an independent consulting company. © 2008 Lemuel Consulting — All rights reserved. EE Strategy_ MSas 3-Oct-15 1:16 AM 12 List of some of our clients Avon Justin Nampak Toyota SA Absa Anglo Platinum Organisations that we do work for : Details of contact persons will be provided upon request

LEMUEL CONSULTING Lemuel Consulting is an independent consulting company. © 2008 Lemuel Consulting — All rights reserved.

Lemuel Consulting is an independent consulting company. © 2008 Lemuel Consulting — All rights reserved. EE Strategy_ MSas 3-Oct-15 1:16 AM 14 Employee Wellness Programs Counseling EWP Training On-site clinics Affiliate Program Tele-counseling On-site clinics Affiliate Program Tele-counseling Management Consultations Instant Medical Instant Legal On-site clinic 24 hour Tele-consultation Referrals On-site clinic 24 hour Tele-consultation Referrals EWP PLAN Workshops: HIV, Disability, Stress, Life Skills etc. Team Building, Awareness campaigns Consultations Support Coaching EWP Trends & Feedback WhatHow On-site clinic 24 hour Tele-consultation Referrals