Transnet Online Integrated Report 2017
Market Demand Strategy (MDS) themes
  • Financial sustainability
  • Capacity creation and maintenance
  • Market segment competitiveness
  • Operational excellence
  • Human capital
  • Organisational readiness
  • Sound governance and ethics
  • Constructive stakeholder relations
  • Sustainable developmental outcomes
Sustainable Developmental Outcomes (SDOs)
  • Employment
  • Skills development
  • Industrial capability building
  • Investment leveraged
  • Regional integration
  • Transformation
  • Health and safety
  • Community development
  • Environmental stewardship
The Capitals
  • Financial Capital
  • Manufactured Capital
  • Intellectual Capital
  • Human Capital
  • Social and Relationship Capital

Creating value through the six capitals

Human Capital
The competencies, motivation and ethical work practices of our employees and service providers enable us to create commercial and sustainable developmental value in the short, medium and long term. Our operating context is industrial- and infrastructure-driven, necessitating occupational training, as well as comprehensive policies and procedures to safeguard employees and the public in and around our operations. We foster safety vigilance among employees through a safety-oriented operational culture.
Creating human capital value

Transnet acknowledges its ethical and strategic roles as both direct employer and national facilitator of indirect and induced employment opportunities.

Transnet’s Human Capital Strategy approaches job creation with strategic planning to recruit and retain top-quality employees. Our talent management and development programme is designed to ensure succession plans for critical positions. Leadership programmes target all management levels, while coaching and mentoring programmes are also provided.

We promote outcomes-oriented skills development and human resourcing. Over the past two years, Transnet has ‘re-shaped the core’ of its operations to support our long-term strategic objectives.

We continue to improve operational efficiencies and a safe working environment by implementing Lean Six Sigma principles, safety and environmental initiatives, and by promoting a culture of ‘safety in all we do’.

Key human capital impacts on the other capitals

In attracting and retaining scarce technical and specialist skills, we maintain and improve productivity levels and innovate around new technical solutions. Training and development build competencies and collective values around safety, operational excellence and innovation. Improved productivity and innovation

The Transnet remuneration philosophy and framework form an integrated part of the human resources strategy. Rewards strategies focus on entrenching a performance-driven culture which supports cost optimisation. Performancedriven culture and optimised costs

Key human capital inputs at 1 April 2016
  • Skilled and motivated employees as at 1 April 2016 year-end 66 467
  • Responsible leadership structure (Governance and Ethics) Leadership structure
Key human capital outputs at 31 March 2017
  • Total headcount 58 828
  • Permanent employees 53 661
  • Fixed-term employees 5 167
  • Labour cost on skills development R746 million
Key factors impacting human capital

Transnet has two recognised trade unions: the United National Transport Union (UNTU) and the South African Transport and Allied Workers Union (Satawu). Collectively they represented 79,2% of bargaining unit employees as at the end of November 2016.

Due to recent high retirement rates, Transnet has improved its race and gender profile to better reflect the National Economically Active Population (NEAP) benchmarks as provided by Statistics South Africa. Black, coloured and Indian employees represent 85,0% of the Transnet workforce as compared to the NEAP average of 87,7%.

Transnet has a disproportionately high representation of male employees (72,5%) relative to female co-workers (27,5%). Over the last 10 years the female employee base has more than doubled.

Our remuneration philosophy and framework form an integrated part of the key deliverables of the human resources strategy.

Approaches to managing human capital outcomes

Improving capability and capacity through training and development.

Improving HR service delivery through appropriate policies and procedures, and establishing solid labour relationships.

Managing talent within Transnet and rewarding excellent performance.

Encouraging employees to adhere to our desired organisational culture and safety behaviours.

Developing critical skills and succession planning to achieve long-term strategic objectives.