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Performance against KPIs

Employer of choice

People

During the year, the Group’s employees worked together more closely in order to realise Anglo American’s strategy to become the investment, partner and employer of choice. Following the launch of the Group strategy and values at a global leadership conference in May, there has been a vigorous roll-out programme across all business units and operations designed to embed new ways of thinking and working among our 105,000 permanent staff based on five continents.

Anglo American’s people strategies are a key pillar in building and maintaining the Group as the employer of choice, and in ensuring that employees at all levels have the knowledge and capability to drive the investment of choice and partner of choice strategies.

Talent management

During 2008, the talent audit process was embedded further across the Group in a standardised way. Executive Committee attention to succession planning took place alongside regular comprehensive reviews of the executive pipeline in order to assess succession for top positions as well as any potential business risk.

External hiring to strengthen the quality of leadership continued throughout the year, with 20 senior appointments across most businesses and functions. Internally, increased objectivity was brought to the identification of executive pipeline potential through the introduction of independent assessment by business psychologists. About 70 senior managers were assessed throughout 2008, which facilitated a sharper focus on individual development planning for current and future roles. The results were also reviewed at an aggregate level to identify trends, strengths and gaps in the overall leadership profile and to inform future development strategies. A new talent tracking system, ‘AngloTrack’, launched at the beginning of 2008, houses key data on the Group’s executive and senior managers and is designed to support the decision making process regarding appointments and succession planning.

A key theme throughout the year was to encourage greater cooperation across the Group to increase effectiveness in talent management and resourcing, particularly in the area of cross-fertilisation of talent. Regular networking forums with representatives from all business units were introduced to share issues and best practice and to provide a platform for sharing vacancies and transferring talent across the organisation. In a similar vein, an employee referral system was introduced to incentivise staff to introduce talented potential employees to the Company. General communication on talent management matters was also stepped up, with key information for employees on the Group’s policies and processes brought together electronically in a user-friendly portal. In addition, building the talent management capabilities of HR people is being addressed in a systematic way, with specific training provided to 190 first-line professionals throughout the organisation to help enable effective performance to a common Group standard.

Reward, retention and performance

The Group’s reward strategies assisted in attracting and retaining talented and skilled employees in a labour market that remained tight throughout most of the year. Voluntary labour turnover fell marginally during the year to 3.9%, indicating that reward and longer term retention arrangements are being successful in retaining employees.

The Company continued to strengthen its regional and international compensation and benefits standards and capability. Internal and external market survey and benchmarking activities were conducted on a more rigorous scale using a Global Banding Framework to more accurately map and compare roles across business units, functions and industries. These activities not only facilitated cross-business unit mobility during 2008 and laid the foundations for future career moves in 2009, but have also been an important element in demonstrating to the Remuneration Committee that the Group’s remuneration packages remain competitive and appropriate.

Significant progress, too, has been made on the design of a common performance measurement and management system to be rolled out across the Group in 2010. This will link business scorecard-based performance contracts, robust performance measurement and employee development planning and review and will be integrated with the Group’s remuneration and talent management systems.

The year saw further development and wider deployment of the Group’s payroll, benefit and employee life cycle information management system. This coincided with detailed analysis of the various processes involved in the delivery of a global shared service and the design of standard processes as part of an employee services model. Further implementation of common technology, processes and shared service centres is scheduled for 2009 and 2010 across three main hubs.

There has also been a focus on the Group’s mobility framework, with the appointment of, and transition to, one global expatriate tax services provider and the development of a Group-wide international assignment policy. Ongoing work on employee mobility will assist the organisation’s ability to attract and retain employees.

Transformation

During 2008, the business units increasingly worked more closely together to achieve common Group standards and goals while simultaneously taking major strides towards changing the Group’s diversity profile.

In a further change to the composition of management ranks within South Africa, there was a 3% growth in the representation of ‘historically disadvantaged South Africans’ (HDSAs) at management level; HDSAs now comprise 45% of management against a target of 40% (2007: 42%). There was also growth in the number of women in senior management roles, the proportion increasing to 18.3% (2007: 17.0%). These trends are expected to continue in 2009.

Within the Group as a whole, initiatives like ‘Women in Mining‘, designed to boost the attraction of females into the industry, have started to have an impact. The overall proportion of females increased to 12% (2007: 11%), while the percentage of female managers rose to 17% (2007: 15%).

HIV and AIDS

HIV/AIDS workplace programmes are in place at all operations, though the focus of activity is in southern Africa. The percentage of employees who are tested annually as part of the Group’s HIV/AIDS counselling and voluntary testing programme continues to grow and by year end had reached 77%.

During 2008, the Company extended this programme to the dependants of employees. Reaching these dependants, however, will be a considerable challenge, particularly where families live in remote areas, far from Anglo American treatment centres.

The programme is now being extended to the contractor workforce, with the aim that every HIV-positive contractor can access care, support, and treatment. During the year, an HIV/AIDS policy requirement for suppliers was also integrated into the Company’s new supply chain code. Anglo American estimates HIV prevalence across its southern African operations to be 18%, or about 14,500 employees. Of this total, just over half of those in need of care are participating in HIV disease management programmes and more attention needs to be devoted to enrolling HIV-positive employees into care and support programmes. This strategy should also help reduce the incidence of tuberculosis (TB), the most common feature of immune deficiency.

More than 3,000 employees, 21% of those who are HIV-positive, are receiving anti-retroviral treatment (ART). The Company estimates that at least 30%, potentially 1,400 employees, of those who are HIV-positive and in need of treatment, are not yet receiving it.

A continuing concern is the number of employees who discontinue ART. The Company has a 62% retention rate after 5.5 years, which although consistent with other experience in sub-Saharan Africa, leaves much room for improvement. Most of the losses are in the first year of treatment.

Women and girls are both physiologically and psychologically far more vulnerable to HIV infection than men. Gender equality and women’s rights, therefore, have become central themes globally in the battle against HIV infection and they form an important component in the Group’s response. All work on socio-economic development around the Group’s operations, equality in the workplace, social investment, education and skills development features special consideration of women.

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Anglo American voluntary labour turnover


Anglo American diversity