The focus for FY2022 was to embed and sustain the Group's journey towards a hybrid approach to work and to equip employees with the tools to succeed.
To augment and enrich the hybrid environment for telecommuters, dispatchable and office-bound employees, we enhanced performance management, learning and development, and ongoing employee engagement activities.
In line with Telkom's ESG Strategy, particularly the business stewardship focus area, we continued to take steps to safeguard the health and safety of our employees, customers and stakeholders.
In addition, we undertook to increase representation of women in management positions, and more broadly grow an inclusive workforce.
We continue to progress initiatives to extend shared value through Investing with Purpose, including developing the workforce of tomorrow, as well as enhancing our culture, engagement and employee experience.
Provided additional COVID-19 leave:
Spring day leave provided to employees to help them counter mental fatigue
Employee voluntary turnover
Training and development spend
Number of graduates and learners supported
Number of learnerships and internships
Employee diversity statistics
Total recordable injury frequency rate
Lost-time injury frequency rate
Building a sustainability mindset
Transforming our culture
Enabling diverse and adaptable teams
Developing next-generation future leaders
A snapshot of Telkom's workforceTo moderate Telkom's headcount cost, the backfill of vacancies due to staff exits have been carefully managed while ensuring that service delivery is not negatively impacted. Telkom remains committed to improving female representation, aligned to our ESG Strategy commitments, with a gradual increase evident in FY2022.
| FY2020 | FY2021 | FY2022 | ||
| Employee voluntary turnover |  |
6.3 | 2.77* | 3.99 |
| Number of differently abled employees |  |
198 | 129 | 126 |
| * | In FY2021, the measure of employee voluntary turnover was changed to reflect exits through natural attrition from the Group and to exclude exits from one legal entity to another legal entity in the Group. Consequently, there is a lower exit rate in FY2021 and FY2022 compared to FY2020. |
Telkom's journey to embedding its hybrid approach to work was formalised through the work-from-home policy introduced in August 2021. The hybrid approach supports business sustainability by driving higher levels of operational efficiency.
Each employee's role was categorised to identify telecommuting employees to equip them to operate from home successfully.
Enabling our employees with the right equipment and tools to work contributes to a motivated and engaged workforce. A Telkom grant was made available to telecommuters to purchase home office equipment required for productive work, including desks, ergonomic chairs and a range of alternative power supply products. In addition, internet connectivity is also offered as a tool of trade. These initiatives, which enable the work-from-home environment, will be rolled out in staggered phases.
Office-bound employees resumed working from the office on 1 March 2022 and are assigned dedicated desks to enable safe working practices. Telecommuters also have access to Telkom premises on an ad hoc basis.
One of our ESG imperatives is to foster inclusiveness and transparency in the workplace. In line with this objective, we revised the HR portal to better align with the employee life cycle. This provides a new and enhanced employee experience through a single hub that links all HR specialisations and provides information relevant to career life stages and paths within the Group for new and existing employees. This portal is supported by the hybrid portal that guides employees and line managers to navigate the complexities of the new world of work.
Enhancing our employee experience
While we experienced challenges in implementing the HR digital transformation project in the past year, a decision has been taken to enable a Telkom Group instance of the digital system and a BCX instance. This will decouple the current system and enable each implementation stream to execute the tailored module needs for each group. We anticipate that the two system updates will go live in the third quarter of FY2023.
Developing the workforce of tomorrow
Digital literacy is driven through the Group's learning management system. A central focus has been to drive employee uptake, usage, engagement and return on investment on the platform. In the new financial year, we will expand the educational content to incorporate new learning pathways that focus on building a resilient and emotionally intelligent workforce.
Besides driving higher levels of operational efficiency, the hybrid approach to work is also key to transforming the Group's culture, and is aligned to the Investing with Purpose focus area of the ESG Strategy. Our culture programme, the X Factor, takes its inspiration from Telkom's purpose of seamlessly connecting our customers to a better life, and extrapolates this to our employees. The programme aims to enhance alignment between our people and Telkom's business goals by focusing on each individual or team's efforts to achieving the goals. Every action or contribution thus becomes a force multiplier to increase our impact, and as efforts are added over time, the Group achieves more. The X Factor is designed to embed organisational activities with meaning and purpose to unite our strengths and build on our successes.
The Group's performance framework continues to support the hybrid work model. The framework is underpinned by the SAP SuccessFactors system and four online modules on the learning management system. This guides employees and line managers to inculcate a rhythmic cadence that supports high performance. New modules and events based on patterns or trends are initiated throughout the year to maintain and drive the focus on performance management and ensure new perspectives. Refer to the remuneration report for more information.
The new Coaching for Growth module aims to refine line management's skills to enhance performance conversations and feedback processes. It also enables a continued focus on leading indicators, performance plans aligned to business goals and future-focused objectives.
As part of how we instil accountable and ethical operating practices, Telkom reviewed the implications of the shift to a hybrid work model. We acknowledge that the new ways of work offer flexibility and autonomy to employees but can also lead to mental and emotional fatigue. The mental health of employees is a key consideration that helps them thrive and sustain their performance. We introduced the concept of Spring Break in the year to enable employees to take two company-funded leave days aligned to the 24 September public holiday. Besides giving employees time off, it reinforces our commitment to our people and their wellbeing and recognises them for their contributions and performance.
To support the transition to a hybrid work culture, two interventions are progressing to intentionally guide and promote a sustainable performance culture:
Learning-for-growth mindset
An accelerated approach to the continuous upskilling and reskilling of employees is a key strategic lever that enables sustained and exceptional organisational performance. Creating a learning-for-growth mindset drives continuous employee development and creates an internal pipeline of talent. Our employees are encouraged to embrace Telkom's Investing with Purpose imperatives through ownership of their development programmes, learning new skills and updating their capabilities to be future-fit.
Our Skillsoft is an online, self-paced platform that supports remote working while propelling learning- for-growth. It places employees in control of learning and development and is a demonstration of Telkom's commitment to growing the workforce of tomorrow.
No meeting Friday afternoons
This ensures employees have more uninterrupted work time to enhance productivity. We introduced this initiative due to a significant increase in meetings brought about by remote working. It also allows employees to schedule learning time to prioritise developing new skills and capabilities.
One of Telkom's value propositions for potential candidates is that we offer a range of different careers across our different business units. This includes IT, telecommunication and digital products and solutions, sales and networks, data science, engineering and AI, property development and management, digital marketing, finance and audit, procurement, and logistics. When candidates join Telkom, they can grow a lifelong career in the Group and develop their skills across functions and specialisations. We encourage career mobility (promotions and lateral transfers) across our business units.
Our talent review and succession planning approach and process is well embedded in the business. It uses our online SAP SuccessFactors system across all management levels and continues to inform many of our people-related initiatives and talent actions. Our approach ensures we proactively develop, deploy and retain our key talent.
Key highlights from FY2022
 |
of internal talent mobility at Executive levels |
 |
of successors for Executive level are deemed ready in less than two years |
Solid investments were made to upskill and develop our internal talent through our Leadership Development and Talent Development Programmes. Executive coaching has been pivotal in shaping and supporting high-potential leaders over the past year, and we envisage that this will continue into FY2023. To continue building our internal talent pipelines, we will be developing young talent through targeted internship and learnership programmes throughout FY2023.
Our Talent Development Programmes are designed to keep future-skills and digital skills at the forefront. These are geared towards developing our high-potential internal talent and leadership pipeline. We aim to build leadership capabilities across foundational, tactical and strategic levels, and specifically emphasise female leadership development as a component of Investing with Purpose. These programmes include a strong application component, allowing delegates to apply their learning in the workplace.
Telkom places a strong focus on building a learning culture through our Learning 4 Growth campaign, with self-directed and on-demand employee development being fundamental in evolving and embedding the hybrid approach to remote work. The learning content supports the employability of individuals who are no longer bound by the need to complete formal courses in a particular field.
Through this blended approach, employees are able to upskill, multi-skill and reskill continuously, based on a view of selfmanaged careers, interest and jobs of the future. It provides shared value for Telkom and its employees in terms of the following:
Our development programmes are aligned to the sector skills plan and to the skills required for the business.
The decrease in total learning spend was due to the lower numbers of classroom-type training and the migration to online training because of the COVID-19 pandemic. This shift has resulted in a reduction in overall costs.
Training and development spend (R'million)
| FY2020 | FY2021 | FY2022 | |
| Telkom1 | 199 | 931 | 801 |
|---|---|---|---|
 |
63 | 51 | 50 |
 |
1 | 12 | 12 |
| Group | 265 | 145 | 131 |
| 1 | Telkom includes Openserve, Telkom Consumer and Corporate Centre. |
| 2 | Gyro includes learnership stipends. |
Part-time bursaries
In total, 201 part-time bursaries were awarded for the 2022 academic year across the Company, with a total spend of R6.5 million. These included a range of formal qualifications (NQF Level 5 to NQF Level 9), and prioritised scarce or critical skills areas such as digital, technical and data science areas.
Centre for Learning
Safety, health and environment training continued with almost 1 000 attendees. Sales and Client Care training empower our people to deliver customer-centric service.
FTTH Technology upskilling
Technical training was reintroduced. Where practical and possible, training was facilitated online. Training requiring physical and practical components (e.g. FTTH) was crafted with COVID-19 risk mitigation strategies in mind. Over 1 600 attendees participated in technical training.
A total of 422 FTTx3 candidates completed the course in FY2022.
e-learning
We launched a comprehensive e-learning offering with over 3 000 learning content elements ranging from short courses, videos and audio books to learning channels and certification courses that are available to all permanent employees. This supports our learning-for-growth culture, enabling employees to easily access a wide range of learning content in line with their personal development plans and career goals. A 38% user uptake of the e-learning content was recorded in this financial reporting year.
| 3 | Fibre to the x (FTTx) is a collective term for various optical fibre delivery topologies that are categorised according to where the fibre terminates. |
It is vital to build the external talent pipelines at tertiary education level to broaden the talent pool. Through the Telkom Foundation, we provide a full-time bursary programme for our top learners. A total of 18 full-time bursaries were awarded to the top matriculants from Telkom Foundation schools. Telkom's investment will support these learners in meeting their basic needs to focus on learning.
Telkom launched the Centre of Excellence (CoE) technology research and development initiative in 1997. This year we sponsored seven postgraduate learners through a R740 000 investment (FY2021: eight learners, R820 000) and placed four postgraduate learners in permanent employment in the Group (FY2021:3) postgraduates placed).
Approximately 180 full-time postgraduate students benefit from the CoE Programme yearly, and Telkom provides R8.6 million in research funding to 15 CoEs.
The CoE focus has been to include a structured learning programme for CoE graduates once they are placed in the business. In partnership with Duke Corporate Education, the graduates take part in the Journey to the Summit Programme. The first cohort of 30 delegates commenced the programme in October 2021, and the second cohort of 15 delegates started in February 2022.
Full-time bursaries were introduced as a future feeder talent pipeline to the postgraduate CoE Programme within Openserve and across the Group. Five undergraduate bursaries (totalling a R500 000 investment) were awarded within Openserve in February 2022.
Refer to the social and relationship capital section for information on WeThinkCode and the Explore Data Science Academy, which supports our ESG Strategy focus on Investing with Purpose.
In line with business requirements, Telkom continues its focus on creating opportunities for unemployed and employed learners. Through learnerships and internships, unemployed learners are able to build skills and attain work experience and gain insight into the world of work, specifically in the ICT sector. Telkom provides a platform to explore different specialities across several functions, expanding career path knowledge and opportunities for future studies.
A 48.9% increase in the total intake of employed learners.
An increase of 94 black learners from FY2021.
A 47.8% increase in the total intake of unemployed learners.
A 7.6% (121) increase in male learners and an increase of 47.8% (67) female learners from FY2021.
In accordance with Telkom's labour relations approach and philosophy, the involvement of trade unions as material stakeholders is appreciated and embraced. Telkom has a recognition agreement with the Communication Workers Union and South African Communication Union (the Alliance) as a strategic business partner.
The Alliance has organisational and collective bargaining rights and is represented at business unit and Company forum structures. This includes the GCEO strategic briefing session's structure. Health and safety is a standing agenda item at the Company forum meetings. Telkom and the Alliance interact on national matters during these meetings.
Permanent employees belonging to a union (%)
| FY2020 | FY2021 | FY2022 | |
| Telkom1 | 54 | 52 | 902 |
|---|---|---|---|
 |
57 | 26 | – |
|
– | – | – |
|
31 | 32 | 30 |
| 1 | Telkom includes Openserve, Telkom Consumer and Corporate Centre. |
| 2 | The Telkom figure for FY2022 is inclusive of Yep!. |
BCX does not have any recognition agreement or stoporder facilities with any union. Trudon has a recognition agreement with the Communication Workers Union with full organisational and collective bargaining rights.
Telkom embraces the right to freedom of association. There are three unrecognised unions (Information Communication Technology Union, National Union of Metalworkers of South Africa and Solidarity) with members at Telkom. These three unions' membership percentages are belowTelkom's 30% union membership representativity threshold.
The Group had two Section 197 automatic transfers. The first was between BCX and Telkom SA SOC Ltd and the second between Telkom SA SOC Ltd as a wholly owned subsidiary.
The settlement agreement signed in April 2021 between Telkom and the Alliance ends on 31 March 2022. The parties agreed to commence substantive wage negotiations for FY2022/23. In preparation for these negotiations the parties agreed on the substantive procedure that details the negotiation rounds as follows:
The Company received the Alliance’s consolidated wage demand list and is procuring a mandate from the principals in preparation for the negotiations.
Many industries dealt with a number of prominent employee wellbeing themes during FY2022, including lower levels of employee engagement, increased stress, and more severe burnout. Telkom’s Integrated Employee Health, Wellness and Safety Programme is a critical element of the Group’s strategic investments. In partnership with a service provider, we aim to provide a safe and healthy working environment and increase employee wellbeing and productivity.
Employers should offer integrated health management solutions that focus on physical, mental, legal and financial wellbeing, irrespective of location. Also, workplace wellness should focus holistically on employees and their families. Hence, Telkom entered into a partnership with a new wellness service provider to provide a holistic, people-first health and wellness solution. We are confident that they will be able to empower our employees and their families navigate their wellness needs in the new normal.
ICAS, our wellness service provider, supports Telkom in driving holistic wellness. Key themes and topical issues are deployed across the Group on a quarterly basis to raise awareness, build knowledge and understanding, and enable employees to get help and support if they are facing difficult times. ICAS also provides a variety of webinars, live events and information sharing sessions that aim to improve the psychological defence and coping mechanisms of employees.
The Group played an active part in ensuring the safety and wellness of employees and their families by helping to curb the spread of COVID-19. In partnership with Dis-Chem, Telkom embarked on a vaccination drive, with 1 299 Gauteng-based employees and five extended family members vaccinated in three sessions during July and August 2021.
Telkom introduced a new leave code to encourage employees to get vaccinated, in line with our focus on our employee health and safety. The leave code provides a half-day special leave (nonquota leave) per occasion for an employee to get vaccinated. The new code also provides special leave for employees to take in conjunction with sick leave. The leave is provided on a 50:50 basis for the mandatory isolation period when employees test positive for COVID-19. It is regularly realigned to changes in the government’s recommended isolation period.
We provide consistent messaging on COVID-19 to create awareness and continue encouraging employees to get vaccinated.
To support the new hybrid model and create awareness of potential safety risks associated with working from home, Telkom designed a self-inspection checklist for all telecommuters. It provides information on potential health and safety risks and practical tips to reduce and/or eliminate these.
We also conducted ergonomic assessments to ensure that employees with musculoskeletal disorders and/or physical limitations were issued with work tools and equipment that are appropriate for their conditions.
Our safety performance has steadily improved over the past five years. This is due to initiatives that have been put in place to enhance the safety culture across the Group. We are pleased that Telkom has recorded zero fatalities for FY2022 across all our operations. We continue to invest to improve occupational health and safety to safeguard our employees.
 |
FY2018 | FY2019 | FY2020 | FY2021 | FY2022 |
| Total recordable injury frequency rate | 1.39 | 1.24 | 0.93 | 0.76 | 0.79 |
|---|---|---|---|---|---|
| Lost-time injury frequency rate | 1.18 | 0.98 | 0.68 | 0.56 | 0.70 |
| Fatal injury frequency rate | 0.02 | 0.02 | – | 0.01 | – |
 |
|||||
| Total recordable injury frequency rate | 0.22 | 0.41 | 0.55 | 0.17 | 0.13 |
| Lost-time injury frequency rate | 0.08 | 0.29 | 0.45 | 0.15 | 0.07 |
| Fatal injury frequency rate | – | – | – | – | – |
| 1 | Permanent employees only. |
| 2 | Telkom includes Openserve, Gyro, Swiftnet, Telkom Consumer, Corporate Centre and Yep!. |
We aim to:
Whether remote or onsite, high-performing teams need to be supported by leaders who engender a culture of accountability, creativity and collaboration. We will continue undertaking enhancements and developments to current human capital processes to drive a high-performance culture. Ultimately, this will drive execution and a customer-centric mindset.
We will deploy training interventions using a blended approach to learning. The training is directed at management employees and will focus on developing and embedding a coaching mindset, skillset and capability. This allows the shifts to be cascaded from the top into the business.
Building organisational emotional intelligence will promote skills for intentional engagement, transparent communication and enhanced feedback in a hybrid workforce. These skills will drive compassion for stakeholders and enable greater self-awareness for learning and development. Enhancing employee recognition across the Group will support these interventions while nurturing geographically inclusive as well as diverse teams
Through our focus on Investing with Purpose (ESG Strategy), we commit to developing and growing our female talent pool for Senior Management positions. We will implement defined programmes that translate intent into action.