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02
Value creation
What is material in our
value-creation process?
Our stakeholder concerns and our responses
Stakeholder group and why they
are important to us
Their interest inTelkom Our response
Employees
– continued
Fair remuneration and
rewards system
Telkom’s remuneration structure is designed to
ensure that individual contribution is aligned
to both short-term business plans deliverables
and long-term strategic, operating and financial
performance sustainability. The company aspires
to reward total remuneration (guaranteed
package, STI and LTI) on market median.
The fundamental principle of the remuneration
model is to ensure that the company moves
towards paying equitable remuneration in
relation to external market trends based on
a job-specific approach for management
employees.Telkomhas introduced a new
variable-based incentive scheme for bargaining
unit employees, known as Performance Pays.
Performance Pays focuses on customer
satisfaction and productivity metrics, and
replaces the STI scheme, which is primarily
driven by group financial performance.
This empowers and enables bargaining unit
employees to be more in control of their own
destiny and rewards, and gives more direct and
clear linkage between individuals’ efforts and
their rewards
Career progression, including skills
development opportunities
Targeted investments across the business aim
to identify, develop and retain the right talent
for the organisation. The implementation of the
talent management framework commenced
during the second half of FY2017. This has
resulted in gaining clear sight of the talent across
the organisation at executive levels, while also
safeguarding leadership and key roles by having
succession plans in place for executive roles.
The talent information is a key input to talent
mobility decisions across the business. Specific
high-potential development programmes have
been established to target key talent.
The Step Up programme, which focuses on the
development of the identified key talent (as
identified through the talent mapping process)
aims to enhance the capability, knowledge and
skills ofTelkom’s future leaders. The FLDP is a
two-year blended learning programme aimed
at middle and junior management levels, and
focuses on identifying women from across the
organisation who display leadership potential.
A total of 50 women formed part of the first
FLDP group, which has recently concluded with
42 percent of the group being promoted during
this period. The second intake commenced
in May 2017 with 37 women from across the
organisation
Telkom’s commitment to
employment equity (EE)
transformation
Telkom recognises the moral, social and economic
imperative to embrace and support transformation
including EE in South Africa. An EE policy is
in place and a strategy to support workforce
transformation across all occupational levels,
is being implemented.
Stakeholder
engagement
– continued