Telkom's human capital strategy

Workforce planning

We conduct strategic workforce planning to build a future‑ready workforce by aligning talent, skills and organisational design with Telkom's strategic priorities. We use workforce planning to identify capability gaps, modernise roles and proactively develop the skills required for long-term performance.

We analysed comprehensive workforce data covering more than 10 000 employees. We benchmarked this data against relevant industry peers to provide an evidence‑based view of Telkom's capability landscape. This included a detailed capability and gap analysis across all executive and higher leadership roles, providing insights into the capabilities needed for transformation and long‑term performance.

We also evaluated all roles across the functions of human resources, digital and transformation, and sales and marketing to assess role relevance, capability needs and structural alignment. We strengthened role clarity and modernised job design to ensure alignment with current and future organisational needs.

Emerging capabilities – particularly those required for digital transformation and innovation – are now embedded into role expectations. Updated job descriptions are also being benchmarked against industry standards to maintain competitiveness and relevance.

A External moderate assurance on selected sustainability indicators. Refer to the FY2026 Independent Assurance Report, available online.

Performance and growth

We focused on succession planning across leadership, key and critical roles to ensure continuity. Structured talent reviews and succession discussions identified high‑potential employees and assisted with targeted development plans.

To strengthen career pathways, we continued to implement initiatives that support talent mobility and career growth. Our Talent Mobility X‑celer8 programme gives employees opportunities to gain cross-functional experience and exposure to different parts of the business.

We also launched Elevate 3.0, the latest iteration of our graduate development programme, which develops future‑ready capabilities aligned with our evolving technology and digital landscape. Through mentorship and experiential learning, graduates gain exposure while developing skills to contribute to Telkom's growth.

We continued to strengthen leadership capability and build critical skills through our Back2Basics People Leadership programme, OneTelkom learning initiatives and bursary support.

Employee experience

We foster leadership, diversity, equity, inclusion and engagement to enhance the employee experience and wellbeing. We position Telkom as a desirable workplace through branding initiatives aimed at improving our Top Employer status.

The FY2026 Voice of the Employee survey gave a comprehensive assessment of the employee experience, reflecting how our culture, leadership practices and workplace conditions support engagement across the Group. Employees showed willingness to share their views. Survey participation rose to 75%, a 10% improvement, signalling increased trust in the employee listening process.

Our employee NPS improved across all key areas, including perceptions of Telkom as a great place to work, confidence in the Group's products and services, and satisfaction with the work environment. Overall engagement remains high, with most employees indicating commitment to going beyond the scope of their roles (85.2%), moderate proportions operating within job requirements, and a small percentage showing disengagement.

The results highlighted several strengths. Employees show high levels of advocacy and inspiration, and the work environment continues to strengthen in areas such as customer focus, accountability and collaboration. Confidence in the Group's long‑term strategic direction remains strong, supported by clear communication and alignment in several business areas.

Wellbeing indicators remained generally positive, with employees expressing confidence in safety, belonging and access to wellbeing support. However, financial stress and experiences of work stress persist as notable challenges.

Overall, the survey reflected a committed workforce that is aligned with organisational objectives and motivated to contribute. It also signalled the need for strengthened communication, streamlined processes and improved development pathways.

Sustainability

We retained our Level 1 B-BBEE rating for Telkom and increased female representation in leadership to 37.3% (FY2025: 35.5%). These efforts align with our values and are critical for long‑term sustainability and resilience.

We are intentional about creating opportunities for female leaders while ensuring operational efficiency and business sustainability.

We engage stakeholders to foster strong internal and external partnerships. We proactively identify and addres people-related risks through systemic risk management.

A snapshot of Telkom's workforce

Telkom maintained a stable and diverse workforce while strengthening future‑ready capabilities. At the end of FY2026, the Group employed 9 463 permanent employees (FY2025: 9 509), reflecting ongoing workforce optimisation aligned with operational requirements.

Our workforce profile is broadly representative of South Africa's demographics, with 73% Black employees and 33% female employees. The number of differently abled employees increased to 121. Employee voluntary turnover improved to 3.8%, reflecting continued focus on employee engagement, talent development and retention.

Managing talent

Talent acquisition is crucial for attracting and securing the capabilities needed to support Telkom's transformation and long‑term competitiveness. In FY2026, we shifted towards a more forward‑thinking approach that emphasises proactive workforce planning, identifying critical capabilities and sourcing high‑impact talent aligned with evolving business and technology priorities.

We are better positioned to build sustainable talent pipelines and reduce time to fill for critical roles. We leverage a combination of internal and external sourcing platforms, and engage recruitment agencies and executive search firms for niche, leadership and hardto‑source roles.

The talent acquisition team, Corporate Communications and external recruitment partners work together to present a compelling and consistent value proposition to the market.

Learning and development

Our learning and development strategy supports continuous capability building and equips employees with skills to succeed in an evolving digital environment.

Through our OneTelkom learning programmes, employees have access to a range of digital learning resources and development opportunities that support continuous learning. Our bursary programmes enable employees to pursue formal qualifications aligned with organisational priorities and critical skills areas.

During the year, 3 506 employees participated in structured learning interventions, supported by a total investment of R132 million in employee learning and development.

Collaborating with organised labour

We reviewed our collective engagement framework with the Alliance of the Communication Workers Union (CWU) following a court judgment relating to internal legal proceedings among CWU officials. The judgment ruled that an interim leadership structure be established to manage CWU operations. Telkom's review included creating such a structure for the Alliance.

The respective company forums were reconvened in August 2025, and engagements are ongoing. Through these forums, Telkom maintains cordial relations and engages constructively with the Alliance on matters that impact their members.

Permanent employees belonging to a union

%

¹Telkom Company includes Telkom Consumer and Corporate Centre.

No S189 process was initiated in FY2026.

Creating a safe environment

Our occupational health and safety (OHS) strategy prioritises zero harm through proactive risk management and a sustained culture of safety improvement. This approach supports employee wellbeing, operational continuity and safe delivery of services across the Group.

We rolled out the "Safety Starts With Me" campaign across six regions, Head Office and BCX. The campaign focused on safety awareness and prevention of repetitive strain injuries and musculoskeletal disorders, considering our ageing workforce and office ergonomics risks. It recognised the diverse nature of our workforce, addressing safety risks faced by both field technicians and office‑based employees.

We continued to improve our understanding of workplace risks through health and safety assessments across technical operations. These focused on operational activities such as working at height, confined space entry and the use of specialised equipment, enabling us to implement targeted safety improvements and preventative controls.

Motor vehicle safety is one of Telkom's higher-risk areas due to the scale of our operational fleet. We partnered with Volkswagen South Africa to enable technicians to better identify and respond to hazards on the road.

Telkom has maintained a zero employee fatality record over several consecutive years. This reflects the strength of our safety culture and focus on continuous improvement. Analysis indicates that the main causes of incidents across operations relate to motion-related injuries, motor vehicle accidents and incidents associated with working at height. These insights continue to inform targeted interventions to improve workplace safety across the organisation.

Employee wellness

A healthy, engaged and supported workforce contributes to productivity, organisational resilience and positive employee experience.

In September and October 2025, Telkom ran Wellness Lite sessions to support areas with smaller teams or operational constraints. These sessions provide meaningful support, including mental health consultations and access to core Employee Wellness Programme resources, ensuring that employees across different locations can benefit from available services.

Approximately 80% of the workforce attended wellness initiatives, with satisfaction ratings averaging 4.8 out of 5.

Looking forward

• The 2025 Voice of the Employee survey highlighted the need for a stronger focus on the financial and mental health pillars of employee wellbeing
• We aim to prioritise financial wellbeing through financial literacy programmes and tools and by expanding awareness of and access to financial advisory services
• We will strengthen mental health support by normalising conversations around stress, expanding awareness of and access to counselling services and digital wellbeing tools, and equipping leaders to identify and respond to early signs of mental health issues, including stress and burnout. Integrating wellbeing into managing and leading will be critical, as will leveraging employee feedback and analytics to tailor interventions and measure impact