Inside Telkom’s efforts to retain skilled staff

Telkom has identified the inability to attract and retain skills as one of the major risks facing the business, but is confident that the measures it has put in place are bearing fruit.

In its annual report published on Friday the group said the world was undergoing several changes related to how companies worked, hybrid working models, customer behaviours and technology trends.

“This requires talent that can provide a sustainable competitive advantage. Failure in this regard could result in loss of competitive advantage, increased employee costs and delays in achieving the group’s strategy,” it said.

• Discover more: All the latest news on SA companies 

“This risk remains material due to the uncertainty associated with Telkom’s performance compared to competitors, restructuring and shortage of scarce skills, [for example in] AI, data science and other skills. Telkom continues to implement measures to reduce the impact of this risk.

“These actions include the learning programmes, future skills development, OneTelkom culture and associated values, and maintaining a hybrid work approach.”

The group, worth about R11.5bn, said its talent acquisition efforts were focused on attracting, retaining and developing a diverse pool of high-calibre professionals.

The company said it was simplifying its recruitment processes, with the intention of enhancing the candidate experience.

“We will also focus on strategic marketing of our employee value proposition. Highlighting the unique environment, benefits and opportunities we offer, and effectively communicating our organisational culture and career growth prospects, will help attract top-tier candidates aligned with our vision and values,” it said.

“Finally, we plan to increase the number of quality hires by reintroducing an employee referral scheme. This will enhance employee engagement.”

Telkom, which earlier this year staved off a takeover bid from a consortium led by its former CEO Sipho Maseko, recently sold its towers business, Swiftnet, for almost R7bn, with some of the windfall likely to go towards paying debt.

Swiftnet owns and operates about 3,900 commercially viable masts and towers in SA. It generated a profit of R188m in the six months to September 2023.

CEO Serame Taukobong in his letter to shareholders said the deal was still subject to regulatory approvals from the Independent Communications Authority of SA and the Competition Commission, and that the company had made submissions to both bodies in April and awaited their decisions.

“From the submission dates, the disposal is expected to take between six and 12 months to close, pending these approvals, incentivising employees to participate in our talent acquisition efforts,” he said.

“The proceeds from the disposal will strengthen the group’s balance sheet and free cash to invest in our core businesses and pursue future growth opportunities. We also identified opportunities for capex investment in areas that will enable us to reduce our roaming costs for the Telkom consumer.

“This will help improve our capacity and quality where we have high demand and growth opportunities. For Openserve, we will drive growth by rolling out fibre and increasing the number of homes connected.”

khumalok@businesslive.co.za