Telkom’s big productivity increase over 20 years

Telkom released its annual results for the year ended 31 March 2022, which showed that its revenue per employee increased to R3,593,545.

Revenue per employee is a measurement of productivity and efficiency that shows the revenue generated per person working at a company.

It is a valuable measure to determine the efficiency and productivity of a company’s average employee.

Telkom, founded in 1991 when the Department of Posts and Telecommunications split into Telkom and the SA Post Office, traditionally had a bloated workforce.

In 1999, Telkom had over 61,000 employees.

In the early 2000s, Telkom was preparing to list on the Johannesburg stock exchange and the New York exchange.

It was no longer a state department, and investors were looking for an efficient company that could provide a good return to shareholders.

Telkom started cutting staff and reduced its workforce from 61,237 in 1999 to 23,520 ten years later.

Even after these significant staff cuts, Telkom was still considered to be inefficient and out of sync with its peers.

Telkom continued to reduce its staff numbers through voluntary retrenchment packages, voluntary early retirement packages, and retrenchments.

Today, Telkom has 11,898 employees, significantly less than the 61,000 staff members it started with at the turn of the century.

Openserve is the biggest employer in Telkom’s stable with 5,647 employees, followed by BCX with 4,588 staff members, and Telkom’s consumer division with 1,138 employees.

Revenue per employee

Over the last 20 years, Telkom improved its revenue per employee from R867,000 to R3,593,545.

In simple terms, it means that Telkom significantly improved the productivity and efficiency of its workforce.

The chart below shows Telkom’s revenue per employee ratio from 31 March 2002 to 31 March 2022.

Now read: 30 years of Telkom

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Telkom’s big productivity increase over 20 years