Telkom job cuts, employee performance system explained

Telkom dismissed concerns about laying off fixed term contract workers and that its new employee performance measurement system is causing some unhappiness.

In 2013 Telkom offered staff voluntary severance packages (VSPs) and voluntary early retirement packages (VERPs). Media reports also suggested that job cuts were on the cards at the company.

MyBroadband has now received information from a well-placed source that Telkom has already laid off most fixed term contract workers.

Telkom said that the termination of contracts in this regard is nothing new, and has been happening for the past six years.

“Contract workers are employed for a fixed term contract period and there is no expectation to renew fixed term contracts,” said Telkom.

“As part of the headcount optimisation, where contracts have expired and the business operations are such that the renewal of such fixed term contracts is not warranted, Telkom consults with organised labour about such ‘terminations’”.

MyBroadband has also received information that Telkom’s new employee performance measurement system is causing unhappiness among some staff members.

According to the source, the new system has a direct impact on the promotion, salary increases and bonuses of employees, and has already lead to resignations at the company.

Telkom dismissed these reports, explaining that the new performance management system was designed to ensure greater alignment between the performance of individuals and the company’s strategic goals. “This objective is being met as planned,” said Telkom.

Telkom said that it has received no indication from any employees who have resigned that their resignation was due to the new performance measurement system.

MyBroadband has also received concerns from two Telkom staff members that the salary increases and bonuses of Telkom executives are not adversely affected by the negative rating of their divisions.

Telkom explained that all salary increases and bonuses are implemented according to criteria which are applied evenly across the company.

“The salaries and bonuses of all Telkom employees are a confidential matter between the company and the individual employee, apart from those which the company is required to present to shareholders as part of the Annual Report,” Telkom added.

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Telkom job cuts, employee performance system explained