Employee relations
The Company’s greatest value is its employees. The Company provides equal opportunities to its employees for professional and personal development and cares about their safety and well-being.
Management approach
Kazakhtelecom JSC provides its employees with decent remuneration and social support, invests in training and development programmes for employees, strives to improve working conditions.
The Company’s training system helps employees of different ages to master new skills. In 2023, the average duration of training of Kazakhtelecom JSC’s employees made up: 11.54 hours for men, 11.84 hours for women.
To attract digital talents to the Company, Kazakhtelecom is building up a multi-stage programme on HR provision, actively working with higher educational institutions, and in the future we plan to nurture its future employees from school.
The Company has various programmes for its employees: Demeu social support programme, medical insurance programme, mortgage lending programme on preferential terms, etc.
Kazakhtelecom JSC provides equal opportunities in the level of wages irrespective of position and gender. The level of the Company’s average monthly salary does not depend on the employee’s position and is determined in accordance with the Company’s labour remuneration rules.
The Company continues to implement the Employee Experience Strategy approved in 2021, which sets out the Company’s key strategic initiatives in human resource management.
Employee Experience Strategy
Organisational development:
Governance model in a new environment:
- the BCV project management function (PMU) has been centralised;
- the Customer Service function has been centralised;
- 18 points of the B2C service network were optimised.
Operational Efficiency:
- transition to quarterly bonuses for employees with grades B5 and above (focus/service KPIs);
- a project to identify efficient employees through Big Data analysis “Business Stars” was implemented.
Effectiveness of the labour remuneration system:
- economic model of Labour payment fund’s budgeting was introduced;
- additional motivation tools for unique technical specialists, project teams and digital transformation teams (FCF) were introduced.
Well-being and health
Implementation of a comprehensive Well-Being programme:
- A comprehensive Well-Being programme has
been approved:
- we introduced Health Balance platform (health marathons, psychological counselling, monitoring of health indicators);
- we conducted a study of employees’ health status using the “Cardiovisor” apparatus and providing counselling on the results of testing in 5 cities of the Republic of Kazakhstan;
- we conducted 2 webinars on health support;
- we organised compulsory medical examination of employees and vaccinations.
Development of the labour relations system (Industrial Relations):
- we introduced monitoring of social and living conditions through IR screening;
- we systematised work with staff appeals (algorithm/telegram chats);
- we conducted an in-depth study of the social stability and well-being of employees (SRS 67%).
Social Support:
- we supplemented the Demeu programme. Assistance was provided to 1,8 thousand employees in the amount of KZT 294 million;
- we continued to issue targeted interest-free loans;
- we continued the programme of preferential lending;
- we concluded an agreement to the Collective Bargaining Agreement dated 01 June 2023;
- we concluded a VHI contract for 2024.
Corporate culture
Development of CREDO’s corporate values:
- we developed a code of updated corporate values;
- we involved top managers as ambassadors of value promotion;
- we implemented CREDO project in the West (4 regions) 170 leaders – 43 projects (1,100 participants);
- we organised collaboration of graduates and updating of CREDO projects for new business realities;
- we carried out diagnostics of values penetration and competence profile (DEEP) in branches;
- we held a women’s leadership forum.
Recognition of Merit:
- we launched a non-financial incentive
programme;
- Best in the profession
- State honours
- Corporate awards
- Professional holidays
- we organised visits of the SDOE to 15 regions to award staff members.
Dynasties Programme:
- IT-Summer Camp - a summer IT camp for children of employees;
- HSE for children of employees;
- reimbursement of expenses for the education of employees’ children in higher education institutions.
A culture of gratitude:
- we introduced the THANK YOU function on the employee portal with the possibility of accumulating telecoins for purchasing merchandise and other goods.
EX operating activity
Learning and Development:
- we developed the roles and competences of the
7 core academies of the Corporate University:
- Service and sales
- Technical
- Leadership&JAS
- Financial
- HSE&ESG
- EX
- Digital
- we launched a programme to form a pool of internal trainers for service in the national language;
- we implemented eMBA projects to develop the talent pool.
Recruitment and Adaptation:
- transformation of the recruitment process:
- HEI – 26 memoranda
- SMS – 40 memoranda
- 1,267 students were invited for internships. 259 students were employed (20%)
- we introduced ktbot – an adaptation and development assistant.
Digitalisation of EX processes:
- we launched the Employee Portal ecosystem. Approximately 9,000 users;
- 28 EX processes on EJM were automated.
Principles of Kazakhtelecom JSC’s HR Policy:
Social responsibility
While building relationships with employees, the Company complies with the requirements of the legislation of the Republic of Kazakhstan in the field of labour relations to achieve social well-being.
Transparency of the HR system
The Company applies a transparent procedure for managing the HR function through systematic processes (appointment, career development, training and development, performance evaluation, etc.) to implement strategic goals (Employee Experience Programme).
Continuity
The Company considers employee training and development as a valuable tool in achieving a qualified level of succession for its employees.
Customer focus
The HR function strives to improve the customer-centric approach through the Company’s employees based on effective mutually beneficial relationships with customers to enhance positive reputational status in the business space.
Individual responsibility
Employees of the HR function strive to instil high self-discipline and individual responsibility in every employee of the Company to achieve high results.
Balance of interests and objectives of Kazakhtelecom JSC and employees
The Company respects the interests of its employees and bases itself on their needs and requirements to promote social welfare, and equally expects employees to respect the interests of the Company to achieve its objectives in the course of its business.
Innovative thinking
The Company considers innovative thinking as one of its competitive advantages, and in this regard, the HR function provides employees with all conditions for the formation of innovative thinking aimed at optimising and automating the products and technologies provided by the Company.
Human resources management system
Kazakhtelecom JSC manages its HR in accordance with the requirements of the labour legislation of the Republic of Kazakhstan, internal corporate regulations, policies and codes, as well as takes into account the best international practices in this area.
The HR management system of Kazakhtelecom JSC is regulated by the activities of the HR Management and Development Department. The main objectives of the Department are to increase the level of efficiency, personnel development and corporate culture.
Kazakhtelecom JSC strictly complies with the requirements of the labour legislation of the Republic of Kazakhstan and the principles of selection, development, ensuring decent working conditions for all its employees. The Company strives to improve organisational mechanisms and procedures of HR-function.
In 2023, the Company adopted the Kazakhtelecom JSC’s HR Management Policy.
Key directions of the Policy are:
- attraction, motivation and creation of favourable conditions for qualified personnel through the development of human resources taking into account the strategic directions of the Company’s development;
- effective development of corporate culture that contributes to the realisation of the Company’s strategic goals;
- introduction of modern methods and advanced technologies of HR management, improvement of EX-processes to enhance the efficiency of EXfunctions.
The purpose of the Kazakhtelecom JSC’s HR Management Policy is to define the principles and conceptual approaches to HR management in interrelation with the Company’s JRun business strategy by Strategic Development Areas (hereinafter SDAs):
- Jaqyn SDA: the foundation of business transformation being a superior customer experience;
- Birlik SDA: focusing on the internal customer and improving their experience;
- Alau SDA: harnessing the full potential of data, modernising IT infrastructure, information security, moving to a microservice IT architecture and creating a Multi-cloud environment to realise business objectives;
- Orken SDA: modernising the network and improving operational efficiency.
A structural subdivision of the HR system, the Employee Experience Management Service, is responsible for managing employee training and development issues. The Company is based its activities on the following internal documents:
- Knowledge Management Rules of Kazakhtelecom JSC.
- Employee Experience Strategy of Kazakhtelecom JSC.
- Rules for formation and preparation of the personnel pool of Kazakhtelecom JSC.
Headcount and staff structures
Dynamics of the headcount, 2020–2023, persons
Breakdown of employees by age group as of 31 December of the reporting period, 2022–2023, persons
Structure of governing bodies by age as of 31 December of the reporting period, 2022–2023, persons
Compared to 2022, one more woman joined the Management Board of Kazakhtelecom, raising the share of women in the Management Board to 33.3% at the end of 2023.
Gender structure of employees as of 31 December of the reporting period, 2022–2023, persons
Structure of governing bodies by gender groups as of 31 December of the reporting period, 2022–2023, persons
The number of permanent and temporary employees varies significantly by regions where Kazakhtelecom JSC operates.
Number of permanent and temporary employees of Kazakhtelecom JSC, 2023, by regions
In the reporting period, the number of the Company’s employees working under open-ended labour contracts amounted to 17,412 people or 91.5% of the total headcount.
Number of permanent and temporary employees as of 31 December of the reporting period, persons, by gender groups
In 2023, the number of Kazakhtelecom JSC’s employees working on a full-time basis totalled 18,826 persons or 99% of the total number of personnel, with 11,875 male employees and 6,951 female employees.
During the reporting period, the Company employed 196 people, or 1%, including 131 men and 65 women, on a part-time basis.
In 2023, 275 employees worked for the Company under civil law contracts and were engaged by the Company for projects that are temporary in nature.
Recruitment
Kazakhtelecom JSC carries out the recruitment procedure in accordance with the Rules of Selecting Personnel of Kazakhtelecom JSC. Recruitment for vacant positions and working professions in the Company is carried out by structural divisions of the General HR Service Centre and Employee Experience Management Service.
Personnel selection is carried out on a competitive basis. In-house candidates, including those in the personnel reserve, have priority when filling a vacant position. Applicants for search and selection of qualified specialists can be:
- the Company’s employees, including reservists in the personnel reserve of Kazakhtelecom JSC;
- employees of Kazakhtelecom JSC’s Group of companies;
- employees of Samruk-Kazyna JSC Group;
- candidates participating in the competition for a vacant position;
- graduates of universities, senior students.
The Company has adopted an Equal Opportunity, Inclusion and Diversity Policy, one of the key principles of which is to strive to build diverse teams and promote diversity initiatives, including prioritising local hiring as well as targeted recruitment.
If necessary, the Company selects external candidates. The Company uses the following tools to search for potential new employees:
- electronic database of candidates formed on the Unified Online Recruitment Platform Samruk Qyzmet (https://qsamruk.kz/);
- electronic CV database generated by the Company;
- specialised sites with CV databases (Qyzmet.kz, Kz.jooble.org and others);
- social networks (Facebook, LinkedIn and others);
- electronic database of graduates of young specialists development/talent management programmes implemented by the Company/Samruk-Kazyna JSC.
In 2023, the Company recruited 1,809 new employees. Among them, 81 were candidates selected from the Company’s Personnel Reserve. Most of the newly hired employees are less than 30 years old.
Number of newly hired employees, persons
Ratio of newly hired employees, 2021-2023, %
Number of newly hired workers by region, persons
Attracting young professionals
Kazakhtelecom JSC has a Knowledge Centre, which provides a single integrated platform of access to corporate information, corporate applications and other sources of information that help in adaptation and development of employees.
The Company continues to co-operate with universities, provides internship opportunities for students, and employs young specialists.
One of the key internship programmes for students is the PROTelecom programme, which has been implemented in the Company for over seven years.
As part of the PROTelecom programme, memorandums on attracting interns have been concluded with 25 higher and 40 secondary professional educational institutions in Kazakhstan.
In 2023, 1,260 students completed internships with the Company under the PROTelecom programme. The Company employed 261 of them.
In addition, Kazakhtelecom JSC continues the Telecom Data Factory internship programme, which gives 3-4 year and Master’s degree students, as well as recent graduates of higher education institutions the opportunity to take a 10-week intensive online internship session in the Company.
This session involves students solving applied practical tasks related to the Company’s activities with mentors from among the Company’s specialists.
As part of the Telecom Data Factory in 2023:
Talent pool
The Company continues to implement the Talent Management project aimed at building and training the talent pool as the main internal source of filling key positions in the Company.
This project helps the Company identify and retain talented employees with high professional potential. As part of this project, the Company runs the Leadership School, a programme where reservists receive training to develop management and leadership competencies.
Principles of forming the talent pool:
Employee turnover
Kazakhtelecom JSC implements programmes for motivation and retention of personnel, which contribute to reduction of personnel turnover and stimulation of development of the Company’s employees.
In 2023, the total number of employees with whom employment relations were terminated was 1,267 persons.
Total number of employees whose employment ended in 2020-2023, by category, persons
Personnel assessment
The performance management system in Kazakhtelecom JSC consists in setting clear, measurable goals and objectives for a corresponding period in the form of key performance indicators (KPI), on the fulfillment of which the remuneration depends. The Company has also introduced the system of individual development plan (IDP), thanks to which each employee gets an opportunity to focus on the development of his/her knowledge and skills, improve personal efficiency and effectiveness.
In the reporting period, regular performance assessment covered 1,628 employees of the Company (8.56% of the Company’s total headcount).
Number of employees covered by regular performance and career development assessment, persons
Remuneration
Kazakhtelecom JSC provides
its employees with fair and
competitive remuneration of
labour.
Graph. Dynamics of average monthly salary in the Company, 2022–2023, KZT
Average monthly salary of the Company’s employees, KZT
The motivation system in Kazakhtelecom JSC ensures a clear relationship between remuneration of employees and their performance results, including the introduced system of personnel performance evaluation.
The structural subdivision regulating the approach to remuneration of Kazakhtelecom JSC’s employees is the Remuneration and Organisational Efficiency Service. The key task of this division is to create a cost-effective system of remuneration necessary to attract, retain and motivate employees.
Kazakhtelecom JSC has a grading system based on Hay Group methodology. Approaches to remuneration of labour, additional payments, allowances, current and onetime bonuses, differentiation of grade/category of position with application of inter-discharge coefficient are unified.
In the reporting period, the Company developed and updated the following approaches to material remuneration of employees:
- Regulations on additional remuneration of Kazakhtelecom JSC’s employees for overfulfilment of the planned EBITDA indicator.
- Rules on current and quarterly bonus payment to employees of Kazakhtelecom JSC’s branches.
- Map of total KPIs of the branch or individual major structural subdivisions of the branch to calculate current bonuses.
- Map of total KPIs of the branch or individual major structural subdivisions of the branch to calculate quarterly bonuses.
- Rules for remuneration of data positions labour and motivation of the digital transformation team experts of Kazakhtelecom JSC.
We analysed the gender gap in remuneration of the Company’s employees in 2023. The results of the analysis showed that in 2023, the average income of women in the Company was 11% lower than that of men. In 2022, the average salary of women in relation to the average salary of men was 107.5%.
The Company ensures that it does not discriminate on any grounds and ensures that employees are rewarded fairly and equitably.
In 2023, the minimum wage of male and female employees of Kazakhtelecom JSC is KZT 101,000. Taking into account the minimum wage in the country at the level of KZT 70,000, the ratio of the minimum wage of the Company’s employees to the minimum wage in the country in 2023 is higher by 44%.
Ratio of men’s and women’s salaries by employee category as of 31 December 2023
Ratio of remuneration of men to women by employee category as of 31 December 2023
Social stability
In the reporting period, the Company continued to ensure social stability. The heads of HR-functions of Kazakhtelecom JSC’s divisions and branches held meetings with employees, where the issues of social and labour relations, wage fund, and social support were discussed.
The Company has established an effective channel of communication between employees and top management in the online conferences format, that includes the following procedures:
- initial collection of a pool of questions;
- moderation of the pool of questions by the Kazakhtelecom’s Communications Department;
- live chat with the Chairman of the Management Board.
The Samruk-Kazyna Group of Companies performs annual monitoring of the social situation at production facilities. To timely identify hidden social tension and manage this process, Kazakhtelecom JSC and PI Centre for Social Interaction and Communications are conducting sociological research of Samruk Research Services (SRS). Based on the results of the survey, in accordance with the recommendations of sociologists, the Action Plan for working on the concern zones is approved on an annual basis.
In 2023, the Centre for Social Interaction and Communications conducted a study of the SRS index, according to the results of which the total value was 67%, with the threshold value of the Kazakhtelecom JSC’s KPI being 65%.
The aggregate SRS is integrated from three indices
- Engagement Index – high level.
- Social Wellbeing Index – stable level.
- Social Security Index – high level.
The Engagement Index measures the level of satisfaction with the logistical infrastructure required to perform the job well and comfortably, workload, remuneration and social package, loyalty, communication, development and career opportunities, and recognition from management.
The Social Wellbeing Index captures self-assessment of well-being in static and dynamic terms, as well as assessment of social, financial well-being, one’s health and environmental quality.
The Social Security Index reflects the level of social tension in the collective, employees’ assessment of their own rights protection degree, the level of conflict in the collective and protests, including attitudes to participation therein, as well as the level of loyalty to the participants of protests.
As a result of the analysis of the SRS results for 2023, the Company carried out work to ensure a positive social environment, comfortable and safe working conditions, as well as to maintain healthy and constructive relations in the teams. Based on the results of the SRS, to improve employee satisfaction with the level of conditions in Kazakhtelecom JSC, the Company has approved an Action Plan to work on the areas of concern for 2024.
Social support for employees
Kazakhtelecom JSC has a system of social support for employees ensuring comfortable and safe working conditions.
The Kazakhtelecom JSC Collective Bargaining Agreement covers 86% of the Company’s employees.
The Company, in accordance with the Collective Bargaining Agreement, regardless of the employment nature (permanent or temporary), continued to provide the following types of social support in 2023:
- life insurance;
- health care;
- parental leave;
- retirement provision.
Our 2021 Annual Report contains basic social benefits included in the Company’s Collective Bargaining Agreement.
The minimum notification period of employees in case of labour contracts termination due to staff reduction in accordance with the Labour Code of the Republic of Kazakhstan is 4 weeks (30 calendar days). In accordance with the Collective Bargaining Agreement approved in Kazakhtelecom JSC, this period has been increased compared to the minimum requirements of the legislation and makes up to 45 calendar days.
In June 2023, an additional agreement was signed between the Company’s management and the Industry Trade Union, which expanded social guarantees in such areas as:
- additional paid annual labour leaves for employees engaged in heavy work, work in harmful and/or hazardous working conditions; for employees with disabilities of the first and second groups;
- material assistance to employees during marriage registration;
- payments to the Company’s employees who are on unpaid leave to care for a child up to the age of three (mothers (fathers), women (men) who have adopted a child);
- additional payments to employees on childcare leave and other payments.
In addition to the basic social benefits for employees, the Company developed in 2023 and since 2024 has been operating the “Benefits Cafeteria” system, which implies that an employee can independently determine the structure and content of his/her social package within the allocated limits of funds and the list of benefits.
The Benefits Cafeteria concept applies to the Company’s employees in the following positions:
- Managing Directors of the Central Office (except for the Managing Director for External Asset Management), Chief Treasurer, Human Resources Director, Director for Customer Experience Management, Branch Line Directors directly reporting to the Branch General Managers;
- heads of structural subdivisions of the Central Office.
“Benefits Cafeteria” includes categories such as:
- expansion of the voluntary health insurance programme;
- payment of educational courses/programmes cost for employees and/or children of employees;
- payment of the cost of health resort holidays/treatment (except for VHI), etc.
One of the Company’s key social programmes for employees is the DEMEU programme, under which the Company provides assistance to families with many children, families with disabled children, and families that have adopted more than 2 children. In 2023, the DEMEU programme was updated and now also applies to employees in the “single-parent family” category, as well as employees caring for close relatives.
Under the DEMEU programme, the Company’s employees receive payments to reimburse expenses related to rehabilitation of disabled children, special educational programmes for disabled children; attendance at special correctional organisations for disabled children; purchase of vouchers to children’s health camps and sanatoriums (for disabled children), as well as financial assistance for the purchase of medicines, meals for school students, etc.
One of the directions of the Employee Experience Strategy is to ensure well-being and health of Kazakhtelecom JSC’s employees. In 2023, the Company approved the Well-Being Programme aimed at monitoring morbidity and prevention of diseases among employees, promotion of healthy lifestyle.
In 2023, we assessed risk factors for employee health and well-being as well as implemented disease prevention measures:
- HEA marathons;
- lectures and webinars on preventing life-threatening diseases;
- prophylactic vaccination of employees against seasonal diseases;
- personal psychological counselling for employees on the Health Balance platform and other activities.
Parental leave
Distribution of employees on parental leave, persons
The number of employees on parental leave at the end of the reporting period was 1,008, with women accounting for 98%.
Training and development of employees
Kazakhtelecom has created a system that promotes the professional and personal development of employees, including training, selfdevelopment and career opportunities.
In 2023, more than 10,851 employees of the Company were trained, including distance learning courses in the following areas: Leadership academy, EX academy, HSE&ESG academy, Service and Sales academy, Technical academy, IT academy, Qazaq&English academy, Financial academy.
Kazakhtelecom JSC’s investments in training, 2022-2023, million KZT
Investments in employee training, million KZT
Number of hours of employee training as of 31 December 2023, persons
In accordance with the Employee Experience Strategy, the Company approved the number of training hours per employee. The actual average number of training hours per employee per year in 2023 was 11.54 hours for men, and 11.84 hours for women.
Indicators of the average number of training hours per employee for 2023:
Corporate University
In 2023, the Corporate University on the basis of Astana IT University continued its work providing conditions for the university students to undergo industrial practice and internships in Kazakhtelecom JSC, recruiting IT specialists from among talented graduates.
In co-operation with the Corporate University, Kazakhtelecom participates in training qualified specialists in telecommunications.
The Сorporate University allows training personnel in accordance with the specific demands of the Company and adjusting its training programme immediately after appearing new trends on the market.
Key educational programmes of the Corporate University
