Safaricom - 2021 Sustainable Business Report

75 SAFARICOM SUSTAINABLE BUSINESS REPORT 2021 / STANDING TOGETHER: GOING BEYOND / OUR MATERIAL TOPICS //// OUR STAKEHOLDERS / KPI SUMMARY INTERNAL LABOUR MARKET MAP The table below describes the movement of employees within and outside the organisation during the year as compared to the previous years. The percentages in the table represent the proportion of the staff population at that career level and gender and not the proportion of the total staff population. As the table illustrates, staff movements remained fairly stable with employee turnover dropping to a four-year low at 3.3%. This can be attributed to the wider impacts of the COVID-19 crisis which impacted on the career options available. Despite the decline in overall staff turnover, a number of female employees in senior and middle management exited, opting to pursue other career interests elsewhere which dented the progress made in achieving gender parity at all levels. This change also saw an increase in new hires for female employees in senior management to replace the exits. Female staff Male staff Career level Senior management Middle management Entry level Senior management Middle management Entry level Hires FY18 7.80% 6.40% - 5.30% 7.80% 25.80% FY19 2.10% 5.40% 6.40% 2.90% 6.70% 11.00% FY20 4.60% 4.20% 1.80% 2.50% 7.70% 3.80% FY21 9.60% 3.30% 1.20% 2.50% 3.20% 4.20% Internal mobility FY18 1.10% 5.30% 2.10% - - - FY19 2.10% 4.60% 6.20% 7.30% 3.90% 7.80% FY20 6.50% 1.60% 0.70% 5.60% 2.30% 0.90% FY21 3.83% 7.05% 0.85% 5.06% 7.17% 1.03% Laterals FY18 17.80% 10.50% 2.60% 9.20% 7.40% 2.40% FY19 15.50% 5.70% 2.30% 11.70% 6.30% 1.90% FY20 10.20% 8.70% 2.00% 9.60% 7.00% 1.30% FY21 3.83% 3.34% 3.26% 2.02% 3.24% 2.30% Voluntary exits FY18 7.80% 4.20% 2.70% 4.90% 4.20% 3.60% FY19 6.20% 2.80% 2.40% 5.80% 3.40% 3.00% FY20 1.90% 2.90% 3.30% 4.10% 4.10% 3.20% FY21 4.79% 3.34% 0.98% 1.52% 1.62% 1.78% Total exits FY18 7.80% 4.70% 5.70% 5.80% 5.20% 8.30% FY19 9.30% 3.60% 5.20% 8.30% 7.00% 5.90% FY20 2.80% 3.40% 4.50% 5.10% 4.90% 4.80% FY21 6.70% 8.17% 2.24% 3.04% 2.31% 4.50% EMPLOYEE ENGAGEMENT We measure morale through the Employee and Manager Engagement Indexes (part of our SEMA Survey) and staff turnover rates. The two indexes measure how employees and managers view the organisation by which they are employed, the level of connection and commitment they feel to the organisation, and how passionate they are about their jobs. While a certain level of staff turnover is required in any organisation to bring in new skills and new ideas, an unusually high level would indicate a problem. In FY21, both the employee engagement and manager index increased, while staff turnover declined. The increased staff morale was largely driven by enhanced openness in communication and engagement between staff and senior leadership especially in light of the uncertainties brought about by the COVID-19 crisis. The sustained low staff turnover is attributed to the measures we have put in place to make our organisation the best place to work through improvements made in the work environment and enhanced employee value propositions. EMPLOYEE MORALE FY18 FY19 FY20 FY21 Employee engagement index (%) 90 96 89 92 Manager engagement index (%) 87 84 89 90 Staff turnover (%) 5.4 5.7 5.0 3.3 “In FY21, both the employee engagement and manager index increased, while staff turnover declined.”