{"id":14867,"date":"2012-06-11T12:08:52","date_gmt":"2012-06-11T10:08:52","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=14867"},"modified":"2012-06-11T12:10:02","modified_gmt":"2012-06-11T10:10:02","slug":"telkom-admits-retainers-to-keep-staff","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/telecommunications\/14867\/telkom-admits-retainers-to-keep-staff\/","title":{"rendered":"Telkom admits retainers to keep staff"},"content":{"rendered":"

Jacques Schindehutte<\/a>, Telkom<\/a> chief financial officer, admits that retention packages have been paid to staff, encompassing senior management, to prevent them from leaving during a period of difficulty for the group.<\/p>\n

On Friday (8 June), Telkom announced reported a marginal decline in operating revenue to R33.1 billion,\u00a0for the year ended March 2012.<\/p>\n

Headline profit for the year fell 32.8% to R1.658 billion, while profit after tax for the year declined 93% to R179 million.<\/p>\n

Earnings before interest, taxes, depreciation, and amortization (EBITDA)<\/a> of R8.5 billion, declined 8.8% and group EBITDA margin decreased to 25.8% from 28.1%.<\/p>\n

“We\u2019ve had to move to secure, not necessarily only top management, because the reality is that you are working in a business that is under pressure,\u201d Schindehutte told BusinessTech.<\/p>\n

He said that the more successful the business, the more generous the hand was in regards to bonuses, etc.<\/p>\n

\u201cSo people are reluctant to come to a company with immense challenges, and therefore I think paying retentions obviously helps as part of your strategy to get people to come in and stay for a minimum period. Thereafter, once they settle themselves and prove themselves, then it\u2019s obviously much easier to deal with the issue of incentivisation.<\/p>\n

\u201cBut to just sometimes attract people, or deter them from leaving for a fantastic opportunity, is not bad strategy, and we have done that,\u201d Schindehutte said.<\/p>\n

CEO Nombulelo \u201cPinky\u201d Moholi<\/a> told media and investors at a presentation in Rosebank, that the group would try to avoid culling its staff in an effort to curb escalating costs. Moholi said that staff retention annually ranged between 2-3% for a workforce in excess of 22,000. Employee expenses amounted to R8.6 billion for the year ended March 2012.<\/p>\n

The CEO said that Telkom would first look to work “smarter and more efficiently,” while\u00a0Schindehutte added: “Management and labour needs to lift its game.”<\/p>\n

Telkom decided against\u00a0a dividend declaration in respect of the financial year ended 31 March 2012.<\/p>\n

Related Article:<\/strong><\/p>\n

Telkom reports 33% fall in headline profit<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Jacques Schindehutte, Telkom chief financial officer admits that retention packages have been paid to staff, encompassing senior management, to prevent them from leaving during a period of difficulty for the group.<\/p>\n","protected":false},"author":9,"featured_media":5781,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[26,1079,2198,65],"class_list":["post-14867","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-headline","tag-jacques-schindehutte","tag-nombulelo-moholi","tag-telkom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/14867","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=14867"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/14867\/revisions"}],"predecessor-version":[{"id":15021,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/14867\/revisions\/15021"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/5781"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=14867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=14867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=14867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}