Interfront Annual Report 2022

26 PART B: PERFORMANCE REPORT 3. SITUATIONAL ANALYSIS (CONT.) these services, while others will be included in the break- even rate going forward. The additional technical support required for the various SARS environments, the overlapping of different application versions, systems in these environments and the dependency and complexity of these systems placed additional pressure on operational project deliverables. The Service Level Agreement (SLA) between Interfront and ADA has been renewed for a minimum period of three years. 3.2 Organisational Environment Since we operate in a highly skilled environment and IT skills are in short supply, the targets of staff retention and developing a skilled, diverse and engaged workforce remain a challenge. The two related targets have only partially been achieved. In the first five months of the 2021/2022 financial year, Interfront reported a staff turnover of 9.76% against an annual target of 14%, with a projected year-end result of 23.4%. The zero per cent increase for staff on level 7 and above in the previous financial year was due to pressure on the fiscus, and posed another challenge in combating the turnover at the senior level. The high staff turnover had a significant impact on the remaining employees as the workload increased, which caused team fatigue. In its June 2021 meeting, the Board approved retention increases for high performers in the scarce and critical skills environments. The turnover trend continued into November 2021, with a reported staff turnover figure of 14.78% and a projected year-end result of 25.33%. The staff turnover rate for the latter part of quarter three started on a downward trend, with the annualised result being revised down to 18.63% and an actual reported year-end result of 17.48%. Additionally, Interfront reintroduced its annual market positioning exercise in 2021 to aid in the retention of high performers and scarce and critical skills. To increase the number of potential candidates in the scarce skills environment, Interfront has also increased its recruitment parameters by including contracted staff, older resources, as well as foreign nationals with work permits. The high staff turnover had a knock-on effect on Interfront’s target to maintain its staff complement at a minimum of 110, with a reported year-end result of 102. 3.3 Key Policy Developments and Legislative Changes No major changes were made to policies or legislation that affected Interfront’s operation during the reporting period. However, Interfront’s mandate and operational environment were changed at the onset of the 2022/2023 financial year, with the on-boarding of the Tax team responsible for the development, enhancement, modification and support of SARS eFiling and MobiApp solutions. The acquisition was supported by the Minister of Finance and the Interfront Board, subject to all relevant approvals and strict compliance with all governance rules and processes. The acquisition of the resources necessitated a review of Interfront’s Strategic Plan for the next five years. In reviewing Interfront’s five-year Strategic Plan, the following documents were used: • Previously approved Interfront Strategic Plans • SARS 2024 Vision • SARS Strategic Plan The business’ strategic drivers considered in developing Interfront’s new five-year Strategic Plan included: • Assisting SARS in achieving its Vision 2024; • Positioning Interfront as a thought leader in the customs and tax space; • Innovation; • New opportunities within SARS and other government entities, with SARS as a strategic reference; and • Becoming the primary technology partner. The new five-year Strategic Plan covering 2022/2023 – 2026/2027 and the Annual Performance Plan for the 2022/2023 financial year were approved by the Board at its meeting on 17 March 2022.