Interfront Annual Report 2022

38 PART B: PERFORMANCE REPORT 9. PERFORMANCE REPORT (CONT.) Performance Indicator: Retention of management team and staff The successful management and retention of Interfront’s Human Capital is key to meeting company objectives and crucial to its success. As a software development company that operates in a scarce skills environment, retaining key staff is vital. The global pandemic has made remote working the new normal and increased job opportunities all over the world. This resulted in some internal staff losses and new ways of retaining staff should be investigated going forward. These factors have also significantly increased the difficulty in attracting new talent. Staff retention is judged to be the number one risk to Interfront, largely as a result of the external factors in the market. Outcome Output Output Indicator Audited Actual Achievement 2019/2020 Audited Actual Achievement 2020/2021 Planned Target 2021/2022 Actual Achievement 2021/2022 PARTIALLY ACHIEVED Deviation from Planned Target to Actual Achievement Reason for Deviations Retention of management team and staff Percentage of staff turnover Record of staff turnover, as provided and verified by Interfront Human Resources Department Achieved 8.93% Achieved 10.14% Less than 14% 17.48% 3.48% Interfront experienced an exodus of staff in the first two quarters of the financial year due to high demand for IT skills. Although actions taken have reduced the trend in Q3 and Q4, the overall result was still above the target For more information pertaining to our Human Capital, refer to Part D: Human Capital Management. As a small IT company, Interfront is often faced with the major challenge of competing for limited human resources due to the aggressive recruitment of IT staff. Interfront is constantly looking at new methods to reduce employee turnover and improve retention. Methods utilised to reduce turnover include: • Improving training and development opportunities for employees. • Constant review and benchmarking of salaries within the IT sector. • Creating opportunities for promotion, especially at junior and mid-levels. • Promoting and using multiple avenues to attract and retain qualified and competent employees. • Maintaining a Wellness Programme.