Interfront 2023 Annual Report

69 HUMAN CAPITAL MANAGEMENT PART HR PROFILE & STATEGY BUSINESS STATEGY In addition, Interfront adheres to the principle of actively considering national, regional and other prevailing remuneration trends as part of its strategic approach to position the company’s remuneration philosophy. • In September 2022 the approval of annual salary increases and performance bonuses had a favourable impact on employee retention and turnover in the organisation. The distribution of salary increases and bonuses was determined on an individual basis in accordance with Interfront’s Performance Management Framework. • In accordance with the remuneration framework and philosophy, the Board additionally sanctioned a positioning pool at its meeting in November 2022, constituting 1% of the annual CTC. While not limited to this scope, the primary objective in distributing the aforementioned allocation was to elevate the compensation of employees positioned below the 25th percentile to align with the 25th percentile threshold. • The Employment Engagement Survey revealed that most Interfront employees perceived their compensation to be fair. Interfront’s Remuneration and Rewards philosophy is set out diagrammatically below: REWARD PHILOSOPHY & STATEGY REWARD ENVIRONMENT Recognition & Fair Rewards Technical Challenges & Career Growth Employee Relations & Well being Meaningful Work & Role Clarity Relationships, Synergy, Support Purpose, Character, Reputation & Co Achievements ORG Salary RA Medical Aid etc Other (Leave etc) FIXED Short-Term Incentives Long-Term Incentives VARIABLE TEAM INDIVIDUAL REMUNERATION & BENEFITS