The Personnel Policy of KEGOC JSC is a strategic document in the field of human resource management aimed at meeting the Company’s need for qualified, competent, and motivated personnel, as well as creating the necessary working conditions and a favorable environment for employees.

Effective human resource management ensures optimal resource allocation, a fair labor incentive system, transparency in employment processes, career growth, and professional development of employees.

Thus, KEGOC JSC identifies employees and the development of human potential as the primary priority of the HR Policy to ensure increased efficiency and competitiveness of the Company.

KEGOC JSC protects and respects human rights proclaimed internationally and provided for by the Constitution of the Republic of Kazakhstan, and continues to practice creating equal working conditions for all employees, excluding any form of harassment or discrimination based on gender, language, race, religion, sexual orientation, or gender identity. KEGOC JSC does not use child or forced labor in its activities. The Ombudsman and the Compliance Service are responsible for managing issues related to the observance of human rights in the Company.

Annual studies of employee engagement indexes (calculated based on the results of surveys and online questionnaires of administrative staff) and the level of social stability SRS, one of the key indicators of KEGOC JSC’s Personnel Policy, determined among production personnel, are conducted. The study is carried out through an online survey of production personnel, allowing for a comprehensive view of the Company’s workforce’s social well-being. The main purpose of the SRS study is to diagnose problem areas in labor relations, allowing for both corrective and preventive measures. The overall SRS value consists of three indexes:

• The Engagement Index demonstrates the level of satisfaction with working conditions and safety, relationships and communications within the Company, and employee loyalty.
• The Social Well-being Index captures the mood of employees, primarily determined by external factors and the social environment.
• The Social Calm Index reflects the level of social tension within the team, assessing the potential for protest.

At the end of 2023, the social stability index was 86%, and the employee well-being index was 54%, indicating a generally favorable social environment and successful social policy implemented by the Company.

One of the goals of the Personnel policy is proactive human resource planning to ensure effective portfolio management. Based on the analysis of HR metrics, research results, needs assessment, the investment program, and other factors, personnel numbers and expenses are planned for short-term and medium-term periods.

The final employee turnover rate at KEGOC JSC for 2023 was 6.51%, with a set threshold value of ‘no higher than 10%’. The turnover rate among men was 7.29%, while among women it was 4.01%. The average length of service for men who left the Company in 2023 was 13.6 years (394 employees), and for women, it was 12.2 years (79 employees).

Personnel search and recruitment is aimed at appointing the most suitable candidates who meet the requirements in terms of qualifications, professional, business and personal qualities. Candidate selection is conducted through a competitive process, adhering to the principles of meritocracy, transparency, and objectivity. When conditions are equal, priority is given to internal candidates of the Company.

Sources and methods for finding and selecting qualified specialists include:

• Talent pool;
• Internal candidates (employees of the Company/subsidiaries);
• Employees of the group Samruk-Kazyna JSC;
• Electronic candidate database formed on the Unified Online Recruitment Platform ‘Samruk Qyzmet’;
• Electronic database of specialists created through the collection and analysis of candidate resumes in various professional fields;
• Electronic database of graduates from young specialist development programs/talent management programs implemented under the aegis of Samruk-Kazyna JSC;
• Job postings on the website, industry communities, and social networks;
• Use of business contacts and recommendations;
• Engagement of recruitment companies.

Recruitment and selection for vacant positions at KEGOC JSC are conducted using the recruitment website ‘Samruk Qyzmet.’ During the review and preliminary selection of candidates by resume (screening), it is ensured that candidates meet the qualification requirements of the vacant positions. In the reporting year, 205 vacancies were announced. As a result of the competitive procedures conducted during the reporting period, 158 external candidates were hired, and 73 vacancies were filled by internal candidates.

Employee remuneration in the Company is carried out in accordance with the legislation of the Republic of Kazakhstan, the Collective Agreement, employment contracts, and internal documents on remuneration and bonuses.

The remuneration and motivation system includes fixed and variable components, social benefits, and non-material incentives.
Guided by the principles of transparency, openness, internal fairness, and external competitiveness, the Company is improving the system of recognizing employee merits, rewarding work achievements, and the remuneration system to balance the interests of the Company and its employees. The following approaches are used to implement this direction:

• regular analysis of wage levels and trends in the labor market across industries and regions;
• maintaining wage levels in accordance with the company’s goals and financial-economic capabilities;
• open and transparent communications to explain the remuneration system to employees, considering the current situation in the company and the labor market as a whole;
• maintaining a differentiated approach to determining employee wage levels. the differentiated approach to the reward system is based on the contribution of each department and employee to the company’s performance;
• reducing pay gaps between administrative-management and production personnel, and increasing wages for low-paid workers.

The Company operates a graded pay system based on the ‘Hay Group’ methodology for administrative and engineering-technical personnel. This remuneration system has enabled the development of a scheme of job levels considering qualifications, work experience, and responsibility levels, based on wage reviews and the Company’s financial-economic capabilities.

The Company ensures equal pay for men and women and applies a unified approach to determining the remuneration of men and women in KEGOC JSC branches located in all regions of the country. The salaries of KEGOC JSC employees in 2023 exceeded the minimum wage established in the Republic of Kazakhstan.

The Company’s activities on social support for employees are regulated by the following internal documents:

• Collective Agreement;
• Personnel Policy of KEGOC JSC for 2018-2028;
• Rules for Providing Social Support to Employees;
• Rules for Encouragement and Recognition of Employee Merits.

The above policies apply to all Company employees, including temporary employees and part-time workers.

In accordance with these documents, the following types of social support are provided to KEGOC JSC employees:

• Financial assistance;
• Compensation payments;
• Assistance in solving housing issues.

KEGOC JSC, aiming to create favorable conditions for effective work and increase loyalty, provides financial assistance for health improvement during paid annual leave, for anniversaries, childbirth, the death of an employee, family members, and retirees registered with KEGOC JSC, for the payment of medical treatment for employees and disabled children, and for individuals with lifelong disabilities, regardless of the disability group or age. Compensation is paid to employees of retirement age upon their retirement.

Additionally, KEGOC JSC pays maternity leave, leave for employees who adopt a newborn child (children), with the retention of average wages, minus the amount of social benefits for income loss due to maternity and adoption, in accordance with the legislation of the Republic of Kazakhstan on mandatory social insurance.

The Company provides social leave with pay for marriage registration, childbirth, funerals of close relatives, jubilees (50, 60 years), and for women, single fathers, and guardians raising children from 6 to 9 years old on the first day of the school year, and for parents of graduating students on the ‘last bell’ day. Rest days are also provided for preventive vaccinations and for parents with disabled children under 18, with the retention of average wages. In the reporting year, social leave was granted to 156 employees.

Furthermore, in accordance with the Labor Code of the Republic of Kazakhstan, the Company grants unpaid leave for childcare until the child reaches the age of three:

• at the choice of the parents — either the mother or father;
• for a parent raising the child alone; another relative actually raising the child left without parental care, or a guardian;
• for an employee who has adopted a newborn child (children).

Employees may take childcare leave until the child reaches three years of age in full or in parts. During the leave, the employee’s position (job) is retained. If returning to work before the end of the leave period, the employee notifies the employer of their intention a month before starting work. In 2023, such leave was granted to 52 employees (2 men and 50 women). In 2023, 33 women returned from childcare leave. According to labor legislation, in 2023, 4 women with children under 1.5 years of age, or fathers raising children without a mother, were granted additional breaks for breastfeeding.

In 2023, KEGOC JSC implemented a Preferential Loan Program aimed at social support for employees to retain and attract highly qualified personnel needed by the Company. As a result, 51 employees acquired housing in 2023. Additionally, the Company assisted 129 employees in solving housing issues by partially reimbursing housing expenses amounting to KZT 155.1 million.

Thus, in 2023, the total funds allocated for social support for Company employees amounted to KZT 810.0 million.

In 2023, total employee expenses, including salaries, social support, training, etc., amounted to KZT 37.5 billion (KZT 23.2 billion in 2019, KZT 25.2 billion in 2020, KZT 26.2 billion in 2021, and KZT 31.8 billion in 2022).

At KEGOC JSC, investments in employee training and development align with the Company’s needs to achieve its strategic goals. Each employee is responsible for their own training and development based on the 70/20/10 principle in accordance with their individual development plan.

Knowledge systematization and the formation of a quality personnel pool occur through self-development, training events, mentoring, coaching, implemented projects, and the formation of professional communities.

Based on the collection and analysis of needs, considering individual development plans, the KEGOC JSC Personnel Training Plan for 2024 and the KEGOC JSC Personnel Professional Competence Development Program for 2024 were formed and approved.

Employee training is conducted using a wide range of modern training methods: business practicums, seminars, training sessions, internships, advanced training, professional training and retraining programs, forums, and conferences.

In the reporting year, 3,817 employees were trained, accounting for 85.8% of the total number of employees. Actual KEGOC JSC training expenses for 2023 amounted to KZT 283.5 million or 32% of the plan, which is 55.3% higher than the previous year’s expenditure.

The average annual number of training hours per employee in 2023 was 25.96 hours. The total number of training hours amounted to 115,410 hours.

In the reporting year, employee training was conducted in accordance with the approved training plan, with total expenditures amounting to KZT 283.49 million.

In 2023, the institute of internal coaching was implemented. Training for internal trainers, ‘Training for Internal Trainers,’ was organized. Needs for internal training were collected from the Company’s structural divisions, and an internal training schedule for the year was approved. In 2023, five training sessions were conducted by internal trainers.

To provide a basis for internships, the Company continuously collaborates with educational institutions. Students from technical and higher education institutions annually undergo industrial and pre-diploma internships in the Company’s structural divisions. In 2023, 345 students completed industrial internships.

To build human resources in line with the Company’s needs and ensure transparency in career growth, a talent management system has been established.

The talent pool composition is updated annually based on performance evaluation results. In the reporting year, the Management and Functional Pools, consisting of 219 people, as well as a list of key positions and mentors, were approved.

The ‘Percentage of Appointments from the Functional/Management Pool’ indicator is used to determine the effectiveness of this process, which was 75% for the reporting period.

Annual meetings between members of the KEGOC JSC Board of Directors and Company management with talent pool members are held to develop promising employees. In 2023, a two-day program included training on emotional intelligence and communication, with elements of entertainment and active games.

The Company has a mentorship system to ensure a comprehensive process of professional orientation and to help employees in their professional development. In 2023, 47 mentors were rewarded with KZT 6,326.3 thousand for training interns.

Mentors who achieve the best results in training young people participate in the annual ‘Best Mentor of the Year’ competition. The winner of the competition in the reporting year was A.B. Lemeshko, a leading engineer of the production group of relay protection and automation devices at the Balkhash TPP branch of KEGOC JSC ‘Tsentralnye MES’.

The Company is improving the performance management system, which helps develop employees’ potential to achieve specific results. The key objectives of the Company’s performance management system development are:

• cascading kpis from corporate business goals to each employee;
• objective evaluation, mandatory feedback on evaluation results for all levels of managers and employees;
• regular evaluations and maintaining a consistent methodology to monitor employee performance dynamics, and using additional types of performance evaluations as necessary.

Employee performance evaluation is based on meritocracy principles and is conducted regularly: quarterly and annually. A comprehensive evaluation is performed based on work results and employee competencies (according to the competency model) for the reporting year.

The comprehensive evaluation includes the distribution of employees on the talent map based on their performance in achieving KPIs/goals and their competency levels (professionalism and potential).

Competency evaluation is carried out according to the approved competency model and provides the most objective assessment of employees’ personal and professional qualities. The Company’s competency model includes the evaluation of:

• Professional knowledge and experience;
• Attitude towards the Company and colleagues;
• Personal effectiveness;
• Result orientation;
• Teamwork;
• Managerial competencies.

Based on the performance evaluation results, the following management and development decisions may be made:

• Revising salary levels;
• Paying quarterly/annual bonuses/rewards;
• Considering employees for inclusion in the talent pool (personnel reserve);
• Further employee development.

The number of KEGOC JSC employees who underwent a comprehensive performance evaluation in 2023 based on the results of 2022 was 2,022 employees or 51% of the Company’s total headcount. This included 1,350 men and 672 women, 392 administrative staff, and 1,630 operational personnel.

Employees of KEGOC JSC have the right to create or join public organizations that represent their interests. Company personnel can engage in any political, educational, charitable, or social activities, provided these do not affect their job performance or harm society.

The trade union organization for workers in the energy-technical sector was established on March 27, 2003, at the trade union conference of KEGOC JSC employees. The trade union is tasked with overseeing compliance with labor legislation, preserving and implementing guarantees, compensations, and benefits.

Today, the structure of the EnergoTekhProfSoyuz public association includes 10 primary trade union organizations. The total number of union members among KEGOC JSC employees is more than 4,000, which accounts for over 91% of the Company’s workforce.

As a member of the Republican Union of Trade Unions of the Kazakhstan Confederation of Labor, our trade union organization is a permanent member of the working commission and actively participates in the work of the Ministry of Labor and Social Relations of the Republic of Kazakhstan on the Labor Code and the Law ‘On Trade Unions’ as well as in the development of the draft General Agreement.

Union members benefit from discounted health resort vouchers to sanatoriums in the Republic of Kazakhstan. Over KZT 24.29 million was spent on the health improvement of union members and their children during the reporting year.

To improve teamwork, loyalty, and a favorable atmosphere among the staff, Company employees regularly participate in corporate events.

In 2023, the Company organized celebrations for ‘Nauryz Meiramy,’ ‘Values Day,’ ‘Energy Workers’ Day,’ and an annual drawing contest for employees’ children. Company employees participated in the ‘Best Specialist’ competition organized by Samruk-Kazyna JSC and the talent competition dedicated to the 15th anniversary of Samruk-Kazyna JSC.

Company employees took part in the sports competitions of KEGOC JSC and Samruk-Kazyna JSC, as well as other sports events such as the ‘Samruk Marathon,’ ‘Astana Marathon 2023,’ a tournament organized by the ‘Kazakhstan League of Football Lovers’ public association, and the Astana ‘Spring-23’ mini-football championship.

As part of youth policy and the implementation of the KEGOC JSC Youth Affairs Council’s action plan, branch representatives participated in the ‘Zheti Kadam’ young leaders development modular program organized by Samruk-Kazyna JSC.

Additionally, Company employees participated in the following volunteer activities: ‘Donor Day,’ the ‘Tugan Elge Sayakhat’ excursion project involving employees’ children from remote regions, and the ‘Road to School’ project by the Social Interaction and Communications Center and the Samruk-Kazyna Trust Social Projects Development Fund.

To inform about women’s rights and opportunities, develop women’s leadership and competencies, a master class was organized in the reporting year as part of the International ‘16 Days of Activism Against Gender Violence’ campaign for Company women.