Page 74 - XL Axiata Integrated Anual Report 2020 ENG

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2020 Integrated Annual Report
MANAGEMENT DISCUSSION & ANALYSIS
level, and then to individual employees. This way, employees get clear directions for their day-to-day work.
Considering that Telecommunications is a
highly dynamic industry, it is critical that the Company’s Performance Management system is able to keep abreast of all changes, including target adjustments. In 2020, the Company made its Performance Management simpler and more efficient. The system also puts more emphasis on employee development.
The new system gives employees in Leader positions more room to manage team performance. They are also expected to build good relationships with their team members using productive dialogue. In addition to increasing effectiveness, this system also aims to foster a greater sense of ownership among employees for the performance management process.
Performance management occupies a central position in human resource management activities, such as remuneration decisions, career development, and employee management. The optimal use of its Performance Management system will give the Company clear information and a record of individual employee’s achievements.
Talent Management
To ensure business continuity and the Company’s performance, XL Axiata has identified certain key internal positions that directly impact both aspects. As a matter of course, given the strategic value of these positions, the Company needs time to find the talents with the appropriate competencies.
To address that, the Company needs a succession plan to ensure seamless talent turnover. For this reason, XL Axiata has an internal Talent Pool for the successor or candidates of senior leadership including the Board of Directors’ candidate. Apart from such internal
Talent Pool, XL Axiata is also collaborated with Axiata to integrate the talent pool with the Group. In the event, no specific candidates is available in both XL Axiata and Axiata’ Talent Pool, thus XL Axiata
is engaged with professional recruiter to find suitable candidate. Furthermore, XL Axiata has a Talent Panel
that discusses important positions and potential successors in terms of the candidates’ readiness and
the development they may need. The Panel systematically identifies the competencies required for each position. This Panel also systematically assesses the candidates’ current competencies. The competency development
of potential successors for a position is carried out using a 70-20-10 rule: 70% of development activities are
achieved by exposing the candidate to the work entailed by a certain position/area, 20% of development is conducted through mentoring, and 10%
of development is delivered through formal training.
Employee Welfare
All levels of management
are committed to realizing employee welfare in accordance with the Company’s mission, which is to make XL Axiata a second home for the employees. As a result, the Company is developing
a competitive remuneration system that can attract qualified candidates, retain key employees and encourage the best performing employees. The remuneration system
was designed objectively
and is in line with employee achievements, positions
and competence. This is summarized in the 3P principle, namely position, person, and performance.
To ensure competitive remuneration, the Company continues to conduct remuneration surveys and regular analyses of other companies in similar industries. Employee remuneration consists of cash and non-
cash components and includes, for example, basic salaries, communication and transportation allowances, and annual bonuses. The Company also provides long-term incentives for all employees in the form of cash or shares.
PT. XL AXIATA TBK
TRANSFORM FASTER TO EMERGE STRONGER – GIVING BACK TO THE NATION