Social impact: Human capital

Blue Label's employees are the core of the Group's existence. We value our people and look to support and safeguard them within a dynamic work environment that promotes productivity and employee engagement.

Our strategy this year was to drive an inclusive culture by creating unique experiences for all employees. We place our employees at the centre of what we do through leader-led engagement initiatives, with our People Experience Team providing the framework and our leaders setting the tone for an employee-centric culture. Blue Label's Success Management Framework ensures that employees are aligned with the strategic intent of the business and have meaningful roles. We will continue leveraging the framework to create a work environment that is both inclusive and diverse while merging employee expectations with business needs for tangible results.

Our strategy was informed by a 2021 research study by Gartner that showed:

• 82% of employees say it is important for their organisation to see them as a person, not just an employee; and
• Employee satisfaction with a company's employee value proposition (EVP) increased by 15% when a human-centric approach was followed.

INVESTING IN OUR PEOPLE AND CULTURE: LEADERSHIP, DIVERSITY AND TALENT

Blue Label's Human Resources focus areas aim to strengthen the Group's people and culture. These initiatives empower our leaders, foster an inclusive environment and solidify Blue Label's position as an employer of choice:

By investing in these areas, we are fostering a culture of continuous learning, inclusivity and excellence, ensuring a bright future for our organisation and our people.

We needed to align ourselves with the changing expectations of our employees in navigating the path ahead and ensuring seamless engagement between staff members and leaders. These close relationships will lead to a mutual understanding of the goals, opportunities and difficulties faced by each business unit.

Human Resources (HR) operations achievements

• Restructured HR function: We decentralised the HR structure to share services at Group level and partner at subsidiary level. This enables HR to support Blue Label's needs more efficiently.
• Improved reporting: We built a Power BI function to enable dashboard reporting. This gives the HR team access to live reporting and improved business support.
• Reduced costs: The Group achieved savings of R4.5 million in recruitment costs by sourcing directly rather than via recruitment agencies.
• Developed the HR team: The Group invested in training the entire HR team to strengthen its function and accountability across the business.

These successes point to an enhanced HR function. These changes will result in an HR department that supports the business more effectively and efficiently.

HR business enablement achievements

• Culture and leadership
  • finalised and signed off succession plans for all subsidiaries to ensure a smooth transition if a key employee leaves the organisation;
  • developed a leader-led communication framework to support leaders in cascading communication throughout their teams. This helps to ensure that all employees are kept informed about important company news and updates; and
  • co-created a new Company culture slogan, "#AsBluWeBelong," with a focus on how employees should behave to make this inclusive culture a lived experience and to improve employee engagement and morale.
• Talent acquisition and retention
  • gained insights and reporting from Career Junction benchmarking to inform our attraction and retention strategy;
  • changed how we advertise roles to the employment market based on benchmarking results. As a consequence, we anticipate more high-quality job applicants;
  • refreshed the Blue Label website to reflect the Company culture and attract top talent; and
  • designed a career page that reflects Blue Label's entrepreneurial and innovative culture.
• Employee well-being
  • increased Blue Label's social media presence to show that employee well-being is a key aspect of the Group's employee value proposition. This activity can assist in improving brand awareness and attracting potential employees.

Overall, these initiatives demonstrate that Blue Label prioritises a positive employee experience that will assist the Group in attracting, retaining and developing top talent.

Human capital profile

The following numbers are provided as at financial year-end. We used 2023 figures as the baseline for future human capital targets.

		2024		2023	2022
Total headcount		1 150		1 412	1 566
By employment type
Permanent		1 041		1 033	1 288
Fixed period		73*		337	227
Non-South African		36		42	51
Allegations and confirmed incidents
Number of discrimination and human rights incidents relating to workers' incidents		—		—	—
Non-employees
Learnerships		3 229		4 310	3 629
B-BBEE
Status level		4		4	4

* Reduction in fixed period employees resulting from a decline in the YES youth programme.

Blue Label is committed to ensuring that its structure and operating model supports a future-ready organisation through:

• attracting and retaining critical skills;
• a people planning process that empowers businesses with the information required to make accurate people and skills decisions;
• a formalised workforce planning design;
• driving the leader-led leadership programme that builds leaders for the future; and
• implementing a leadership programme for top management.

B-BBEE SCORECARD

In 2024, Blue Label improved its B-BBEE level score without the enhancement of the YES programme.

We are committed to maintaining our current level 4 rating and were pleased to accomplish two of our three B-BBEE focus areas.

With our ownership score improving, we are now shifting our focus to management control and leveraging more aspects of procurement.

EMPLOYEE ENGAGEMENT

The employee experience within Blue Label is vital to creating a future-ready organisation. It affects everything, from attracting top talent to increasing output and client happiness. We aim for happier, more engaged employees who are more likely to remain with the Company.

Blue Label keeps track of employee engagement through employee engagement surveys. In the past, Blue Label conducted these surveys every other year. However, as an organisation with a highly developed entrepreneurial culture that always pursues improved ways of doing business, Blue Label employees at times experience the discomfort that comes with change. In 2024, Blue Label also introduced a refreshed set of corporate values around which to build its culture. As a result, we will continue to implement annual employee engagement surveys, with more frequent pulse surveys to keep track of morale.

Our employee engagement scores are outlined below:

Employee engagement survey scores	2025 Target %		2024 %		2023 %
Job satisfaction	75		75		75
Meaningful job	80		79		90
Overall engagement	70		89		70
Feeling valued and safe	90		69		91
Significant work	90		79		90
Happy at work	70		65		80

We prioritised building an employee-centric workplace that meets the evolving needs of our workforce. We are pleased with our progress in fostering flexibility, shared purpose and well-being, all while cultivating a person-first experience that strengthens our inclusive culture. This approach ensures every employee feels valued and empowered to deliver their best work.

The key lies in balancing employee expectations with achieving results. We believe in deliberate leadership focused on our core values and behaviours. By empowering everyone to be a leader of self, we unlock a high-performing and motivated team. This year, Blue Label implemented the following tools to support our leadership teams in driving the innovative and inclusive culture we aspire to:

• Voices of Innovation, a leadership podcast aimed at discussing important trends in our market;
• a Blue Label-designed, leader-led training change management intervention for all senior leaders in the organisation; and
• #AsBluWeBelong conversation guides, empowering leaders with the right tools to build on our culture and enhance the employee experience.

We have not experienced any major stoppage in the workplace over the past three years.

Staying competitive through employee experience

The competitive landscape demands that we constantly assess our EVP and work environment to foster a high-performing culture. While recent distribution sector optimisations brought some uncertainty, we are proud of our overall engagement scores. At the same time, we recognise the need to strengthen feelings of value and safety and to create meaningful work.

In 2024, our key driver for engagement was embedding an inclusive working environment by driving the following initiatives:

• a corporate values refresh, aligning our values with an inclusive culture trait;
• a leader-led communication framework that empowers our leaders to communicate and drive change effectively; and
• employee facilitated learning masterclasses, creating a platform for employees to share their knowledge and experience on work and life-related topics.

Blue Label's 2025 employee engagement priorities are:

• Clearer focus: Through our refreshed values, we will continue to emphasise the importance of motivated employee experiences.
• Positive tone: Acknowledge achievements through our rewards programme, while not being afraid to highlight areas for improvement.
• Conciseness: Consciously tighten up our messaging for conciseness and clarity.
• Actionable language: Continue encouraging employees to partake in engagement surveys, enabling us to act on the outcomes.

HOW WE PERFORMED

Employee retention

A key HR focus in 2024 was to reduce employee turnover. We understand that turnover is impacted by variable factors, including the overall economic environment (which can drive the need for better pay and hybrid work opportunities), culture, better career opportunities and leadership. We conducted stay interviews as part of a proactive effort to obtain predictive insights and learn why people remain at Blue Label or what motivates them to leave the employ of the Company.

Our efforts to build a future-fit organisation are starting to yield positive results, with voluntary turnover consistently decreasing year-on-year. The primary cause of involuntary turnover in 2024 was Blue Label's need to optimise efficiencies by recruiting skilled individuals capable of utilising improved operational processes.

We further ensure that all our employees have a voice in the Company and will continue driving an inclusive culture through everything we do. Currently, no Company employees are party to collective bargaining agreements. Blue Label complies with the law and does not restrict labour representation in any way. Blue Label has also not experienced any major workplace stoppages in the past three years.

Our human capital objectives were achieved through fostering a culture of growth and development for our employees. To achieve this, we focus on two key areas:

• Enhancing internal mobility: By creating more opportunities for internal movement, employees can develop their skills and advance their careers within Blue Label.
• Offering competitive rewards: Partnering with remuneration advisers to benchmark our benefits package against market offerings. This ensures that our compensation and benefits remain attractive, assisting us to retain top talent.

This comprehensive approach empowers employees to achieve their full potential while ensuring we remain a competitive employer.

We are focusing on black (i.e., African, Coloured and Indian) talent while working to retain and grow our junior and middle management personnel. The following initiatives were implemented in this regard:

The slight increase shown in the 50-59 age group and in the over-60 group indicates the retention of experienced employees, along with a global trend for later retirement. Blue Label benefits from stability and institutional knowledge.

Overall, there has been a shift towards an older workforce. Further analysis and examining the reasons behind the changes will assist the business address specific skills and employee gaps.

A shrinking younger workforce may pose challenges in the long run. We will focus on strategies to attract and retain younger talent, including internship programmes, tuition reimbursement and programmes catering to work-life balance preferences.

Building a sustainable talent pipeline

Our declining figures for black employees in 2024 reflect the completion of fixed-term contracts for the YES youth programme participants. Moving forward, Blue Label aims to build a sustainable pipeline by launching Technology and Data Science graduate programmes that target scarce skillsets, while the YES programme is being implemented at a subsidiary level.

Progress on gender diversity

We remain dedicated to achieving a 50/50 gender split by 2026. While female representation decreased slightly to 45% (from 47% in 2023), we are confident that we are on the right track. Men currently comprise 55% (up from 53% in 2023).

Investing in our future leaders

We are committed to building a strong leadership pipeline through internal promotions. Of all the promotions in 2024, 55% were for females and 83% for black talent, reflecting our focus on diversity and inclusion. However, we recognise the potential for further progress. Here are some ways we are working to close the gap:

• Targeted development programmes: We are implementing specifically designed programmes to equip high-potential females with the skills and experience required for leadership roles.
• Mentorship and sponsorship initiatives: We are connecting female employees with experienced leaders who can provide guidance and help to advance their careers.
• Reviewing promotion criteria: We are constantly reviewing our promotion criteria to ensure these are fair and unbiased in promoting talent, based on merit and capabilities.

By driving these initiatives, we aim to achieve a more balanced representation of females in leadership positions.

Innovative recruitment strategy

Our recruitment approach focuses on three key pillars:

• Recruiting for the future: We are repositioning talent mobility as a tool for attracting talent with the skills we require to thrive in the years to come.
• Employee referrals: Our current employees and alumni are invaluable assets. We leverage their networks as a powerful source of future talent.
• Success Management Framework: Our people planning process cultivates an internal talent pool, ensuring a ready source of qualified candidates for promotions.

Diversity and inclusion

Equity is a Blue Label core value. We are proud to report an increase in diverse representation amongst new hires:

• 82% of new recruits are black; and
• 76% of the people appointed into managerial roles are black.

Building a strong employer brand

We've invested in strengthening our employer brand to attract the right talent. This focus has resulted in a significant rise in internal placements, reflecting our commitment to employee development and career progression.

Harnessing technology for smarter recruitment:

We leverage our recruitment platform to:

• Reduce recruitment costs: By utilising data-driven insights, we access a wider talent pool while optimising costs.
• Apply predictive analytics: Analyse data to anticipate future recruitment needs and proactively attract qualified candidates.

SUPPORTING HUMAN CAPITAL GROWTH

Beyond recruitment: Blue Label's impact on learners, merchants and job creation

Blue Label's commitment to building a future-ready workforce extends beyond our internal talent pool. Our technology and offerings play a crucial role in empowering learners, merchants and channel participants, fostering entrepreneurial activity and job creation within our market.

Investing in learners

Blue Label's initiatives, such as learnerships, equip individuals with valuable skills, thereby increasing their employability and entrepreneurial potential. By providing access to training and resources, we cultivate a pipeline of future talent for both Blue Label and the broader economy.

Empowering merchants

Our technology solutions and offerings act as enablers for merchants, particularly those in the independent merchant sector. By simplifying processes and expanding their reach, Blue Label empowers them to grow their businesses, creating sustainable livelihoods and contributing to the informal economy.

Expanding opportunities for channel participants

Blue Label's channel partners play a vital role in our network. Through our support and technology, we equip them with the tools they need to succeed, enabling them to create additional jobs within their communities. This fosters economic growth at the grassroots level.

By focusing on building a skilled workforce internally and supporting entrepreneurship externally, Blue Label creates a ripple effect, driving positive change within the communities we serve.

Investing in employee development

At Blue Label, we recognise the importance of accelerating our employees' ability to develop and adapt in today's dynamic business environment. Our approach focuses on two key aspects:

• Future-proofing skills: The rise of digitisation has created a demand for new skillsets across the organisation. We are committed to providing employees with opportunities to learn and develop these skills, ensuring they remain relevant and contribute effectively in a future-fit business.
• People planning: Our people planning process forms the foundation of talent development. It allows us to assess our current skillset against future needs, identifying any gaps and directing resources accordingly.

Fostering a learning culture

We actively cultivate a learning culture that empowers employees to take ownership of their career growth. This is achieved through several initiatives:

• Success Management Framework: This framework facilitates regular career conversations between managers and employees. These discussions help employees to set goals, identify development opportunities and create personalised development plans.
• Growth mindset: We encourage a growth mindset through which employees are motivated to expand their knowledge and skillsets. This fosters innovation, knowledge sharing, collaborative problem-solving and continuous improvement.
• Engagement: We utilise various applications that align with the Blue Label growth model to provide employees with access to micro-learning masterclasses. These feature micro-learning content covering company-specific and industry trends, to ensure that employees stay current with changes within Blue Label and the broader market.

Entrepreneurship at our core

Blue Label is built on the fundamental belief in empowering individuals and fostering a better future for them. We actively seek opportunities to unlock potential within our people, communities and businesses. This spirit of entrepreneurship drives us to create sustainable employment opportunities for young South Africans.

2024 growth initiatives

• U-Belong: This programme offers young South Africans a transformative opportunity. They can earn accredited learnerships while gaining valuable experience within the informal telecommunications sector:
  • The programme employed 3 939 young South Africans during 2024.
  • Participants receive a stipend and essential tools for success, such as tablets and connectivity.
  • After completing the programme, top performers were given the opportunity to launch their own ICT-based SMEs in the informal market.
• Mobile technician learnerships: These hands-on programmes equip learners with practical experience in the world of mobile technology.
• Focus on disability inclusion: We are proud to have employed 44 learners living with disabilities.
• Technology graduate programme: This programme grants young tech graduates hands-on experience to increase their employability in the market. It is an important channel through which Blue Label builds scarce skills for entry into our business or the employment market.

Investing in well-being at blue label

At Blue Label, we recognise that employee well-being is a critical asset, directly impacting individual and organisational success. We aim to foster a work environment that prioritises physical, mental and financial well-being, empowering our employees to thrive.

Understanding employee needs

Blue Label has initiated a process of analysing leave days taken to gain deeper insights into employee well-being trends. This data, along with the findings from our well-being survey last year (in which 92% of respondents agreed that well-being initiatives are important for retention), will be used to benchmark progress and tailor our programmes effectively.

Blue Label employee well-being: Leave trends and analysis

Average leave taken during the year		2024		2023	2022
Annual leave days per employee		10.71		14.35	10.26
Sick leave days per employee		5.05		3.19	2.12
Study leave days per employee		5.53		2.71	1.75
Maternity leave months per employee		4.0		4.0	4.0
Paternity leave days per employee		9.1		10.0	10.0

Trends in leave data

Annual leave: Average annual leave usage has decreased from 14.35 days in 2023 to 10.71 days in 2024. This trend requires attention so that our employees don't experience burnout. Blue Label's leave policy requires that a minimum of 10 consecutive leave days be taken. Blue Label is actively encouraging employees to take leave by hosting interactive sessions that outline the benefits of resting properly during the year and by alerting employees who still need to take leave.

Sick leave: There was a significant uptick in sick leave, mainly due to several employees taking long sick leave for ailments that required hospitalisation and longer recovery periods.

Study leave: Blue Label experienced year-on-year increases in employees taking study leave for opportunities to develop themselves through formal learning. This aligns with the principles of the growth model at the foundation of Blue Label's Success Management Framework.

Maternity and paternity leave: Maternity leave remained consistent at four months per employee, while paternity leave decreased to an average of 9.1 days per employee with some fathers choosing to return to work early.

Birthday leave: All employees receive a day off for their birthday, as an element of how Blue Label celebrates with them and acknowledges that they are valued.

Comprehensive well-being programmes

Blue Label offers a variety of programmes to support employee well-being that include:

• Employee wellness days: Regional events featuring health screenings and resources to promote healthy habits.
• Wellness learning articles: Educational content raising awareness about critical health issues.
• Financial wellness support: Monthly on-site and online financial advisory services to empower employees with financial literacy.
• Retirement preparation workshops focusing on the psychological, mental and financial needs of individuals when they retire.
• On-site medical services: Easy access to a doctor and physiotherapist at our head office.
• Employee Assistance Programme (EAP) sessions: Confidential consultations with a qualified professional for personal and work-related challenges.
• Wellness on the Go: Monthly online masterclasses fostering a safe and supportive work environment.
• CEO hosts monthly birthday celebratory breakfast gatherings for all employees celebrating their birthdays in that month.

Promoting healthy habits

Two years ago, Blue Label invested in a hydroponic vegetable garden at our head office to grow fresh produce for employees. The vegetables include spinach, lettuce, tomatoes, onions and a variety of herbs, which our employees can harvest and take home. We also offer monthly masterclass sessions for employees, hosted by our external partner, teaching them how to grow their own vegetable gardens and make healthy meals from the produce.

HEALTH AND SAFETY PERFORMANCE

Blue Label KPI		2024		2023	2022
Total number of fatalities recorded on duty		—		—	—
Total number of work-related injuries reported		5		3	4
Total number of work-related illnesses reported		—		—	—
Total number of days absent as a result of injury on duty		34		16	93
Total number of claims submitted to Workman's Compensation		5		3	4

Blue Label's commitment to health and safety

At Blue Label, the health and safety of our employees is of paramount importance. It is important for us to foster a safe work environment and maintain a positive safety record. The breakdown of Blue Label's 2024 health and safety achievements is as follows:

• Zero fatalities: We are proud to report zero work-related fatalities in 2024, demonstrating our unwavering commitment to employee safety.
• Reduced work-related injuries: We sadly acknowledge five work-related injuries reported in 2024. Taking into account our large workforce, our relatively low injury rate indicates the effectiveness of our ongoing safety initiatives.
• Consistent claims management: The consistent number of claims (five in 2024 and three in 2023) submitted to Workman's Compensation suggests that a well-established claims management process is in place.

Looking forward

As part of our commitment for continuous improvement in health and safety, we will build on these initiatives through:

• Proactive safety measures: We will continue to implement and refine preventative measures to minimise the risk of workplace accidents and injuries.
• Safety awareness programmes: We will maintain our focus on employee safety awareness programmes, ensuring all employees are equipped with the knowledge and skills to work safely.
• Incident analysis and response: We will continue to thoroughly analyse all incidents in order to identify root causes and implement corrective actions to prevent similar occurrences in the future.
• Prioritising safety and fostering a culture of risk awareness: Blue Label strives to create a work environment in which all employees feel safe.

WAGE LEVEL AND LIVING WAGE: ENSURING FAIR COMPENSATION

Blue Label is committed to paying fair wages. A recent review identified 30 employees absorbed from our learnership programme that fell below the minimum wage threshold. As a result, all Blue Label employees are now compensated at or above the minimum wage thresholds.