Damu - ANNUAL REPORT 2018

SUSTAINABLE DEVELOPMENT

ANNUAL REPORT 2018

HUMAN RESOURCES MANAGEMENT

EMPLOYEE BREAKDOWN, PERSONS

Human Resources Policy

Item

2016

2017

2018

Human Resources Policy of the Fund focuses

Top management

on the following strategic areas:

• developing a uniform model of human resource

-of them women

management;

• a policy for improving productivity;

Heads of structural divisions

• a policy for improving the quality of human capital;

and regional branches

• corporate culture development.

-of them women

EMPLOYEE NUMBERS AND BREAKDOWN

Administrative staff

328

323

325

As of December 31, 2018, the Fund employed

–of them women

171

155

178

371 people. Over the past three years,

the Fund’s staff numbers remained unchanged.

Total

371

-of them women

186

169

193

FOR THE

REPORTING

YEAR

EMPLOYEE TURNOVER

In 2018, the total employee turnover rate was 16.4 % compared to the target of 20%. In 2018, the

Fund had 159 open vacancies, of them 135 vacancies for an administrative position and 24 vacancies

311

for managerial and executive positions. 35.1% of vacancies for administrative positions were filled with

EMPLOYEES

internal candidates. 64.9% of vacancies were filled with external candidates. 62.5% of vacancies for the

OF THE FUND

managerial and executive position were filled with internal candidates from the Fund’s Talent Pool, 37.5%

WERE

of vacancies were filled with external candidates. (Graphic 10)

TRAINED

Graphic 10

EMPLOYEE TRAINING AND DEVELOPMENT

EMPLOYEE TURNOVER IN DAMU

ENTREPRENEURSHIP DEVELOPMENT

The goal of employee training and professional development is to update and gain

FUND JSC FOR 2016-2018, %

additional theoretical and practical knowledge, skills, competencies, and abilities in the

field of professional and management activity of employees for the effective performance

of their job responsibilities and solving the tasks established in line with the development

16,4

strategy of the Fund.

13,7

12,4

In order to achieve this target, the Training Plan for the Employees of Damu

Entrepreneurship Development Fund JSC was approved by the decision of the Fund’s

Human Resources Committee (Minutes No 07/2018 dated January 17, 2018). The Fund’s

311 employees were trained 632 times by attending 66 training events. Some employees

took several training courses throughout the year, including in the corporate format.

Training as part of the annual Plan was aimed at the development of employees’ business,

personal and professional competencies.

2016

2017

2018

ANNUAL REPORT 2018

SUCCESSION POOL

performance assessment depends on the

specific tasks supported by individual key

In 2018, the Fund continued to build and

performance indicators (KPIs): to this end,

develop its talent pool. In 2018, 29 people

the Fund conducts a quarterly performance

were included in the talent pool of the

review of administrative employees to de-

THE LEVEL

Fund. In this period, 14 people were pro-

termine if employees are qualified for their

OF EMPLOYEE

moted to higher-level positions, 12 - to ex-

jobs and to calculate the percentage of tar-

ENGAGEMENT

ecutive positions.

get achieved. In 2018, the Fund developed

AND SATISFACTION

a system of position grades based on the

The Fund actively works to develop (train,

FUND’S AT

assessment of the contribution of each po-

ensure career growth) of succession pool

sition and its relevance in the context of the

members. In particular, Individual Devel-

entire Fund, established basic salaries in ac-

opment Plans were developed for them.

cordance with the implemented system.

75%

While being in the talent pool, employees

The Fund’s employees have annual health

in the talent pool attend training events

insurance plans paid by the Fund’s budget.

that promote the development of their

In addition, the Fund provides financial aid

professional and personal competencies.

to employees in the amount of two salaries

Also, the talent pool continues to attend

in case of annual leave, marriage, childbirth

studied the current type of corporate cul-

business meetings with independent di-

or death of a family member.

ture, identified the preferred type and de-

rectors of the Board of Directors, Chair-

veloped an action plan for implementation

man of the Executive Board and members

The average salary (minus social contribu-

of the preferred model of corporate cul-

of the Fund’s Executive Board.

tions) is paid during pregnancy or mater-

ture for 2019-2020.

nity leave.

CORPORATE CULTURE

In addition, team building events, train-

DEVELOPMENT

OCCUPATIONAL HEALTH

ing courses are carried out regularly; In-

tranet - a corporate website was launched

Corporate culture development is an es-

The Fund focuses on systematic work and

for close internal interaction of the Fund’s

sential element for building a highly ef-

incremental steps to enhance workplace

employees on many issues, both of work

fective organization and a necessary com-

safety and to promote a safe working cul-

and informal nature.

ponent to achieve the company’s strategic

ture.

goals. Due to this every year, surveys are

The Fund complies with the laws and reg-

conducted to measure employee en-

MOTIVATION

ulations of the Republic of Kazakhstan in

gagement, plus there are regular business

AND REMUNERATION

the area of occupational health, industrial

meetings and meetings of the workgroups

and fire safety, and takes additional mea-

and the Human Resources Committee of

The purpose of the Fund’s productivity

sures to minimize workplace accidents.

the Fund’s Executive Board.

improvement policy is to link the Fund’s

strategic objectives, strategy and business

The Fund’s employees are guided by the

In 2018, the level of employee engagement

plans with the evaluation, motivation and

Occupational Safety Policy for the Fund’s

and satisfaction compared with 2017 re-

incentive policy

office workers. The Policy applies to all

mained unchanged at 75 %.

major activities of the Fund employees

All employees should work to achieve the

during their work, in the Fund’s offices,

In 2018, the Fund carried out activities to

goals and objectives aligned with the stra-

during business trips, as well as emergency

promote team spirit. In particular, the Fund

tegic objectives of the Fund. Employee

situations.

ANNUAL REPORT 2018

CORPORATE SOCIAL RESPONSIBILITY

The Fund is aware of the importance of its

The Fund ensures consistency of its eco-

other things, include ensuring labor safe-

impact on the economy, the environment

nomic, environmental and social goals for

ty and preserving the health of employees,

and society to ensure sustainable devel-

sustainable development in the long term.

fair remuneration and respect for the rights

opment in the long term while respecting

of employees, individual development of

the balance of interests of stakeholders. A

The sustainable development of the Fund

personnel, implementation of social pro-

responsible, thoughtful and rational stake-

includes 3 (three) components:

grams for personnel, creation of new jobs,

holder approach will contribute to the sus-

1) economic component directs the Fund’s

sponsorship and charity, environmental

tainable development of the Fund. In 2018,

activities towards the profitability of its

and educational activities.

the Fund complied with the requirements

activities, promoting the interests of the

of the Corporate Social Responsibility Poli-

Sole Shareholder and investors, improving

In order to improve the Fund’s performance

cy of Damu Entrepreneurship Development

the effectiveness of processes, increasing

in the field of sustainable development, an

Fund JSC, approved by the decision of the

investments in creating and developing

Action Plan was developed and approved

Fund’s Executive Board dated January 22,

more advanced technologies, and increas-

to strengthen the corporate social respon-

2018 (Minutes No. 05/2018). In December

ing labor productivity;

sibility of Damu Entrepreneurship Devel-

2018, the Holding sent the Sustainable

2) environmental component contributes

opment Fund JSC for 2018-2019, which

Development Policy of Baiterek Nation-

to minimizing the impact on biological

provides for 32 measures. In addition, tar-

al Managing Holding JSC, approved by the

and physical natural systems, the optimal

decision of the Executive Board of Baiterek

use of limited resources, the use of envi-

get values of performance assessment in-

NMH JSC dated November 28, 2018 (min-

ronmentally friendly, energy- and materi-

dicators for corporate social responsibility

utes No. 52/18), in accordance with which it

al-saving technologies;

within the framework of three components

is planned to improve the Fund’s sustain-

3) social component is focused on social

of sustainable development are approved

able development management system.

responsibility principles, which, among

on an annual basis.

CORPORATE SOCIAL RESPONSIBILITY PERFORMANCE IN 2018

Areas in corporate

social responsibility

Indicators

Target value for 2018

Results

The sum in the

A total of KZT 10 mln

In 2018, funds in the amount

Fund’s budget

are included in Y2018

of KZT 5 mln under “Provision of sponsorship”

for sponsorship/

Budget under “Provision of

were redistributed to othe Budget items.

charity

sponsorship”

Economic

indicators

Total amount spent by

Target amount planned to

In December 2018, according to the sponsorship

the Fund on provision of

provide sponsorship and charity

agreement No. 236 dated December 29, 2018,

sponsorship and charity

support to external interested

the Fund provided sponsorship support

support to external

parties in 2018 is KZT 10 mln

in the amount of KZT 5.0 mln of the Mountaineering

interested parties

and Sport Climbing Federation.

ANNUAL REPORT 2018

Areas in corporate

social responsibility

Indicators

Target value for 2018

Results

Number of entrepreneurs

Not less than 500 people

Number of participants who took training for

and population with

existing entrepreneurs in 2018:

1. Finance not for financiers (in Kazakh) - 21

entrepreneurial initiative who

2. Finance for non - financiers - 462

took distance training

3. Sales growth system - 527

4. Sales growth system (in Kazakh) - 31

5. Effective Marketing Service - 229

6. Effective Marketing Service (in Kazakh) - 7

7. Employee motivation - 304

8. Employee motivation (in Kazakh) - 3

Total: 1,584

Number of participants who took training for first-

Economic

time entrepreneurs in the current period of 2018:

indicators

1. First-time entrepreneur - 4583

2. First-time entrepreneur - (in Kazakh) 1,052

Total: 5,635

Number of entrepreneurs with

1) Annual placement of not less

As of January 1, 2019, there were 2,559 requests

disabilities who have received

than 300 requests for provision of

submitted, of which sponsorship was provided

support through Damu-Komek

sponsorship

under 2,148

project within the framework

of the Unified Program for

2) Annual provision of non-

Raising Entrepreneurship

financial material and property

Competencies of Damu

support for at least 150

Entrepreneurship Development

entrepreneurs with disabilities to

Fund JSC for 2015-2018

carry out business activities

Personnel

engagement

75%

level

Number of young

40 people

specialists who took

trainng or practical

Human

training in the Fund

resources

indicators

Number of the Fund’s

220 employees

311 employees

employees who took training

Number of appeals of

employees to the Fund’s

ombudsman on the matters

of non-compliance with

the Business Code Ethics

Environmental

Reduced consumption of

Reduced power consumption by

Data for 2018, as of January 01, 2019: decline

indicators

enegy resources by the Fund

10% compared to 2017

in power consumption made up 23.24%. The

compared to previous years

preliminary figure is derived from consumed enegy

amount (kWh / kW) and provided documents.

ANNUAL REPORT 2018

ENVIRONMENTAL PROTECTION

In June 2018, in order to prevent and reduce

1) study of tools that contribute to preven-

activities, assignment of environmental risks

excessive environmental damage in the pro-

tion/avoidance of negative impact of proj-

(A, B and C), the Asian Development Bank

cess of implementing business projects of

ects on environment and people;

case studies were used.

entrepreneurs who are participants in some

2) minimization, mitigation and /or compen-

entrepreneurship support programs, as well

sation of negative impact of projects on en-

In 2019, it is planned that consultants from

as to adequately construct environmen-

vironment when this cannot be avoided;

the Frankfurt School of Finance and Man-

tal management provided for by the Fund’s

3) assistance to borrowers to strengthen the

agement will conduct training on the green

Environmental Policy, an environmental

existing system of protective measures and

financing principles under the framework of

protection training was held for monitoring

capacity development for the environmental

potential loan from the Asian Development

workers the Fund’s regional branches (here-

and social risk management.

Bank for development of green economy

inafter

- the regional branches), together

in the Republic of Kazakhstan. On April 29,

with the representatives of STB, the Asian

A list of prohibited investment activities for

2019, the first meeting with the consultants

Development Bank.

projects that, in the context of implementa-

from the Frankfurt School of Finance and

tion, are detrimental to human health and/or

Management was held, which determined

The goal of the training was to train the mon-

ecology was proposed for review and study.

the structure of training on the “green” fi-

itoring managers of regional branches on the

Also, training was conducted for step-by-

nancing principles and identified the needs

main principles of the Asian Development

step study and review of financing project,

of the Fund and potentially involved finan-

Bank Policy for protective measures, namely:

proper use of funds to identify prohibited

cial institutions.

CHARITY

In 2018, the Fund arranged vol-

untary fund-raising for the ben-

efit of WWII veterans and home-

front workers: the proceeds were

transferred personally to the vet-

erans of Almaty city.

Kostanay region, “LIDER-2010” LLP.

Project for the construction of a new

ultramodern milk processing plant.

The company has received support

through the subsidy instrument in the

framework of the 2020 BRM

ANNUAL REPORT 2018