HUMAN RESOURCES POLICY

In 2022, the Board of Directors of Baiterek National Management Holding approved the Unified Personnel Policy, a corporate standard that regulates effective human resource management for both the Central Office of the Holding and its subsidiaries. This document introduces significant changes in personnel management processes in the following areas: strategic planning in HR management, organizational development and job design, personnel selection and adaptation, personnel marketing and employer branding, performance management, employee compensation, personnel reserve and talent management, training and professional development, corporate culture development and maintenance, and HR process administration. The policy is valid until 2024.

Strategic Planning in HR Management

Strategic planning in HR management is based on the corporate strategy and analysis of external and internal trends. This area addresses both the short-term and long-term personnel needs, including the required qualifications and number of employees.

Organizational Development and Job Design

This area involves timely analysis of changes in business processes and the creation of new positions due to various external and internal changes. Job descriptions are developed for all positions, controllability standards are established and maintained, and the grade of each position is determined. Future personnel needs are regularly assessed, and business processes are analyzed for potential automation.

Personnel Selection and Adaptation

Baiterek Holding follows a three-stage process for searching and selecting personnel:

·         Candidates from the Presidential Youth Personnel Reserve and the Unified Personnel Reserve of Baiterek Holding are considered first.

·         Employees of Baiterek Holding, its subsidiaries, and the outsourcing sector are given second priority.

·         The third stage involves considering external candidates.

This structured approach prioritizes internal selection to retain key specialists and motivate long-term commitment to the Holding. Information about external job searches is communicated to internal candidates via internal mailings and published on the Baiterek Holding website, with applications accepted via email. Personnel adaptation is facilitated using modern gamification tools.

Personnel Marketing and Employer Branding

To promote the HR brand, increase employee engagement, and ensure transparent internal communication, Baiterek Holding has implemented several measures:

·         Telegram Channel - HR News: This channel is used to publish company news.

·         B-life Intranet Portal: Launched in 2023, this portal allows the publication of news, videos, and the conduction of surveys and polls among employees.

·         Quarterly Employee Surveys: These surveys assess employee satisfaction with internal departments, focusing on effective project interaction, respect, and problem-solving assistance. The survey results are included in the employee key performance indicator (KPI) map.

Performance Management

Performance management at Baiterek Holding is structured around a performance assessment system for each employee, with performance indicators clearly defined from senior management to regular employees. The process of planning, execution, and evaluation is automated using KPI cards for both administrative and management personnel. Since 2022, a comprehensive efficiency assessment system based on the 20-cell model has been implemented. Personnel decisions are made based on performance assessments, which are utilized throughout 2023.

Employee Compensation

Since 2017, Baiterek Holding and its subsidiaries have implemented a grading system based on the Korn Ferry methodology. This system ensures both internal fairness and external competitiveness in compensation. As a result, a transparent compensation policy is consistently applied across the Holding. The motivation system comprises financial components (salary increases, bonuses) and non-financial components (training, promotions, participation in talent management programs). Additionally, non-material incentives are utilized, including annual competitions and awards for the best employees.

Personnel Reserve and Talent Management

As of December 31, 2023, the Unified Personnel Reserve includes 95 employees from the Holding and its subsidiaries. Between 2022 and 2023:

·         20 reservists from the Unified Personnel Reserve of Baiterek Holding were promoted to higher positions.

·         3 reservists completed MBA and EMBA programs at leading Russian and international institutions. In 2023, 3 employees were admitted to the EMPM grant program of the Russian Academy of National Economy and Public Administration under the President of the Russian Federation.

·         5 reservists obtained professional international certifications (CIMA, DiPIA, Prosci, and CFE).

Training and Professional Development

Employee training and professional development aim to update and expand theoretical and practical knowledge, skills, and competencies in professional and managerial activities. This process ensures the effective performance of job responsibilities and addresses tasks aligned with the Holding's development strategy.

The organization of employee training and professional development is based on the following principles:

·         Alignment of training topics and content with the needs identified according to the employee’s job responsibilities, performance assessments, and set goals.

·         Focus on solving specific problems to increase the Holding’s efficiency, studying best corporate practices and standards.

·         Systematic, applied, and planned nature of training and professional development.

·         Maximum coverage of Holding employees through training and professional development programs.

As of the end of 2023, 115 employees completed training.

4 employees received international professional certifications, including:

·         Professional Internal Auditor Diploma (DipPIA)

·         Certified Internal Auditor

·         Prosci® Change Management Certification

Employees participated in 49 training events:

·         8 online

·         41 offline

Satisfaction ratings:

Knowledge received: 4.7/5

Practical value of training: 4.7/5

HR department performance: 4.9/5

Knowledge level increased by 35%

Corporate Culture Development and Maintenance

The Holding actively fosters corporate culture by organizing various events to strengthen corporate values. In 2023, 26 events were held, including:

·         Baiterek Open Hearts Charity Fair

·         Donor Day and Road to School Campaigns

·         Vitamin Day

·         Awards for National Currency Day, Republic Day, and Independence Day

·         Marathons and competitions in board games, chess, football, e-sports, and table tennis

These events promote team spirit, encourage active participation in company life, strengthen internal connections, and maintain a positive work climate.

HR Process Administration

HR processes in the Holding are administered in full compliance with the labor legislation of the Republic of Kazakhstan. Approximately 90% of HR administration is automated using software solutions such as 1C, ZUP, and Simbase, reducing human errors and increasing the efficiency of services provided to employees.