Businesses across major African economies such as Kenya and Nigeria are coming under increasing pressure to align their strategies for retaining talent, compensating employees and engaging with their workforces with good international practices.
That’s according to Gerhard Hartman, head of Department for Sage Payroll and HR’s International Division, who says African companies are facing stiffer competition for skills as economies grow, governments pump money into building infrastructure, and professionals are lured into the diaspora by the promise of big salaries paid in hard currencies.
One recent study conducted by EY found that 70 percent of African firms are recruiting – yet many report that they are taking longer to fill vacancies and experiencing higher staff turnover.
The skills that are in short demand include engineering, technical and commercial skills, partly because of massive infrastructure products occurring across Africa, says Hartman.
“There’s a real hunger for skills in Africa, which means that businesses are demanding that HR departments step up to the plate,” he adds. “They have to craft strategies that help them to attract and retain the best talent, as well as develop human resources in a manner that delivers a high return on investment to the business. That means they need to really focus on sharpening their capabilities.”
According to a KPMG survey, staff costs make up more than 25 percent of the total income in 34 percent of surveyed organisations in Nigeria.
This seems to be broadly in line with the rest of Africa, says Hartman. There is a growing realisation that employees can be a strategic asset rather than a massive expensive if they are well managed, he says.
