Lagos - Businesses across major African economies such as Nigeria are coming under increasing pressure to retain their employees as well as compensate them owing to competition offered by international rivals.
This is according to Gerhard Hartman, Head of Department for Sage Payroll and Human Resources’ International Division, who says that 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.
“There’s a real hunger for skills in Africa, which means that businesses are demanding that HR departments step up to the plate,” he added.
“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.”
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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 stat seems to be broadly in line with the rest of Africa, said Hartman.
“There is a growing realisation that employees can be a strategic asset rather than a massive expensive if they are well managed, he added.
Hartman said African organisations should focus building the employer brand, remuneration and rewards, performance management and employee engagement to boost HR performance.
Sage HR & Payroll, previously Sage HR Africa, is a leading supplier of payroll and human resource management solutions for businesses of all sizes in Africa and the Middle East.
- CAJ News