Retaining talent tops agenda for CEOs

By Luke anami

Human resource managers are under sharp criticism for failure to design strategies that could see companies retain key talents.

Companies, too, are being blamed for failing to pay keen attention on developing workforce, through investing in training and allowing workers have a variety of job choices.

An annual global survey by PriceWaterhouseCoopers (PWC), released last week revealed that managing talent has become a top priority for chief executives, which has lent voice to the fact that HR could have failed to provide solutions early enough.

According to the survey, 93 per cent of the 31 CEO’s surveyed in Kenya plan to change their firm’s talent management strategy over the next 12 months, compared to 83 per cent of the 1, 200 CEOs surveyed globally.

"CEOs often speak of the importance of talent, but there is not enough evidence of action being taken," Kuria Muchiru, Country Senior Partner, PwC Kenya said. "HR professionals need to help CEOs see what can and should be done."

After a period of cost cutting, hiring freezes and budget constraints, human resources leaders are being challenged to mobilise talent to help businesses grow.

new strategy

The CEOs are once again citing a lack of key skills as the hottest issue on their agenda. This comes into focus following revelations that businesses are losing employees due to increased demand for "qualified" workers. Apparent shortages of the right people with the right skills in the right places remains a major concern, causing many CEOs to demand a rethink of their entire people strategy.

"Human resources cannot escape the blame for the current situation. To a large extend, they have failed to align talent management strategies with the changing face of employment in the country," Paul Kasimu, chairman Institute of Human Resources Management told Financial Journal.

"The resultant effect is instead of remaining still and feeling content with their jobs, most workers nowadays have become more selective in seeking jobs."

While the report does not apportion blame to anyone, human resource experts cite a combination of factors that could have led to a poor talent pool at workplaces.

"Apart from very few institutions of higher learning, Kenyan universities lack proper management and leadership training curriculum that could develop and provide strategies that could be employed to retain talent," Mr Kasimu said.

"Business schools that could rival famous institutions such as Harvard are lacking in our country. What we have in place for training managers and leaders is a curriculum that was developed many years ago with less input from market requirements."

Many human resources teams are failing to deliver the strategic thinking needed to drive growth. Many businesses are simply using the same tactics they’ve always used –which will deliver the same results. In this post-economic crisis world it just won’t be good enough. CEOs will thus need to consider the future of the human resource function as a rethink of this function is long overdue.

"There is a shortage of skilled labour in the market despite a high number of people that graduate from our universities each year," added Kasimu. He says how HR responds will determine whether an organisation thrives and even survives in the next phase of global economic development and shift. In the PWC report, some 87 per cent of CEOs cite competitors recruiting their best people as the main challenge to talent.

"The possibility that people can move across borders to work elsewhere in itself provides room for stiff competition for scarce but skilled employees not just in Kenya but in the East African region," Kasimu, the new director of Human Resources at East African Breweries Limited says. Competition for talent is intensifying as recruitment activity picks up in some sectors and there are increasing difficulties finding staff with the right skills.

Talent crisis

PWC’s view is that talent crisis is no longer a problem of the future.

‘‘It is here and now and is threatening business growth and economic prosperity.’’

"Organisations are to blame for poor talent scouting as majority are obsessed with making profits. They have failed to manage their talent supply chain with the same rigour they would with other parts of the organisation," the report says.

This explains why there is poaching of staff from one organisation to another, a situation Kasimu terms as short-term measure of retaining staff.

Companies too have failed to offer incentives and packages to their workers, sparking a mass exodus of well-developed and skilled staff to rival firms.

"Staff is not motivated by pay alone. Firms need to make sure employees are engaged financially and emotionally," Kuria added. Kuria said CEOs in Kenya anticipate the main change to talent management will be using more non-financial rewards to motivate staff.

"Non-financial rewards can include increased responsibility and developmental opportunities, anything which can help people see how they can reach their full potential. This in turn can help improve workforce skills, another priority for CEOs," Kuria explains.