Talent development critical to sustaining ‘Africa Rising’ narrative

Africa hosts some of the fastest-growing economies in the world as a result of improved economic governance, accelerated infrastructure investment, rising commodity output and exports and the emergence of a larger middle class. However, there are also concerns about the current lack of talent development across the continent, which close observers say is necessary not only to complement and sustain growth, but also to ensure a wider sharing of the economic benefits.

At a recent ‘Developing Talent for Africa Rising’ seminar, Frontier Advisory CEO Dr Martyn Davies said there was an urgent need to improve talent management and for executives and human resources (HR) professionals to foster the creation and retention of capable African talent.

But successful strategies will also hinge on companies getting to grips with the heterogeneous nature of Africa’s human capital and, while recognising that diversity, finding ways to unite the continent’s citizens behind the vision for greater cooperation and intra-African trade and investment, which could both stimulate further growth and provide the impetus for programmes that cultivate capacity.

Africa Careers Network West and Central Africa manager Theodore Sutherland argues that the improving economic realities of African states – with one-third of African States’ gross domestic product expanding by more than 6% a year – has already made the continent an attractive place for foreign direct investment. But African countries now needed to align their national agendas with improvements in their entrepreneurial and leadership capabilities – specifically those of the youth. Such alignment could spawn a generation of young talented people able to consolidate the economic gains.

Building Consistency

Sutherland argues that home-grown African multinational corporations (MNCs) are already showing signs that they understand the business advantage of skills retention and talent-development initiatives. “African MNCs, such as MTN and Standard Bank, have managed to create a level of consistency around their company experiences across the continent. The standardisation of the overall processes and practices of these companies, as well as their successful deployment of talent, contributes to the subtle but deliberate process of implanting the company’s culture,” Sutherland added.

Standard Bank Group HR head Darryl Wright says the transfer of lessons from one country to another is critical. He adds that addressing fundamental differences in business challenges across markets creates a positive spillover effect into the ways in which organisations attracted and retained talent.

Doing business in Africa, he adds, is as much about consciousness and awareness as it is about skills and knowledge. As a result, business has shifted its focus from leadership towards being culturally agile.

Mitsubishi Hitachi Power Systems senior HR practitioner Isabella Hlabangu adds that companies also need to focus on internal in-house aspects with regard to retaining and attracting talent. Aspects such as ensuring that the company brand is sufficiently promoted to attract talent, unlocking employee confidence, building skills and developing the necessary business acumen of workers help companies to develop and retain skills.

But the ability to adapt and engage with people from varying backgrounds has also become increasingly important as businesses begin to place more emphasis on soft skills. “This also means that organisations will have to pay more attention to what their organisation looks like in 20 years’ time,” Wright avers.

He elaborates that this will fundamentally impact on the way in which businesses recruited and retained talent; they would also have to decide how the skills would be obtained – by going to market or to seek talent internally through targeted education and training programmes. The latter requires an awareness of locally available talent and enabling structures that facilitate the development of that talent.

Talent Scouting

Data analytics will also play an increasingly important role in driving talent recruitment by establishing key metrics that can help organisations determine talent success. “These analytics tools will feed into corporate education programmes, creating capabilities from a leadership perspective so that talent can be developed and retained. The next generation of leadership must be equipped to handle the future with all its complexities,” Wright warns.

Henley Business School dean and director Professor Jonathan Forster-Pedley argues that successful companies are those equipped to bridge talent gaps fastest by accelerating skills development, increasing productivity on the job and integrating into a country’s cultural and social realities.

He adds that the key to developing leadership capability and talent is, therefore, to start developing these skills in people at a young age. “This highlights the importance of having young people pursue internships, mentorships and confidence building activities that enable them to gain exposure to corporate settings and an understanding of professional norms.”

Such experiences develop an understanding of business acumen and lay the foundation for future leaders. “Leading African companies have broadened their leadership development focus and recognise the importance of having quality leaders and capable talent in their companies as a key strategic differentiator,” he highlights.

Moreover, the ability of organisations to manage the talent developed through these programmes is also fundamental to nurturing talent on the continent.

“This can be done by making talent management part of the company’s operational model and ensuring that the manner in which talent is managed is supported by the executive team and the board. These parties essentially have to believe in an HR strategy that is part of a long-term organisational strategy and promotes a unified vision that places human capital development at its core,” he says.

Henley Business School learning and development consultant Gillian Cross states that the success of companies such as IBM, Microsoft and SAB Miller has depended on and continues to depend on talent management, talent development and the strategy to motivate employees to integrate into different realities. This also enabled organisations to operate at much improved levels.

Africa Unit

Although developing and retaining talent in Africa remain pivotal for growth in skills development in Africa, the need for African countries to work together in promoting skills for the entire continent remains critical. However, there is still a reluctance on the part of South Africa to partner with other African countries, which Cross says hinders the mission at hand.

“In many of Johannesburg’s boardrooms there is a lack of professionals who have an African background. Hiring decisions tend to hinder cultural and social diversity, further limiting the level of cultural agility within organisations,” Wright adds.

He indicates that it is not enough to look at Africa through rose-tinted glasses from Johannesburg, as the ability of organisations to attract and develop talent will continue to drive ‘Africa Rising’, but it is essential to ensure that tomorrow’s leaders understand what it takes to be successful in Africa from a business perspective.

“South Africans need to change their attitude towards working in Africa. This process can be done by enticing employees to work in less popular environments by attaching rewards and incentives which allow for career development,” says Vodacom HR chief officer Matimba Mbungela.

He explains that one of the reasons for the negative attitude towards working and operating in Africa is the risk of crises in the region. These stem from political, economical and infrastructural challenges that still exist in most African countries.

“Companies need well-tested crisis management plans that can come into operation when the situation requires them to be used. Companies also require well-constructed strategies that ensure that employees in affected regions are not severely impacted on by the challenges in those regions and that they continue to live their lives relatively comfortably. Such strategies are necessary for business continuity and employee management, and building employee loyalty,” Mbungela stated.

Reiterating this notion, Cross highlights that companies should also motivate employees to pursue opportunities in Africa by ensuring that employees have brand loyalty and that they believe in the importance of the industry and their role in the organisation.

Once this is addressed, the promotion of intra-Africa trade will follow, Mbungela avers, adding that this would result in not only greater trade of goods and a stronger product value chain but also positive spill-overs for the transfer of technology and knowledge.

“Also, greater collaboration between government and the private sector in this regard could bring about a reality more conducive for intra-Africa business relations. Having a good public–private partnership can create a cycle of mutual benefit for all involved, which allows for improved relations and economic growth,” he concludes.

But a better understanding of the local legal and regulatory frameworks of different African States will also be required if companies are to overcome some of their human-resources challenges.

After reading the case study above answer the questions below:

1. Critically discuss the people-related challenges and issues that organisations need to address.

2. Critically discuss the impact of at least three workforce trends that can impact on organisations.

3. Critically discuss the role of HRM as a key requirement in organisations.

4. Explain the benefits of moving from HRM to SHRM for organisations.

5. Critically discuss the role of the line manager as a people manager.

 (Refer to the HRM Value Chain)