Balancing the on-going need to comply with employment equity and other governance and transformation imperatives has become an increasing headache for companies, according to top executive headhunters.
A survey conducted by Jack Hammer Executive Headhunters of companies in the banking, investment, insurance and FMCG sectors has revealed that the on-going struggle to attract the right people, retain good people and cut those who add overhead but don’t deliver, are causing knockout blows to business.
The majority of those polled said they were clear on key strategic initiatives, but their major challenges related to human resources and their inability to reconcile staffing needs with business priorities.
While companies can take steps to factor in slow economic growth, it is much more difficult to predict and rectify the impact of the big three strikes, retrenchments and employment equity compliance and it seems an on-going corporate struggle to attract the right people.
Despite our massive unemployment issues, there is still a lack of skilled people to fill specialist positions and some Cape-based companies have the added issue of struggling with transformation imperatives as Johannesburg remains the preferred base for EE candidates.
Resourcing has a knock-on effect when it comes to achieving business goals when budgets are not met due to inadequate people or gaps in executive teams, this impacts on business confidence and ultimately results in a lack of investor confidence, creating a vicious cycle for which there is no quick fix.
Participation in the survey guarantees anonymity. One participant in the insurance sector who cannot be named said: “We just don’t have the right people to do the sorts of thing that need to be done. Implementation of key initiatives is behind schedule.”
A respondent from the investment banking sector said that they face “major challenges” when it comes to EE compliance, which in turn hampers their overall success. A Cape-based corporation commented that “the one major challenge that impedes long-term strategy is that the pool of EE talent is based in Joburg with no interest in working in Cape Town. We would have more luxury of choice if we were a Gauteng-based organisation.”
And it’s not only transformation issues that have presented significant challenges to growth. The banking sector was stymied by waves of retrenchments throughout the country “when other businesses do badly, it has a negative effect on ours. There is room for improvement on our implementation.”
A major player in the FMCG industry agreed that labour upheavals, had a significant impact on their business, saying, “When people are striking, they are not buying.”
The survey shows that many companies perceive people issues as the key variable holding business back, at a time and in an era when business sustainability is at its most vulnerable.
In business, people can be equated to money. HR and labour issues are placing an immense strain on our economy. Companies need clear strategies to cope with staff problems. What we have learnt is that it’s just not business as usual.
Debbie Goodman-Bhyat is the MD of Jack Hammer.