Tuesday, January 14, 2014

Bulk of Kenya CEOs worried about salaries for top talent


Middle level managers are the most sought-after group of employees, a PwC survey shows. FILE

Middle level managers are the most sought-after group of employees, a PwC survey shows. FILE 
By Victor Juma


Majority of chief executives in Kenya are worried that they are not offering enough pay to retain talent they need to stay ahead of the competition in an expanding economy, a PricewaterhouseCoopers (PwC) survey shows.


The executives say they will need to widen the scope of performance-related compensation and salaries to attract and retain talent in what will leave them with a heavy cost burden.
This was the verdict of 31 CEOs in Kenya who participated in a PwC survey conducted between November 2012 and June 2013 and covered 301 company heads drawn from 19 countries.

The survey showed that 97 per cent of Kenya’s business leaders agreed that their firms needed to match the compensation levels of their peers to retain top talent—which was above the global and the continent’s average of 69 per cent and 79 per cent respectively.

Middle level
“Companies are offering higher pay as a key talent retention strategy,” said Kuria Muchiru, PwC’s human resource leader for Central and Southern Africa. “This is largely seen in fast-growing industries like banking and telecommunications,” he added.

In top demand are people who are technologically literate, knowledgeable of global trends and capable of not only developing but also executing strategy — forcing most blue chip firms to widen their nets to include Africans in the diaspora.

The PwC indicated that majority of the Kenya’s CEO at 48 per cent were less confident of sales growth this year. Mr Muchiru observed that middle level managers are the most sought-after group of employees.

But scarcity of local skills in Kenya’s emerging industries like oil and gas sector has seen an international scramble for even routine tasks like laying of the oil search infrastructure.
The fight to retain key talent comes at a time a section of Kenya’s large companies plan to scale down annual salary increments, citing subpar performance in 2013

.
A separate PwC survey showed employers anticipated increment averaging 8.4 and 8.5 per cent for management and non-management levels in that order. This is lower than the 8.9 per cent and nine per cent paid in 2012.

No comments :

Post a Comment