Pan-African human capital advisory firm, Africa People Advisory Group has released the findings from their recent Africa Human Resources Metrics benchmark study.
The report captures benchmark data from across the continent against 25 people and business metrics from 130 companies, in just over 40 African countries. The report was curated in partnership with Stonefield Advisory, a data analytics company from the UK.
The purpose of the report is in line with the APAG mission, which is to help African organisations use their people data to drive insights and ultimately unlock business growth.
The report captured data from various industries with respondents being represented in major markets such as Kenya, Nigeria, Ghana and South Africa.
The report provides insight on business, talent, sourcing, training and human resources metrics, which aims to assist organisations in enhancing the employee experience.
The report also revealed valuable information on management, diversity, retention, promotion and attrition rates amongst others.
Some interesting findings include a reference to external hire rate, which is 9% on average, this speaks to respondent’s propensity to source talent from outside the organisation.
Interestingly the median promotion rate per annum was 7%, which gives a sense that organisations, in the period under analysis, were inclined to recruit talent externally versus building the talent they need.
The Africa Human Resources Metrics Benchmark Report emphasizes the importance of strategy particularly in the building, buying or borrowing of talent.
This first edition report revealed that for every 100 male executives, there are only 33 female executives – this highlights the existing gaps in Diversity and Inclusion that still exists on the African continent.
The median voluntary attrition rate has been reported as 5%, attrition rates are expected to remain low over the short term as the COVID-19 pandemic continues to impact job prospects. The report also captures some interesting findings related to the cost and revenue per employee across the continent
Tinodaishe Mandebvu, Associate Consultant at APAG, commented “In a world where organisational efficiency has taken centre stage, we sought to establish how lean and optimally structured respondent organisations were. We found that for very 4 employees there is 1 manager across organisations in the African landscape.”
Managing Partner of APAG, Nicolas Constantinides, remarked “Many organisations and industries are under pressure, this has been exacerbated by the global COVID-19 pandemic.
As organisations continue to drive their top line earnings and at the same time drive down their overall expense base, it is important to understand the drivers of revenue and expenses.”
Human Resources has been brought to the fore as a critical lever for business success, and Africa People Advisory Group intends to be a market leader in providing relevant and credible statistics on the African people landscape.