The findings regarding trends in Ethiopia are surprising and inconsistent

Deloitte Ethiopia has released its first human capital trend report showing the Ethiopian trend is way beyond the practice of other countries. The report was released on July 29, 2015 at the Sheraton Hotel.

A human capital trend report according to investopedia.com is a measure of the economic value of an employee’s skill set; the education experience and abilities of an employee and economic value for employers and for the economy as a whole.

The Ethiopian report by Deloitte attempted to gather its data from 47 private companies and public enterprises. Only 40 responded and participated in the study, the majority of them are from the financial sector.

The report has assessed 10 key trends and rated companies on readiness to address each challenge; it has also ranked each trend based on those companies ranking of relevance of each trend.

Five of the trends were performance management, learning & development, leadership, culture & engagement and reinventing human resource; the companies within the survey have ranked the mentioned trends first to fifth, respectively.

The ranking is somehow in reverse to the global practices, said Kemal Mustefa, director of human capital at Deloitte Consulting. In other countries and global practices cultural engagements have given the first priority and where as performance management came last.

Culture and engagement is softer and it is more about assessing the satisfaction and engagements of individual employees, whereas performance management is a process by which managers and employees work together.

The report indicates that performance management has the power to orchestrate and drive human resources and talent programs, consequently the power to enhance the contribution people make to business outcomes across the board, rather than focusing on measuring and rating alone, stated the report.

Companies need to have a clear performance management system, consisting of clear objectives, continuous evaluation and staff development and couching schemes ensuring in-house capacity building and improved human capital.

“But according to the finding what we have most of the time is management appraisal and even then what was seen in the report is evaluation system which are not frequently done, rewards almost given for both good performers and the weak ones,” Kemal told Fortune.

Among the companies included in the report 90% of them think performance management is urgent or important and only 38% of them found to be ready to develop it

In most cases human resource is valued as a back office practice, not as a strategic partner, Kemal said.  Ninety two per cent of the organizations in the survey consider reinventing human resource as central, but only 26pc are not ready to change their human resource.

Deloitte is also conducting another study to launch next month to assess several aspects of organizations and finally will award the best company to work for.  Elements such as leadership, operational effectiveness, relationship with manager, performance and recognition will be measured in the survey. Organizations will be included in the study for a fee.

It will cost organizations that have 50 up to 500 employees, 501 to 1,000 and above 1000, 59,000 Br, 69,000 Br and 79,000 Br, respectively to be included in the study.

Deloitte is one of the leading names in international consultancy along with Pwc, EY and KPMG. It was established in Ethiopia in 2012, with a joint venture arrangement with a local partner, HST consulting Plc, with a registered capital of 1.1 million Br.

Since then, Deloitte has finalized a study for Wagagen Bank S.C. on human resources and signed a contract with Bank of Abyssinia S. C to carry out a similar study in June this year.

Deloitte, mostly gives advice on new financial areas, creating new markets, use of information and communication technologies, improving customer services, risk assessments, better ways of raising finance, mobilizing deposits and human resource development. It is actively engaged in providing consultancy services for financial institutions in other African countries such as Kenya, Algeria, Gabon, Ethiopia and etc. The company is headquartered in the US.

Source: Addis Fortune
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