The future of HR 2019: In the Know or in the No - The gulf between action and inertia - KPMG International

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The future of HR 2019:
In the Know or
in the No
 The gulf between action and inertia
 East Africa Outlook

February 2019
kpmg.com/eastafrica
Introduction
Building capacity for the transformative HR agenda
The Regional Center for Workforce
Transformation defines workforce
                                            HR’s ability to support enterprise
                                            transformation from an organisational
transformation as an organisational         capability perspective.
culture improvement initiative, requiring
                                            —           Similar findings from the
understanding of and participation
                                            research show that 50% (of global
in continuous quality improvement
                                            respondents) and 40% (of East Africa
at every level of an organisation. The
                                            respondents) believe that their HR
reference to “understanding” in this
                                            functions are not at all prepared for
definition speaks to a data-driven,
                                            artificial intelligence and /or machine
insight-based approach to continuous
                                            learning.
improvement.
                                            The above findings are symptomatic of
When Bill Smith and Bob Galvin helped
                                            the main challenge for HR today: there
Motorola save $16 billion in costs and
                                            is a gap between what is required today
win the prestigious Malcolm Baldrige
                                            and tomorrow and what HR has the
National Quality Award in 1988, the
                                            capability and capacity to deliver. One
global manufacturing industry was
                                            of the key capability gaps as highlighted
changed forever. The disciplined
                                            earlier is the ability to leverage evidence
approach to data collection and analysis
                                            - gather it, process it, and loop insights
that form a core part of the lean six
                                            from it into the design of processes and
sigma approach played a critical
                                            programs as well as decision-making on
role in the resultant transformation
                                            employee matters along the employee
for Motorola. Lean six sigma and
                                            life cycle.
other data-driven improvement
methodologies have continued to define      But why the fuss? What is the
and transform business operations to        imperative for HR to change anyway?
date. The HR profession however, has        One word, “VUCA” comes to mind.
struggled to effectively tap into the       Volatility, Uncertainty, Complexity,
transformative power of data.               and Ambiguity (VUCA) are an
                                            increasing reality for the business
According to the KPMG 2019 ‘Future of
                                            world. Increasingly, industry leaders
HR Survey’, HR executives in East Africa
                                            are faced with the rapid pace of
ranked performance management,
                                            business change, a greater pressure to
attraction of employees, learning and
                                            perform, increasing globalisation, the
reskilling, and staff retention as the
                                            emergence of new business models,
areas where they think they currently
                                            new communication channels, matrix
add the most value to the organisation.
                                            organisation structures as well as a
However, analytics, creating multiple
                                            shift in the accepted paradigms of
employee value propositions and
                                            good leadership. The role of HR is to
strategic work force planning were
                                            work with management to create the
listed among the areas they felt they
                                            right ecosystem that will unleash the
were adding the least value.
                                            productivity of the workforce, and
—       From the survey, 92% of HR          deliver value for the customer as well as
executives recognise the need for           the employee. Therein lies the challenge
workforce transformation but only           for the HR. HR functions must deliver
56% — feel “very confident” about           value within a VUCA environment. To
do this effectively, HR leaders need         are unhappy, HR should seek to define:      Authors
                                                                                         and
clarity on the drivers of business and       How many staff are unhappy? For how
employee value and a modus operandi          long have they been unhappy? From
that delivers optimal value for both. This   which departments are they? What is
will entail cultivating new competencies     the cause of the unhappiness? What is

                                                                                         contributors
for HR professionals. There are at least     the cost to business if this unhappiness
four additional core competencies            remains unaddressed? What will be the
HR functions require to enable them          cost of addressing this unhappiness?
deliver value in the context of a VUCA       Is there a cheaper way to address this
environment.                                 unhappiness effectively? Knee jerk          KPMG East Africa would like to
                                             reactions to employee unhappiness may       thank the following for their time
Business acumen: The Financial
                                             not effectively solve the problem. Data     and expertise in the preparation of
Times describes Business acumen as
                                             analytics goes a long way in helping HR     this year’s report.
“keenness and speed in understanding
                                             professional’s quantity benefits, costs
and deciding on a business situation.”                                                   Gerald Kasimu
                                             and defend causes of action. HR leaders
HR professionals can no longer get by                                                    Partner and Head
                                             that tap into data analytics will be able
with technical HR knowledge only -                                                       Advisory
                                             to shape the boardroom agenda, earn
their knowledge and skills must cover                                                    gkasimu@kpmg.co.ke
                                             respect among their peers and offer
competencies required to identify and
                                             solutions that stand the test of time.
leverage opportunities to grow revenue,                                                  Brian Desouza
                                             Without reliable data, HR solutions
reduce cost, and improve profitability; or                                               Partner and Head
                                             proposed may sound good but indeed
at least support these activities. Among                                                 Risk and Management Consulting
                                             be far from effective.
the several ways HR could be of value                                                    briandesouza@kpmg.co.ke
in this regard include reduction in lead     Negotiation and problem-solving
time for HR processes so that staff can      skills: Heads of HR often find              Nancy Mosa
focus on revenue-generating activities,      themselves listed as respondents            Partner
reduction in unwanted attrition, and         in labour cases initiated by unhappy        IT Advisory
improved employee utilisation.               staff or labour unions. Employees and       nmosa@kpmg.co.ke
                                             unions are increasingly demanding for
Strategy formulation: While strategic
                                             “more and better”. HR functions must        Titilope Olajide
Human Resource management looks at
                                             become better at negotiating with staff,    Associate Director and Head
how HR functions can support business
                                             unions, and process owners across           People and Change
strategy, it is no longer enough to only
                                             the business. The ability to anticipate     titilopeolajide@kpmg.co.ke
play the role of enabler to business
                                             dissatisfaction, mitigate problems
strategy. HR must increasingly play
                                             before they emerge, and negotiate           Anastasia Kamande
a proactive and participative role in
                                             compromises with stakeholders is            Associate Director
corporate strategy design. HR leaders
                                             becoming an increasing value add.           Data and Analytics
must now help businesses interpret
                                             Several millions in fines, and lawyer       akamande@kpmg.co.ke
what the implication of robotics, and
                                             fees could be saved if HR functions
artificial intelligence are, and help
                                             enhanced their negotiation and problem-     Jared Nyarumba
businesses anticipate and respond
                                             solving skills. Costs to business and       Associate Director
proactively. HR leaders that play a
                                             reputation resulting from go-slows and      IT Advisory
value addition role in the workforce
                                             other industrial actions can be immense.    jnyarumba@kpmg.co.ke
transformation agenda are competent
                                             While better negotiation skills alone
in strategy formulation and help the
                                             may not eliminate industrial challenges,    Geoffrey Ogoti
business broaden its strategic insights
                                             they could be useful in reducing the        Manager
and actions with regards to talent within
                                             frequency of occurence.                     Data and Analytics
the organisation.
                                                                                         gogoti@kpmg.co.ke
                                             In conclusion, opportunities and
Data analytics: Edwards Deming
                                             challenges presented to HR functions
is famed for the saying, “In God we                                                      George Kamau
                                             will continue to be demanding and
trust. All others must bring data.” Data,                                                Senior Advisor
                                             exciting. HR will only be able to deliver
trends, empirical research, proof and                                                    Management Consulting
                                             value and execute the transformation
hard evidence is the loudest voice in                                                    gkamau@kpmg.co.ke
                                             agenda if they continue to evolve and
the noisiest bourse. HR teams often
                                             tailor their competencies towards
defend views, and drive conversations                                                    Jacklyne Betty
                                             today’s business needs.
around emotional rather than factual                                                     Advisor
data. I am not saying that emotions are                                                  Data and Analytics
                                             Titilope Olajide                            jbetty@kpmg.co.ke
to be ignored, but that emotions must        Associate Director and Head
be supported by data and insights that       People and Change
can hold up to interrogation. E.g if staff   KPMG East Africa                            Sidney Aburi
                                                                                         Business Development Advisor
                                                                                         saburi@kpmg.co.ke
Table of
contents

 06               08
 In the Know or   Key findings
 in the No
12                                  Driving business
                                        performance through
                                        HR predictive
The role of HR in a                     analytics
digital transformative
world
                            14

                            Building a

                                                     16
                            workforce for the
                            future - Artificial
                            Intelligence

                About the
                survey
                                                  How KPMG

    18                                            can help

                                                   22
Are
                                             you
                                              In the Know
                                              or in the No..
                                               Most HR
                                               executives —

    Identify                                   92%
    transformation                             recognise the need
                                               for workforce
    as critical for                            transformation.

    relevance
6   The future of HR 2019: In the Know or in the No | East Africa outlook
However                                          HR growth and excellence

                fewer are                                   Common characteristics:

                                                                     delivering predictive

                change ready                                         insights

                                                                     believing in, and
                                                                     driving, digital

                56%
                of HR Leaders are very
                                                                     agenda

                                                                     reshaping the
                                                                     workforce
                confident in HR’s ability to
                transform the workforce and
                                                                     enhancing the
                itself                                               employee experience

                 Furthermore
                 not too many are                          Common characteristics:

                 change capable                                      HR not seen as value
                                                                     driver
                Respondents feel that these are
                the areas where they are currently
                                                                     HR not using
                adding the least value:
                                                                     predictive insights
                - Workforce of the
                  future/workforce planning                          generally timid
                                                                     of AI
                - Analytics
                - Differentiated value proposition                   no digital plan in place
                  for various workforce                              (and not planning to)
                  segments

HR extinction                  The future of HR 2019: In the Know or in the No | East Africa outlook   7
Key findings
    Here are the key findings of the survey we carried out
    involving HR executives across East Africa.

    76%    of HR executives agree that HR has
    undergone or is undergoing a digital transformation.

    But only        49%
                      of HR leaders said they have a digital
    workplan in place at the enterprise or HR level.

    Most HR executives —

    92%      — recognise the need for
    workforce transformation.

    Yet only

    56%         — feel “very confident” about HR’s actual
    ability to transform and move them forward via key
    capabilities like analytics and AI.

8   The future of HR 2019: In the Know or in the No | East Africa outlook
Workplace culture is considered a top barrier
                                  to digital transformation for

                                  58%           of respondents.

                                  Of these respondents,
                                  current culture is task-oriented.
                                                                     41%
                                                                    said their

81%      of HR executives believe that the
role of HR is becoming more strategic in
their business. The three top issues the
management board is looking for HR to
address are:
- Performance
- Productivity
- Culture

                                      Despite data’s remarkable ability to deliver
                                      new insights and enhanced
                                      decision-making, barely one in five —

                                      22%       — of HR leaders believe analytics
                                      will be a primary HR initiative for them over
                                      the next one to two years.

                                      Fewer still —

                                      14%   — cite analytics as a top
                                      management concern.

                                       The future of HR 2019: In the Know or in the No | East Africa outlook   9
Recent and projected technology investment has
     been highest for payroll systems and/vendors and
     human capital management (HCM) softwares

     54%       of HR executives invested in
     payroll systems and/vendors over the past 2 years

     38%
     softwares
              in human capital management

     Over the next year or two, more are planning investments in
     areas such as:

         predictive analytics                              enhanced process   and AI
                                                             automation
                   54%                                              57%       27%
     Those leading the pack on transformation recognise how
     AI and machine learning can drive significant value for HR
     but they are in the minority by far.

     Only     19%            of HR functions have started to introduce AI

     and just   5%              have invested in AI over the past 2 years.

10   The future of HR 2019: In the Know or in the No | East Africa outlook
Of organisations yet to adopt AI
                                               within HR, some remain uncertain
                                               that they will do so in the next
                                               year or two.

                                              40%         admit to being “not at
                                              all prepared” to respond
                                              strategically as AI and machine
                                              learning emerge.

Among those who have invested in AI to
date, the vast majority call the investment
worthwhile,
with the focus primarily on learning and
performance management

43%
and business
transformatiton

29%         .

                                        The future of HR 2019: In the Know or in the No | East Africa outlook   11
The role of
                      HR in a digital
                      transformative
                      world
                     A
                           ccording to the KPMG 2019 ‘Future of
                           HR Survey’, 76% of the respondents
                           from East Africa agree that their
                      HR function is undergoing or has recently
                      undergone a digital transformation.
                      But what is a digital transformation? Several
                      definitions have been coined but Enterprises
                      Project may provide the most useful one.
                      They define digital transformation as “the
                      integration of digital technology into all areas
                      of a business, resulting in fundamental
                      changes to how businesses operate and how
                      they deliver value to customers.”

12   The future of HR 2019: In the Know or in the No | East Africa outlook
Transformation guru Greg Verdino says        business transformation. If your culture        during rapid digital transformation, there
- “Digital transformation closes the gap     is built on an analogue philosophy,             is need to facilitate effective change
between what digital customers already       it won’t support digital results. A car         management for their organisations.
expect and what analogue businesses          designed for a top speed of 240kph will         Integral to change management, is
actually deliver.”                           not attain its optimal speed on a rough         an effective communication strategy
                                             and curved road. Similarly, a 100kph            that carries the critical mass of staff
The following examples demonstrate the
                                             digital transformation agenda will not run      and management along the digital
technical distinctions between analogue
                                             optimally on a 15kpm culture track. The         transformative journey.
and digital as applied to technology.
                                             success of your digital ambitions will be
Transmission of an email uses digital                                                        Digital transformation in the HR space
                                             moderated by your organisation’s culture.
technology for instance. In the context                                                      should not be looked at in isolation.
                                             A digital culture encourages and rewards
of a digital transformation, an example                                                      Organisations need to build their digital
                                             innovation, supports learning, tolerates
could be moving from a brick-and mortar                                                      strategy around internal and external
                                             failure in the pursuit of transformation
storefront business, to a website or                                                         operations, remaining anchored on their
                                             – while quickly leveraging lessons - and
ecommerce platform for business                                                              business strategy. Today, failure to build
                                             rewards a high performance culture.
transactions. “Going paperless” for                                                          an all-encompassing digital strategy
                                             Culture informs how you recruit, and how
instance, often entails some sort of                                                         exposes the organisation to various risks
                                             you design your staff policies. HR can
digital transformation. In summary, you                                                      and inefficiencies, including those that
                                             play a powerful role in redefining culture
are undergoing a digital transformation if                                                   could threaten its own survival.
                                             by working with leaders to recruit the
your business is introducing a technology
                                             right staff, and by redesigning policies,
that does any of the following: enables
                                             procedures, incentives and performance
scalability, facilitates remote access,
                                             programs to encourage the right culture.
receives or synthesises data from
                                             Since culture is driven by leadership, HR
multiple systems, reduces time spent,
                                             can help leaders design and execute
requires less human processing and
reduces errors.
                                             effective digital culture transformation          Organisations need to build
                                             initiatives.                                      their digital strategy around
Digital transformation for HR is
                                             Talent management. Effective talent               internal and external
two-pronged. On one hand, HR is
experiencing digital transformation
                                             management entails a 360 degree                   operations, remaining
                                             approach to staff management - from pre           anchored on their business
through the use of online recruitment
                                             recruitment to post exit. HR functions
and candidate shortlisting, as well as the                                                     strategy.
                                             have undertaken significant digital
integration of employee measures of
                                             transformations with regards to talent
productivity with payroll, amongst other                                                                         Jared Nyarumba
                                             management. Social media to source
things. On the other hand, HR must                                                                               Associate Director
                                             talent, candidate shortlisting softwares,
help businesses address the ongoing                                                                                    IT Advisory
                                             electronic performance management
talent implications resulting from digital                                                                       KPMG East Africa
                                             systems, and employee self-service
transformation across other functions of
                                             modules are increasingly being used.
the business.
                                             From an organisation-wide perspective,
57% of East Africa respondents to            digital transformation agenda requires
the KPMG 2019 ‘Future of HR Survey’          the organisation to engage competent
highlighted an increased budget for          staff, and facilitate sustained learning
HR technology/digital solutions over         and development, to secure a workforce
the past two years in their enterprises.     that is agile and responsive. Digital
East African respondents pointed to an       transformation has opened new
increased budget for HR technology/          frontiers for how work gets done, such
digital solutions over the next two years    as “work from home” and other flexi
in their organisation.                       options. All these have implications
                                             for talent management within a digital
There are at least three imperatives
                                             environment. HR must design strategies
for HR in this highly tech-driven work
                                             that enable the business to unlock and
context. Culture transformation, effective
                                             maximise employee productivity within
talent management, and effective
                                             the context of digital transformation.
change management.
                                             Change Management. Digital
Culture has real implications for the
                                             transformation can be very disruptive,
digital transformation agenda. 58%
                                             and unsettling for industries,
of the East Africa survey respondents
                                             organisations and staff. Weak or lack of
(against 40% of global respondents)
                                             change management programs could
identified culture as the top barrier in
                                             be costly. For HR teams to add value
moving from the initial phases of digital

                                                                   The future of HR 2019: In the Know or in the No | East Africa outlook   13
Driving business
                    performance
                    through HR
                    predictive
                    analytics
                    I
                       n the 21st century, the exponential increase in data
                       promises to create
                       opportunities for growth.
                    Its supply is unlimited and its
                    applications are endless. Data
                    & Analytics (D&A) enables
                    the delivery of insights as a
                    source of competitive
                    advantage across the
                    business and at each point of
                    need.

14   The future of HR 2019: In the Know or in the No | East Africa outlook
There are broadly three levels of D&A.          percentage. This could be a reflection of
These are descriptive, diagnostic and           an overall data management gap.
predictive. In descriptive, the HR function
                                                A majority of the respondents in the
would have a coherent workforce
                                                Future of HR survey agree that the HR
dataset and easily accessible reporting
                                                function can prove the value it brings
dashboards. A diagnostic level would
                                                to the enterprise through analytics.
involve a little more analysis. Ideally there
                                                Fortunately, data happens to be an
would be such cases where HR would
                                                accessible asset that is available in large
identify underlying drivers of performance
                                                volumes, and is continuously generated
through analysis. Finally, predictive
                                                within enterprises. Depending on the
analytics involves HR influencing
                                                governing law and regulatory compliance,
and partnering with the business to
                                                HR predictive analytics can be the driving
predict outcomes and drive business
                                                force through which this data is churned
performance.
                                                into actionable insights to achieve set
The Future of HR survey informed that           objectives. This in turn ensures that
62% of enterprises within the East Africa       predictive analytics can be relied upon.
region utilise analytics for predictive
purposes. This is in a bid to improve HR’s
value to the business and to increase an
organisations’ overall competitiveness in
the race for the best talent. Some of the
areas where predictive analytics has been
applied in HR include talent selection,
predicting employee attrition, employee
engagement, identifying training needs,
                                                   In the 21st century, the
workforce planning depending on                    exponential increase
resources, time and budget.                        in data promises to
30% of enterprises based in East Africa            create opportunities
believe that there will be moderate
investment in HR technology and/or digital         for growth. Its supply
solutions in predictive analytics in their         is unlimited and its
enterprises. Where investment has been
done, respondents generally feel that the
                                                   applications are endless.
investment has been worthwhile. The                Data & Analytics (D&A)
investment in predictive analytics entails         enables the delivery of
having advanced data management
which ensures that the organisation has            insights as a source of
quality data, a sound data strategy and            competitive advantage
clear ownership of the data within the
organisation.
                                                   across the business and
                                                   at each point of need.
In an environment where data is
available from multiple sources, 32%
                                                                  Anastasia Kamande
of respondents based in East Africa
                                                                    Associate Director
agree that their enterprises are effective
                                                                    Data and Analytics
in bringing together data from various
                                                                     KPMG East Africa
sources to make decisions about their
workforce, compared to 23% global

                                                                       The future of HR 2019: In the Know or in the No | East Africa outlook   15
Building a
                   workforce for the
                   future - Artificial
                   Intelligence
                  A
                         rtificial Intelligence and machine learning can
                         provide a means to achieving both desired, and
                         unprecedented transformation in business. It can
                   help automate repetitive and non-value adding tasks
                   allowing professionals to deliver on the key focus areas of
                   an organisation.
                   In a recently conducted Global
                   Future of HR Survey, it was found
                   that 76% of HR executives agree
                   that HR has undergone, or is
                   currently undergoing a digital
                   transformation. At the heart of a
                   digital transformation is Artificial
                   Intelligence (AI).

16   The future of HR 2019: In the Know or in the No | East Africa outlook
AI is the field that develops intelligent       been introduced as part of formal
self-learning algorithms and machines           learning in academic institutions; East
that use data from a variety of sources         African countries may opt to do the
and formats. This has been applied              same. HR professionals can incorporate
widely in self-driving cars, search             AI training as part of the continuous
engines like Google, smart cameras,             professional development for staff
                                                                                                    There are more
product recommendations, just to name           within their organisations.                         opportunities for HR
a few.
                                                Is the HR function ready for AI? 60%                to custom build AI
In the East Africa region, 67% of the           of the respondents believe that their               solutions to enable
respondents agree that AI can drive             HR functions are either unsure, or
significant value for HR in enterprises.        unprepared for AI (and /or machine
                                                                                                    growth in talent
In contrast, 81% of the respondents             learning) in their enterprises. A part              management and in
surveyed noted that HR functions                of the labour force believes that
                                                                                                    building a workforce for
have not started introducing AI in their        rapid advances in technology are
enterprises. The AI transformation              increasingly threatening job security.              the future.
needed to drive growth, identify                For HR, the challenge is to identify the
opportunities and manage risks can              right people with the skills that match                           Anastasia Kamande
be spearheaded by the HR function               the requirements of a fast changing                                 Associate Director
in its role of talent acquisition and           technology world. Further, while                                    Data and Analytics
development. This raises the question:          capital investments required to drive AI                             KPMG East Africa
“How can HR use AI to accelerate,               initiatives across the enterprise is a key
automate and augment its decisions              success factor, 49% of the respondents
that drive growth and profitability?”           in East Africa noted that there is none or
                                                minimal investment in HR AI.
To answer this question, we start
with the understanding that AI is not           In light of the above, respondents of
something we buy, it is something we            the survey indicated that there is little
build. Building a robust AI framework           expectation to adopt AI in HR functions
in any organisation requires the right          over the next two years.
data, the right algorithms (formulae
                                                Some of the areas where HR
and logic), the right tools and the right
                                                organisations have built AI solutions
“human” in the loop. The right human
                                                include software (bots) that interact
in the loop is key and foundational in
                                                with job applicants through answering
this respect since it drives the strength
                                                frequently asked questions, scheduling
of the AI framework. The right human
                                                interviews and on-boarding. Brand
speaks directly to HR and challenges
                                                profiling and tracking is another area
the HR function to get the best in
                                                where AI has been applied with
terms of personnel who have a keen
                                                success. Through sentiment analysis,
understanding of industry insights,
                                                perceptions can be profiled which
subject matter expertise and technical
                                                would inform specific HR initiatives of
skills. With the right capabilities and
                                                employee engagement.
passion to deliver, the workforce, built
by HR can drive an organisation into            There are more opportunities for HR
desired efficiency through the use of AI.       to custom build AI solutions to enable
                                                growth in talent management and in
According to the survey, of the 19%
                                                building a workforce for the future.
of East African HR functions that are
                                                Imagine if your organisation introduced
currently using AI, 43% are applying
                                                a solution that popped an alert that
AI to learning and re-skilling; this is
                                                advised you to take a break based
compared to 35% globally.
                                                on your continuous laptop usage or
To prepare a workforce for the future, it       that detected uncommon stress and
is imperative for HR functions to provide       recommended you take a break based
opportunities for staff to learn and            on the error rate it was detecting in your
develop their skills in line with initiatives   work. Imagine that.
for AI. 51% of the respondents in the
East Africa region believe that preparing
a workforce skilled in AI presents the
biggest challenge for the HR function
over the next 5 years. Globally, AI has

                                                                      The future of HR 2019: In the Know or in the No | East Africa outlook   17
About the survey
D
        uring July and August of 2018, 1,201 senior HR executives from 64 countries
        participated in the Future of HR Survey, with representation from 31 industries
        across Asia Pacific, Europe, North America, Middle East/Africa and Latin
America. Approximately half of the sample are companies with a headcount of
5,000 or more employees and 42 percent of participants are from organisations
with revenue of 1 billion. In East Africa, HR executives from 37 companies provided
insights about the future of the HR function against a backdrop of digital disruption.

Demographics Industry
Global breakdown

             Hosp. & Ent.          4%                                              4%       Infrastructure

                                                                                 3%   Media & telecom
      Government/
                                 4%
                                                                                     1%
      public sector

                                                                                        Other

     Education &
     non-profit             4%                                                        16%                Financial
                                                                                                         services

 Transportation               5%                              Respondent
                                                               Industry
                                                           % of Total Respondents,
                                                                                        15%                   Consumer
                                                                                                              goods
                                                                  n=1,201

 Healthcare                7%                                                         12%                  Manufacturing

                 Energy      6%
                                                                               9%       IT & high tech

              Professional services                 8%
18   The future of HR 2019: In the Know or in the No | East Africa outlook
Company Footprint

  Revenue                                            Enterprise                                    Human Resource
  (in USD)*                                          Headcount**                                   Headcount**
  % of respondents                                   % of total respondents,                       % of total respondents,
  (excluding education/non-profit                    n=1,201                                       n=1,201
  industries), n=1,129

          42%
          $1 billion or more
                                                             43%
                                                             5,000 or more
                                                                                                             31%
                                                                                                             100 or more

          26%
          $500M — $999M
                                                             35%
                                                             500 to 4,999
                                                                                                             21%
                                                                                                             40 to 99

           31%
          Less than $500 million
                                                             20%
                                                             Less than 500
                                                                                                           40%
                                                                                                             Less than 40

*Not collected for education/non-profit industries
**Don’t know/unsure not shown

                                                                    The future of HR 2019: In the Know or in the No | East Africa outlook   19
Demographics      Industry
Demographics Industry
East Africa breakdown

                                                                             8%        Infrastructure

      Government/
                             8%                                               8%         Media & telecom

      public sector
                                                                                       3%      Other

     Education &
     non-profit         3%                                                                  Healthcare           3%
                                                      Respondent
                                                                                                                Energy   8%
                                                       Industry
                                                   % of Total Respondents,
                                                                                   5%                    Consumer
                                                                                                         goods

                         46%
                          Financial                                            5%                          Agriculture

                                                                                                                         3%
                          services                                             Professional services

20   The future of HR 2019: In the Know or in the No | East Africa outlook
Company Footprint

   Revenue                                           Enterprise                                       Human Resource
   (in USD)*                                         Headcount**                                      Headcount**
  % of respondents                                   % of total respondents                           % of total respondents
  (excluding education/non-profit
  industries)

           9%
           $1 billion or more
                                                             5%
                                                             5,000 or more
                                                                                                                 8%
                                                                                                                 40 to 99

          17%
           $500M — $999M
                                                             51%
                                                             500 to 4,999
                                                                                                                92%
                                                                                                                 Less than 40

            74%
           Less than $500 million
                                                             41%
                                                             Less than 500

*Not collected for education/non-profit industries       *3% responded ‘Don’t know’
**Don’t know/unsure not shown

                                                                    The future of HR 2019: In the Know or in the No | East Africa outlook   21
How KPMG
                     can help
                     Every market leader understands that talent unlocks competitive
                     advantage. But workforces and workplaces are changing — along with
                     employer-employee relationships. You may need to invest in disruptive
                     technology, acquire new critical skills, introduce artificial intelligence, or
                     reshape your employee experience and workplace culture. It’s all about
                     driving your business forward in new ways. At KPMG East Africa, our
                     HR consultants understand these challenges and opportunities and are
                     working shoulder-to-shoulder with businesses like yours every day. We’re
                     delivering the experience, research and industry expertise organisations
                     need to define the Future of HR — now. It’s a digital world but people
                     still make it turn. They will remain your most-important investment, your
                     greatest asset and the secret sauce in your brand.
                     For more information, we encourage you to contact any of the contributors
                     listed in the publication or your local KPMG member firm.

22   The future of HR 2019: In the Know or in the No | East Africa outlook
The future of HR 2019: In the Know or in the No | East Africa outlook   23
Contacts
Gerald Kasimu                                                   Brian Desouza                                                             Titilope Olajide
Partner and Head                                                Partner and Head                                                          Associate Director and Head
Advisory                                                        Risk and Management Consulting                                            People and Change
KPMG East Africa                                                KPMG East Africa                                                          KPMG East Africa
E: gkasimu@kpmg.co.ke                                           E: briandesouza@kpmg.co.ke                                                E: titilopeolajide@kpmg.co.ke

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