SA people management must transform

People management in local companies appears to be deteriorating. While dynamic growth is what most SA companies strategise for, a recent benchmarking study done by CS Holdings in partnership with the Human Resources Practice shows that people policies and practices in local companies do not support such growth.

Thirty-three companies from the financial, transport, government, manufacturing, mining, retail and pharmaceutical industries participated in the study, which was done to determine the standing of SA companies with respect to leading people management practices.

According to Dr Theo Veldsman, director of People Effectiveness at CS Holdings, South African companies do not fulfil the criteria for world-class organisations.

"Despite a more proactive corporate stance towards skills enhancement, building managerial capability, and employment equity, overall people management practices in this country still fall far short from being world-class."

Veldsman states: "People strategies continue to be formulated in isolation from business strategies, and the workplace logic fails to empower people to perform productively and experience their work as satisfying and meaningful."

Although companies are beginning to exhibit a better balance between long-term strategic and short-term operational people management delivery, too much emphasis is placed on standalone applications with an internal focus. There is not enough emphasis on an integral, client-centred focus.

"Additionally, people service delivery remains far removed from the overall business solution, and is still positioned too remotely from the client to be effective."

South African companies do appear to be ready to reinvent their people management, and are showing flexibility in their style of service delivery. However, the study found that too much emphasis is placed on the people practitioner`s role as administrator, rather than that of strategic partner. Additionally, people measurement remains inadequate.

"Today`s companies are required to conduct their business in the so-called new world of work, where increasing globalisation demands that they operate in an environment characterised by speed and connectivity, as well as constant and rapid change," says Veldsman.

"People effectiveness will be the factor that determines whether companies retain their competitive advantage, and people will become the core around which they unlock value through the resources at their disposal. As the talent war heats up, the effective attraction, growth and retention of high calibre people will become their number-one strategic objective," Veldsman concludes.