South African organisations are under growing pressure to modernise HR operations as regulatory complexity increases and demand rises for more productive workforces.
This message emerged at SAP HR Connect last week in Johannesburg, where business leaders and HR professionals explored how digital technologies can lower compliance risk, improve efficiency and create greater strategic value.
Nazia Pillay, MD for southern Africa at SAP, said SA’s employment landscape has reached a pivotal moment. “Public and private sector companies are racing to unlock the power of AI and cloud technologies to improve competitiveness and build capacity for future innovation.”
She added: “Every organisation needs an active, motivated workforce to realise full value from transformation. Companies are leveraging human capital management technologies to attract, retain and empower employees.”
HR teams are contending with significant regulatory changes, including reforms to parental leave, proposed increases to statutory severance pay and new rules governing on-call work, delegates heard. These changes are increasing the administrative burden on HR departments.
Manishwar Tiwary, head of SAP HCM for MEA South, said compliance has shifted from a periodic activity to an always-on discipline.
“Compliance is no longer a periodic exercise but a continuous, data-driven discipline," he said. "Organisations that rely on spreadsheets and fragmented systems without AI-driven innovations expose themselves to unnecessary risk and inefficiency.”
Many organisations still depend on manual processes and disconnected systems. According to Tiwary, this makes it harder to maintain accurate records and produces unreliable audit trails. Manual administration also absorbs HR capacity that could go to talent development and workforce planning.
Shamit Maharaj, senior SAP and transformation executive at Westrocon Enterprise Solutions, said the next phase of enterprise transformation will be shaped by improving how people interact with systems.
He argued that companies lack efficient “systems of work” that help employees complete tasks quickly. AI can act as a translation layer, enabling workers to request leave or complete onboarding through conversational interfaces rather than navigating multiple screens.
A 2025 PwC global study cited at the event found that 82% of companies plan to increase investment compliance technology. Faster identification of compliance issues and improved risk visibility were among the key drivers.
Ravika Bandyopadhyay, group human capital COO at Sanlam, said the insurer is pursuing a dual-track transformation strategy focused on operational efficiency and new digital capabilities.
Kammy Sing, COO of Discovery People, said shared services can become a platform for reinvention when data, technology and people are fully integrated.
Tiwary said digitisation should free HR teams to focus on developing talent and strengthening culture. “When compliance is embedded into systems, HR teams can focus on long-term organisational performance.”
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