Building a reward strategy in Africa 2020...But still bringing key HR challenges to be addressed Building an effective reward strategy in Africa in 2020 requires understanding the

BUILDING A REWARD

STRATEGY IN AFRICA

FOR 2020

Africa R&B challenges and

Korn Ferry solutions

1 April 2020

MEET YOUR PRESENTERS…

John VASICEKRegional Commercial Leader –

South Africa & English-speaking Africa

Korn Ferry

Based in South Africa

Phone: +27 60 960 1843

Email: [email protected]

Koenraad CLAEYSRegional Head of Pay Digital Service

Korn Ferry

Based in Netherlands

Phone: +31 6 11 20 07 50


Mehdi BOULARESRegional Commercial Leader – French-speaking Africa

Korn Ferry

Based in Algeria

Phone: +213 540 04 80 49


AGENDA

ABOUT KORN FERRY

OUR GLOBAL PAY DATA

THE REWARD CHALLENGES IN AFRICA

OUR FOCUS ON THE AFRICA PAY DATA

OUR PAY SOLUTIONS

ABOUT

KORN FERRY

The synchronization

of strategy and talent

Organizational strategy

Rewards & benefits

Assessment & succession

Talent acquisition

Leadership development

Korn Ferry qualifications:

Unrivaled expertise delivered on a global scale

8,500highly qualified, diverse, and

customer-driven employees

150+countries throughout the Americas,

Europe, Asia Pacific, Africa &

the Middle East

88of world’s major

business centers

75+years of client excellence

Expertise in driving individual

and organization performance

through variable pay programs

Compensation data on 20M incumbents

in our global databases

Leading job evaluation methodology

used by thousands of companies

worldwide

A core focus on executing strategy

through people

Social scientists, researchers, and

PhDs committed to scientific rigor

and ongoing R&D

The world’s richest talent database

Solutions that equally weigh market

best practices and our client’s culture

and strategy

A client-centric and practical approach

to consulting

Deep understanding of the key drivers

of success in the professional services

sector and related talent implications

Work measurement

We design and evaluate jobs, put in place grade

structures and develop career frameworks so you

can match the right people to the right role, pay

them fairly and competitively and enable them

to progress.

Rewards and Benefits

Executive pay and governance

We develop executive pay frameworks that

attract the best talent and motivate them

to deliver on your business strategy.

Sales compensation and incentives

We develop game-changing sales incentive

programs, that help you attract and retain key

talent and build dynamic sales teams that

deliver on strategic objectives

and fill pipelines.

Korn Ferry Pay

We give you access to our comprehensive

rewards database and provide you with

insights and analytics to optimize your

rewards program and align it with your

organizational strategy

Reward benchmarking and

reward healthcheck

Our interactive reports, provide you with

focused insights on the effectiveness of your

rewards program so you can deliver more

impactful rewards strategies.

Employee rewards

We help you get the best ROI on your investment

by developing fair and competitive reward

programs that your employees value and that

encourage the behaviours and performance

your business needs.

Total reward diagnostic and

organizational benchmarking

We show you where your rewards program

stands in the market, how it aligns with employee

expectations, and how it supports business goals

OUR GLOBAL PAY

DATA COVERAGE

IN 2019

MILESTONE 15025,000 companies, 20M+ employees

North & Central America

16 countries

3100 companies

5,591,000 employees

South America

10 countries

1,900 companies

3,009,000 employees

Europe

46 countries

11,900 companies

8,566,000 employees

Africa

39 countries

11,500 companies

607,000 employees

Middle East

11 countries

2,100 companies

1,181,000 employees

Asia

26 countries

3,700 companies

2,451,000 employees

Pacific

5 countries

890 companies

472,000 employees

Our pay database is now available in 150+ countries

See where we’ve grown

THE REWARD

CHALLENGES

IN AFRICA

* UNCTAD’s World Investment Report 2019

Doing business in Africa: A complex reality,

though not discouraging investment …

Africa remains a popular

destination for multinationals

Global foreign direct investment

(FDI) flows rose by 11% in 2018

unlike a global slump*, resulting

in a growing employment offer

Financial services, distribution

and energy are the top 3 sectors

in terms of growth

Emergence of a pool of talented

local workforce taking over key

and management positions in

multinationals, thus reducing the

need for expatriate, high cost profiles

Population growth continues

to outstrip GDP growth

Security, political and

economic uncertainty (for e.g.

uncontrolled inflation levels in several

countries) remain a challenge

Low education levels

combined with low investment

in education, tertiary and

vocational training, result in a

shortage of skilled profiles

and a fierce war on talents

Corruption remains a major concern

for doing business in Africa

Corporate/regional pay strategies do not

necessarily fit with the African context:

need to adapt corporate pay strategies

to the market’s requirements

Talent shortage and pay

competitiveness challenge:

the fierce war on attracting and retaining

talents requires a solid mastery of the

market pay trends and evolutions

From a corporate/regional perspective,

lack of visibility on local economic context

and reward typical practices:

do the official figures (GDP growth/inflation,

etc.) reflect the market’s reality?

Poor pay data offer:

lack of local robust pay data, making it

challenging to build effective pay structures

and salary movement campaigns

… But still bringing key HR

challenges to be addressed

Building an effective reward strategy in Africa in 2020

requires understanding the local market practices diversity …

81%

78%

77%

75%

74%

74%

73%

72%

72%

71%

69%

69%

68%

68%

65%

65%

63%

62%

49%

12%

4%

9%

9%

11%

7%

14%

9%

4%

4%

3%

11%

6%

6%

11%

3%

2%

2%

6%

7%

18%

14%

16%

15%

19%

13%

19%

25%

25%

28%

20%

26%

26%

24%

31%

35%

36%

45%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Seychelles

Mozambique

Tunisia

South Africa

Algeria

Zimbabwe

Egypt

Kenya

Namibia

Tanzania

Angola

Madagascar

Morocco

Uganda

Mauritius

Zambia

Botswana

Ghana

Nigeria

Paymix per country

Base salary Variable pay Benefits and allowances

… And coping with the talent shortages,

including on managerial positions…

12.9 12.6

11.3 11.2

10 9.9 9.7 9.48.9

8.58.4

7.97.4

6.7 6.7

5.6 5.54.7

3.5

0

2

4

6

8

10

12

14

Mozam

biq

ue

Egypt

Ugand

a

Tanzania

Nig

eria

Cote

d‘Ivoire

Kenya

Ghana

Alg

eria

Zam

bia

Moro

cco

Tunis

ia

Mauritius

Seychelle

s

Madag

ascar

South

Afr

ica

Nam

ibia

Angola

Bots

wan

a

Base salary gap between

Managerial

VS.

Supervisory positions

Average gap, western countries (Western Europe/USA/Canada)

0% 10% 20% 30% 40% 50% 60% 70%

Measuring and improving the work efficiency of remote workers

Inadequate resources to aid the control and prevention of an outbreakwithin the premises

Difficulty in predicting the future workforce needs in response to theevolving economic landscape

Lack of relevant work regulations and practical rules during a pandemicoutbreak

To act as a trusted advisor to management in times of crisis

Maintain employee engagement levels and trust with the leadershipteam

Getting a consistent flow of information and updates out to employees

% respondents

Working from location (site,shop, office)

Working from home

Pulse survey, impact of COVID-19 on business and human capital management practices

18th to 26th March 2020, cut: Africa organizations only

… in an unprecedent context of global pandemic, with the

exceptional HR challenges it brings

Q: What is the biggest challenge for the HR department during this pandemic outbreak?

ZOOM ‘IN’ ON

AFRICA PAY

DATA COVERAGE

How our data can help you

addressing these challenges

Complete view of all your

pay and reward data and

analytics.

Interactive reporting by both internal

and external benchmark with options to

create your own analysis and market cuts

Jobs mapped to Korn

Ferry best-in-class

Success Profiles.

Access to our Pay

experts for additional

local insight

Always up to date information

about local economic indicators, salary

components, labor market practices, …

Market pay insights

by country, sector,

and job levels.

Subject to data availability

Our focus on the Africa pay dataAddressing pay data shortage in the region

Our pay database has

grown in Africa

39 countries

15,000 organizations

607,000 employees

Our focus on the Africa pay dataAfrica pay data coverage – We have data in the following countries:

Algeria Egypt Mauritania South Africa

Angola Ethiopia Mauritius South Sudan

Benin Gabon Morocco Sudan

Botswana Ghana Mozambique Tanzania

Burkina Faso Guinea Namibia Togo

Burundi Kenya Nigeria Tunisia

Cameroon Libya Rwanda Uganda

Chad Madagascar Senegal Zambia

Cote d'Ivoire Malawi Seychelles Zimbabwe

Democratic Republic

of CongoMali Sierra Leone

Our focus on the Africa pay dataAfrica pay data coverage – activity sectors

21© 2020 Korn Ferry. All rights reserved

Banks

FMCG

Industrial goods

Chemicals

Other financial

services

Oil & gas

OUR PAY

SOLUTIONS

The Reward function is perfectly placed to unlock

Success Profiles for organizational benefit

Pay

Benchmarking

Development

Planning

Job

Grading

Assessment

for

Development

Job

Descriptions

Career Path

Identification

Assessment

for

Recruitment

Career

Frameworks

Success

Profile

Already linked to Success Profiles, which

provide much more content than a normal pay

survey job matching guide

Survey data submission already involved

aligning to our job model

All Success Profiles then enable a wide range

of other uses, all in one platform

Creating links between HR functions

through Korn Ferry Success Profiles

Agile – Intelligent – Integrated

Our pay product solutions

KF Pay Participate – our free deliverable

Receive a complimentary

Korn Ferry Pay

participation offer

in exchange for your

payroll data submission

Korn Ferry Pay Participate

▪ Korn Ferry Insight – provides you with

an organizational and matrix view of

your job architecture

▪ Reward Health Check – focuses on key

internal areas of reward

▪ Online secured automated Organization

Data Submission

▪ Market Insights – Key trends and market

insights by country

▪ Invitations to our local seminars and online

conferences (R&B trends content)

Our pay product solutions

KF Pay Premium / KF Pay Basic

Korn Ferry Pay Basic

▪ Korn Ferry Insight

▪ Reward Benchmarking

▪ Reward Health Check

▪ Custom Grades functionality

▪ Korn Ferry Compensation & Benefits Report

▪ Market Insights



Korn Ferry Pay Premium

Our most comprehensive pay data package

▪ Talent Hub (KF Pay version)

▪ Reward Benchmarking Reports


▪ Reward Health Check Reports

▪ Custom Grades Functionality

▪ Self Service Peer Groups


▪ Organization Data Submission

▪ Market Insights



Q&A

THANK YOU

FOR JOINING OUR

WEBINAR !

Building a reward strategy in Africa 2020...But still bringing key HR challenges to be addressed Building an effective reward strategy in Africa in 2020 requires understanding the

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