Winning the talent war in Africa through smarter benefits

Which is more difficult: entering a new African market, or finding and retaining the right talent in Africa?

While expansion to Africa is made easier with an EOR market entry strategy, finding talent in the cutthroat talent landscape can be particularly hard.

The rarity of certain skills and qualifications, the additional need for soft skills, and rising demand for talent as industries grow...all these requirements shape the talent landscape, making competition fierce.

So how can handpicked employee benefits help you find and keep talent?

1. Why employee benefits matter in Africa

Can employee benefits really make that much of a difference in the talent war in Africa?

The truth is that compensation alone is no longer enough for skilled talent, wherever you go across Africa. Because competition is so tough and demand for certain talent so high, candidates are choosier about their workplaces.

Expectations have also changed, partly because of new attitudes to work held by millennial and Gen Z workers. They value workplaces that offer them more in terms of benefits, workplace atmosphere, and work-life balance.

All other factors being equal (and even then, many exceptions can be made), employee benefits in Africa can be a key differentiator in the fight for the right talent.

2. Unique workforce realities across African markets

The talent playing field in Africa is far from being level. In reality, it is diverse and holds many extremes where it concerns:

• Urban v/s rural differences
  Infrastructure just isn’t the same across Africa, and even across urban and rural regions within the same country. Great disparities may exist simultaneously, creating the need for employee benefits to fill in these gaps. For example, where an urban region may be well-connected to Wi-Fi networks, rural regions may have spotty connectivity. Employee benefits that cover Wi-Fi and/or data costs where applicable for remote teams will be most welcome.

• Country-specific labour laws
  Every African country has its own specific labour laws. For example, in Egypt, fathers are now entitled to one day’s paid paternity leave. In Algeria, on the other hand, fathers are entitled to 3 days’ paternity leave. Providing additional benefits to support new fathers during this time can improve the employee experience, improving retention.

• Healthcare access, social safety nets, and differences in financial services access
  Employee benefits such as medical insurance help fill in critical gaps in access and availability of care for employees. Employees feel safer and cared for, boosting satisfaction and lowering turnover further down the line.

• Remote and distributed teams who need localised and flexible support

3. What top talent in Africa actually values

So if top talent in Africa is looking beyond just a salary, what are the benefits they are actually looking for?

• Healthcare
  Private health insurance or health stipends to cover the costs of care, fill in healthcare access gaps, and give them peace of mind.

• Flexible work
  Remote/hybrid setups and time-off policies.
  Remote working can help employees have a better work-life balance, offering them more flexibility. More generous time-off policies can be especially appreciated in highly competitive fields like IT.

• Wellness
  Mental health support, gym access and wellness allowances.
  This kind of benefit shows that you care for employee well-being, and allows your employees to thrive holistically, which positively impacts their professional performance.

• Financial tools
  Salary frequency and salary payment options.
  Paying employees more frequently, every 2 weeks as opposed to every month for instance can help you remain competitive in the job market. This improves cash flow for employees, raising employee satisfaction. The flexibility of paying employees through bank transfers or through mobile payment apps also raises employee satisfaction.

• Learning & development
  Upskilling opportunities and certifications.
  Investing in employees’ growth shows that you care about them and value their contributions to the workplace. Through sponsored courses and certifications, employees develop a greater sense of loyalty to the company and find that there are future prospects within it.

• Family & lifestyle
  Childcare support, parental leave, and home office stipends.
  In search of better work-life balance, talents in Africa greatly value benefits such as extended parental leave relative to mandatory laws, and childcare support (for e.g. allowing for dependents when it comes to medical insurance).

4. How the right benefits help you attract talent

Going beyond basic with employee benefits helps you attract the right talent in Africa as it:

• Shows your company is invested in local wellbeing
• Enhances your employer brand and market reputation
• Helps you win over more passive candidates who are comparing offers

5. How benefits drive retention

After helping you secure the right talent, employee benefits still work in your favour by:

• Showing that the company cares, building loyalty and reducing churn
• Supporting employees through personal and professional challenges
• Encouraging long-term growth within the company (especially through benefits such as learning opportunities)

6. Best practices for designing benefits in Africa

How do you design and implement employee benefits that work in practice?

• Localise your benefits strategy.
  One-size-fits-all won’t work in Africa. Every country is different and deserves a personalised approach.
• Partner with local providers or EOR partners that understand African markets
  Partners like Africa HR Solutions understand the unique qualities of each African country. They know the intricacies of the local culture and can help you navigate them.

7. Choose the right partner to retain the right talent

When designing employee benefits, choose an experienced EOR and payroll partner like Africa HR Solutions.

With over 15 years’ experience supporting companies like yours across 46+ African countries, we have the local knowledge and international skills to help you retain the right talent across the continent.

To find out how we can best help you, send a message to one of our consultants today.