Myles Lutheran, a director at Eco Fuels Kenya
Myles Lutheran is a director at social enterprise Eco Fuels Kenya. The company produces organic fertilisers and biofuels from its base in central Kenya.
Lutheran tells How we made it in Africa there is not a large talent pool in the area because most people lack academic qualifications and those who are qualified are already employed by institutions such as banks. The rest of the population, he explains, prefer to work in agriculture where there is more money and less risk compared to being involved with a startup. He adds that “people who are married with kids are less likely to work with a startup” because of its risky nature.
Lutheran says he uses personal connections to attract people who have a good reputation and can be trusted. Since the growing company cannot offer employees a lot of financial incentives, getting staff to see the bigger picture is important.
“The candidates have to recognise the opportunity. It is not about day to day operations, it is about what the company will become in the future,” says Lutheran. “If things go well in a couple of years they will be a mid-level manager… and have expertise that other people don’t.”
Kenyan entrepreneur Joanne Mwangi agrees, adding that getting one’s team to buy into the vision of the company increases the chances of employees staying put, even when on low salaries.
When she started her business 19 years ago, Mwangi did everything from cleaning the floors, to running errands and pitching to clients. As her marketing firm PMS Group began to flourish, she hired the “most important person in my business” – a messenger.
“Once I had a messenger it freed up perhaps 50% of my time to do what I was good at,” she says.
Mwangi advises small businesses with limited resources to hire people who have “got the right skills, the right attitude but not the experience and then grow with them”.
Arielle Sandor, co-founder of SMS-based job matching service DUMA Works, says startups and SMEs can position themselves as a good place for fresh graduates to gain skills and experience. However, employers should not expect to get away with poor pay, especially when they hire university graduates.
According to Sandor, “employers should not neglect the importance of training because it is a good incentive for young employees not to quit since they are still amassing skills”.
Innovative staff retention strategies
Veronica Anam-Waiyaki, a partner at Kenyan-based Human Capital Synergies Africa, says employers need to be creative and innovative when hiring and handling staff.
She reckons that the HR problems SMEs face are compounded by the fact that entrepreneurs often do not have training or experience in dealing with people. Often, employees do not live up to the expectations of the employer.
“Many people who approach us ask what they need to do to increase performance. It’s a big challenge for SMEs where you most often start as a one-man show and therefore there is no HR support system. Most [inexperienced] managers do not have training or experience in handling people because they have probably never done it before. For such people it is important to get coaching.”
However, she explains that even with financial constraints, employers can still create an environment that high-calibre employees want to work in. She proposes measures such as profit sharing and shareholding for employees. Small things such as providing lunch for staff and organising events outside the office for people to interact can make employees stick to an SME even when offered bigger pay elsewhere.
“One of the big reasons why people move companies is the relationships they have with their supervisor and team. It is critical to foster an environment where people have a good working relationship. As a manager you should understand the people you are working with and listen to them. You should also adopt new ways of thinking, for instance, adopting flexible working hours,” Anam-Waiyaki explains.
Mwangi concurs, noting that it is critical to create an environment where people thrive. At PMS, for instance, Mwangi says she has created “a happy working environment” where there is no pyramid.
“Nobody calls me anything except Joanne. We do sports day together. We do punishment for coming late to work and I am the one who pays the most amount of money for coming late to work. This brings me down and brings my people up. That means they feel they are my equals [but] obviously there is still respect and boundaries.”
People management will never be easy
However, Mwangi warns that dealing with staff “will never be easy because people are different and dynamic”. She narrates how four years ago she decided to introduce a pension scheme at PMS. The company would remit 10% to the pension fund while each employee would also be required to contribute 10% of their pay.
“At [my age], I value medical insurance [and] I value a pension fund. So I thought I was being a fantastic boss [when] I told people about… the pension fund. Guys were so pissed off. They were like ‘she just wants to take back 10% of the money she is paying us already’. At PMS the average age is 27 [and at that age] pension is the last thing on your mind. I was giving them something that they did not need or want.”
When all is said and done, Mwangi notes, employers have to accept the fact that at some point employees will quit.
“You just have to be easy as an entrepreneur that you will get staff, you will train them, they will become very good, you will become so dependent on them and they will quit. All you have to do is to allow them to leave with your blessings. After all, even for you to start your business, you left somewhere.”
Source: How We Made It in Africa
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