When Africa’s unemployment statistics are presented during any conversation on national development, some entrepreneurs, and also the general public, tend to believe that getting employees should be easy.

It is true that many graduates offer themselves up for employment. Naturally, these candidates also have the academic qualifications to match available vacancies.  The challenge, however, lies in getting the employee who, beyond the printed evidence of competency, shares – and is ready to fully support – your dream as an entrepreneur.

This article throws more light on some of the setbacks African entrepreneurs continue to face in acquiring the right personnel for the job.

Skills and attitude of employees

For start-ups, every employee is so vital to the success or failure of the business. Employers expect start-up employees to have at least adaptable skills, a growth mindset and an innovative streak. However, getting that one employee who embodies all these is very difficult.

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Employers have consistently complained that so many employees lack the requisite skills to meet the dictates of the business environment as it stands now – disrupted by technology. So, as an entrepreneur who operates a small or medium size business, bear in mind that however expensive it may be, training can be the only option to bridge this gap.

Cost of employees

In the past, many entrepreneurs would start businesses and bypass so many legal obligations owed employees and the state. Many African entrepreneurs would decline to pay taxes and employees’ entitlement such as social security fund contributions.

However, the legal landscape of so many countries and employee union regulations are constantly changing. To sidestep such legal obligations has now become a risky business.

In East Africa, for example, one cannot bid for any government contract or a big private contract without proof of fulfilled tax obligations.

Laws surrounding wages, taxation or medical leave are all critical to the existence and growth of an SME that, no matter how inconvenient they seem to be, you must factor them in at the onset of your business operation.

Employee retention and hiring

Employees are the fuel that drive business. Hiring employees and retaining them is every business’ core goal. But this is easier said than done.

Recommended article: Building Team Cohesion: a daily puzzle for an SME leader

Start-ups typically have small budgets for staff benefits. And yet the more skilled and experienced an employee is, the more critical they are to the company. To hire and retain such vital staff come at no cheap cost.

Especially after two years of economic meltdown brought about mainly by COVID-19 containment measures, not that many small businesses have big budgets for huge employee benefits.

To keep employees, entrepreneurs may have to consider other forms of benefits than just money to give their staff a reason to stay.

Knowing some of these Human capital -SME related challenges as an entrepreneur and planning for them ahead of the start of your business is crucial for the growth and success of the business.

I do hope that this article has been helpful.

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