During the KPMG West Africa CEO Outlook Forum held on 23rd October 2024 in Ghana, one of the major concerns raised by CEOs was the fear of losing digitally skilled young talent.
As workplace preferences shift, many young professionals prefer flexible work environments, often opting to work from home rather than adhering to the traditional office setting.
This trend has left CEOs worried about retaining these valuable employees, as the demand for digital skills grows while these workers increasingly shun the idea of being tied to a physical office.
This issue was also highlighted in the Africa CEO Outlook Report 2024 by KPMG. According to the report, talent risk ranks among the top five concerns for CEOs across the continent, with 39% citing the risk of talent loss to immigration, significantly higher than the global average of 27%.
In regions like East Africa, nearly half of the CEOs identify talent retention as a critical issue, reflecting the specific economic and workforce pressures they face.
When it comes to workforce dynamics, 86% of African CEOs expect employees to return to the office, a higher percentage than the global average of 83%. However, this expectation is met with resistance from employees who increasingly prefer flexible work arrangements.
Interestingly, African CEOs are less likely to incentivize a return to the office (45% vs. 63% globally), reflecting a more traditional approach to workplace culture. This disconnect between leadership and employee preferences could pose a long-term risk to talent retention, as flexibility becomes a key factor in attracting and keeping top talent.
Africa’s youthful demographic gives its CEOs a unique advantage. Concerns over an aging workforce are far less pressing here (11%) than for global CEOs (23%). Yet, this demographic strength can also become a liability if succession planning and knowledge transfer are not addressed. Without proper strategies to pass on critical expertise, the risk of operational disruptions and skills shortages becomes more pronounced.
Investment in skills development, however, remains relatively low among African CEOs, with only 63% committing to upskilling their workforce, compared to 80% of their global counterparts. This reluctance to prioritize skills development is often driven by immediate economic pressures, such as inflation-proofing and the need for growth.
Bridging this disconnect between leadership expectations and the evolving preferences of young professionals will be essential for companies to retain top digital talent and stay competitive in today’s rapidly changing business environment.
