What sharing and share price have in common

MANY companies that are recognised for excellent HR management are also high performers on the JSE according to Samantha Crous, the CRF’s SA country manager.

She says global rivalry, shorter product life cycles, and increasingly complex product and market environments have contributed to a new business world that offers some interesting challenges and opportunities to organisations.

“Established competitive mechanisms are simply no longer enough and companies are continuously seeking new ways to gain a competitive advantage. One of the most important means of getting ahead these days is through human resource management.”

Organisations, she adds, are increasingly relying on an ability to build a highly skilled workforce and to nurture the potential of this carefully selected and developed talent pool.

“After all,” she posits, “you can’t duplicate a competitive advantage that is created by better people management.”

It stands to reason that top employers – those recognised as having the most desirable HR policies and practices – should also perform well on the stock market.

“Consider then the year on year August achievements of JSE-listed companies like: Old Mutual (up by 65.3 percent); British American Tobacco (up by 49.1 percent); Clicks Group Limited (up by 46.6 percent) and the Tsogo Sun Group (up by 31.3 percent). There’s also Mix Telematics (up by 92.3 percent).

“All of these are recognised as Best Employers by the CRF Institute – an independent audit of HR practices.”

She cites Old Mutual as a good example of a top performer that puts its people first. In addition to financial and incentive benefits, the company also offers in-house support infrastructure such as a crèche, gym, canteen, shopping mall, sports facilities and access to financial services advice for staff.

Talented staff can apply for study loans for courses such as the MBA through UCT’s Graduate School of Business. Plus the company provides access to confidential professional counselling for marital or family distress, financial planning and debt, emotional difficulties, alcohol and drug abuse, stress and HIV status.