Employee retention and talent management at a sugar mill in South Africa

Given the rapid and sustained growth of Aspen over the past decade, the main aim of this study is to identify and analyze the growth strategies, adopted by Aspen over the period from 2004 to 2014. The research method used was a descriptive study through a single case study of Aspen by analyzing secondary data in the form of publicly available company reports and presentations, as well as financial results, issued between 2004 and 2014. The study finds that, guided by strategic and visionary leadership, Aspen adopted a number of growth strategies including (i) organic growth, as a key factor in creating incremental value for Aspen and its stakeholders, (ii) inorganic growth, in the form of carefully planned and well executed acquisitions, aligned to the Group strategy, (iii) extending territorial coverage through global expansion, particularly into emerging pharmaceutical countries, and (iv) ongoing investment in production capabilities as a means of achieving a strategic advantage. Despite the challenges of intense competition, restrictive legislation, pressure on medicine prices, currency volatility and market specific risks, Aspen has delivered double-digit earnings growth to its shareholders for 16 consecutive years.

In order to ensure profitability for shareholders, optimal contracting recommends the alignment between executive compensation and company performance. Large organizations have therefore adopted executives remuneration systems in order to induce positive market reaction and motivate executives. Complex compensation schemes are designed by Boards of Directors using strong pay-performance incentives that explain high levels of executive pay along with company size, demand for management skills and executive influence. However, the literature remains inconclusive on the pay-performance relationship owing to the various empirical methods used by researchers. Additionally, there has been little effort in the literature to compare methodologies on the pay-performance relationship.
Using the dominant agency theory framework, the purpose of this study is to establish and examine the relationship between firm performance and executive pay. In addition, it intends to assess the characteristic of model specifications commonly adopted. To this aim, a quantitative analysis consisting of three complementary methods was performed on panel data from South African listed companies. The results of the main unrestricted first difference model indicate a strong non-linear relationship where the impact of current and previous firm performance on executive pay can be observed over 2 to 4-year period providing support to the optimal contracting theoretical perspective in the South African business context. In addition, CEO pay is more sensitive to firm performance as compared to Director pay. Lastly, although it affects executive pay levels, company size is not found to improve the pay-performance relationship.

The aim of this current study was to analyze recent development of talent management among public service managers in Malaysia. The study brings understanding on talent management and broader human capital issues within Malaysia context by analysing the comprehensive literature. Government of Malaysia is emphasizing on development of talent in the public sector, as it is the most significant resource for the public service. The study found that the government has invested in various programs and initiatives to develop and produce key talented human capital within the public sector. However, despite the initiatives taken by the government, Malaysia is still short of talented people and struggling to develop talent, and talented skilful people are leaving. The study also indicated that year after year increasing number of graduates are being produced at the public universities, but the education system is not producing the right skilful individuals for the particular position or task, resulting in talent mismatch. Another key issue is the incapability to retain talented people that led to poor innovation and creativity within the country. Is key issue is part of the factors discussed in the 10th and 11th Malaysia Plan, and is a concern, as it plays a role in preventing the progress of Malaysia in achieving a developed nation by 2020. As one of the key aspirations of Malaysia is to enrich public service in Malaysia as a citizen centre that is having talented human capital. The study revealed that there is a need for in-depth quantitative and qualitative further research to discover new insights on talent management and retain talent among the public sector managers in Malaysia.