Abstract
The contemporary global business, political, technological and social arena is fraught with
challenges, rapid development, continuous change and turbulence, which impact on all
employees and the manner in which they are led and managed. Organisations in developed as
well as emerging and developing economies, such as South Africa (SA), whether they offer goods
or services, are especially affected by radical shifts in operational processes that often impede
strategic success. Leaders and managers try to mitigate gaps in performance caused by such
turbulence, via change management, organisational development and training and development
interventions; however, they have to be extra vigilant of the operational risks that are associated
with business operations and human capital development (HCD). Empirical research was
conducted to understand and explain the perspectives of South African managers operating in
the service sector on the measurable operational risks associated with their investments in HCD
initiatives. Qualitative semi-structured interviews were conducted with leaders and managers who
were responsible for HCD in selected organisations. Responses were analysed thematically to
seek for common patterns and profound narratives. The key finding indicate that the top five risks
in HCD are: poor staff retention; lack of learning transfer; misaligned training needs; disengaged
trainees; and budget constraints. Risks ranked as high are: staff retention; lack of transfer;
competitors; misaligned training; training aversion; limited budget; changing landscape; and
training without impact. Further research is recommended to explore whether managers, HCD
professionals and training providers measure specific risks, as well compare the operational
effectiveness and risks of human capital development.