Global Spotlight on South Africa

The african continent’s emerging countries may not be led by South Africa in terms of GDP, but its recruitment is certainly one of the most developed.
Mon, 23 March 2015 | By Sarah Marquet

FROM APRIL 2015'S RECRUITER MAGAZINE 

The African continent’s emerging countries may not be led by South Africa in terms of GDP, but its recruitment is certainly one of the most developed.

Complicated and complex, Africa is one of the last big emerging markets, encompassing 53 vastly different countries. However, South Africa is the centre of most formal recruitment, PageGroup’s managing director, Sub-Sahara Africa, Nathan Byrne says.   

South Africa is home to a huge number of recruitment companies, mostly South African firms but also a small percentage of global recruiters. Why? Because it is the most advanced, the most ‘first world’ country on the continent, Byrne says.

In terms of Gross Domestic Product (GDP) though, South Africa (2013: £233bn, growth rate: 1.9%*) is second to Nigeria (2013: £347bn, growth rate: 5.4%). Kenya (2013: £37bn, growth rate: 5.7%) is also up and coming, followed by other sub-Saharan countries, all of which therefore present huge opportunities for recruiters. 

The growing GDPs lead to greater demand for infrastructure. “People are going to have to build bridges, they’re going to need to build manufacturing plants… and we’re a partner in that, we’re there to help these companies get talent,” Byrne says.

Beyond engineering, in Mozambique and Tanzania particularly, oil & gas finds are creating a need for highly experienced lawyers — a skillset desperately short, says GRM Search’s South African-based director Dale Verster. Other sectors such as banking & finance and construction are also calling for lawyers to give regulatory advice and to help secure funding, fuelling a demand for lawyers from private equity firms and banks.

Byrne likens recruiting in African countries other then South Africa to the “wild, wild West”.

The South African market is, he continues, more sophisticated with multinational companies demanding a full and professional service. But with lower GDP, power supply problems and governmental challenges, “that’s why we don’t put all our eggs in one basket”, Byrne says. Despite the many opportunities for work, the multitude of red tape and infrastructure issues discourage many foreign-owned recruitment firms from establishing a presence there, he says.

South African recruitment has a unique set of complexities that, as Verster says, might be “frowned upon” in other countries.

Post-apartheid South Africa has seen the introduction of specific legislation to empower black and other ethnic people, requiring companies to employ certain percentages of these workers. 

“At the start of the job, we need to be clear whether the client wants a black worker, someone from another ethnic background or whether they just want the right person for the job,” Byrne says.

Verster says the criteria would be “quite a challenge for an external recruiter, from say London or Frankfurt, to operate an agency in South Africa because it’s something so foreign to them”.

Despite the challenges, “if you’re not here, you’re crazy”, Byrne says.

“[There are] a lot of challenges but if you know it well and you’ve got your feet firmly bedded down in the country… you’ll reap the rewards.”

*Source: World Bank

Legislating to improve South African employment standards

South Africa’s Labour Relations Amendment Act, effective 1 January 2015, has had a particular impact on temporary recruiters, according to Confederation of Associations in the Private Employment Sector (CAPES) PR spokeswoman Natalie Stringer.

She said the Act required agencies to make provisions for equal treatment, such as access, after three months’ service, to match the benefits a permanent worker would get; and protection for vulnerable workers (considered by law to be those earning under R206k a year [£11.3k]).

Previously, temps dismissed from an assignment have only had recourse against the recruiter as the employer. The new regulations provide the opportunity for those who have worked on a client’s site longer than three months to take action against the recruiter, the client or both. 

For all recruiters, registration and regulation is expected to kick in in April with the implementation of the Employment Services Act. 

This new piece of legislation will regulate the industry, ensuring formal licensing for operators, enforcement of standards and protection of work-seekers. The country has had problems with scam recruiters targeting vulnerable workers and charging for training and job placements that never transpired.

The charging of work-seekers will be formally outlawed, in line with International Labour Organization (ILO) standards, even though South Africa has not yet formally ratified that standard, which CAPES continues to lobby for. 

Source: Confederation of Associations in the Private Employment Sector (CAPES)

Key Facts:

• South African staffing sector has introduced 5.4m people to work since 2000.

• On average, someone who uses a recruitment agency secures work within 90 days, compared to the 806 days of someone who doesn’t.

• More than 1m people are deployed through a temp agency per day.

• The staffing sector has facilitated more than 35,000 apprenticeships.

• An estimated 3,000 recruitment companies in South Africa directly employ 15,000 to 20,000 people.

Sarah Marquet

Microsoft teams up with SThree to improve operations

SThree, the leading STEM-specialist staffing group, has announced a collaboration with Microsoft that is intended to power its industry-leading Technology Improvement Programme.

Contracts 26 March 2024

HeadFirst and Impellam groups join forces

HeadFirst Group and Impellam Group have joined forces to become one of the world’s leading STEM talent and managed service providers.

Contracts 22 March 2024

Manchester opening for Fruition IT heralds start of growth phase

Following a significant investment in November 2023, Leeds-based recruitment company Fruition IT and sister company Fruition Consulting have opened a new office.

Contracts 22 March 2024

NEW TO THE MARKET: 18-22 MARCH 2024

This week’s new launches include: APSCo, Babcock, Broadwing Recruitment, Cognizant, Jobmatch Sweden

New to Market 18 March 2024
Top