No 'single fix' for SA's talent retention issue

WITH South Africa’s skills shortage, increasingly mobile skilled professionals and the high cost of employee turnover, attracting and retaining top talent remains a cornerstone of organisational success.

- SHAUN SMIT

According to recent industry surveys, more than 78% of South African businesses report difficulty filling critical positions - particularly in technology, engineering, finance and healthcare. Yet, this narrative exists alongside another reality: South Africa produces thousands of graduates annually, many of whom struggle to find suitable employment.

Business challenges

Talent retention challenges that businesses encounter include an ageing workforce, the emigration of professionals, and younger employees who increasingly seek purpose-driven work and flexibility. In addition, the job market is extremely competitive in certain sectors such as finance, IT and engineering.

The issue of retention is even more relevant in the context of the recently gazetted Employment Equity Amendment Act. Effective from January 2025, it introduces five-year sectoral targets for black people, women and people with disabilities. Companies with 50 or more employees must comply with these regulations to avoid penalties and ensure business continuity. Non-compliance can result in significant penalties and exclusion from public contracts.

Key tools

This means organisations need to rethink their approach to talent attraction and retention, and implement a blend of strategies that resonates with their employees' needs and aspirations. Key tools that can help in achieving this goal include: