80% of businesses struggle to recruit skilled talent locally

Will President Cyril Ramaphosa’s State of the Nation Address announcement on reforms to attract foreign talent really benefit South African critical skills employers?

These initiatives may be a win for organisations desperate to acquire scarce skills not available locally.

However, any advantage will depend on how well the proposals are implemented, how soon, and if the current visa system can support them.

No locally recruited talent

Employers need them yesterday. Xpatweb’s respected annual Critical Skills Survey has been running for the past five years and consistently show that more than 80% of businesses struggle to recruit skilled talent locally.

The proposals put forward by the president include a more flexible point-based system to attract skilled immigrants. We currently have fairly rigorous requirements, so a more flexible system suggests some will be eased to speed up the entry of suitably qualified candidates.

We need a trusted employer scheme to make the visa process easier for large investors. Application requirements need to be streamlined because the initiative’s efficacy hangs on good implementation.

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Backlog

There was a backlog from the failed Central Adjudication system last year, leaving a large number of expatriates waiting for visas.

And a tightening of the immigration regime over the last 12 months has made it much harder to secure a work visa, which also now takes longer.

We are seeing the highest rejection rate in 15 years, often for arbitrary reasons. The government must ensure there is an underlying system that aligns with and supports these proposals.

The introduction of a remote worker visa is a sensible idea. Apart from attracting the foreign income of digital nomads, the visa could serve as an incentive to candidates whose spouses wish to continue working remotely for overseas employers.

Proposal

The proposal about a special dispensation for high-growth startups is vague, but I am tentatively optimistic that, provided they are implemented correctly, the announced initiatives can bring welcome relief to employers hard-pressed to source critical skills. Although this is a huge step forward for employers, Xpatweb acknowledges the hurdles that still need to be overcome.

-Jacobs is managing director of Xpatweb.

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