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2015 talent trends: Insights for the modern recruiter on what talent wants in South Africa

Posted By APSO, 05 October 2015
Updated: 29 September 2015

2015 talent trends: Insights for the modern recruiter on what talent wants in South Africa
By: LinkedIn Talent Solutions

 

The typical career path is more fluid than ever. Today, talent is staying more connected, informed and open to new opportunities throughout their professional lives. In this report, step inside the mind of talent at every stage of the job search journey. Armed with this data, you will have a blueprint for successfully attracting, engaging, and hiring within this modern and dynamic talent pool.

 

 

We surveyed over 20,000 professionals in 29 countries, including 766 professionals in South Africa, to better understand their attitudes and behaviors at each stage of the job search. Do you think you know what talent wants?

 

Click here on to find out!

Tags:  APSO  candidates  CV  job  job search  LinkedIn Talent Solutions  management  modern  modern recruiter  opportunity  professionals  recruitment  recruitment professionals  resume  search  social media  work balance 

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THE RECRUITMENT INDUSTRY’S ROLE IN THE UPTAKE OF NEW BBBEE REQUIREMENTS

Posted By APSO, 15 June 2015
Updated: 11 June 2015

THE RECRUITMENT INDUSTRY’S ROLE IN THE UPTAKE OF NEW BBBEE REQUIREMENTS

Polarity.org.za

One of the legacies of Apartheid in South Africa is the unequal distribution of wealth between its white and black populations. Connected to this is gender and racial disparities in education and skills levels.

On 5 May 2015, the Department of Trade and Industry (“DTI”) released Notice 396 of 2015 (“Clarification Notice”) to clarify the position of the DTI with respect to the recent amendments to the Broad Based Black Economic Empowerment (BBBEE) Act. The clarification notice states that the Amended Codes became effective on 1 May 2015.

The amendments to the Codes fundamentally change the current BBBEE framework and significantly change the manner in which a firm’s BBBEE status (or level) will be calculated, as the number of BBBEE points required to achieve a particular BBBEE level has been increased.

The Federation of African Professional Staffing Organisations (APSO) is committed to the upliftment and professionalisation of the labour recruitment industry in South Africa.  KC Makhubele, Vice President of APSO says, “Planning for BBBEE should never be underestimated and should be seen as a tool that can increase employment opportunities and boost business growth.”

Makhubele explains that the purpose of the legislation remains to assist with the entrance of previously-disadvantaged people into the economy, in order to contribute to our national economic growth.

He says, “Human resources development, which encompasses employment equity and skills development, forms part of the core strategies for bringing about BBBEE in South Africa. These elements are, in fact, given significant weighting in determining the extent to which an enterprise contributes towards BBBEE. In terms of the Generic Scorecard, employment equity and skills development each account for 15 % of the BEE weighting of an enterprise.”

“Staffing and recruitment companies provide a great service in assisting businesses in reaching their BBBEE targets.”

Makhubele notes that not only do more candidates approach staffing and recruitment companies over corporate companies themselves – giving recruiters access to a bigger pool of talent to select from – but the interview and on-boarding process is also quicker when partnering with a reputable staffing company.

He says, “Recruiters also spend more time interviewing and developing candidates. Through temporary and contract employment BBBEE candidates gain much needed experience in order to enter the permanent market.”

“Businesses who share their staffing strategy and overall business objectives with their staffing partner will also ensure that these targets are prioritised, and met,” Makhubele adds.

For this reason, Makhubele stresses that staffing and recruitment companies should be seen as a strategic partner. “Get to know your recruitment suppliers and ensure they know you, your corporate culture, your vision and values.”

“If organisations really want the very best talent while getting its identified BBBEE talent up to speed, a recruitment agency can provide highly skilled contract staff or recently retired staff who have a huge amount of experience to pass on to up-and-coming BBBEE candidates,” he concludes.

Tags:  Amended Codes  APSO  BBBEE  BBBEE targets  BEE  business objectives  Department of Trade and Industry  disadvantaged  DTI  economic growth  employment opportunities  framework  Generic Scoreboard  Human Resource Development  legislation  recruitment  requirements  staffing  staffing solutions 

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Industry body addresses recruitment fraud

Posted By APSO, 10 June 2015
Updated: 29 May 2015

Industry body addresses recruitment fraud

Skills Portal

South African businesses have been urged to actively participate in the regulation of the staffing industry by the Federation of African Professional Staffing Organisations (APSO).

The aim is to promote transparency in order to stop the exploitation of desperate job seekers by bogus organisations.

KC Makhubele, Vice President of APSO – recognised as a professional body in the industry – says, “Deception in the recruitment industry is forcing employers to carefully consider their options when trying to identify reputable recruitment partner.”

He notes that by only working with employment agencies who have opened themselves to regulations and scrutiny by industry peers, businesses will aid in closing down the operations of fake recruiters.

To read the full article, please click here.

Tags:  agencies  APSO  industry body  legislation  Recruitment  regulation 

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Labour Law Amendments Are Devastating!

Posted By APSO, 01 June 2015
Updated: 29 May 2015

Labour Law Amendments Are Devastating!

Business Brief

The newly amended Labour Relations Act (effective since 1 January 2015) are having  devastating impact not only on the national recruitment and staffing industry but also on the national country’s unemployment rate – which the act itself seeks to relive – if they continue to be interpreted by some stakeholders in a narrow light.

Amendments cause uncertainty

The amendments to the act have caused uncertainty in the market and has been highlighted as likely to cost the country 254 000 jobs. The interpretation of and uncertainty surrounding these amendments has already resulted in the folding of a number of small to medium sized recruitment companies – a number of which are Black-owned – and as a result, goes against government’s intention to support and grow Black business.

In compliance with the Labour Relations Amendments Act, No 6 of 2014 (LRAA) -  which aims to streamline the country’s labour environment and protect vulnerable workers – South African businesses are required to adjust the way in which they have traditionally employed and managed staff in their organisations.

To read the full article, please click here.

Tags:  amendments  APSO  job loss  Labour law  legislation  LRA  recruitment  recruitment agencies  regulation  uncertainty 

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Employee Attraction

Posted By APSO, 27 May 2014
Updated: 16 May 2014
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The Tipping Point: SA staffing industry on verge of drastic changes

Posted By APSO, 06 June 2013
Updated: 06 June 2013

This article first appeared in the Global Recruiter magazine in June 2012

The South African staffing sector is facing many changes, not least of which is the impending legislation being driven by Government to curtail the use of Temporary Employment Services (TES) and to limit the impact of flexibility in the workplace. Unfortunately the political will to push this legislation largely, it appears, to appease political allies within the trade union movement and achieve ideological goals, goes against the drastic state of a labour market that is characterised by frightening levels of unemployment, education system failures and struggling, disillusioned businesses.

Mission Critical: Reduce unemployment

At the heart of South Africa’s many problems lies the ever-increasing scourge of unemployment. All of Government’s plans, most especially the National Development Plan, released in mid 2010, focus on the need to create millions of jobs in the next decade. This will not be possible if the proposed labour legislation amendments were to be passed.

South Africa already struggles to compete favourably with our African neighbours and BRIC counterparts in respect to education standards, labour relations and productivity, and unless we create an environment that businesses – both local and International – believe is conducive to economic success, we will not stimulate the economy and attract the much-needed foreign direct investment required to have a real impact on job creation.

According to the Labour Market Performance Report for First Quarter 2012 released by the University of Cape Town’s Development Policy Research Unit, the initial labour market recovery observed in 2011 is faltering. The unemployment rate, calculated on the expanded definition to include those who are disillusioned as well as those actively seeking work, stands at 33.8%, more than seven percentage points higher than the pre-recession low of 26.6% measured in the fourth quarter of 2008.

Youth: A ticking time bomb

Throughout the world youth unemployment is a critical factor and none more so than in South Africa where high levels of unemployment are being experienced amongst the youth. The report sets unemployment rates amongst 15 – 24 year olds at 62.4%, nearly double the national average and 25% higher than the rate for 25 – 34 year olds. 

The education system is failing desperately and many young people are exiting the secondary education system with Matric certificates yet still functionally illiterate. Skills development in the workplace therefore becomes essential and adds a significant burden, both cost-wise and administratively to employers, who would rather engage with a more mature worker.

The economic slowdown and existing draconian labour legislation has resulted in the inability of the South African labour market to generate sufficient numbers of jobs, especially for younger, less experienced workers. Employers are simply too afraid to "take a chance” on a younger worker, for fear that it does not work out.

Curtailing the use of TES will have a direct negative effect on access to employment for young people as the PrEA industry is proven to be a stepping stone to gather work experience, access additional skills and training and to secure permanent employment.

Enforcement is the real issue, not lack of legislation

South Africa is recognised to have some of the most rigid labour legislation in the world. The 2011 World Employment Forum ranks South Africa 138th (out of 139 countries) in both Flexibility of Wage Determination and Cooperation in labour-employer relations. We also rank worst, 139th, in respect to Hiring and Firing Practices. This clearly outlines the fact that our existing regulations are already too stringent in this economic climate.

The real issue however is in relation to compliance and enforcement. Currently, those companies who operate outside of the legislation, are not being investigated and punished and there is no real effective deterrent for non-compliance. Extensive research, conducted globally by the Boston Consulting Group, proves that over-regulation of any labour market – established or emerging - leads to a direct increase in the number of non-compliant "underground” operators and a decrease in employment in the formal sector where the highest levels of compliance exist.

Organised business in South Africa is highly concerned that attempts to further regulate the labour market, resulting in over-regulation, will only serve to increase the cost burden on the already compliant, thereby increasing the non-compliant element. This will have a severe impact on the number and quality of the jobs in South Africa. As costs increase, compliant businesses will simply seek opportunities to reduce the number of people employed through automation and mechanisation, thereby resulting in the loss of more decent jobs.

The "f-word” - Flexibility

Government and unions in South Africa, and elsewhere in the world, are struggling to come to terms with the changing world of work and the increasing use of flexibility within the labour market. Gone are the days that an individual was employed ‘for life’ at a single employer with full benefits and a gold watch on retirement. Chronic skills shortages, increasing global competition and improving technology have created a labour market that favours flexible, project-based employment. This more flexible labour model need not mean precarious work.

"Flexicurity”, a concept coined in Europe, promotes the balance between flexibility and security for the employee through effective regulation and the availability of suitable social protection schemes.Companies, in order to remain competitive, are choosing to outsource their non-core functions and to bring specific skills, for specific projects, in "just-in-time”. The nature of these employment relationships varies but is most often defined as "a-typical”.

To effectively manage the sourcing, recruiting, assessing and administering of flexible labour, businesses have turned to specialists, in the form of Temporary Employment Services (TES) companies. And South Africa is no different.PrEA is a significant contributor to the South African economy.

The Private Employment Agency Sector (PrEA), including Temporary Employment Services (TES), is a significant contributor to the South African economy. In addition to facilitating smooth transitions for workers between jobs, and assisting employer companies to remain competitive in tough economic times, it is also one of the largest contributors to skills development in the country.

A snapshot of the South African PrEA sector:

  • Introduced 5.4 million people to the world of work since 2000
  • Gateway to the world of work: Profile of work seekers/candidates:

o   Never previously employed: 57%

o   Youth aged 18-35: 83%

o   Previously disadvantaged: 93%

  • Average of 994 000 people deployed (via TES) on a daily basis
  • Of those initially employed as a temp, each year significant numbers are permanently deployed

o   30% within 1 year

o   42% within 3 years

  • One of the largest contributors to skills development – R415 million paid over in skills levies
  • Nearly 20 000 registered learnerships facilitated (30% of SETA total)

Proposed legislation threatens job creation goals

The proposed changes to the legislation, in particular the curtailment of the use of a-typical employees (temporary, fixed term and part-time) by limiting the time of employment to 6 months, before being considered to have all the rights associated with permanent employment, including access to benefits, will have dire consequences on the labour market.

It is estimated that in excess of 3 million people are employed in a-typical arrangements in South Africa and the local labour market is simply not able to absorb all of these. Further, the poor drafting of the proposed legislation has already led to confusion in the marketplace with different lawyers interpreting the drafts differently. This uncertainty, rather than specific legislative amendments, is more likely to cause a loss of jobs as companies battle to come to terms with administering it within their organisations.

Social dialogue between Government, business and labour has unfortunately not been fruitful and many areas of disagreement still exist. Unfortunately, with the ruling party’s policy conference, leadership debate and national elections pending, it is likely that the legislation will be pushed through in the next several months.

The staffing sector, in particular will need to adapt to the new environment and whilst it will not result in an outright ban of the TES sector, higher compliance regimes, complex legislation and increasing costs will likely impact the smaller operators and cause a consolidation within the staffing sector.

Commitment to professionalisation of the PrEA sector

The industry has long advocated the need for specific regulation to govern the PrEA sector. We are committed to regulation that is fair, effectively enforced and that recognises the dynamic nature of labour markets today. At this stage the internal political wrangling within Government and its allies is likely to have a direct impact on the acceptance and implementation of the proposed legislation.

We will simply have to see what the practical impact and resulting consequences will be.The Federation of African Professional Staffing Organisations (APSO) remains committed to working with stakeholders to establish an effective regulatory framework and to support our members in coping with the changes to ensure sustainability within their businesses.

Tags:  APSO  enforcement  flexibility  labour law amendments  recruitment  South Africa  staffing  unemployment  youth 

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