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Turnover in South Africa: The Effect of History

Global Talent Retention: Understanding Employee Turnover Around the World

ISBN: 978-1-83909-294-7, eISBN: 978-1-83909-293-0

Publication date: 30 September 2021

Abstract

The South African government actively intervenes in the labor market in the pursuit of redress of social injustice. These interventions are complicated by economics and have a direct effect on intentions to turnover. In addition, South Africa has a dual labor market, with a high unemployment rate among lesser skilled workers, and a skills shortage at the top of the labor market.

There are four clear eras in the labor market of post-Apartheid South Africa. The first era was after democratic elections in 1994, when the government focused on nation-building with the introduction of indigenization programs. The second era was characterized by economic prosperity and an intensification of indigenization programs. The third era was characterized by rampant state corruption and increased regulatory uncertainty. During this period, the economy stagnated and unemployment increased. Firms restructured and lower-level workers were retrenched and higher-level skilled workers left the country. In 2018, a new president undertook to grow the South African economy and attract foreign direct investment. Despite these efforts, there was a spike in South Africans emigrating, increasing the turnover of highly skilled South Africans of all races.

Economics and politics create both push and pull factors and many unintended consequences, and the dual labor market reacts differently to labor markets than in developed economies. The lower-skilled employees lose their jobs as the economy contracts, while highly skilled jobs remain difficult to fill. However, skilled professionals nonetheless feel increasingly uncertain about their future employability.

Keywords

Citation

Wöcke, A. and Barnard, H. (2021), "Turnover in South Africa: The Effect of History", Allen, D.G. and Vardaman, J.M. (Ed.) Global Talent Retention: Understanding Employee Turnover Around the World (Talent Management), Emerald Publishing Limited, Leeds, pp. 239-259. https://doi.org/10.1108/978-1-83909-293-020211012

Publisher

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Emerald Publishing Limited

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