Almost 24% and 17% of respondents, respectively indicated they have to look far and wide for suitable Chief Financial Officers, and Chief Technology Officers.
This is the largest survey among verified employers about the critical skills that are most in demand in South Africa.
Marisa Jacobs, Managing Director of Xpatweb, said as corporates expand globally, they look for executives with international experience so they can take their businesses into Africa and beyond. This means they must often expand their recruitment efforts internationally; she told Jeremy Maggs in an interview on Moneyweb.
Recruiting the right C-suite executive for the job, is sometimes easier said than done.
According to Tanya Tosen, a Master Mobility Specialist at Tax Consulting South Africa, this also comes at a huge cost as the average assignment to recruit and relocate an employee with the necessary critical skills, is approximately 3 to 5 times more expensive than obtaining a local resource in a respective country.
Therefore, companies must plan for the cost of the total package, typically covering salary, annual benefits, once-off relocation costs, and tax and social security liabilities.
Tosen told delegates at Xpatweb’s recent Mobility Conference that due to the global economies and constant pressure the need for cost control has reached new heights, thus making a sound mobility strategy for companies more important than ever.
In addition, it should be noted that cost containment is not about arbitrarily cutting costs, but about spending more strategically to develop a clearly defined mobility plan that allows for the right people for the right reasons to be appointed, and so ensuring a return on investment in mobility.
She demonstrated the rising cost of housing and motoring worldwide which can have a huge impact on international assignments specifically with housing rent which has increased in many countries, including South Africa.
Rent in sought-after areas in Cape Town increased by about 9% year-on-year, but the low value of the rand has made the Mother City increasingly popular among digital nomads also adding to pushing these rental prices higher, Tosen said.
How does South Africa fare
Despite certain challenges, expats’ happiness in South Africa has improved significantly over the last year. She referred to the Expat Insider Survey by InterNations, ranking South Africa 29th out of 53 countries on the overall rankings of Best Destinations for Expats in 2024. This is an improvement of 19 spots compared to 2023.
Expats in South Africa indicated they are excited about the leisure opportunities, general cost of living, good housing, healthcare and pleasant environment and climate. Weather conditions also count in our favour and respondents said they make friends easily in South Africa.
Almost 33% may stay forever, the Expat Insider Survey showed.
Issues hindering expats from coming to our sunny shores
Safety is the main issue for expats in South Africa. We rank the lowest on personal safety and political stability, dragging down our overall rating. A less than desirable ranking in the subcategory Travel and Transit due to poor affordability and availability of public transport, also weighs on South Africa.
Tax Regulations
Companies must keep in mind when individuals cross borders, the complexities of tax regulations and immigration requirements can pose various challenges. Businesses must keep up with Government regulations related to ways of work in the country they find themselves in. It is advisable to get help from Mobility and Tax professionals who can assist businesses to stay compliant, deploy global talent strategically, and track and align related expenses and outcomes, Tosen said.
Mobility experts can help corporates in recruiting the necessary skilled employees, plan for this cost to ensure it delivers a return and stay on top of tax and immigration regulations.
