Critical Skills Survey Results 2020-2021 Released Top 10 Most in Demand Skills

NEWS | CRITICAL SKILLS SURVEY RESULTS 2020/2021 RELEASED: THE TOP 10 MOST IN DEMAND SKILLS

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Xpatweb’s annual survey has fast become known as a benchmark for business and policy makers. Input from the 2019 research findings was submitted for consideration when the drafting the latest OIHD critical skills shortage list. The survey was conducted across a wide range of multi-national and corporate firms to assess the level of difficulty organisations face when sourcing scarce skilled individuals and the role of foreign nationals in addressing these shortages. The number of respondents has grown exponentially in recent years, with a 30% increase in responses from 178 in 2019, to 220 in 2020/21.

Xpatweb managing director Marisa Jacobs highlighted the results of the latest Xpatweb Critical Skills Survey 2020/21.

“The survey has revealed that 77% of organisations have stated that they are still struggling to recruit and obtain critical skills in South Africa for their local and cross-border operations. 76% of participants further confirmed that an international search will assist the organisation in meeting its business objectives,” Jacobs said.

Top 10 most in demand skills

According to the latest survey, the top ten skills businesses are struggling to recruit include Engineers (18%), ICT (13%); Foreign language speakers (10%); Media and Marketing Specialists (9%); Artisans (8%); C-Suite Executives (7%); Senior Financial Executives (6%); Health Professions and Related Clinical Sciences (5%); Science Professionals (4%) and Accounting (1%).

Over the past five years, the skills shortage has persisted with eight categories of skills dominating the top of the list of professionals that businesses find difficult to recruit.

“This has led to many organisations seeking suitably qualified and experienced candidates beyond South Africa’s borders to fill these posts” Jacobs said.

ICT professionals and Engineers in highest demand

The number of businesses indicating that engineers are difficult to recruit rose from 16% to 18% which could indicate that these skills are being lost to the brain drain as countries like Australia and the United Kingdom compete directly with South Africa for qualified and experienced professionals. Business expansions into Africa for special projects locally in the oil and gas sectors also tend to attract these in demand skills.

Mechanical engineers (26%) were most in demand, followed by maintenance engineers (18%), chemical engineers (13%) and industrial engineers (14%).

The demand for ICT skills remains unprecedented and, on the rise, as 14% of businesses, compared to 15% of respondents in the 2019 survey now indicate that they struggle to source skilled professionals in this field to drive their operational demand to transition into the digital economy.

Professionals most sought after included IT application developers (11%), data analysts (10%), data scientists (9%), software developers (9%) and software engineers (8%).

“As big data, robotics, artificial intelligence, machine learning and the internet of things rapidly shape the way of doing business, which often marks the difference between firms that survive and thrive in the transition from the third industrial revolution into the 4IR and those that don’t compete effectively, sourcing these skills is a priority that cuts across all sectors,” Jacobs noted.

Cross border trade growth spurs demand for C-Suit executives and foreign language speakers

Senior Financial and C-Suite Executives remain in demand with the number organisations reporting that it is a struggle to find suitable candidates to fill these key business leadership positions.

Most in demand professions were Chief Operating Officer (24%), Chief Financial Officer (24%), Chief Executive Officer (19%) and Chief Technology Officer (19%).

These skills are most sought after in sectors including business and finance; production and manufacturing; management; information communication; IT and technical services, mining and administrative services.

“Factors influencing the challenges that businesses face in recruiting the right person for these roles include the fact that in a global village, organisations are increasingly seeking professionals with international experience. Businesses are not only seeking essential tick box qualifications and experience required for a traditional executive position, but they want professionals who are equipped with niche business experience to lead their expansion and growth across international markets,” Jacobs explained

“Businesses are aware of market dynamics in their various global markets and need to be certain that candidates understand the nuances of their specific focus areas,” Jacobs added.

This global expansion of businesses and especially growth in cross-border trade on the African continent has also led to rising demand for foreign language skilled professionals, including the hiring of interpreters.

Some 10% of organisations indicated that they struggle to find people with adequate foreign language skills, a marked increase from just 4% in the 2019 survey.

Foreign language speakers most in demand included, French (29%), German (18%), Mandarin (14%); Italian (10%), Spanish (10%) and Dutch (4%). Sectors that are finding a demand for these skills are largely information technology and communication; business and finance; hospitality and tourism and education and libraries.

Global competition for skills

The survey findings reveal that South Africa continues to compete on a global stage for critical skills.

The United States, Australia, and the United Kingdom’s critical skills shortage lists virtually mirror the skills that SA is desperate to attracted as highlighted in the 2020/21 Critical Skills survey – from ICT and C-Suite Executives to Engineers, the country’s need to fill posts in these fields to grow their economies.

“SA has to compete more than ever with the likes of the US, Australia and the UK when considering its strategy to recruit skilled professionals. SA policy makers therefore need to consider how to make it as easy as possible for skilled professionals to gain access to work and business opportunities locally,” Jacobs advised.

“Fortunately, the SA government is serious about this and has updated the critical skills list to stay in touch with the needs of the local economy. The critical skills list makes it possible for businesses to embark on recruitment drives to source these skilled professionals abroad which makes it important for organisations to take advantage of the opportunity to comment on the new list before the deadline,” Jacobs concluded.

Many of the skills on this new survey echo the new Occupation in High Demand (OIHD) list which served as the basis for the updated Critical Skills List (CSL) released Minister of the Department of Home Affairs, Dr Aaron Motsoaledi last month for public comment by 31 March 2021. The CSL represents the latest list of skills deemed in short supply in SA and who may apply for a work visa in terms of the Critical Skills Visa category under the Immigration Act.
AUTHOR
Marisa Jacobs
Marisa Jacobs
Director

ft-Draft-Critical-Skills-List-Could-be-bad-news-for-artisan-employers-XP

NEWS | DRAFT CRITICAL SKILLS LIST COULD BE BAD NEWS FOR ARTISAN EMPLOYERS

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The Department of Home Affairs called for public comment in the gazette and employers have until 16h00 on 31 March 2021 to submit their suggestions.

Which artisans?

Dr Innocent Sirovha, CEO of the Agricultural Sector Education and Training Authority (AgriSETA), says all necessary critical and scarce skills have been included on the draft List.

However, Sumaya Hoosen, Human Capital & Skills Development Executive at the Steel and Engineering Industries Federation of Southern Africa (SEIFSA), confirms that several import skills have been omitted. “In the artisan field, boilermakers and millwrights are in short supply,” he says.

Referring to Xpatweb’s own Critical Skills Survey, Jacobs points to the artisan skills that respondents indicated as scarce but essential to their operations. They include millwright, electrician, fitter and turner, instrumentation specialist artisan, automation specialist, and refrigeration and air-conditioning mechanic. “Of these, only fitter and turner is included in the draft List,” she says.

Preliminary results from the firm’s latest survey show that 7 percent of employers struggle to recruit such artisans. They operate predominantly in the mining, construction, and production and manufacturing industries.

Education and experience

An interesting note from the Department of Higher Education and Training’s full technical report explains why mechanical fitter, electrician and millwright, although critical, were discarded from the list.

It says that these occupations “were described as having a large number of qualified yet unemployed South African citizens who were not finding job placements. For this reason, there is sufficient evidence to exclude these occupations from the finalised CSL.”

Although this is true, employers need artisans with a level of education and experience not easily sourced locally.

66 percent of respondents to Xpatweb’s survey seek diploma level education or higher. In terms of experience, 23 percent require a minimum of one year experience, 30 percent require three to five years experience and a massive 43 percent require five or more years experience.

Encouraging feedback, 81% of these employers reported that succession planning and the transfer of foreign skills to local artisans is a high priority for their business.

“Employers indeed want local artisans but they need good experience to ensure project integrity is maintained,” says Jacobs.

Expiring visas

Jacobs also points out that certain foreign artisans currently in South Africa under a critical skills visa will not be able to renew that visa when it expires if their skill is not on the finalised List.

This means their employers could possibly lose an essential resource for their business where they are not able to sufficiently motivate for a visa renewal, which in turn means they will also have to go through a lengthy process to replace them.

“Importing skills not on the CSL takes several months longer and for some employers, this can impact their operations significantly,” says Jacobs.

This is yet another reason why they should submit their comments before the quickly approaching deadline.

Jacobs also urges employers to participate in Xpatweb’s Critical Skills Survey, which was the only private sector data used as input for the Critical Skills List. “Employers can benefit immensely from the industry-wide insights our results provide and their influence on initiatives like the CSL,” she concludes.

AUTHOR
Marisa Jacobs
Marisa Jacobs
Director

ft-Should-SA-Consider-Special-Visas-to-Attract-Skills-XP

NEWS | SHOULD SOUTH AFRICA CONSIDER SPECIAL VISAS TO ATTRACT SKILLS?

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This, according to the Home Secretary, Piri Patel, is in an effort to attract the ‘’best and brightest heath and care professionals’’ globally to work and help strengthen the National Health Service (NHS).

Skills shortage in SA

South Africa is experiencing a mass exodus of healthcare professionals who look for greener pastures after graduating.  In addition, 48% of practising nurses in South Africa are due to reach retirement age in the next 15 years, with not nearly enough in training to fill the shortfall.

Attracting skills and investment

Marisa Jacobs, Managing Director at Xpatweb, notes that while we have the Critical Skills list that includes skills in high demand in South Africa, there is certainly a spotlight being placed on the Legislation used to attract skills and South Africa should be open to considering similar visa options to attract skilled workers and investors alike to strengthen the labour sector and economy.

Some examples include –

  1. Residency by Investment options;
  2. Special Dispensations for specific skills (similar to UK Health Care Worker visa above); and
  3. Remote Worker Visas (similar to Mauritius and Portugal Nomad Visas).

All these options are aimed at attracting only the top skilled labour, injecting the economy through tourism and travel, and inciting investors.

Enabling legislation

The pandemic has certainly highlighted various shortcomings across sectors, but it has also shown that nations on the continent and around the world can stand together in times of need. Policy and regulations enable growth and skills development in significant ways but only where we invite debate, comment positively and with insight on draft legislation and make our voices heard.

Xpatweb annually conducts the critical skills survey to gather feedback from employers to establish which skills should be included in the Critical Skills list. The survey data will be instrumental in commentary on the latest draft list currently open for public comment until 31 March 2021.

This is the perfect platform for employers and all South Africans alike to provide valuable inputs to the Department of Home Affairs on how to optimally leverage the list to attract skills to South Africa to strengthen the economy and local labour force for generations to come.

AUTHOR
Marisa Jacobs
Marisa Jacobs
Director

Don't Forget To Comment On Critical Skills

NEWS | DON’T FORGET TO COMMENT ON CRITICAL SKILLS

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Marisa Jacobs, director at Xpatweb, encourages organisations who rely on any of the omitted roles for the sustainability and growth of their business to comment on the draft list before 16h00 on 31 March 2021.

“If they don’t, they will have to wait several months longer before an employee critical to their operations can be onboarded due to visa application restrictions,” she warns.

Jacobs also invites these employers to complete the current Critical Skills Survey, which is more in-depth than previously. Doing so will ensure their needs are presented to regulators long before the next public comment process is announced.

Xpatweb has carried out its Critical Skills Survey for the past five years, providing reliable data on the needs of South African businesses. As a result, it was the only private sector organisation invited to present its findings before the Departments involved in compiling the draft List.

Source: IT Online

More Than a Balancing Act What Is The Future Like For CFOs

NEWS | MORE THAN A BALANCING ACT: WHAT IS THE FUTURE LIKE FOR CFOS?

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Even World Economic Forum leader Till Leopold warned white-collar jobs would not be spared in the onslaught of jobs for skilled and educated people in the coming year, saying that 35% of the skills requirements for many existing professions will change in the near future.

This has implications for accountants on the African continent, according to the CEO of CFO Africa and CEO of the South African Institute for Business Accountants (SAIBA), Nicolaas van Wyk.

He told Fin24 that the impact of the fourth industrial revolution and tech are changing the world of work for accountants.

“Five years ago, more emphasis came upon CFOs and there was a lot is being made of the role of modern CFO. The role has moved from a purely finance function into the boardroom.

Broader skills set expected

“Now people who are accountants are also expected to have business skills, strategy, operation, human resources and information and communication technology,” said van Wyk.

Van Wyk said 70% of JSE-listed company CFOs are accountants by study and profession, while the remaining 30% were led by corporate executives with broad skills and competencies. While chartered accountants are still present, they mostly serve to assist the CFO, van Wyk said.

“CFOs need to be more mobile and be able to work anywhere in the world. We set a benchmark to qualify a CFO and award the designation so that companies are assured of that person’s competence. It is all the more essential with the scandals in place surrounding the profession,” said Van Wyk.

He elaborated saying there might be corrupt politicians and state-owned entity (SOE) leaders, but most of the time they cannot act without an enabling CFO. He said CFO Africa and SAIBA have reached out to government to offer auditing and accounting capacity to its efforts in fighting corruption.

“We are making submissions to the Department of Public Enterprises. It is part of government’s efforts to clean things up and it is emanating from the Zondo Commission. Everyone is building up defences and we are doing it by bolstering the designation of CFO,” he said.

Independent labour analyst Andrew Levy said C-suite executives remained one of the most critical components to South Africa’s efforts when it came to drawing critical skills to help the economy recovery.

Xpatweb director Marisa Jacobs said the impact of Covid-19 on South Africa’s world of work would deepen the formal economy’s reliance of tech and the idea of virtual work.

“We only released the critical skills list after Covid-19, so it will be interesting to understand pre-Covid-19 versus post-Covid-19 world to see if there has been a dramatic shift, but we can see engineering remains in the top ten, which we weren’t expecting to see due to the impact on manufacturing. IT reliance is high because of the fourth industrial revolution and the high use of tech,” said Jacobs.

Intimidation of CFOs concerning

Van Wyk said the intimidation and murder of CFOs who have lost their lives in the fight against corruption in government departments and SOEs was also of serious concern.

“We have seen the State Capture Inquiry and it is a shame what so many people did to South Africa and the impact that it had on the poor. The pandemic is worldwide but there is global mismanagement.

“It is a small number of CFOs who are corrupt but many are in organisations where the culture cannot easily be shifted in a positive directed. For example, Markus Jooste didn’t act on his own. He had a CFO who facilitated things. We must strengthen the ethical role and technical knowledge,” said Van Wyk.

Van Wyk said he believed CFOs could assist SA at a strategic level as sovereign credit rating agencies have been giving downgrading South Africa, adding that CFOs we can improve the profession and the economic fortunes of the continent.

Source: fin24