Engineers, ICT professionals top the list of skills businesses struggle to recruit

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Besides these skills, companies also find it hard to recruit experienced artisans, foreign language speakers, C-Suite executives, and senior financial executives, says Marisa Jacobs, Managing Director of Xpatweb, after releasing the results of the 2023/24 Critical Skills Survey Report at Xpatweb’s Global Mobility Conference in Johannesburg on 24 July 2024. This is the largest survey amongst verified employers of the critical skills which are most in demand in South Africa. Jacobs says it is clear from the Survey that engineering remains the number one skill which is most in demand since the 2019 Survey Report. More businesses find it difficult to recruit engineers now than was the case two years ago. In 2023/24 23% of respondents indicated they struggle to recruit engineers. This represents an increase of 5 percentage points compared to the 2020/21 Survey. Unpacking the results, Jacobs says the data reveals trends in recruitment preferences across specialties such as chemical, mechanical, mining, and industrial engineering. Despite local talent development, demand still outpaces supply, necessitating international recruitment. South African companies mainly source engineers from the UK, Europe and Africa due to specialized expertise in those regions.

When it comes to ICT professionals, 14% of respondents struggle to find the experienced talent they are looking for. The top five most sought-after skills in this sector are software developers, data analysts, data scientists, specialist information technology managers and IT engineers.

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Also making the list of top 10 skills in demand, are science professionals, media and marketing specialists, healthcare professionals and STEM teachers (science, technology, engineering or mathematics).

This is the fifth edition of the Survey. It is widely used in the market to inform HR strategy, as well as by Business Unity South Africa (BUSA) and the National Economic Development and Labour Council (NEDLAC) in policy decisions.

Jacobs, who also serves on the NEDLAC committee representing business, explains, in collaboration with the Department of Higher Education and Training (DHET) and the Department of Home Affairs (DHA), the Survey contributes to shaping the national Critical Skills List.

The DHA’s Critical Skills List informs the issuing of Critical Skills Work Visas for foreign nationals who have the requisite scarce skills to address South Africa’s demand for skilled professionals in key sectors. Because skills shortages negatively affect economic growth and competitiveness, the government implemented an immigration policy to attract talent globally.

“The critical professions play a pivotal role in innovation, communication and artisanry across sectors, driving global progress and prosperity. We aim to provide a comprehensive understanding of the dynamics driving these fields forward as they relate to the new criteria for a Critical Skills Work Visa,” Xpatweb states in the Survey Report.

The success of the national Critical Skills List in attracting required skills from abroad, has been highlighted by Operation Vulindlela, a joint initiative of the Presidency and National Treasury, aiming to accelerate economic reforms.

Dr Leon Schreiber, Minister of Home Affairs, recently emphasized the importance of attracting more skilled professionals to South Africa to boost economic growth. He said for every 1% increase in skilled, legal immigration, there is a 1.25% increase in employment for South Africans.

During a business lunch hosted by Xpatweb in August 2024, Schreiber outlined his vision for transforming the DHA as an engine for economic growth through modernisation, digital transformation, efficient service delivery and efficiency.

The Minister reiterated that attracting employees with the necessary skills to South Africa, is one of the quickest ways to boost economic growth.

To help achieve this, he declared it a priority to eradicate the crippling visa backlog within his department. As proof that this was not just paying lip service to the challenge, the DHA, in collaboration with the private sector, appointed a dedicated team who started working in earnest to have the backlog cleared by December 2024.

The Minister’s visit followed Xpatweb’s Global Mobility Conference a few weeks earlier where several issues shaping the immigration landscape were discussed.

Speaking at this conference, Dr Markus Thill, President: Africa Regions at the multinational group Robert Bosch (Bosch), said in all its legal entities around the world, the company has 1% to 2% expats employed.

The group, a global player in among others the automotive industry, has an annual global turnover of €100 billion and R6 billion in South Africa.

Bosch is constantly challenged to optimize its business and therefore needs top expertise. Although expats are far more expensive than employing an individual from the home country, it is about the know-how and the exchange of that know-how where Bosch has its plants.

Bosch also employs expats who are fluent in or understand French, Arabic, English and German. “It is difficult to find this expertise locally and we mostly have to bring someone in from overseas.”

Thill mentioned the need for professionals who can manage warehouses, as well as workers on the shop floor who are able to program machines.

According to the 2023/24 Critical Skills Survey Report 65% of employers struggle to find artisans with at least 3 to 5 years’ experience. This is higher than in 2021. Some of the most sought-after skills among artisans include electricians, instrumentation specialist artisans and millwrights.

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Government, private sector collaboration will ensure refined Critical Skills List to attract highly skilled foreigners

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The Department of Higher Education and Training (DHET), who assists the Department of Home Affairs (DHA) in compiling the list, is currently working on the full reiteration of the Critical Skills List for publishing in 2025. To this end, the DHET recently held the second in a series of engagements for stakeholder input specifically on the methodology and possible improvements in putting the list together.

The list was updated in 2022, with two adjustments since, the latest being in October 2023.

The Critical Skills List informs which occupations the DHA approves for Critical Skills Visas for skilled professionals from abroad who are in high demand by South African corporates. Once an occupation is on the list, it is meant to ensure a smoother and expedited visa application.

Methodology

Currently the DHET mainly uses the Quarterly Labour Force Survey (QLFS), the Labour Market Dynamics Survey (LMDS) and the kind of job vacancies advertised on the job-hunting sites PNET and Career Junction to compile the list on Occupations in High Demand (OIHD), which partly informs the occupations included in the final Critical Skills List.

During the workshop, stakeholders recommended the DHET uses more data, more sources of data as well as current data on labour market trends and the skills South African business struggle to fill from the local labour pool when updating the list.

Xpatweb, South Africa’s premium work permit and immigration service provider, conducts an annual Critical Skills Survey with more than 500 respondents from verified employers who take part, indicating which skills they struggle most to fill and must recruit from outside of South Africa.

Marisa Jacobs, Managing Director of Xpatweb and one of the presenters at the workshop, explained the Survey aims to determine the extent of critical skills shortages in the country, and the role of foreign nationals in addressing these shortages.

(Marisa Jacobs, Managing Director of Xpatweb, presenting at the DHET Workshop last week)

Critical Skills Survey

The DHET said in its Technical Report for the 2020 Critical Skills List, the Xpatweb Survey provided a high-level look at occupation clusters that are extremely difficult to recruit in South Africa. It also mentioned the top-down approach where businesses indicate which skills are critical, and how the Department used Xpatweb’s information to guide the determination of what should be on the final Critical Skills List.

Jacobs said in the 2023/2024 Survey, respondents indicated that engineers and ICT professionals are among the top 10 skills in high demand.

Respondents also had an uphill battle to find skilled artisans, foreign language speakers and C-Suite executives.

In total 79% of organisations indicated they find it difficult to recruit critically skilled individuals. More than 80% of participants perceive the visa application process as a prohibitor when recruiting internationally.

Jacobs said some the most onerous factors in obtaining work visas for critically skilled individuals, are:

  • no provision is made for the occupations on the Critical Skills List;
  • the professional body registration process for the said individual; and
  • the SAQA evaluation process.

Therefore, it is a welcome development that the Minister of Home Affairs partially waived a SAQA evaluation certificate for the Critical Skills Visa application as long as proof of the application to SAQA is presented. This waiver if part of the newly gazetted Points-Based System for Critical Skills and General Work Visas.

Attendees at the workshop reiterated the Critical Skills List makes it possible to hire foreign talent for which South Africa has not enough citizens to fill all the vacant positions. It is not about taking employment away for South Africans

Economic benefits of attracting critical skills from abroad

The DHA defines critical skills as those crucial for economic growth and without which certain projects and work could not be undertaken.

At the workshop, Operation Vulindlela quoted estimates by National Treasury that eliminating the shortage of critical skills can raise potential GDP by up to 1.3 percentage points above the baseline in a 12-year period. The demand for skilled workers is also believed to boost the demand for semi- and unskilled workers.

“A 1% increase in skilled immigration would lead to a 1.5% increase in employment in the domestic labour market, as skilled personnel create lower-skilled jobs.”

The International Labour Organisation recommended Government pilot a direct connection between the Critical Skills List and potential number of visas for certain occupations, and for certain durations. This will provide input to the relevancy and usefulness of the list.

Another recommendation centered around regular updates to the list with some kind of predictability for stakeholders. This would improve overall transparency and signal the expected duration of the current list.

Many countries use critical skills lists to inform immigration policies. Inaccurate lists may result in either a shortage of foreign workers where they are truly needed, or an oversupply in areas that are already saturated. Working with the best possible data to compile South Africa’s national Critical Skills List is therefore of the utmost importance.

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New Points-Based System for Work Visas marks significant strides for attracting global talent to SA

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The recent gazetted regulatory changes introducing the new Points-Based System (PBS), bring a transparent, objective and predictable structure allowing foreign professionals to evaluate their chances of a successful application for a Critical Skills Work Visa or General Work Visa. The PBS will help prospective applicants understand how their qualifications, work experience, remuneration, language proficiency, and employer status contribute towards the score required for a successful application.

The regulatory changes align closely with countries worldwide who are able to attract top global talent with skills in high demand. This presents South Africa as a compelling alternative for global professionals who might otherwise consider employment in Europe, UK, Canada or Australia for example.

The Department of Home Affairs (DHA) says the cutting-edge visa reforms form part of the Government of National Unity’s (GNU) collective mandate to overhaul the visa regime to attract skills and investment and grow the tourism sector.

Dr. Leon Schreiber, Minister of Home Affairs, described the new PBS for work visas as one of the single most progressive and pro-jobs regulatory reforms in South Africa in decades.

The introduction of the PBS is more than an immigration update. It is a proactive strategy to attract top talent from all over the world to South Africa, while fostering national development. This approach underscores the country’s commitment to aligning with international standards and creating a system that benefits the nation’s economy, business, and the foreign professionals who choose to make South Africa their home.

The PBS brings more certainty as it provides a checklist of what applicants need and predictability of who will qualify, but also a transparent framework to adjudicate visas in order to help tackle corruption.

Fostering Targeted Economic Growth by Attracting Critical Skills

The points-based system awards the required 100 points to occupations on the critical skills list, incentivising professionals in fields with substantial impact potential. For sectors such as renewable energy, healthcare, and technology, the critical skills list continues to provide a unique opportunity to bridge talent gaps and stimulate long-term economic resilience.

Employers can assess candidate eligibility in advance

Under previous regulations, companies faced uncertainty whether a foreign hire would meet visa requirements where their occupation was not included on the critical skills list. Now, they can strategically assess candidate eligibility in advance, using transparent point allocations for education, salary thresholds, and years of experience. This allows human resources teams to align recruitment strategies directly with regulatory guidelines, improving planning and execution for international hires.

Additionally, the system rewards companies that participate in the Trusted Employer Scheme, offering points benefits to foreign hires of compliant, reputable companies. By incentivising adherence to immigration standards, the Government is enhancing both the credibility of the system and the efficiency of corporate hiring pipelines.

Reducing Bureaucratic Barriers

This reform will go a long way in addressing the bureaucratic hurdles that previously bogged down the visa process. Under the old system, subjective assessments led to delays, inconsistencies, and unpredictable outcomes for applicants. Now, by prioritizing standardised criteria, the points-based system is expected to streamline the entire process, reduce processing times, administrative backlogs, and potential for corruption.

We anticipate this transparency will bring new assurance to companies investing in foreign talent, allowing them to predict timelines and budgets accordingly. For professionals, the clear points-based criteria will reduce the anxiety around immigration decisions and visa applications.

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Directive

Home Affairs issues Directive: Bringing Clarity to Thousands of Visa Applicants

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Clearing Up Confusion for Pending Applications

One of the biggest concerns following the introduction of the new immigration regulations was the uncertainty surrounding applications that were already in progress. Many applicants feared that their pending applications for critical skills or general work visas would be subject to the new points-based system, potentially leading to delays or unfavourable outcomes.

However, the Directive eliminates this uncertainty by specifying that any visa applications submitted before the implementation of the points-based system will be adjudicated under the rules in place at the time of submission. Furthermore, those with appointments already booked at Visa Facilitation Centres (VFS) or the South African High Commission will also be assessed under the pre-existing system.

Zimbabwe Exemption Permit Holders: A Temporary Exemption

For Zimbabwe Exemption Permit (ZEP) holders, the directive provides a temporary but important exemption from the points-based system. ZEP holders who are transitioning to mainstream critical skills or general work visas will continue to be processed under the terms of the special dispensation, without the need to meet the new points-based criteria.

While this exemption provides immediate relief for ZEP holders, it remains to be seen how their long-term status will be managed once the special dispensation comes to an end. Nonetheless, the directive ensures that ZEP holders are not adversely affected by the shift to the points-based system, at least for now.

A Welcome Step Toward a More Efficient and Transparent Immigration System

Marsia Jacobs, Managing Director of Xpatweb confirms that the introduction of a points-based system marks a significant shift in how South Africa manages its immigration policy, aligning it with other countries that prioritise economic needs and skill shortages representing a forward-thinking approach. By outlining specific criteria, such as qualifications, work experience, and remuneration, the system is designed to attract the right kind of talent to support South Africa’s growth.

The Directive reaffirms that applications filed after the introduction of the new regulations must adhere to the points-based system, ensuring that future applicants are assessed based on their ability to contribute to the country’s development. This structure gives businesses a clear understanding of how they can recruit foreign talent and allows individuals to assess their eligibility more transparently.

As South Africa positions itself as a competitive destination for skilled talent, the new points-based system, underpinned by the clarity of this directive, sets the foundation for a more streamlined and effective immigration process.

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Points-Based

South Africa’s New Remote Work Visa and Points-Based System: A Game-Changer in Attracting Global Talent

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Remote Work Visa: Boosting Economic Growth

This visa allows remote workers to contribute to the local economy without taking local jobs. Their spending on goods and services benefits sectors like tourism, hospitality, and real estate, particularly in cities such as Cape Town and Johannesburg. By capitalising on South Africa’s attractive lifestyle and affordable living costs, the visa positions the country as a desirable destination for remote workers, who can inject foreign capital into the economy.

According to studies on the successful programs in Portugal and Croatia, who had successfully implemented remote work programs in October 2022 and January 2021 respectively, it has been seen that long-term visitors often spend more than short-term tourists, driving growth in local businesses

Points-Based System: Ensuring Fairness and Transparency

In addition to the Remote Work Visa, the Amendment introduces a points-based system for General Work Visas, evaluating applicants based on qualifications, work experience, salary, and language proficiency. Unlike the Critical Skills Work Visa category, which specifically addresses skills shortages, the points-based system applies more broadly, aiming to attract a wide range of talent who can contribute to South Africa’s businesses.

Crucially, the points-based system promotes transparency and fairness in visa adjudication, reducing opportunities for corruption. By offering a structured and objective evaluation, the system ensures that applications are assessed based on clear and measurable criteria. This shift is particularly significant for the Department of Home Affairs, which has faced challenges related to inefficiency and irregularities. Through this new framework, the government aims to restore trust in its immigration processes while aligning with global best practices.

Insights from Xpatweb’s Webinar

The significance of these changes was further highlighted during a well-attended webinar hosted by Xpatweb on 17 October 2024. Marisa Jacobs, Managing Director, explained the importance of these changes for businesses and professionals. The Remote Work Visa and points-based system will simplify the process for companies to attract international talent and streamline compliance. The reforms, she noted, aim to foster transparency and economic collaboration.

Looking Ahead

These immigration reforms position South Africa as a destination for global talent, benefiting businesses by providing access to a wider talent pool and aligning with international best practices. The new system promotes transparency and opens new pathways for professionals and companies to thrive in South Africa.

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