Estimates by some commentators are that by 2030, there will be a global talent shortage of some 85-million. This is largely attributed to a younger generation that lack the skills – or the time to acquire those – to move into the workforce as baby boomers retire.
Following the Covid years, which were really tough on recruiters with the mass move to work-from-home strategies, statistics like this could be concerning, especially given that it was only in 2023 that the job market rebounded to 2019 levels.
“The potential talent shortage may be hard to envisage right now, but the headlines aren’t wrong,” says Michelle Viret, CEO of OpenSource, the global recruiter that specialises in resourcing SAP experts and other complimentary tech professionals. “As the world of tech grows, so too does the need for resources that are highly specialised. But before ensuring that the existing workforce is upskilled or retained on a regular basis, which is one solution, there are two key considerations that organisations need to introduce to their recruitment strategies.”
The first is to eliminate fears that job vacancies will be filled by robots, or performed by Artificial Intelligence (AI). “Right now there really aren’t enough humans to fill jobs, and it is still uncertain whether these forms of tech will be able to function effectively without the human element.”
The second, and likely the most important, is to capture the youth as they enter the world of work and train them without restraint, so that their skills and loyalties become immersed into the culture of the organisation. “This is more important than human resource professionals realise. With baby boomers now facing retirement, and unless they have trained replacement talent from within, companies may find skill gaps in external applications for advertised positions,” says Viret.
“At OpenSource we see many applications that exclude one or more of the required skills to fulfil a role. The youth are often excluded from consideration because of their lack of experience, yet many would be ideal employees based on their attitude, work ethic and ambition. In some cases we recommend those candidates avail of OpenSource’s SAP-discounted training programmes; and we encourage our clients to create graduate programmes that develop youthful energy and talent and also address the youth unemployment challenge.”
Progressive companies are addressing this issue by instilling a culture of continuous learning, which is central to the future of work. This extends far beyond the traditional definitions of knowledge and skills development,” says Viret. ‘For example, companies won’t need to manage performance … it will manifest by itself. It minimises the effects of weak points, both individual and organisational, before they become a serious problem. Even better, is that companies remain geared for the future by having the most qualified personnel who quickly grasp what needs to be achieved to reach company goals.”
OpenSource has an exceptionally healthy placement record given its vast international network of both market openings and candidates, particularly those within the SAP space. “This is a highly structured technical environment. Those who have an SAP qualification are uber professional, and we thus consider those candidates as ideal mentors and role models for the future workforce,” states Viret.
“If companies ignore the potential of youth-hungry job applicants, they will find themselves facing a talent shortage. It is certain that a shortage of skills will precede a shortage of workers, which is why we urge organisations and their leaders to make the most of their talent today to ensure they take care of their talent supply tomorrow.”
Securing a talent pool amid the B-BBEE regime
During the Covid years, many companies moved from contractual to permanent staffing. This trend has abated somewhat as South African-based organisations have a need to supplement permanent staffing that requires a B-BBEE consideration.
It has been extremely difficult for organisations, particularly global conglomerates with offices in South Africa, to source permanent staff that have the required critical skills yet still be compliant with the B-BEEE regime. This was especially noticeable during the Covid years when recruiting companies, working under constrained economic restrictions, were concerned that contract staff would potentially not give their full effort to the work ethic required, nor embrace corporate cultures from remote locations.
What those companies encountered was certain issues in compliance. Not only was it difficult to source permanent employee’s that satisfied their B-BBEE compliance, but they had to undertake credit and criminal investigations, and references. Tegwen Sampson, B-BBEE Manager of OpenSource also points out that more often than not, after these checks were concluded, the resource did not quite fulfil the organisation’s needs. “In many cases, especially in the case of SAP, the applicant lacked critical skills”
“Whilst this lesson may have been learned to some degree, the practice continues, yet there is a solution, which OpenSource has had in its cache for some decades,” she says. It’s called Temporary Employment Services (TES). With TES, clients secure temporary staff, and test their skills for up to six months before comfortably making the decision to convert them to permanent employees.
“This is a strategic solution from many perspectives,” says Sampson. “In our experience, after some 30 years in the industry, and more so from our specialisation in IT/SAP recruitment, the contractors we have access to have top calibre skills, years of experience, and the resourcefulness and dedication to work from anywhere. This makes them very desirable employees, and more so if they meet the B-BBEE requirement.
“OpenSource’s TES offering is comprehensive. In effect, OpenSource becomes the temporary employer on behalf of our client. We service the payroll, the medical and contract obligations, which distances the client from any CCMA issues and administrative headaches. Only when the resource has proven their compatibility with the company and the role, does the client then decide whether to permanently or contractually employ the individual.”
TES works exceptionally well for companies working on international projects, where the need is for highly skilled remote workers that cannot be sourced locally because of the B-BBEE compliance regime. “It’s not a bypass of the B-BBEE checklist at all,” explains Sampson. “Rather it solves an immediate need while the right skills are sought or acquired, or local black resources can be trained to the required level. It is imperative that any company committed to genuine empowerment, does so successfully and quickly given the vast sums required to meet B-BBEE targets.”
B-BBEE is a significant investment by companies that wish to meet preferential procurement status. This makes for a highly competitive environment, which is very healthy for black South African professionals, especially those who have international, and SAP, experience. “Through TES we can competently analyse their abilities or direct them to our SAP training programmes, which further enhances their employment desirability,” says Sampson.
“For our recruiting clients it means that OpenSource is a reliable and committed empowerment supplier that can help our clients navigate B-BBEE challenges before spend targets are exhausted or wasted.”
- OpenSource is a SAP Accredited Implementation and Training partner.
The Great Resistance
The work-from-home revolution that continued after Covid-19 pandemic lockdowns were lifted, proved that corporates were, at least technically, able to operate effectively. It quickly became evident that remote work and hybrid work setups, are here to stay. However, many manorial teams are starting to reveal the difficulties that this new age office environmental presents.
Michelle Viret, CEO of global recruitment company, OpenSource, says that regardless of the efficiency of technology that enables remote working, there are are frustrating signs that companies using large teams may be considering, or have already motivated for, a complete return to the office.
“The emerging issues corporates are highlighting include: frustrations around delayed response times among remote-working members of an team ecosystem; cybersecurity concerns; un-productivity from employees not being directly managed; non-inclusionary work engagement; and a lack of team spirit, especially when a new employee joins the workforce.
“Manager’s in particular, are feeling the effects of not being able to observe and monitor remote-working employee’s. Even if they do have the tech to enable this, the non-physical approach merely adds to their existing workload and drives them further apart from the team connection.
“To solve these issues, many organisations are making the decision to have its workforce return to office premises but are finding that employee’s are resisting, even resigning.”
Viret is right. Stanford Institute for Policy Research (SIEPR) refers to it as the Great Resistance, and says that remote workers are ignoring management demands to come into the office, be that permanently or for a required number of days. “Even dismissal threats aren’t enough to entice them back … some just discreetly apply for new jobs, seeking employers whom they consider to be more flexible. They are increasingly viewing flexibility in hours and site no longer as a perk of the job, but a right!”
While there are many value propositions for a return to the office – be that improved collaboration, existence of a sense of community and connection, even direct personal benefits such as domestic savings on power and other supplies – the blatant ignoring of demands for return to office introduces conflict, which in resource-constrained disciplines, requires diplomatic engagement.
“Some larger corporates are offering add-on incentives to return to the office, such as commuter benefits, childcare stipends, free meals, regular social events, gym memberships or installation of a gym, and spa services. But, in many cases even these are not enough to coax the more resistant employees back to work, especially if they are remotely performing beyond expectations,” says Viret.
“A return to work decision should not be based on an individual’s preference or performance, but rather in what is holistically best for the employees, or company. However, a dictatorial approach is seemingly not working. Even if a company can prove that remote work is less productive, the fact that it was effective when it was mandatory during the pandemic, is largely the basis for the resistance by employees to abide by management decisions.”
From a recruitment agency perspective, such as at OpenSource, team engagement is crucial because it is a high-demand volume environment. “It is critical to react to client requests within 24 hours,” explains Viret. “It is far more efficient have all our recruitment specialists around a table where vacancies can be discussed and clarified, and matches can be made from our candidate selection. This is a very hands-on selection process, requiring many parties to work together, and doesn’t work as effectively online as it does in an office.”
Mentoring is also lost, says Viret. “A good mentor is constantly available in an office, where questions can be answered in seconds, by multiple experienced professionals.”
One of the most troubling emotions expressed by staff who are reluctant to return to the office, is anger. “It has become a very difficult topic, and we have been surprised by the lack of respect that such employees are expressing. Their peers are being exposed to foul language and public arguments. The struggle is real, for even when a reluctant employee does return, they are clock-watching and certainly showing resistance to working with their colleagues.”
In finding a path, OpenSource is recommending the hybrid system of a three days in-the-office but even then, employees can’t agree on the specific days. “Management has to step in and set and enforce the rules in this regard. And again I emphasise, that even this is not ideal given the need for recruiters to react immediately when an application is submitted, and that could be at any given moment.
“There is no simple solution, but we have to find some compromise in seeking balance. While even the hybrid system may not be suitable for everyone, it does cater to both the employee and the employer as a compromise,” suggests Viret.
