The cost of living in South Africa; what it means for your talent strategy.
The current cost of living in South Africa has seen many South African’s feeling the pinch. With the recent VAT increase, the near constant hikes in the fuel price and in turn consumer goods (not to mention the sharp rise in rental and property prices), just how far can South Africans stretch that paycheck?
Over the last few months, we’ve noticed that candidate salary expectations are higher than usual. In many instances candidates are expressing a need for 20-30% increase on their current annual packages. Across the board, this expectation is unrealistic (rare skill sets excluded).
Our Consultants are spending a lot of time counselling candidates around realistic, market related increases as well as explaining the financial pressures that corporate South Africa is facing. We are constantly consulting with our clients around making market related offers to our candidates but the reality is that the economic climate in our beautiful country is making the hiring of talent more and more difficult.
As businesses fight tooth and nail for top talent, it’s time to really think about the ways that we can add value in order to curb unrealistic compensation expectations.
Here is some inspiration to make your vacancies more attractive to top talent:
- A performance bonus or six month salary review;
- Flexible hours a few days a week;
- Learning opportunities/training or career coaching;
- Contribution to health/pension benefit.
Think out of the box. If you really want to get a feel for what your employees really want, ask them. There’s no one better to tell you what benefits are more attractive than the people already working for you.
As the catalyst in the recruitment process; our role is to bring the candidate and client together. We listen to both sides and communicate an understanding of the challenges we are all facing. South Africans are struggling to make ends meet and every cent and extra benefit makes a difference.
Here’s to finding the happy medium!