International companies rushing to hire South Africans – saving on salaries by paying them 60% less
There is a growing trend among overseas companies seeking remote employees and favouring South Africans for these roles because of their skills and the favourable exchange rates.
This trend coincides with South Africa’s high unemployment rate, which remains above 32%, which means this trend offers a valuable lifeline for young South Africans looking for employment.
Job Crystal CEO Sasha Knott said the shift towards remote work after the Covid-19 pandemic has expanded international hiring beyond traditional business process outsourcing (BPO) and call centre roles into professions such as finance, sales, and technology.
In an interview with HOT Business, Knott explained that while South Africans are attractive because of the favourable exchange rate between the rand and currencies such as the British pound, the country also offers a highly skilled workforce.
“Yes, we’re cheaper because of the conversion between dollars and pounds to rands, but we still have a really good talent pool in South Africa,” she said.
Knott said international employers can reduce employment costs by up to 60% by hiring South Africans remotely.
However, she stressed that this does not necessarily mean workers are earning less. “South Africans are getting paid more when they’re being paid by a global company,” she said.
“For a South African, they’re earning more, but for an international company, the salary range they would hire for in the UK, for example, would be much higher. So the UK is getting the discount, while South Africans are actually getting paid more than local rates.”
She described the arrangement as “a win-win” for both employers and employees. She said companies gain access to skilled workers at lower costs while South Africans benefit from higher salaries.
Addressing concerns about worker protections, Knott said many international employers now use an Employer of Record (EOR) model. This allows overseas businesses to hire South Africans without establishing a local company.
“What an international company does is it hires an EOR like Job Crystal, and it’s able to then pay the regulatory PAYE or tax requirements. That person is still protected by labour law,” she said.
Knott said this represents a significant improvement over earlier remote contracting arrangements, where workers often had fewer legal protections.
“The employee is not just a contractor like it used to be. They are permanently employed, but they’re contracted out to the international client,” she said.
Skills international companies are looking for
She added that employee benefits, including medical aid and pension contributions, are managed locally through the EOR.
“The international client chooses which benefits they’re going to pay, but it’s all very South Africa-focused,” she said.
If a role comes to an end, she said the process follows South African labour legislation. “There would be a formal restructuring or retrenchment process, just like it does in South Africa.”
Knott said demand is particularly strong for professionals in sales, finance, and technology. “We’re seeing a lot of demand specifically in sales, particularly lead generation,” she said.
“Financially, we use the same accounting systems worldwide, and technology is obviously global, so it’s much easier when you’re looking for a developer or a cloud engineer.”
She said South Africa’s education system and business expertise make local professionals attractive to international employers.
“Our business acumen and our education are really high for those skills, so it works really well for international companies and for South Africans.”
Knott also argued that the trend could help groups that often struggle to find work locally. “Most of the time, global companies are hiring either the youth, those in their twenties, or the older generation in their fifties and sixties,” she said.
While acknowledging concerns that overseas hiring could worsen local skills shortages, Knott said many professionals eventually return to South African employers after gaining valuable international experience.
Knott added that South Africa is currently becoming a more attractive destination for remote hiring than several other countries.
“We’ve seen a lot more jobs coming to South Africa away from India, Pakistan and Poland. At the moment, where we are sitting, it’s looking really good for South Africa,” she said.
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