International employers are betting big on South African workers
South African workers are in high demand with international employers, with their skills, high levels of education, and relatively low cost being a major draw.
This is according to the Legends Agency, an Employer of Record (EOR) that hires employees in South Africa on behalf of international businesses.
The group recruits locally for international companies and then handles payroll, HR Support and employment contracts that comply with local laws.
Its clients then remain in charge of the day-to-day oversight of the workers.
Speaking with BusinessTech, the Legends Agency Group CEO, Alex Fenton, said South African workers are highly sought after by international employers.
Although this has specifically been seen in a recent rise in the number of international call centres operating in South Africa, Fenton said that many skills are in demand.
This includes “global skills” not linked to a single area, including administrative, sales development, and digital marketing roles.
Tech skills are also in hot demand worldwide, given their global nature. However, Fenton noted that many local tech employees are often required to “catch up” on skills compared to international colleagues.
Fenton, who is from the UK, noted that The Legends Agency primarily caters to companies in Western Europe, but also provides services to employers in Australia, New Zealand, Canada, the US and the UAE.
The types of employers also vary significantly, ranging from large businesses to just one-person teams looking for administrative support.
Fenton himself is incredibly bullish on South African talent, which he believes is highly undervalued.
This is due to the high education levels across South Africa, with the five best universities on the continent found in the country.
He said that South African workers also have limited entitlement and give it their all when working specific roles.
He added that bringing international jobs opportunities to South Africa is also a net benefit for the country, as it gives South Africans access to more jobs and brings in more taxes.
On top of the skills, South African labour is far cheaper than in many other nations.
The Legends Agency’s own website gives estimates on the cost of South African workers compared to those in the UK.
For example, a Chief Technology Officer in the UK could cost £89,000 in the UK, compared to just £42,000 in South Africa, resulting in savings of 52%.
However, Fenton stressed that these lower pay packages do require nuance, as it is far cheaper to live in South Africa.
While an administrative job for R20,000 per month is seen as a decent salary in South Africa, it does not even meet minimum wage in the UK.
A timezone that is in line with many other international companies also means that South African workers can be prioritised over other outsourcing hotspots like India, while strong English skills are a big plus.
Other differences
Fenton added that South Africa’s labour laws and employee needs can vary significantly from international markets.
Case in point is the difference between South African and American labour laws. South Africa’s labour laws are far stricter than the US’s at-will system, where employers can immediately fire staff for no reason.
He noted South African labour laws are relatively simple and align mostly with UK legislation, outside of the unique public holiday and sick leave structures.
However, it can be challenging to explain medical aid requirements to international employers, with most employees in the UK not receiving private medical care as part of their package.
Without reliable public transport, like many developed economies, it is also more common for South African workers to be late for work.
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