Skilled South Africans are leaving – this is where they’re going
Numerous skilled workers are leaving South Africa, with Europe, Canada and Australia proving to be popular destinations.
Although the tracking of emigration is not officially done, several pieces of data have shown that South Africans are leaving the country in droves.
According to the latest data from SARS, over 40,000 taxpayers have ended their tax residency in South Africa.
Henley & Partners’ latest Wealth Migration Report 2023 also said that 400 High Net-Worth Individuals – those worth more than US$1 million (R18 million) – emigrated in 2022, adding that 500 are expected to move this year.
Simonne Adcock, Generalist Senior Recruiter at REDi Recruitment, said that emigration has been seen in all industries, including IT/Digital, Banking, Engineering, Executive, and Legal.
Although international companies are looking to poach local talent, she said that many South Africans are also looking for opportunities to move abroad or work remotely for a multinational company in South Africa.
She added that it is far easier for someone with a passport other than a South African one to get a job internationally.
“It is not easy or inexpensive to move, so this is preferably done through work opportunities so that expenses are covered, and one has job security when landing in a new country,” she said.
Who’s leaving, and where are they going
Natalie Lotter, Engineering Recruiter at the REDi Holbourne Group, said that the qualified engineers – with a degree, trade or reasonable qualification – who are around the ages of 30-45 are looking to work internationally.
Lotter said that these engineers are looking to move for future security, improved pay and work opportunities.
She added that most of the engineering talent is going to the UK, Australia and Germany.
Nicole Ramos from REDi Recruitment said that professionals in the Tech/Digital space are happy to move anywhere.
However, Ramos said that the UK, Canada and the Netherlands are still popular destinations amongst the company’s candidates and clients.
What can businesses do
Adcock said that it is a concern that skilled people are leaving the country as the economic impact is huge.
For instance, in a parliamentary Q&A in May of this year, Finance Minister Enoch Godongwana said that 2,700 people who earned over R500,000 per year and 1,100 people who earned more than R1 million per year have left South Africa. Godongwana said that this resulted in South Africa losing R1.3 billion in assessed tax.
However, Adcock stated that there are ways to keep talent contributing to the local economy, including remote working models or using third-party payroll systems when employees live abroad.
“More companies are realising to keep the talent and brains in South Africa, they need to be adaptable and to be flexible for employees’ needs and wants. Some are even retaining valuable employees by allowing them to be based abroad yet working for South African companies,” she said.
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