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View All NewsAfrica – Increased regulation makes it easier to fill executive jobs with locals rather than expats
A tug of war for local talent is emerging in Africa, as firms recruit to support growth ambitions across the continent. However, the region’s reliance on expatriate executives appears to be diminishing, reports mg.co.za.
The sub-Saharan talent trends and practices survey by EY (formerly Ernst & Young), which surveyed more than 300 companies across 23 African countries, found that technical and professional skills are particularly in demand and that demand is expected to grow over the next 12 months.
The International Monetary Fund cut the region’s growth forecast from +5.5% to +5% yesterday following concerns about the impact of the Ebola outbreak. Yet sub-Saharan Africa remains one of the few parts of the world experiencing robust growth.
With regard to the use of expatriate versus local skills, EY noted an interesting trend has emerged since 2013: previously it was easier to fill executive and management vacancies with expatriates, while local talent filled vacancies for professional, technical, and customer-facing roles.
“This year it appears that respondents [of the survey] are finding it easier to fill executive roles with local rather than expatriate candidates, and quicker – a greater percentage of these vacancies are filled within four months,” the report stated.
The survey also found that the premiums paid for expatriate skills have declined sharply. Results from the 2013 survey indicated that one in three expatriates in executive positions, and one in five in other categories, received a salary that was three times higher than was paid to their local counterparts.
According to this year’s data, however, that premium appears to have dropped to +50% for almost half of all the respondents, the report stated.
One reason that companies may be turning to local talent is often more challenging to hire expats. The report advised: “It takes longer to hire expatriates. There is a strong perception that governments are making it harder to recruit expatriates, and managing the compliance risks associated with expatriates is a chief concern of organisations who do go this route.”