Author: Marisa Jacobs, Director and Immigration Specialist at Xpatweb
 
The starting point when bringing in a foreign specialist into your business is the Critical Skills List, which notes the professions where Home Affairs issues Work Permits due to areas where there are shortages of skills.
 
Foreign nationals who therefore have the skills listed on the Critical Skills list may apply for a Critical Skills Work Visa to work in South Africa. The list has been highly criticised, from not including many business skills, to certain categories being “abused” by a wide interpretation.
 
Over the last 18 months there has been talk of refining the list further with the “Corporate General Manager” category top of the chopping block. This new list is highly anticipated with wide spread speculation on what will be included, or perhaps more importantly excluded.
 
Do you need a new Museum Manager, Director of Marketing or IT specialist?
The Department of Higher Education and Training (DHET) has published the "National list of occupations in high demand: 2018” listing over 370 high-demand occupations in South Africa.
 
The occupations listed are those that show relatively strong employment growth and/or are experiencing shortages in the labour market or which are expected to be in demand in future.
 
The Critical Skills list published in 2014 was developed in conjunction with the occupations in high demand and the scarce skills lists of the DHET. It is therefore expected that the 2018 list will again be consulted when revising the Critical Skills list and as such may provide a window into what we may expect from revised Critical Skills list.
 
For the first time the DHET list has been divided into three levels of demand, highest demand, higher demand, and high demand. Cross referencing the occupations on the above DHET list to the current Critical Skills list published in 2014, we highlighted below some of the occupations still showing high demand as well as a few new and emerging occupations not on the DHET list before and not on the current Critical Skills list.
 
​Please click here for the full list http://www.xpatweb.com/wp-content/uploads/2018/07/National-list-of-occupations-in-high-demand-2018.pdf
 
ENDS
 
MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za
 
For more information on Xpatweb please visit: http://www.xpatweb.com/

South Africa’s skills shortages in critical sectors remain an obstacle to growth. Renewed efforts to find solutions and to place skills development at the centre of the country’s development agenda are welcomed.  However, there are critical gaps which require immediate attention.
 
Search for critical skills
Marisa Jacobs, Head of Immigration and Mobility at Xpatweb, says South Africa should follow the international example: “Import the skills until you have the skills”.
 
The 2017 Critical Skills Survey, done by her firm, shows that 77% of the participants struggled to recruit “critically skilled” individuals locally, but 76% of the participants indicated that they could find the skills internationally. However, 90% found the process of recruiting internationally to be prohibiting.
 
Jacobs says this is largely a “perceived problem”. Although the process may be onerous in terms of the documentary burden and the time to process applications for work visas, it is not preventing firms from importing critical skills. 
 
In short supply  
The survey found that employers and multinational companies found it most difficult to recruit engineers (22%). However, information, communication and technology (15%), financial specialists (10%) and specialised technical skills (9%) also prove to be tough areas to find people with the right skill sets.
 
The Department of Home Affairs published a list of at least 12 sectors where the country is in need of critical skills. This include agriculture, architecture, economics, information communication and technology, engineering and health professionals. This list has remained unchanged since 2014.
 
Migration policy
Government’s 2017 White Paper on International Migration sites the lack of strategy in the current international migration policy as contributing to the skills shortage. The result is South Africa’s inability to respond to the shortage issue.
 
The paper further states that the policy is not linked to the skills development and investment priorities of the country and prevents the country from effectively competing for requisite skills in a proactive and flexible manner.
 
Jacobs notes that in times of economic growth there may be specific skills that are immediately needed. There must be flexibility in the immigration system to allow for a quicker turn-around time in acquiring these skills internationally.
 
“Once the projects are off the ground the transferring of skills become critical for sustained growth in the country,” says Jacobs.  However, the importance of importing skills until the country have the skills cannot be emphasised enough.
 
The white paper also states that the migration policy “lacks cooperative strategies for attracting and retaining international migrants with skills and capital, and a historic blindness to the retention of international students studying towards occupations that are needed by the economy”.
 
Keeping the skills
Jacobs further notes that companies in need of ICT specialists have found the skills they need in India, whilst companies in mining have been successful in attracting talent from Australia.
 
Statistics from the white paper indicate that from June 2014 to January 2016 the country issued permanent residency permits to 2,175 skilled foreigners. This represented 7% of the total permanent residency permits granted in the period.
 
This is a concern since the aim of the policy is to promote economic growth through the granting of business, critical skills, and study visas, government states in its white paper.
Jacobs says the importation and retention of critical skills does not take away job opportunities from South Africans, since these skills are not available in the country.
 
However, they help to get the economy going which will, in the absence of specialised knowledge, stagnate.
 
ENDS

MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za
 
For more information on Xpatweb please visit http://www.xpatweb.com/

It is now a matter of when and not if companies employing foreign nationals will be audited by the Department of Home Affairs (DHA). The arrest of at least 25 illegal foreign nationals at the beginning of May by the Cape Town Police, accompanied by officials from the Department of Home Affairs (DHA), sparked a scramble among the local business community who are concerned that they may unknowingly be employing foreigners who are working in the country illegally.

Marisa Jacobs, Immigration Specialist at Xpatweb, says that considering recent arrests that have been made, HR professionals, managers, business owners and CEOs need to make sure that systems are in place to ensure that expatriates are legally employed within their business.
 
“The Department of Home Affairs has warned that they will increasing the number of audits and investigations among South African companies that employ foreign nationals. This isn’t an empty threat and they are clamping down on foreign nationals who contravene the act as well as employers who are illegally employing foreigners. Anyone who is deemed responsible for the appointment of the person could face repercussions which means that everyone from HR managers to CEOs could face fines or imprisonment,” says Jacobs.
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Pitfall no.1: Employees job titles don’t match work visa job titles
Making sure that an employee’s job title matches the title on their work visa is a vital step to ensuring that foreigners are complying with the Act.  

“It can happen that a company employs a foreign national and that the employee is promoted within the business. When an employee changes jobs and their job title changes, their work contract no longer complies with the conditions of the visa. The process to update the visa so that it is in line with the work contract is relatively simple and straightforward, but it’s a step that many employers overlook, and this can put them at risk to non-compliance,” says Jacobs.

Pitfall no.2: Information on permits don’t match DHA system information
If a company has employed a foreign national who has been working for a different South African company, their current employer may not know if the worker’s visa is legitimate, whether it was obtained in the correct manner or even if it was issued by the DHA.

“In this case, we recommend that employers contact the DHA to check what information is on the system. This additional check beyond looking at a work permit and visa is needed to ensure compliance with the Act,” says Jacobs.

Pitfall no.3: No skills transfer plan
Another potential pitfall that companies should take note of is the condition relating to the transfer of skills. Certain categories of work visas for foreign nationals stipulate that the skill that is being imported needs to be transferred to local citizens. If a company is audited by the DHA, the company may be asked to present their skills transfer plan.

“One of the main reasons South African businesses employ foreign nationals is because we don’t have the skills, knowledge or expertise within our borders. Having a skills transfer plan in place is a great opportunity for local employees to upskill themselves and learn from foreigners so that they can cultivate the skills that are needed within their business as well as the country. Besides requesting a copy of the company’s skills transfer plan, they may also request to interview people who have been earmarked to learn from the foreign nationals,” concludes Jacobs.

ENDS
 
MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za
 
For more information on Xpatweb please visit:  http://www.xpatweb.com/

Author: Tasia Brummer, Immigration Specialist at Xpatweb
 
Companies may expect “a knock on the door” from the Department of Home Affairs (DHA) to conduct required audits and investigations on their employment practices of immigrant workers, Director from the DHA’s Corporate Account Unit, Ben Makhalemele has warned.
 
He made this statement while presenting at a recent event, alongside Moeketsi Seboko, Immigration Manager of Xpatweb, to highlight the latest updates and expected changes within the DHA, as well as the expectations of South African companies employing foreign nationals.
 
This follows the DHA having picked up several incidents of companies employing foreign nationals without proper vetting of the required work visas.
 
Makhalemele also urged employers to keep a copy of the Immigration Act, no 19 of 2002, as amended (the Act) on their premises to ensure that they are adhering and complying with the stipulated regulations when employing foreign nationals.
 
The Act evidently states that an employer may under no circumstances employ a foreign national without the correct visa. Although employers may never be certain on the validity of their foreign employees’ visas, it is recommendable to do an immigration audit to ensure they are currently compliant and that the necessary policies are put in place so that correct processes are followed with new foreign national employees.
 
Closing the gap
Makhalemele further noted that the immigration system in South Africa is no longer purely dictated by the DHA and appealed to employers to give their input and cooperation to enable continuous improvement and thereby position the country to reach its economic goals.
 
After all, foreign nationals play an important part of the country’s success by bringing in the necessary skills required for high-demand projects. It is therefore imperative that employers understand the importance of their role within the South African Immigration law.
 
Employer Duties and Obligations
Makhalemele placed emphasis on the ‘Duties and Obligations’ of employers, reiterating that entities employing foreign nationals without the required valid work visa are viewed by the Department as knowingly “aiding and abetting” the illegal foreigner on their premises and will therefore be liable to certain penalties.
 
Presumably, the person whom will be deemed responsible for the aforesaid implications, will be the Human Resource Manager and/or the person responsible for the company.
 
Should you have any questions or require assistance pertaining to the work visa process and/or the validation of visas, please do not hesitate to contact us on contact@xpatweb.com.
 
Click here for link to Immigration Act on website.
Click here for link to presentation for Ben Makhalemele.
Click here for link to presentation for Moeketsi Seboko.

ENDS
 
MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za
 
For more information on Xpatweb please visit:
Website:  http://www.xpatweb.com/

Author: Marisa Jacobs, Director – Head of Immigration and Mobility at Xpatweb (a division of Tax Consulting SA)
 
A new report compiled by expatriate Xpatweb, titled Critical Skills Survey Results 2017, confirms that local companies are hard pressed to find the right expertise to achieve their corporate goals. It is therefore to every business and professional body’s benefit to engage with government to make work visa applications as easy as possible.
 
Simply stated, South Africa needs access to better skills to prosper and compete in the global market.
 
However, this is not a new revelation. The country’s skills gap - the difference between the professional talents needed by employers and those available among the working public - has been widely discussed and reported on in the media for over a decade. Rather, the study serves as the springboard for a viable solution. The results were obtained from 86 respondents, many of whom represent South Africa’s largest employers and international groups.

Recognising the problem
76.74% of those surveyed agreed that there is, in fact, a skills shortage in South Africa. The Critical Skills List published by the Department of Home Affairs contains a catalogue of the country’s most needed competencies. These include the broad categories of business, economics and management; information communication and technology; engineering; health professions and related clinical science; life and earth sciences; professionals and associate professionals; trades; business process outsourcing; and academics and researchers. As can be seen, the demand ranges over a wide set of sectors.
 
Solving the skills problem will take hard work and starts with an honest appraisal of the constraints. The sooner we do this, the faster we can address it. The first admission we must make is that the gap exists now and a primary, immediate solution is required. Yes, formal learning and development programmes will produce a future, technically-competent national workforce - not just adequate but world-beating. Until that day dawns, we need a stopgap.

Learning takes too long
According to one study (Young, 2010), South Africa’s universities and HEI’s are not able to produce these critical skills fast enough. For example, Young estimated that creating 34,000 additional engineers, technologists, draughtspersons and technicians needed over a 2-year period would take roughly 100 years in terms of current educational capacity. Likewise, learning and development programmes cannot scale to meet the immediate needs of the economy. Neither can businesses afford to wait, so an alternative solution is inevitably required.
 
75.29% of respondents in the Critical Skills Survey Results 2017 reported that they are better able to find scarce skills when they expand their search to include foreign nationals. This is a perfectly sensible solution - the right skills at the right level of expertise, available immediately to fill a skills gap that cannot otherwise be closed. This is supported by the fact that most of those interviewed asserted that the local market has been fully scouted for critical skills and found lacking.
 
Unfortunately, expatriates are seen by government and occupational stakeholders as a threat to the local workforce, taking jobs from South Africans. However, since the skillsets offered by foreign workers are evidently unavailable here, this couldn’t be further from the truth. Even so, employers will need to evangelise several fundamental changes in thinking to promote their case.

First, expats are a resource, not a threat. Importing critical skills into the country is no different from importing any other essential factor of production.
 
Second, not only do they offer the competencies companies desire but also the opportunity to transfer their expertise to many local workers. As such, expatriates do not diminish employment opportunities for South Africans; instead, they create jobs by their very presence.
 
Third, the use of expats is temporary. They are simply a bridge between today’s urgent business needs and tomorrow’s acquired competencies. Rather than replace South African talent, they will hold the fort until the reinforcements arrive.

Making it happen
89.53% of those surveyed find the work visa process an obstacle to filling critical skills positions. The procedure is laborious and time consuming. However, not acquiring these vital talents will prove most costly in lost business opportunities and low competitive advantage.
 
The South African workforce of tomorrow will energise the economy. In the meantime, the country needs a concrete way to source the critical skills to compete globally. As our survey reveals, businesses believe that the acquisition of foreign skills is the only sensible response.
​
ENDS

MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za
 
For more information on Tax Consulting please visit:
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