‘South Africans resigning from companies with toxic cultures’ – Analyst

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  • Toxic company culture and lengthy work hours are among the main reasons why many South Africans are resigning.
  • Despite the fact that some of these talented South Africans choose to leave the country, others want to remain in the country and contract their services out to other countries.
  • There has been a dramatic increase in personnel turnover due to the stress of juggling both work and home responsibilities, according to Barrick.
  • Increasingly, South African contractors have the chance to engage on foreign projects without having to leave the country.

According to new study, evidence of the global ‘great resignation’ trend is appearing in South Africa as overburdened individuals depart their positions. Toxic company culture and lengthy work hours are among the main reasons.

According to Remchannel, Old Mutual’s reward-management platform, increasing staff turnover and cumulative leave costs could be a ticking time bomb for the country’s corporates.

René Richter, the managing director of Remchannel, made the announcement at a recent webinar that staff turnover had risen by 16% across all industries.

Some 69% of the people who participated in a recent compensation poll said that they struggled to attract new or retain their current workforce.

According to an October 2021 Salary and Wage Movement survey of employees who left their jobs between April and October 2021, 60 percent of those who resigned were doing so voluntarily, a trend known as the ‘Great Resignation’ in the United States, where millions of workers from front-line workers to senior executives voluntarily called time on their jobs.”

This phenomena may be partially explained by a link between high resignation rates, changed expectations at work, and a rise in leave liability since the pandemic began.

In light of Covid-19 and shutdown, individuals were clearly planning ahead and putting their vacations on hold.” Over the last eight years, survey respondents have witnessed the leave liability – the rand worth of unpaid wages owing to employees who quit their jobs – rise from R8.4 billion to R10.7 billion in the mining industry alone.

Corporate South Africa faces a liquidity risk due to high turnover and accrued leave, which is recorded as a debt on the company’s records.” Burnout, hostile work environments, and decreased productivity all point to an impending doom, according to Richter.

About 36 percent of respondents to Richter’s poll claimed that they expected staff to react to emails outside of normal business hours, a result of the pandemic and the remote working experience.

People are working longer and harder than ever before, and there are no boundaries, which suggests a recipe for burnout and eventually a drop in productivity, says Richter. To a large extent, burnout syndrome may be traced back to the rising and unrealistic demands of the profession, as well as financial and family constraints.”

In order to avoid the burnout phenomena, employees are stating ‘I don’t want more of the same, I need balance,'” Despite the fact that South Africa is one of the most jobless countries in the world, “we’re seeing components of this worldwide trend” in the country, she said.

According to a recent study of 4,303 IT workers by Kaspersky, these findings are reflected. More than half of employees (57 percent) reported an increase in workload since moving to remote working, according to the group’s research.

Businesses are responding to the challenge of preventing employee burnout by using innovative strategies. According to Kaspersky, 83 percent of companies are spending in training courses to strengthen essential skills, such as management and timekeeping (41 percent).

Additional paid time off or annual leave (33 percent) and online wellness consultations and training are also being offered by companies” (33 percent ). While remote workers have an increasing workload, the report shows that there is still work to be done to alleviate this pressure.

Despite the fact that some of these talented South Africans choose to leave the country, others want to remain in the country and contract their services out to other countries.

“It’s not about people fleeing the country in general,” he continues. According to Georgina Barrick, general director of AdvTech Resourcing’s Contracting Division’s Network Contracting Solutions, “people are shifting employment because they’ve rethought or reinvented their career and what’s important to them.

As a result, more organizations are focusing on mental health and well-being, as being confined to one’s house has proven to be extremely difficult for many people throughout the pandemic.

There has been a dramatic increase in personnel turnover due to the stress of juggling both work and home responsibilities, according to Barrick.

Increasingly, South African contractors have the chance to engage on foreign projects without having to leave the country.

Managing director of contracting company Outsized, Johann van Niekerk, agreed that the lockdown has provided workers a sense of freedom and an opportunity to reconsider their professions.

In the Covid lockdowns, many people used to the rigid routine of office work found that heady sense of freedom, when working from home gave greater flexibility, more trust, a focus on output rather than input, and a considerable time savings by not commuting.

As the epidemic continues to affect businesses, “for some, it will inspire a restlessness and a sense of possibilities that triggers another huge shake-up,” he added.

Some employees will refuse to go to work if their employers start calling them back to the office or switching to hybrid models, he said.

A lot of the most creative and innovative people are going to realize that they can earn more money, have more freedom, and enjoy a better quality of life as independent contractors.

For top people in domains like actuarial, strategy, data science, program management and business process management as well as digital marketing it is an attractive choice.”

Staff Writer

Published by
Staff Writer