• About Us
  • Contact Us
Account
GTB
  • Home
  • News
  • Premium
  • Business
  • Personal Finance
  • Lifestyle
    • Travel
    • Health
    • Retail/Fashion
  • Podcast
    • Business Chat
    • Retiring Richly
    • Sika Nkommo
  • Videos
  • Analysis/Features
No Result
View All Result
  • Home
  • News
  • Premium
  • Business
  • Personal Finance
  • Lifestyle
    • Travel
    • Health
    • Retail/Fashion
  • Podcast
    • Business Chat
    • Retiring Richly
    • Sika Nkommo
  • Videos
  • Analysis/Features
No Result
View All Result
Account
Ghana Talks Business
No Result
View All Result

Digitization, Unemployment and the Future of Work in South Africa

10/02/2020
Reading Time: 4 mins read
0
SHARES
Share on FacebookShare on TwitterShare on WhatsApp

Tamara Parker, CEO of Mercer, South Africa

JOHANNESBURG, South Africa, February 10th, 2020,-/African Media Agency (AMA)/- In less than a month, South Africa has witnessed a massive wave of rentrenchments, as companies across multiple sectors have announced job cuts running into almost 10,000. Some of these include network operator Telkom SA, Walmart-owned retailer Massmart,Arcelormittal, Africa’s biggest steel company, Pharmaceutical giant Aspen, and miner Samancor Chrome.

With a third of the country’s labour force made up of jobseekers – unemployment rates stood at a staggering 29 percent in 2019 with youths making up 75 percent of that – the current trend of job cuts will put even more strain on demand and economic growth. Also, going by expert opinions, the downsizing in January so far is likely to continue throughout the year.

The high rate of unemployment coupled with recent developments in South Africa, which is the region’s most industrialized economy, is reflective of a fragile economy as companies struggle to stay afloat. The worsening situation is further compounded by the fact that 35 percent of all jobs in South Africa – almost 5.7 million – are at risk of total digital automation within the next few years.

Digitization has already reshaped several industries and jobs, and on the medium to long-term, it is expected to reset the entire business environment. And while this may produce an increase in productivity, it also results in the reduction of labour demand.

New technology-enabled jobs require higher skill levels and greater application of expertise and management, highlighting the need for a significant investment in human capital by organisations. According to Mercer’s 2019 Global Talent Trends Study, skills are in the spotlight. In leveraging against the backdrop of the Fourth Industrial Revolution in securing economic opportunities and growth, human skills, such as complex problem solving, inclusive leadership, social collaboration, remain essential to digital transformation.

With the threat of automation growing, however, most developing countries are the least prepared, even though the South African government has severally emphasised the importance of harnessing the digital revolution in overcoming unemployment and bridging the digital divide. As long as companies continue to procrastinate on putting in place HR strategies and programs to harness the power of human capital to create sustainable futures and close this gap, there will be consequences.

In order to avoid a severe crippling effect, government, as well as the private sector, need to act now to make sure that employees possess the necessary skills to participate in the digital economy by enabling humans and machines to work together in the future. Mercer’s Talent Trends report also points out that in 2019, up skilling and reskilling moved up the executive agenda from 9th to 3rd position; and has risen to the number one spot for the insurance sector. We expect the trend to continue in 2020.

Despite the fact that the general opinion on digitization is its disruptive tendency, it also has the potential to raise productivity and operational efficiency in businesses across sectors. Not just that, it is capable of delivering better outcomes for both customers and citizens, thereby creating millions of high-quality jobs.

With tightening labour markets increased sophistication in hiring for best fit, and a more demanding employee population, the key to achieving business growth is radically redefining how talent is managed, developed, and incentivized. Nonetheless, there needs to be concerted action towards investing in human capital, so as to realise the gains that come with digital transformation. All of which will not be achieved if the country takes a business-as-usual approach or is too focused on short-term gains.

For South Africa where poverty remains a pressing issue, alongside unemployment and poor social security, the country requires greater collaboration between government, business and labour in keeping up with the rapidly changing skill demand of jobs today. But even as businesses move to prepare for the future of work, it is crucial that the reskilling process matches the accelerated pace of digitization in the workplace.

Distributed by African Media Agency (AMA) on behalf of Mercer.

Media Contact:
Zwile Nkosi
+27 664838974
zwile.nkosi@mercer.com

Source : African Media Agency (AMA)

Previous Post

Economist commends Finance Minister for US$3 Billion Eurobond oversubscription

Next Post

Barclays bank Ghana rebrands to ABSA on 10th February 2019

Related Posts

aliou cisse: football management, ghanatalksbusiness.com

How you Know a Good Manager, Lessons from football

17/05/2022
AWIEF awards 2022

Nominations open for the Prestigious AWIEF Awards Celebrating Women Entrepreneurs

16/05/2022
Climate change in Africa

Three steps for Africa to combat climate change

16/05/2022
win customers, ghanatalksbusiness.com

Why your Customers are better strategists than Managers

16/05/2022
Compassionate manager

How to Be a Compassionate Manager in a Heartless Organization

10/05/2022
business ideas to pursue, ghanatalksbusiness.com

The Right Way to Get Your First 1,000 Customers

09/05/2022
Next Post
Absa

Barclays bank Ghana rebrands to ABSA on 10th February 2019

customer loyalty, bank charges ghanatalksbusiness.com

Customer loyalty in financial sector rises by 5%- GCSI report reveals

  • About Us
  • Disclaimer
  • Privacy Policy
  • Advertising
  • Contact Us

© 2021 Ghana Talks Business

No Result
View All Result
  • Home
  • News
  • Premium
  • Business
  • Personal Finance
  • Lifestyle
    • Travel
    • Health
    • Retail/Fashion
  • Podcast
    • Business Chat
    • Retiring Richly
    • Sika Nkommo
  • Videos
  • Analysis/Features
  • Login

© 2021 Ghana Talks Business

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In