A controversial but important question to be raised and thoughtfully unpacked. At its core Employment Equity was established to create fair, inclusive and representative workforces. While early implementation often focused on compliance and incremental change, the landscape has since evolved. In recent years, there has been a shift from mere tick-box compliance to more strategic transformation. Previously, businesses could afford to make minimal adjustments on their Employment Equity Plans, however, sectoral targets have been introduced as a mechanism to strengthen the attention of transformation on each occupational level by focusing representation on both male and female designated groups.
Despite the well-intentioned rationale behind sectoral targets in promoting Employment Equity, many businesses highlight several genuine challenges meeting these targets. These include:
Lack of Economic Growth: In times of slow or stagnant economic growth, companies may not be able to expand or higher at the rates required for meaningful transformation. Without growth, the opportunity to restructure the workforce reduces thus placing a limit on the ability to reach sectoral targets.
Skills Shortages: Certain sectors face shortages of skilled labour – particularly in highly specialised or technical fields. The talent pool from designated groups may be impacted due to historic disparities regarding access to education and training.
Gender and Occupational Misalignment: In sectors such as mining, construction, transport, manufacturing etc, employers often report finding it difficult to source female candidates from designated groups. This is not necessarily due to a lack of willingness, but rather:
- The physical demanding nature of the work;
- A historical underrepresentation of woman in these fields;
- Ongoing educational or societal issues, where few women are entering relevant training programs.
Geographic and operational realities: Companies located in remote or rural areas often challenges in accessing a diverse labour pool. Factors contributing to this include:
- Historical segregation and migration patterns;
- Limited access to training institutions in these areas;
- Reluctance of skilled professionals willing to relocate to remote areas.
Administrative Complexity: Complying with the complexities of meeting sectoral targets often introduces significant administrative burdens, especially for small to medium businesses. These include:
- The lack of specialised HR capabilities to streamline processes;
- Complex data and reporting requirements;
- Diverting internal resources from core business activities which can create uncertainty.
Taking the above into consideration, the Law does recognize that a one-size-fits-all implementation is not always possible. That’s why “reasonable grounds for deviation” are built into the Employment Equity Framework. These include:
- Insufficient recruitment opportunities;
- Insufficient promotional opportunities;
- Insufficient target individuals from Designated Groups;
- CCMA Award/ Court Order;
- Transfer of business
- Mergers and Acquisitions;
- Impact of Economic Conditions on the business.
When properly documented and reported, these deviations can protect businesses from penalties – while still encouraging them to work towards the sectoral targets over time.
Are Sectoral Targets Helping or Hurting Businesses?
The impact of sectoral targets on businesses depends largely on how companies choose to engage with them.
Organisations that view these targets not merely as compliance requirements but as opportunities to drive innovation in talent development, invest in training, and build inclusive workplace cultures are more likely to integrate transformation into their strategic priorities. For these businesses, sectoral targets become a catalyst for long-term growth and competitive advantage.
On the other hand, businesses that treat targets as a checklist item or regulatory burden often fall into a reactive mindset—leading to last-minute compliance efforts, resistance to change, and missed opportunities for meaningful transformation.
Recommendations for Business Leaders
1. Understand your sector’s targets thoroughly. Don’t treat it as just compliance—treat it as a strategic tool. Don’t reduce it to a compliance exercise, rather approach it as a roadmap for strategic development and innovation.
2. Invest in pipeline development: Partner with schools, colleges, and training institutions to develop future talent from underrepresented groups.
3. Be transparent about challenges: If you have grounds for deviation, articulate them with evidence, and create a plan to overcome them.
4. Shift the internal culture: Employment Equity is not solely an HR problem. It must be owned and championed by leadership, integrated into company values and reflect in every day decision making.
Conclusion: From Obligation to Opportunity
Sectoral targets are not a quick fix, but when approached with intention, transparency, and strategic focus, they can serve as a powerful lever for both social transformation and sustainable business success.
The real question is not whether sectoral targets are helping or hurting businesses—but whether businesses are ready to rise to the challenge, shift their perspective, and redefine what success looks like in an inclusive and equitable economy.
For more information on the above topic, please contact LabourNet Eastern Cape at Regional Support: 087 292 5808. Contact: Phikolomzi Malamlela (060 6428 659) at pmalamlela@labournet.com
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