More than one million South Africans now live abroad, and 43% say they do not plan to return permanently, according to the South African Diaspora Report for 2026. For decades, skilled professionals have left in search of greater opportunity and long-term career progression, reducing the country’s skills base and weakening economic competitiveness.
This outward movement is also reflected in tax residency data. The South African Revenue Service (SARS) has reported that between 2017 and 2024, over 51,500 taxpayers ended their South African tax residency. But the implication extends well beyond lost tax revenue. As skilled workers support productivity and enable business growth, their departure affects organisational performance and the economy’s ability to expand.
Adrian Seligman, CEO of Top Employers Institute, says organisations investing strategically in workplace infrastructure are retaining critical capabilities even as outward migration continues.
“Boards are recognising that talent flight represents a strategic risk,” he explains. “Businesses treating this as inevitable are subsidising their competitors’ growth with their own human capital.”
Four Strategic Decisions Separating Winners from Losers
Analysis of organisations certified as Top Employers across six HR domains and 20 people practice areas reveals four board-level decisions that determine competitive outcomes:
1. Strategic Workforce Planning or Perpetual Recruitment Crisis
Organisations embedding capability development and transparent career architecture into operations are strengthening retention while competitors face continuous replacement costs. Data shows businesses with low voluntary turnover are 9% more likely to have strategic workforce planning, identifying future skills needs and 8% more likely to communicate those requirements transparently, enabling employees to develop rather than seek opportunities elsewhere.
Vodacom Group demonstrates this through digital skills initiatives, including CodeLikeAGirl and its Discover Graduate Programme, aligning its employee value proposition with systematic capability development. JTI Africa similarly integrates succession planning and capability building into its people strategy, creating clear pathways that reinforce workforce continuity and reduce dependency on external recruitment
2. Leadership Investment as Competitive Moat
Management quality directly determines retention outcomes. Frontline leadership capability shapes team experience, yet many organisations underinvest in systematic manager development, creating predictable attrition cycles.
Leading companies make two strategic choices: invest in manager capability at scale and hold leaders accountable for team development. Organisations that embed this accountability, for example, through career development KPIs, show measurably stronger outcomes. Those with high engagement are 8% more likely to include such metrics in manager objectives, and those with strong profitability growth are 9% more likely. Among South African employers, this practice grew from 75% to 77% between 2025 and 2026.
Santam, South Africa’s largest short-term insurer, exemplifies the investment dimension through its in-house Academy, building manager capability at scale to directly influence retention and organisational performance – creating competitive advantage through superior leadership bench strength.
3. Market-Reflective Teams or Innovation Blind Spots
Organisations operating in diverse markets gain a competitive advantage from teams reflecting customer complexity. Representation strengthens market understanding, improves decision quality, and drives product relevance – directly impacting revenue growth and market share.
Companies with high customer satisfaction formalise diversity more systematically. They’re 15% more likely to consult diversity networks when developing policies, 25% more likely to assess perceptions around inclusion regularly, and 19% more likely to engage employee diversity champions. In South Africa, adoption increased across all three practices year-over-year (network consultation +1pp, stakeholder assessment +5pp, employee champions +1pp).
Mondelēz International links diversity directly to commercial capability across its African operations. By ensuring teams reflect the markets they serve, the company strengthens market responsiveness and competitive positioning, translating diverse perspectives into innovation revenue and market advantage.
4. Build Talent Pipelines or Pay Premium for Scarcity
Long-term competitive sustainability requires structured talent entry points. In markets where youth unemployment remains high and experienced talent is scarce, developing capability internally becomes strategic necessity rather than social investment.
The shift is accelerating: 80% of South Africa’s leading employers now manage talent pipelines through educational partnerships and professional networks, up from 75% in 2025. This proactive approach aligns supply with evolving demand before capability gaps create operational constraints.
Daimler Truck Southern Africa exemplifies this through its YES Program and apprenticeship initiatives, which create direct pathways into skilled technical roles while building future talent infrastructure—reducing dependence on scarce external talent and lowering long-term acquisition costs.
The Board-Level Imperative
South African boards face a binary strategic choice: design workplaces that make retaining world-class talent rational, or accept that competitors will build their capabilities with your human capital.
“South Africa’s competitiveness depends on workplaces that make staying – and returning – strategically rational for world-class talent,” concludes Seligman. “Organisations treating this as an HR initiative rather than a board-level strategic imperative will find the performance gap widening irreversibly. The window for reversal narrows with each skills exodus.”
These findings align with the World of Work Trends 2026 report by Top Employers Institute, which identifies the “Intentional Organisation” as defining high-performing employers. The report highlights that organisations succeeding in volatile labour markets are those making deliberate, structured investments in leadership capability, workforce planning, and inclusive growth – rather than relying on reactive talent strategies.
In the South African context, this intentional approach is proving critical to countering long-term skills erosion and rebuilding workforce confidence.
The full report is available at: https://www.top-employers.com/blog/world-of-work-trends-2026-the-intentional-organisation/#report
For more articles like this click here.
If you enjoyed this website then check out our other sites: Wedding and Function, Home Food and Travel, Kids Connection, Thirsty Traveler, Bargain Buys, Boat Trips for Africa.
Need help with your online marketing then visit Agency One.