South Africa's graduate develoment imperative header image a group of young professionals sitting in a trendy office space discussing work related matters

South Africa’s graduate development imperative

Recruiting graduates and employing them through structured development programmes is vital, and not only in terms of impact on youth unemployment. For South African businesses seeking to stay competitive and address key workforce challenges, structured development programmes for graduates remain a key component of successful talent pipelining.

South Africa’s graduate unemployment rate remains concerning. Though it has improved since its COVID-19 peak, according to Stats SA’s Quarterly Labour Force Survey more than 9% of university graduates remained unemployed at the end of Q2 2024. Of those with other tertiary qualifications, 23% were unemployed.

Unemployment rate by education status 2018 to Q2 2024, line graph

This begs the question: is there an opportunity for companies to tap into a pool of educated talent, with the intention of accelerating their development towards meeting business talent needs? We believe the answer is yes, and that graduate programmes designed to develop competencies and attributes that future leaders and specialists will need are part of the solution.

The business benefits of growing graduate talent
According to recent SAGEA Employer Benchmarking and Candidate Insights surveys, conducted by the South African Graduate Employers Association (SAGEA), South Africa’s top employers continue to view graduate recruitment as a strategic investment. Despite fluctuations in recruitment budgets – particularly during and immediately after the COVID-19 Pandemic – employers of choice remain steadfast in their commitment to early talent development.

Many organisations report difficulties finding graduates with “job-ready skills” as a key contributor to the “skills shortage” in South Africa. We find that, when we drill deeper into these reports, the challenge is often less around skills – that which students learn during their studies – and more around the competencies and attributes needed for workplace success. Competencies like digital and data literacy, or attributes like critical thinking or creativity, can be developed to complement skills. Graduate development programmes help align and deepen candidates’ competencies and attributes with industry demands, resulting in stronger talent pools.

Moreover, businesses that engage with graduates early can build tailored pipelines of talent in high-demand fields such as technology, finance, and engineering – where competition for top talent has been tough for decades. In competitive markets, structured development programmes serve as a crucial differentiator, giving companies the ability to mould young professionals into key contributors while improving retention rates.

Retained Investment
SAGEA’s research reveals that these programmes aid talent retention as well, with 42% of candidates surveyed by SAGEA in 2024 anticipating that they will stay with their first employer for over five years. This intention has remained steady over the last five years, suggesting that well-structured graduate programmes have a positive impact on retention.

Graduate development programmes also address another growing concern: talent migration. According to PNet, as much as 84% of South Africa’s workforce under 30 is willing to relocate abroad for work. Another survey by BrandMapp found that as many as half (50%) of young South Africans between the ages of 18 and 35, with good education and mid-to-top incomes, are seriously considering emigrating within the next five years.

The intent to relocate is supported by the ability to do so for South Africans with critical technical skills. The 2024 IITPSA ICT Skills Survey and Research Report points out that: “According to the UN Department of Economic and Social Affairs, 914 901 South Africans had settled abroad by the end of 2020, with a significant uptick in the rate of emigration from the 786 554 recorded in 2015. This trend has continued, and even accelerated, widening the already existing skills gap, especially in the digital field.”

As South Africa grapples with a looming exodus of skilled young professionals, companies must focus on retention strategies. By offering learning and growth opportunities and addressing common challenges like work-life balance and mental wellbeing, employers can foster long-term loyalty, SAGEA’s research indicates.

Ultimately, integrating graduates into well-defined development programmes is a win-win for companies and the broader South African economy. It helps to address high unemployment rates while creating a sustainable workforce that is aligned with the evolving needs of the business world.

About SAGEA’s Insights Projects
SAGEA’s Insights Projects include our annual flagship studies – the Employer Benchmarking and Candidate Insights surveys. These reports provide valuable data on graduate employment trends, offering insights into employer practices, candidate preferences, and industry benchmarks. Our research equips organisations to benchmark the performance of their graduate employment and development programmes against their peers, refine recruitment strategies and improve talent management, ensuring alignment with market demands and emerging graduate talent preferences.

For more information on how to participate in SAGEA Insights and gain access to our full reports, please contact us.