Resignations:
It is a well-known fact that South Africa has struggled with a high unemployment rate for many years. This did not get any better when we were hit with the Covid-19 pandemic and were forced into lock down. Now we are struggling to cope with load shedding and many other factors that are affecting our jobs and daily lives.
Between 2019 and 2021, two million jobs were lost in South Africa, this is due to the above-mentioned reasons. In 2021 alone, the losses were accounted to 479 000 jobs.
What scared most business owners and employers was the notable increase in resignations in 2021. Job resignations in 2021 were sitting at 36.4% whereas pre Covid-19 it was sitting at 28% – 32%.
Majority of these resignations were because workers are seeking an improved Employee Value Proposition (EVP) regarding issues such as remuneration, job fulfilment and team dynamics. These were highlighted as some of the key issues. This means that money alone is no longer the primary driver of employee retention.
Not all hope is lost though, as employment growth in 2022 has been much more positive. The high vacancy numbers reflect an increased demand for workers and signals improvement in business confident.
Side Hustles:
The past few years have been an absolute rollercoaster for the South African workforce. We followed the Great Resignation phenomenon that was witnessed in the USA, UK and other parts of Europe and the world as a whole. We then saw an increase in employment and finally we are sitting on the doorstep of the side hustle era.
More and more citizens are turning to moonlighting, side hustles or holding down multiple jobs to ensure financial security for themselves and their families. Which is fully understandable when you take into consideration the cost of living these days.
Over half of the South African workforce are turning to second income streams to extend household budgets โ this is a trend that started forming since Covid-19 lock down. We can see a definite shift in the financial attitudes and behaviour of the countryโs working population.
A survey was done on 1 505 participants of various ages, genders and income groups. Results show that 49% still rely on a single income each month, where those pursuing second incomes streams called โpolyjobbersโ has increased from 47% in 2021 to 51% in 2022. There was a slight drop in people working two formal jobs from 8% to 7%, there was also a drop in having a side business as a second income from 20% to 19% and then we see a big jump in people engaged in freelance or part time work from 29% to 33%. It can be said that side hustle culture is still fairly spread across various income groups. Although the older generation are more likely to stick to the conventional single income.
Since the trend of side hustles seems to be increasing, experts have given their recommendations on how best to handle this.
- The key is knowing the difference between the different side jobs and how they may or may not conflict with your current work obligations.
- Employees in South Africa can earn additional income, and the general principle is that they cannot be unreasonably prevented from doing so.
- This may not be allowed under certain circumstances, such as if it is expressly prohibited in the employment contract or workplace policy, and when it actually or potentially harms the primary employer’s business or negatively impacts the employees’ ability to work.
- Employers typically regulate this practice by explicitly prohibiting a secondary occupation in employment contracts, workplace policies, or collective agreements in order to prevent workplace uncertainties. Employers who do not have these types of restrictions are advised to do so, especially in the current economic climate.
- Employers may also limit the practice by requiring employees to disclose the practice in advance, and allowing them to continue their additional venture at their discretion.
- An employee may have a secondary job without violating the standards of the primary employment relationship if there is no prohibiting clause or workplace policy.
- In the workplace, trust and confidence are vital, and employees are expected to act honestly, loyally, and promote the company’s interests.
In closing, we are supportive in whatever career, job or side hustle brings satisfaction and happiness to the individual as well as contributes to the GDP of our beautiful country at the same time.
Source: BusinessTech, 2022
