Recession takes its toll on affirmative action

Affirmative action is taking a back seat in South Africa. Recruiters say the rules are being loosened to allow companies more flexibility during the recession. Black Economic Empowerment (BEE) and all its corollaries, aimed at rebalancing the injustice of apartheid, remains in place, but the relentless drive to push employers to favour the so-called 'historically disadvantaged' (blacks, mixed-race people and women) is giving way to more pressing considerations.

"Empowerment is not the most important factor: it's finding the skill and very often this means moving global talent so BEE cannot be inherent to the job," says Lawrence Wordon, managing director of Professional Assignments Group (PAG) in Johannesburg.

Talent retention and acquisition - regardless of race or gender - has become the priority as companies try to stay afloat. This has particular significance for the financial sector, which has often struggled to find enough skilled black candidates, due to the skewed legacy of apartheid.

Now the emphasis on quotas and employment equity has slipped, banks have more freedom to hire the talent they need.

"Top quality executives still trade at a premium but, after increasing for years, blacks' representation in management ranks across the economy has tended to flatten out," says Martin Westcott, CEO of PE Corporate Services, a South African headhunter and employment consultant. "The emphasis is on delivery, so BEE has taken a back seat."

Women have also been 'casualties' of the same slowdown: according to research by Landelahni, South Africa's first black-owned and women-owned executive search company, the "substantial progress of women in senior position on a wave of BEE initiatives in the early years of the decade has given way to a dramatic slowdown."

The principles behind BEE remain at the core of South Africa's employment rules and companies must meet the employment equity targets. "Although quotas and employment equity have slipped from the priority list for many companies, empowerment status remains important with regard to attracting and winning new business," points out Madge Gibson, partner at Jack Hammer Executive Headhunters in Johannesburg.