JSE's secret recipe for staff retention

South Africa is ranked number one for the regulation of securities exchanges, according to the World Economic Forum's annual Global Competitiveness Report. "This is the real financial World Cup, where South Africa competes with 138 other countries, including all the top developed countries in the world," says a pleased Humphrey Borkum, chairman of the Johannesburg Stock Exchange (JSE).

The focus has not been on regulation alone: the JSE, Africa's biggest bourse, has been very busy this year trying to raise its profile, building on its track record of innovation and setting some records. In the first half of the year cash equity trades increased by 23% and, as head of equities trading Leanne Parsons says, "for the first time in the JSE's 123-year history the number of daily trades has crossed the 200,000 mark. We've seen a steady increase in trading activity since the beginning of the year and foreigners are net buyers."

The JSE also introduced a new billing model and cut trading fees to attract individual investors and algorithmic trading and it launched Block X, Africa's first dark pool for trading large orders. "As competitive pressure in the exchange environment builds, innovation becomes increasingly important," says Parsons.

Yet unlike most successful financial institutions in SA, where poaching is rife and staff changes often resemble a game of musical chairs, the JSE, which employs a total of 464 people, has a very loyal workforce and virtually zero staff turnover. "The JSE today is unrecognisable from what it was six years ago, yet the people working here are the same," says Nicky Newton King, deputy Ceo of the Exchange. "Everyone in SA chases top talent and it is a very difficult battle, but we believe in starting with raw talent, finding bright graduates and bringing them up. Our graduate trainee programme has consistently provided us with brilliant and passionate people who do not want to leave." The bar is high, though: "We get 3,000 applicants, we would like to have 300 but we hire ten."

When new challenges emerge, the JSE sends existing employees on training courses, both external and internal, rather than hiring new people. "We put a lot of effort into upskilling," says Newton King. "Our employees are happy to evolve, which is why we are relatively small but punch above our weight. The only sector in which we do have to hire is IT, because we have been implementing new tech systems which we need to operate flawlessly."