INDUSTRY REPORTS PUBLICATIONS DATA FEED SERVICES WOWEB CONTACT US
Item added to your cart
Labour Recruitment and Provision of Staff
BY Marc Bosman
South Africa
20 September 2018
R 10 080.00 (ZAR)  
estimated $ 718.97 (USD) *
Buy Now

The South African Labour Recruitment Industry


This report focuses on the complex labour recruitment industry which plays a significant role in the South African economy. The International Confederation of Private Employment Agencies estimates approximately 2,600 agencies and 13,000 people are directly employed in the recruitment industry, numbers which appear to be declining. Based on reported industry contribution to the skills levy in 2017, formal industry turnover value was R45bn in 2017, a decline of R3bn from the previous report in 2015. The local industry is dominated by temporary employment services, also known as labour brokers.


A Changing Sector


A recent Constitutional Court decision on the deeming provision of the Labour Relations Act, which ruled that contract workers are entitled to full-time employee benefits after three months of contracted service, will have a significant effect on the industry and on employment trends. With the unemployment rate at 27.2% in Q2 2018 and the number of unemployed looking for a job estimated at 5.8 million people, this sector is critical to South Africa’s employment outlook. The outlook for employment, however, is changing. Executive search firm Heidrick & Struggles reports that companies will significantly reduce staff numbers and only 30% of current employees will be permanent staff by 2020, largely due to advances in automation and off-site workers.


Report Coverage


The report explores developments in labour recruitment and provision of staff, the current state of the sector and factors influencing the success of the industry. The report profiles 18 companies including major industry players such as the Workforce Group which provides temporary employment services mainly for the retail and hospitality sectors and Adcorp, which has restructured its board, management and business. The report includes comprehensive profiles on recruitment and employment service organisations aligned to president Cyril Ramaphosa’s Youth Employment Service (YES) initiative such as Lulaway and the Harambee Youth Employment Accelerator.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 5
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 8
4.1. Local 8
4.1.1. Corporate Actions 13
4.1.2. Regulations 14
4.1.3. Enterprise Development and Social Economic Development 18
4.2. Continental 19
4.3. International 20
5. INFLUENCING FACTORS 21
5.1. Economic Environment 21
5.2. Government and Private Industry – The Social Compact 21
5.3. Private Sector Initiatives 23
5.4. Rising Operating Costs 24
5.5. Technology, Research and Development (R&D) and Innovation 24
5.6. Labour 26
5.7. Cyclicality 28
6. COMPETITION 29
6.1.1. Barriers to Entry 29
7. SWOT ANALYSIS 29
8. OUTLOOK 30
9. INDUSTRY ASSOCIATIONS 31
10. REFERENCES 32
10.1. Publications 32
10.2. Websites 33
APPENDIX 1 35
Summary of Major Players 35
COMPANY PROFILES 42
ADCORP HOLDINGS LTD 42
ADVTECH LTD 47
AFRIZAN PERSONNEL (PTY) LTD 52
AMBITION 24 HOURS (PTY) LTD 54
ASSIGN SERVICES (PTY) LTD 56
CSG HOLDINGS LTD 58
HARAMBEE YOUTH EMPLOYMENT ACCELERATOR 62
HR SOLUTIONS FOR TOMORROW (PTY) LTD 64
KAMO PLACEMENT CC 66
KEMPSTON INVESTMENTS (PTY) LTD 67
LULAWAY HOLDINGS (PTY) LTD 69
MINDCOR (PTY) LTD 71
PEOPLE PERFECT (PTY) LTD 73
PRIMESERV GROUP LTD 75
SET RECRUITMENT CONSULTANTS (PTY) LTD 78
STAFFING LOGISTICS (PTY) LTD 80
SUPERCARE SERVICES GROUP (PTY) LTD 82
WORKFORCE HOLDINGS LTD 84