Wages pull plug on brain drain

"It is imperative that employers invest in their workers to prevent them from leaving the country," said Brian Khumalo, senior partner of Leaders Unlimited Korn/Ferry, the largest executive recruitment firm in South Africa.

"An employee is hardly going to look for greener pastures when he or she is paid appropriately and treated well in their home country," Khumalo said.

But what is an 'appropriate' salary?

Khumalo said that many businesses were willing to pay internationally competitive salaries for top executives, even though this might lead to a very skewed salary distribution within the company.

Various trade unions have expressed outrage at the looming disparity between the highest and the lowest paid workers in South African companies.

The National Health, Education and Allied Worker's Union (Nehawu), in a media release in October last year stated that this was "outrageously illegal... ignorant and retrogressive", and described it as "apartheid style discrimination against lower category workers".

However, Khumalo said: "In a boardroom decisions have to be made, companies will go for the global talent, at the going rate. It is global demand and supply."

Socio-political implications

He did not feel able to comment on the political and socio-economic consequences of this, other than to say: "We desperately need the input and expertise of these men and women to help grow the economy and to create jobs for the more than one million unemployed people in South Africa."

The Congress of SA Trade Unions (Cosatu), in a press statement on Wednesday, said it was unfortunate that so many skilled South African workers decide to seek employment overseas.

However, like Khumalo, Cosatu said: "Ways have to be found to provide skilled workers with acceptable salaries... to convince them to stay here."

Cosatu spokesperson Patrick Craven did not agree that lower salaries for professional and executive positions would help to prevent job losses in firms that were struggling in the face of the strong rand, as some, more radical critics have suggested.

"You can't solve those problems by reducing wages," he said.

Khumalo added there was a perception that employers gave preference to people with international experience.

Many returned exiles to South Africa have international qualifications and experience.

"Local blacks are now trying to emulate them (the returned exiles). They leave to improve their qualifications, and then don't come back".