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The strange thing is by trying to protect the workers by increasing the minimum wage it is actually having the opposite effect.

There is no such thing as cheap labor in South Africa these days and with a shrinking economy it is no wonder there are many companies restructuring looking to reduce the number of employees. If your business has not grown over the last 5 years which is the case with many yet your wage bill has grown by 40% then you have to take action just to stay afloat.

What we have done with our business is shed the staff who could only perform one task because these days you need to offer more than just the basics. If we require manual labor then we will pick up casuals for the day paying them the minimum wage.

In our area there are a few pick up points for casuals ad it is normally the same faces hanging out each day. If they perform when hired the first time they have more chance of being selected again and again and possibly if they show enough promise may land a permanent position.

With a thumb suck of around 50% unemployment in South Africa and that number expected to slowly rise holding on to any job is crucial for any worker. The government grant for he unemployed is R350 monthly which in comparison to the minimum wage is roughly less then 2 days work in real value. Shocking really considering this number does not even afford you the ability to travel for interviews and why the only hope they have is seeking casual work.

The problem with the work force in South Africa is so many are unskilled with very basic education leaving them at the bottom of the pile. Those few that stand out who can read and write and possibly have a few other skills will find employment eventually and why education is so important.

The biggest hurdle as an employer is finding staff with the right attitude who don't see themselves as middle management and see themselves as part of the team. Staff members who are trustworthy as theft within the workplace is still very real and why keeping the numbers small helps. Paying a security guard to police your staff may sound like a good idea but his/her salary could pay for two more staff members or offer those working for you an incentive bonus. With companies having a smaller staff compliment today team work is essential because basically you are having to complete work using a skeleton staff.

Last year we had around 30 employees and now have 10 doing the same work which highlights how much work the other 20 were doing. Over the next 3 months we should be adding another 10 more staff members to the business as the business grows the manufacturing side, but again these will be specialist roles for those that have the skills required.

Being an employer is definitely a steep learning curve that requires fine tuning getting the balance right making sure everyone is happy. What I have noticed over the last 3 months is that this business is more like one big family with everyone looking out for each other. The staff trust where the business is heading because they are involved and informed of all decisions because we all have to make this work.

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