South Africa’s current labour market presents a paradox that many business owners know all too well. On the one hand, the country’s official unemployment rate remains above 30% – one of the highest in the world. Yet on the other hand, employers consistently report difficulty in finding candidates with the right skills, experience and cultural fit.
Theoretically, high unemployment should make hiring easier. CVs flood in, interview slots fill up, and vacancies can be filled relatively quickly. In practice, however, this can increase the risk of a poor hire, as businesses struggle to distinguish genuine capability from desperation, inflated CVs or misaligned expectations.
For small and medium enterprises (SMEs), the cost of getting it wrong is significant. This is because, unlike larger corporates, SMEs rarely have surplus capacity to absorb underperformance. One bad hire doesn’t just mean the job doesn’t get done; it can drain management time, disrupt team dynamics, and stifle growth. In a tough economic climate, these risks are amplified. This is why hiring smart, not fast, is so critical.
Do the groundwork
Importantly, a smart hiring process begins well before the first CV is reviewed. The most common mistake we see among SMEs is hiring for an immediate gap rather than a defined role and business function. Before advertising a position, business owners should be clear on what problem the hire is meant to solve, how success will be measured, and how the role fits into the business’s medium-to-long-term plan.
This clarity helps avoid over-hiring or hiring for the wrong skill set. Roles that combine complementary skills or allow for future growth also often deliver better long-term value than narrowly defined positions.
Once the role has been clearly defined, structured interviews should be non-negotiable. Asking every candidate the same core questions allows for fair comparison and reduces bias. Practical assessments, even simple ones, are often more revealing than polished interview answers. They demonstrate critical thinking capability as well as the ability to prioritise and execute, which matters far more than how confidently they speak about past roles.
Don’t skip probation
Once you’ve completed the full interview process across several candidates, even if you think you’ve found “the one”, be sure to set a probation period with clear performance criteria, regular feedback and documented check-ins. South African labour law allows for this, but many businesses underutilise it. A probation protects both employer and employee, creating an opportunity to course-correct early if expectations are not being met.
Ultimately, hiring smart requires patience and discipline, two things that are often in short supply when running a growing business. But in an economy as unforgiving as South Africa’s, disciplined hiring is one of the strongest risk management tools an SME has.
Taking an extra month to hire the right person is almost always cheaper than spending a year managing the consequences of the wrong one. In a labour market defined by strict regulation and uncertainty, smart hiring can make all the difference.
About the Author: Jeremy Lang
