Your international recruitment and jobs for actuaries and actuarial students.

Most juniors report finding it hard to secure their first job, but this is typical of actuarial job markets worldwide. One difficulty facing juniors is presenting the right balance between exams passed and salary expectations, as employers aren’t looking for expensive, almost qualified actuaries with no experience.

The Employment Equity issue clearly has a bigger impact on this level of the market because there is a higher supply of people from previously disadvantaged population groups than at the senior levels. This means new entrants from other population groups may look to entering the actuarial market overseas (possibly on a working holiday permit), where, particularly as foreigners with no relevant experience, they also face tough competition. Others are moving into non-actuarial fields

Employers in South Africa face a much tougher job recruiting actuaries or students with relevant experience. Skills are diverse, but finding the right blend of these skills is not easy, particularly if you are seeking specialised experience. It is also almost next to impossible to move towards demographic representation within the team with so few black South African actuaries or even senior students. Technical strength and strong communication skills are repeatedly sought and we also heard that character and a good culture fit with the company are often more important than specific experience.

From an employee point of view, it is apparently fairly easy for anybody who is flexible and has a reasonable work history to secure an actuarial position, but it is not so clear whether it is just as easy to secure the job that fulfils your own personal and career dreams!

It was typically expressed that the traditional areas employing actuaries are reaching saturation point, partly due to life company consolidation, increasing role of accountants in former mutual societies and the shrinking demand for actuaries in pensions consulting. What is interesting, however, is that most people concur that the job market for actuaries in South Africa is broadening and providing exciting opportunities outside traditional fields. Actuaries are becoming more visible and respected for their problem solving skills and work ethics, rather than specific technical experience, and this is opening up avenues in areas such as banking and general insurance.

Legislation changes (particularly in general insurance) and business growth also provide new opportunity, but it was generally agreed that actuarial requirements are not yet increasing at the same rate as the increasing supply of young students into the marketplace.

THE EFFECT OF EMPLOYMENT EQUITY

There is no question that Employment Equity (EE), the now longstanding introduction of affirmative action in the job market for previously disadvantaged groups of the population in South Africa, is a factor with big potential impact on the actuarial job market. However, very few people from these disadvantaged groups have moved into the actuarial profession and managed to progress to qualification level. This means that the tightening effect of Employment Equity legislation to more experienced job seekers in the actuarial industry is considerably mitigated. Jobs still need to be filled, but this can take longer than in the past, as some employers do wait for an EE employee to come along. Employers can only improve their EE ratios by employing EE candidates from the junior levels, making it even tougher on the rest of this sector to find entry-level positions.

One actuary points to possible second order effects on the market, for example, non-AA actuaries leaving South Africa because they fear for their children’s ability to find jobs.

NEW EDUCATION SYSTEM

The Actuarial Society of South Africa is introducing a new education system for South African actuaries (see www.assa.org.za for more information) and we asked our correspondents how they felt this would affect future prospects for actuaries. Some concerns were raised about standards being maintained, keeping the qualification international and decreased overseas marketability, but on the whole comments were positive. The new system is expected to increase relevance, improve local actuaries’ positioning and give more merit to the profession within local industry. As one actuary puts it “I personally think that what you learn has little bearing on your future. Experience is what counts.”

CAPE TOWN OR JOHANNESBURG?

We also looked at the big Johannesburg vs Cape Town debate, thinking we might stir up some emotive commentary. It was generally agreed there are more actuarial jobs in Johannesburg. While there are some larger players in Cape Town in the traditional life market, there is larger variety in employers and type of work in Johannesburg, translating into more opportunities for actuaries here. It was put forward (more than once!) that an actuary who was serious about his career path would at some point move to Johannesburg, even if it meant forgoing his dreams of living by the seaside or mountain. Other comments included higher salaries in Johannesburg and the fact it is a more sophisticated market and better integrated into the broader financial community, thus appealing to the more ambitious. Some even suggested a perception that work is not taken very seriously in Cape Town!

MOVING OVERSEAS

A large number of actuarial students and actuaries move overseas, some just to gain some overseas experience before returning back to South Africa, while others move more permanently. We asked our readers what motivates South African actuaries to leave this beautiful country and the majority spoke about gaining international experience and exposure. Some spoke about bringing this experience back to South Africa in future, but many of these were talking theoretically. It seems the response from those who had already relocated seemed less idealistic about returning to South Africa, particularly if they had a family.

Push factors tend to include Employment Equity, instability in the employment environment, crime and in some instances, particularly for those looking for stability for their family, quality of life. Pull factors include the chance to travel and experience a different lifestyle, wider exposure, higher numbers of actuarial vacancies and the transportability of the international actuarial qualification. South Africans also have a good reputation in the UK as hard workers.

WORK PERMIT - FOREIGNERS

An area of interest for non-South African residents thinking about living in South Africa is the changing work permit situation. This now makes it easier for actuaries or actuarial students, with at least five years experience, to find jobs in South Africa. Successful applicants under

This could certainly address actuarial shortages at the more senior levels and has produced much excitement for actuaries and senior students in neighbouring countries, particularly Zimbabwe. However, overseas candidates cannot be classed as employment equity candidates, meaning that employers cannot look to an increased supply of actuaries from neighbouring countries to assist in their Employment Equity ratios. Overseas candidates will thus end up competing in the increasingly competitive non-EE market and will still need strong marketable skills and strengths. The changes were seen as particularly useful in terms of bringing in specialist skills, even if only on a temporary or secondment basis. However, some said the changes would make little difference, feeling that there is little incentive for overseas candidates to work in South Africa.

SALARY

The general consensus is that salaries are high relative to other professions and quite possibly high on an international scale (certainly in relation to cost of living).

An experienced healthcare professional advises us that although entry-level salaries are getting lower, experienced professionals are adequately remunerated. Another says salaries in South Africa are good, particularly for those who are specialised or work in non-traditional roles. Another more senior professional who has just relocated to the UK says that his salary in SA was almost as much as he now earns in the UK, with of course much lower expenses, so no complaints from him.

The only area where we found some people to be unhappy with their package was the junior to mid student level and at least one felt that her employer was underpaying compared to the rest of the market.

Those at the student level may still be able to get better salaries overseas due to a more plentiful supply locally at these levels, but on the whole, the people we asked seemed generally happy with their salaries, which is certainly an unusual state of affairs!

LIFESTYLE IN SA

So what tips did our resident South African experts have for those wanting to work in South Africa? We expected to hear a lot about the much talked about crime and uncertainty in South Africa. We also expected to hear all about the wonderful scenery, lifestyle and braaivleis (a whole other level of barbecue to the uninitiated!), but most of our contributors bypassed these aspects and talked about the wonderful people in South Africa.

South Africans take great pride in being part of a newly reborn country and embracing its challenges and triumphs. They delight in the natural beauty, the rural simplicity of the country areas and (by and large) the attitudes of the people. It can be a difficult place for a newcomer to understand, being an extraordinary mix of developing and developed economy. One foreigner working locally tells us that although there are many opportunities in South Africa, these opportunities are not always easy to take advantage of as a foreigner.

Crime was acknowledged, but mostly in the form of cautionary advice to newcomers, such as

• Don’t walk down the street with your laptop at night
  
• Don’t stop at red traffic lights at 2 in the morning
  
• Get yourself a car as public transport is not great
  
• Install a tracker in your car!
  
• Ensure that you have travel and health care insurance
  
• Be alert, be careful and don’t become a statistic
  

We end with a quote from our most junior contributor to the survey, a new entrant still looking for his first job. He says “South Africans are like a big family. Of course there is the crime and all those other problems, which are also found anywhere else in the world, but the fact that such a diverse spectrum of people can live in unity provides constant inspiration and hope each and every day. The country is spectacular...there are so many sights to see and there is such a rich history in SA. The grass is not greener on the other side. South Africa is awesome.”

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