South Africa’s universities are producing graduates in record numbers, but many are failing to translate their qualifications into employment. Up to 70% of graduates struggle to secure jobs, while industries like retail face a shortage of skilled middle managers and report churn rates as high as 24%.
“The paradox is clear,” writes Michelle Bignall, “graduates are brimming with theoretical knowledge, yet employers consistently report that they lack the soft skills required for the modern workplace.” These include communication, teamwork, critical thinking, and emotional intelligence.
Graduate programmes falling short
Despite the widespread adoption of graduate development initiatives, results remain mixed. One merchandising solutions company saw its retention rate drop to 65% – below the national average of 79%. Many graduates themselves express dissatisfaction, citing “a lack of job security, opportunities to advance, and meaningful feedback.”
Six capabilities managers actually want
In search of solutions, Bignall spoke to 14 experienced retail managers. They identified six core capabilities graduates need to succeed: communication, teamwork, confidence, critical thinking, emotional intelligence, and leadership/problem-solving.
Interestingly, newer managers emphasised resilience and confidence, while veteran managers stressed decision-making and professionalism. “Perhaps this reflects battles hard-won,” Bignall notes.
Hands-on learning was universally seen as the key. The managers endorsed the 70:20:10 model of adult learning – where 70% of growth comes from on-the-job experience – over traditional classroom-style training. “Authentic, problem-based scenarios trump didactic instruction every time,” Bignall said.
A three-pillar blueprint
The study suggests a blueprint built on three pillars:
Real responsibility – assigning graduates ownership of client presentations, operational challenges, or projects.
Strategic rotation – moving graduates through different business units to understand the bigger picture.
Learning from others – strong mentorship, teamwork opportunities, and constructive feedback.
Line managers are critical to success. Unrealistic expectations can quickly discourage young employees, while disengaged supervisors leave them feeling adrift. “Graduates are seldom given the space to make mistakes, learn from them, and build resilience,” Bignall warns.
Shaping workplace-ready talent
Graduates also shoulder responsibility. Managers flagged issues such as resistance to workplace demands and low self-awareness. Generational nuances surfaced too: some Gen Z employees show “less of a traditional sense of urgency or workplace pride,” reflecting broader changes in job expectations.
Success, managers said, is defined by a graduate’s ability to own problems rather than just follow orders. One manager recalled a standout trainee: “[She] was able to lead a team, deal with the challenges, and communicate with the customers. She said, ‘No, let me go and deal with it on my own…’ That’s when I knew she was ready!”
Shared responsibility for talent development
Bignall argues that the responsibility for developing workplace-ready graduates shouldn’t rest on businesses alone. Training institutions and business schools can integrate more practical opportunities into curricula, while government could invest in grants that promote work experience and youth initiatives.
“Ultimately, this isn’t only about helping individual job seekers,” she concludes. “It’s about strengthening South Africa’s entire talent pipeline. A renewed, practical focus on soft skills is essential if we’re serious about turning our graduate potential into tangible prosperity.”
