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Nearly three-quarters of private business staff experience crime

20th May 2008

By: Sapa

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Seventy two percent of medium to large privately-held businesses in South Africa have staff or families of staff who have been affected by contact crime over the past year, showed a report released by Grant Thornton on Tuesday.

"This is a drop from the 84 percent recorded in last year's survey, but the figure is still alarmingly high," said the accounting and consulting firm.

The crimes reported in Grant Thornton's 2008 International Business Report included road rage, hijackings and housebreakings.

In South Africa the study conducted research amongst 200 privately-held businesses employing between 100 and 400 staff.

Nearly a third of respondents said that over the last year they had considered leaving South Africa permanently.

Of this group, 82 percent said the high crime rate was the reason they were considering emigrating.

Much smaller percentages, ranging from 10 percent to 15 percent, said uncertainty over the future leadership of the country, racial discrimination, better business opportunities or education abroad would be reasons to emigrate.

SA Grant Thornton chairman Leonard Brehm said the survey clearly showed the link between violent crime and emigration.

"All those working in South African business must operate in an environment that supports the attraction and retention of the skilled people of whom our country is so short."

Crime also had a severe financial impact on business.

Eighty percent of employers reported incurring increased costs for security over the past year.

Half of the respondents said they had experienced decreased productivity of staff over the past year.

Fifty eight percent had experienced decreased motivation of staff.

The loss of staff affected just over a third of businesses and the loss of customers 23 percent of them.

At 82 percent, Gauteng had the highest percentages of businesses affected by crime. This was followed by Kwazulu-Natal where three-quarters of businesses' staff or their families had been victims of crime.

Two thirds of businesses in the Eastern Cape had staff or their families affected by crime and 62 percent of Western Cape businesses had experienced the same.

 


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