Transformation in the South African Banking Industry

Transformation is a deliberate plan of action to change historical racial and gender disadvantages. Transformation is also a fundamental necessity in South Africa as it seeks to address the injustices of apartheid while enhancing economic inclusiveness and promoting diversity in the working environment. The progress of transformation remains slow in South Africa, particularly in management and leadership positions in companies within the South African Banking Sector Therefore, it is quite clear that inequality, discrimination and a lack of transformation in South Africa need to be addressed, as the inequality gap has remained the same, even after the abolition of apartheid. However, the Western Cape is a province that is considered to practice and protect apartheid policies that perpetuate racial, gender and spatial disparities. This study, therefore, sought to investigate the transformation of banks in the Western Cape. The study followed a deductive approach and used an online survey as a data collection tool. At the time of study, the population of the study were employees of banks in the Western Cape and who were permanently employed. Additionally, the aim of this research was to investigate the influence of the Employment Equity Act, Skills Gap, Leadership Accountability and Human Resource Development in driving transformation in the banking sector of the Western Cape region in South Africa. The empirical results of the study were obtained from 105 bank employees located in the Western Cape. The Employment Equity Act, Leadership Accountability and Human Resource Development were the strongest independent variables. The Employee Development was an independent variable that emerged from the respondents. The findings of the study indicated that Employment Equity Act, Leadership Accountability, Employee Development and Human Resource Development had a significant, positive relationship with Transformation. The study also revealed the Skills Gap as the only independent variable that had an insignificant impact on Transformation. The recommendations were made to the Western Cape Banks to implement and continue to: drive the implementation of the EE Act; for leaders to be held accountable when it comes to driving transformation; banks to establish and facilitate employee development programs and for human resource to identify, retain and promote talented employees. This will therefore lead to a better performing and transformed banking sector.Thesis (MA) -- Business and Economic science, 202