Why companies on the island are struggling to find and keep talent, and how they can turn the tide.
On a scorching February afternoon, Rajiv, a manager at a popular resort along the northern coast, sighs as yet another employee enters his office with a resignation letter. It’s the third one this month. The other two broke up over text, without so much as a goodbye. For Rajiv, who has worked in the same hotel group for almost 18 years, employee loyalty and long career tenures seem like relics of the past.
In Mauritius, the struggle for workforce stability isn’t limited to the hospitality sector. From tourism to textiles, companies across the island are battling to find and retain talent, forcing them to rethink how to keep their employees from leaving their doors—and often, their shores. However, challenges with retention come second in the story of the country’s growing labour shortage. The first step is to understand why the number of people who are willing and able to work (i.e., the Mauritian labour force) is chronically falling short.
Unemployment is at a 30-year low, but vacancies persist
Since the pandemic, Mauritius’ unemployment rate has steadily declined, reaching just 5.9% by the third quarter of 2024. On the surface, this suggests a favourable labour market, where those who are looking for jobs can find them and employers can secure talent they need with relative ease. Yet, hundreds of positions remain unfilled—sometimes for months. If unemployment is low, the logical conclusion is that there aren’t enough people for the jobs available.
Declining birth rates, an ageing workforce, and emigration are shrinking the local talent pool
Demographic shift
Mauritius recorded its first-ever population decline in 2023. The share of people aged 60+ has risen from 14% in 2014 to nearly 20% today, while birth rates have steadily dropped. Effectively, the local workforce is ageing and contracting each year. Demographic changes are most acutely felt in industries like hospitality and manufacturing, which demand a younger workforce.
A one-way ticket for the best and brightest
The Mauritian brain drain is not a new phenomenon. For decades, local talent has been lured overseas for higher education and career opportunities. Discouraged by work culture and pay scales back home, many never return. Skilled professionals are leaving in droves, attracted by favourable immigration policies and well-defined career paths in countries like Canada and Australia.
Unemployed youth could ease workforce pressures
A closer look at the 35,200 base of unemployed individuals reveals that 12,500—over a third—are young people aged 16 to 24. Youth unemployment stands at 18% in Mauritius. Cultural norms such as parental support reduce the urgency for young people to secure full-time employment. Nearly 30% of first-time job seekers lack SC-level education, making them ineligible for the jobs they want. Young women without basic education are particularly vulnerable, as they are least likely to take manual jobs that experience the greatest shortages.
Eski Morisien pa anvi travay?
The reality of the labour shortage is more complex than just a contracting workforce. Mauritians are increasingly reluctant to take jobs with long, inflexible hours and demanding work. The list of industries that face the most severe shortages is therefore long: manufacturing, construction, agriculture, retail, hospitality, food service. Together, they account for just under half the Mauritian economy.
While minimum wage hikes have boosted earnings, they have not succeeded in making these jobs any more appealing. For many of these workers, freelancing or informal work in the same sectors offers greater flexibility and earning potential than being stuck to a single employer. The gig economy has reshaped the global labour market, and Mauritius is no exception.
In a tight labour market, retaining talent has never been more important
Mauritian companies face a stark reality: the local talent pool is shrinking. They have two choices—to plug the leaks or add more water. The latter is already underway, with industries like construction and manufacturing growing increasingly reliant on migrant labour. But when it comes to retaining valuable employees—or sealing the leaks, so to speak—there is considerable room for improvement.
Traditional retention efforts have stayed at the level of free lunches, comprehensive health insurance, attendance bonuses and the occasional pay hike. But instead of treating retention as a reactive process—one that begins only when turnover rises—what employees need are compelling reasons to stay in the first place.
A radical shift in mindset
‘Leaders need to stop seeing employees as a cost and start viewing them as their greatest investment,’ says Emmanuel Maujean, CEO of Careerhub—a leading specialist recruitment platform in Mauritius. ‘When you invest in your employees—mentor them, give them ownership, offer pathways for growth—they will stay. But if the relationship remains purely transactional, they will leave. It’s that simple.’
A key part of this investment mindset is also ensuring that employees —regardless of their rung on the ladder—are part of the bigger picture: upcoming projects, company performance metrics, even challenges being faced. ‘When employees understand how their work contributes to the broader mission, it deepens their commitment,’ Maujean adds.
At the end of the workday, all employees want is to feel like they are winning
Definitions of “winning,” however, vary dramatically. For some employees, winning means financial security and upward mobility—securing their children’s future. Performance-based incentives and financial recognition work well for such individuals. A new mother, however, may prioritise flexible work hours over a raise. A mid-career professional will value autonomy and leadership opportunities, while his younger Gen Z colleague may only find fulfilment in varied, purpose-driven work. Failing to recognize what uniquely drives people is where most retention strategies fall short.
Even once these drivers are identified, retention is an ongoing process, one that requires continuous fine-tuning. HR teams need to test different strategies, collect feedback, and see what truly resonates with their workforce. What works today may not work tomorrow. But when employees feel valued, supported, and ultimately, like they’re winning on their own terms—they will stay.
Good retention starts with well-executed recruitment
So much of the retention question boils down to a company’s ability to effectively recruit. Employers need to move away from euphemistic job descriptions and provide full transparency on the challenges ahead.
Other common recruitment pitfalls include:
· Rigid job profiling and salary structures that put off top talent
· Euphemistic job descriptions that aren’t fully transparent about the challenges ahead
· Limited involvement from line managers in the recruitment process
· Hiring done out of operational necessity – finding the right fit takes weeks, if not months. Urgent staffing needs are best bridged with temp employees to buy that time.
Prioritise a thoughtful onboarding process
Often, employers will mistakenly treat onboarding as a one-week introduction when in reality, it takes at least three months (or more) for a new recruit to feel well-integrated. A well-structured onboarding process – one that clearly defines role expectations and challenges new employees without being overwhelming – builds confidence and gradually inducts them into the company culture. Social integration is equally important and should be built into every company’s onboarding programme.
The cost of inaction
Companies often debate whether to invest more in their HR strategy—recruitment, retention—the capital R’s of the corporate playbook. The more pressing question is: what happens if they don’t? Beyond the direct costs of hiring, the disruption and the loss of company knowledge are enough to erode a company’s competitive edge. Some estimates put the cost of replacing an employee at 50% to 200% of their annual salary, depending on their specialisation. Now, imagine that figure in an organization with constant departures.
Investing in the capital R’s is both wise and pre-emptive. Beyond flashy EVPs and glittery perks however, leaders need to be invested in their employees and build a culture that is intrinsically motivating. The capital R’s will inevitably follow. But first, organisations need to promote HR from an operational function to a strategic one. The future of their workforce depends on it.
Tenant Spotlight – How Decathlon Beau Plan and Legrand are growing talent from within
Recruitment Despite being a household name, Decathlon had to build its employer brand from scratch when it entered the Mauritian market in 2021. Being certified as a Great Place to Work was crucial in the early days. At Decathlon’s Beau Plan location, a partnership with the Sports Management program at Polytechnics Mauritius has provided a steady pipeline of employees passionate about sport. The average team age at Beau Plan is just 24, making for a vibrant work environment but also presenting its own set of challenges. New employees, often with no prior work experience, are paired with mentors from the get-go.
For Legrand, recruitment isn’t just about filling roles—the company actively seeks professionals eager to grow in its world of electrical and digital solutions. Its location in the picturesque Beau Plan Business Park, a vibrant, established corporate hub, is helpful in attracting candidates.
Retention
Employees at Decathlon are encouraged to set goals, share career aspirations, and identify any training needs during their monthly one-to-ones. The results speak for themselves: within 18 months, nearly two-thirds of the founding team at Beau Plan have been promoted – a testament to the company’s ability to grow its talent from the ground up.
With almost a quarter of its staff working just part-time, Decathlon has tailored its roster to accommodate everyone’s needs. Flexible leave policies and working hours are etched into the company culture. To allow its shift system to run smoothly, Decathlon employs a network of shuttles at various pickup points – giving its employees one less thing to think about.
For Legrand, retention is driven by career mobility and employee well-being. The company invests in continuous learning opportunities and allows employees to explore different roles within the organization. Work-life balance is very much encouraged, helped in part by its convenient location in lush city of Beau Plan.
