| Summary: | The skills shortages in mining and mineral sector had existed for a decade and had a widespread effect on South Africa economy. It affects the level of economic productivity and reduces the country’s capacity to develop a knowledge society. This, in turn, affects the country’s functioning in the global economy. Despite the sector’s best efforts, the shortages continue to grow and threaten the delivery of projects and growth plans. Some researchers contend with the view that the persistence of skills shortages in mining and mineral sector is largely due to entrenched attitudes among both the industry and the community. They claim that employers have the means to change the educational profile of the subsectors by appointing recruits with higher levels of schooling. However, owing to the limited number of higher educated people living in the communities surrounding the mining operations and lack of interest in mining of people with higher levels of education, to name but few, employers are perceived to have a habit of employing people with little skills. The current study was aimed at investigating the impact of skills shortage on organisational performance, propensity to leave, competitive advantage and sustainability, from the management perceptive. The main objective of this study was to incorporate and embed previous research findings and theories into a comprehensive hypothetical model. A hypothetical model showed various factors that may influence skills shortage. Four independent variables (working environment, employment conditions, resources and education and training) were identified as variables that may influence skills shortage; and mediating variable (skills shortage) was also identified as a variable that have potential to affect dependent variables (organisational performance, propensity to leave, competitive advantage and sustainability) of gold mining sector. Furthermore, eight hypotheses were developed to test the relationship between independent, mediating and dependent variables. All these variables were clearly defined and operationalized with various items obtained from measuring instruments used in other similar studies. A purposive sample of 343 respondents was drawn from the population. A seven-point Likert scale and structured questionnaire were administered in person to the respondents and of which 300 were usable and subjected further to several statistical analyses. The validity and reliability of the measuring instrument was evaluated using significant effect p< = 0.001 and Pearson’s correlation test (α = 0.05). Data gathered were fed to and analysed by STATISTICA (version 10) and factor analysis and regression analyses were the statistical procedures used to test the significance of the relationships between the various independent and dependent variables. Consequently, working environment, resources and education and training were three independent variables that were identified as having ability to predict propensity to leave, competitive advantage and sustainability. An attempt was made to establish whether various demographic variables have an influence on mediating and dependent variables through the introduction of gender and position in the organisation while conducting an Analysis of Variance and Multiple linear regressions, but they obtained negative values. The conclusion is that demographic variables do not have over mediating and depended variables. The findings of this study states that with conducive working environment, availability of resources, the high levels of education and training, the country could produce skills that would reduce propensity to leave, drive competitive advantage and sustainability, innovation and entrepreneurship, create competitive advantages and boost employment sustainability.
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