South Africa has undergone major social and political changes over the past two decades. In addition, new legislation in the form of the Employment Equity Act (No. 55 of 1998), which regulates employment practices in an attempt to make the workplace a true reflection of the South African population, was introduced to employers. The implementation of this Act has a major impact on organisations in South Africa and definitely influences the way in which they do business. Organisations, large and small, in every sector are being squeezed in all dimensions. They compete for customers whose expectations of quality, price and service are constantly increasing. Throughout the world, education, training and equitable working practices are recognised as essential ingredients to compete successfully and to ensure high performance practices. This research paper investigates whether the employee development strategies at Medscheme (the organisation selected for this study) are aimed at meeting employment equity objectives. An important reason for the investigation is that globalisation and the need for organisations to gain sustainable competitive advantage require new and different approaches for the recruitment, training, development and retention of employees with key skills. The key to success will, however, be for organisations in South Africa to find a middle way between ensuring equity, while remaining competitive. In order to achieve the objective of the research, the following approach was followed: Firstly, a comprehensive literature study was conducted to determine the legislative basis for equity and employee development; Secondly, a survey of literature dealing specifically with employee development initiatives available to organisations was conducted; Thirdly, the views of the employees within Medscheme were obtained to determine to what extent the organisation implemented the Employment Equity Act and what development strategies are used to facilitate the Abstract iv development of individuals from the previously disadvantaged designated groups to equip them for future positions in senior and top management; and, Lastly, the responses to the questionnaire were analysed to determine the extent to which Medscheme’s employee development strategies support the objectives of the Employment Equity Act.