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INSIDE YOUR AUGUST ISSUE WOMEN IN FINANCE To celebrate Women’s Month, we feature trailblazing women in financial services, exploring their stories, insights and impacts on the industry. Pg 11-15 EMPLOYEE BENEFITS Employee benefits boost job satisfaction, retention and productivity. We explore options and look at how better benefits foster loyalty and positivity. Cover story + pg 16-19
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BEHAVIOURAL FINANCE Psychological factors influence financial decisions, often causing irrational choices. We explore their impact and strategies to manage clients driven by emotions. Pg 20-21 INSURANCE TRENDS Take a look at the latest insurance industry trends, challenges and innovations, with insights from experts on emerging risks and technology transformation. Pg 22-25
31 August 2024
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Employers must adapt to keep up with changing workforce BY SIOBHAN CASSIDY MoneyMarketing Contributor
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gility is often demanded of the modern employee. Now it is the turn of employers, who must rethink Employee Benefits (EB) as they try to find ways to turn the tide on the increasing and expensive plague of absenteeism, presenteeism and even resenteeism. Absenteeism costs the economy millions of rands in lost productivity. Dr Themba Hadebe, Clinical Executive at Bonitas Medical Fund, says, “Occupational Care South Africa reveals that absenteeism costs the South African economy around R12bn to R16bn per year, whereas the Human Capital Review estimates it to be even higher, at R19.144bn. This equates to about 15% of employees being absent on any given day – a productivity killer that is affecting both small businesses and large companies across the country.” Presenteeism – where workers who are unwell go to work – introduces its own risks and costs. Sick workers make mistakes, they get sicker, and they put colleagues and customers at risk of
infection. Dr Hadebe explains that a third problem, resenteeism or ‘quiet quitting’, refers to employees who are disengaged and unhappy. “Doing the bare minimum due to burnout and feeling underappreciated, they stay at their current job due to financial constraints, but are unproductive.” Disengaged employees a problem Meeting the ever-changing needs of today’s dynamic, diverse workforce requires an agility that won’t come naturally for many institutions. The consequences of doing nothing are already playing out. According to the latest Gallup State of the Global Workplace report, 71% of the South African workforce is disengaged. The report also found that 56% of South Africans were looking for another job, or at least keeping an eye out for opportunities. The workplace has changed a lot since Covid-19, with the increase in remote working and even those at the office
demanding more autonomy and more support. Also, the Great Resignation after the epidemic started the trend where workers leave jobs that make them unhappy, even if the chances of finding replacements look slim. “The value of experienced and motivated employees should not be underestimated, nor the cost of replacing staff who leave,” says Reo Botes, Managing Executive at Essential Employment Benefits, adding, “By actively engaging with staff, tailoring benefits to specific income levels, and adopting a thoughtful, inclusive approach, organisations can create rewarding employee benefit programmes that not only enhance employee satisfaction but also contribute significantly to the overall success of the business.” Why benefits are essential Belinda Sullivan, Head: Consulting Strategy Retirements at Alexforbes, agrees that a proactive, thoughtful approach will pay dividends for employers. She describes employee benefits delivery as “an interconnected framework” of providing employees with benefits, which creates a “corresponding improvement in engagement and productivity, leading to improved profitability for the employer”. While the standard EB offering of retirement fund membership and group risk cover, and sometimes membership of a medical aid, was enough in times gone by, progressive modern employers are offering a range of benefits and incentives to attract and retain talent, and keep staff engaged. “As the world we live in changes, what employees find value in also changes. While the pandemic may have accelerated the pace at which things changed, change was already happening,” says Melissa Ramsamy-Agapitus, Executive: Group Risk & Investments, Liberty Corporate Benefits. “What is important to an employee has certainly changed over time. The exciting and attractive employee benefits that worked 20 years ago may not necessarily work for all the employees today, let alone those of the future.”
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