South African employees under pressure

An alarming 61% of employed South Africans would quit if they could afford to, citing overwhelming stress, inadequate mental health support, and rigid work arrangements.

This is according to a survey by the South African Depression and Anxiety Group (SADAG), which Lindiwe Sebesho, Managing Director at Remchannel, discussed on Kaya Biz.

In most cases, financial stress and the high cost of living that cause that is a big contributor to the level of stress and mental unhealth that a lot of workers may find themselves in.

In South Africa, financial pressures are a major driver of job turnover, with many workers leaving their positions to seek better financial stability.

The country’s constrained economic environment, high unemployment rates, and skills shortages exacerbate the situation.

Employed individuals often carry the financial burden of supporting extended families, while highly skilled workers frequently pursue higher pay and career advancement opportunities.

This dynamic creates a dual labour market where competitive pay pressures are increasingly evident.

Employers are responding by offering salary increases slightly above the Consumer Price Index (CPI), as revealed by Remchannel’s biannual salary and wage movement surveys.

While these adjustments aim to address financial stress and retain talent, they do not fully alleviate workers’ broader challenges, including heavy workloads and the demand for a better work-life balance.

Sebesho said that to stay competitive, businesses must adapt to the evolving needs of today’s workforce.

“Today’s employees need more than just a salary—they require authentic support for their well-being and a sustainable work-life balance.”

“Employers who overlook this risk losing their top talent to organisations that truly prioritise mental health and flexibility,” she said.

Sebesho warned that failing to address employee disengagement and mental well-being can lead companies to incur high costs due to low productivity, increased resignations, and the expenses associated with recruiting replacements.

According to Remchannel’s October 2024 survey, the turnover rate reached 15.5%, which is a 42% increase from the previous year. Many resignations are driven by employees seeking better career opportunities and higher salaries.

In addition to salary, Sebesho stressed that flexibility and a stronger focus on well-being have become top priorities for the modern workforce.

“What we’re finding is that flexibility is a key motivator for talent. The major driver behind resignations is employees’ desire for work arrangements that support their financial wellbeing, career goals and personal lives.”

The survey indicated that although 83% of companies provide hybrid or flexible work models, many have recently required employees to return to the office full-time.

“This rigid approach has hurt morale, especially for employees who thrived on pandemic-era flexibility,” she said.

Research presented by Samad Masood from the Infosys Knowledge Institute at the Old Mutual Thought Leadership Forum in August supports this trend.

The findings revealed that while many companies use remote work options to retain employees, broader support for mental health, financial wellness, and career growth actually significantly enhances employee engagement and loyalty.

To address the gap in South Africa between employees’ needs and current workplace practices, Sebesho suggested that companies should prioritise building employee value propositions that align with the values and priorities of today’s workforce.

“Tools like ‘stay interviews’ help companies to identify areas for improvement and proactively address employee concerns, helping to build a basket of pay and benefits that prevent burnout and reduce high turnover rates,” she said.

“Flexible pay structures that allow employees to manage their remuneration in line with both short-term and long-term needs are essential for addressing financial and other root causes of stress and mental health issues.”

Initiatives aimed at improving financial, mental, and physical health can help address various issues that often lead to stress, decreased performance, absenteeism, and employee turnover.

“Other initiatives to improve workplace culture, such as promoting diversity and inclusion, are both cost-effective and essential for fostering a sense of belonging and human connection.”