Craig Raath, Executive Director at 21^st Century

Despite being employed, many South African workers continue to feel financially strained and it shows at work. Old Mutual’s Savings & Investment Monitor 2023 found that 37% of South Africans consider themselves highly financially strained even as optimism has improved from prior years¹. TransUnion South Africa’s Q2 2024 Data Snapshot showed that 83% of new credit issued was for consumption, not asset building – a sign that households are plugging income gaps rather than building resilience². This impacts the workplace: employees struggle to afford transport mid-month, arrive distracted, or even skip shifts. Globally, PwC’s 2023 Employee Financial Wellness Survey reported 60% of employees face financial stress, and one-third say it affects their productivity with many losing 3 hours or more per week to personal finance burdens³. Meanwhile, the World Health Organization officially defines burnout, often amplified by financial anxiety, as an “occupational phenomenon,” characterised by exhaustion, cynicism, and reduced effectiveness⁴.

In a country where inflation consistently erodes real wages, most employers cannot out-raise the cost of living. The deeper issue is often timing and resilience, not just gross pay. Many households face cash-flow mismatches between payday and recurring expenses as well as not having access to three-month financial buffers. When emergencies arise, they lean on high interest borrowing or skip essential expenses, like commuting, impacting their reliability and productivity. This is supported by global evidence: the Financial Health Network reports that over 40% of U.S. households lack a three-month financial cushion, making them vulnerable to even minor setbacks⁵.

So, what measures make a difference? The evidence and best practice point to a few clear interventions:

• Earned Wage Access (EWA)

EWA aligns wages with expenses, reducing reliance on loan sharks and overdrafts. Best practice requires guardrails: affordability checks, capped access, transparent fees, and coupling access with education.

• Payroll-linked savings pockets

Auto-enrolment, even at small amounts, dramatically boosts employee saving participation and builds resilience over time.

• Just-in-time financial coaching

General workshops don’t stick but short, gamified financial modules linked to EWA access have real behavioural impact.

• Normalising financial help

Employees value employers who visibly support financial wellbeing. PwC found that financially stressed staff are twice as likely to consider these employers³.

The way forward requires implementation of solutions and mechanisms that support the correct behaviour and support employees:

1. Launch a risk-managed EWA pilot (include short learning boosters).
2. Offer an opt-out payroll savings contribution.
3. Add micro-learning modules tied to EWA access.
4. Track outcomes: absenteeism, savings balances, stress, and productivity.

Financial wellbeing in South Africa should no longer be seen as a “perk” but as productivity infrastructure. With liquidity, savings, and light coaching, employers help build a resilient, engaged workforce.

21st Century and PayCurve are currently deploying this model – EWA, payroll savings, and gamified learning – for no cost to employers and with measurable impact.

ENDS

References

1. Old Mutual, Savings & Investment Monitor 2024 – Key findings – https://www.oldmutual.co.za/news/omsim-2024-key-findings/
2. TransUnion South Africa, Industry Insights Report Q2 2024 – overview – https://www.transunion.co.za/iir/reports/q2-2024
3. PwC, Employee Financial Wellness Survey 2023 – https://www.pwc.com/us/en/services/consulting/business-transformation/library/employee-financial-wellness-survey.html
4. World Health Organization, Burn-out: an occupational phenomenon (ICD-11) – https://www.who.int/news/item/28-05-2019-burn-out-an-occupational-phenomenon-international-classification-of-diseases
5. Financial Health Network, Exploring Earned Wage Access as a Liquidity Solution –https://finhealthnetwork.org/wp-content/uploads/2023/12/EWA-Users-Report-2023.pdf