“The biggest reason employees resign is because of work arrangements that don’t support their financial well-being, career goals, and personal lives.”
South African businesses are facing a growing retention crisis, with post-pandemic pressures and economic challenges leading to lower employee engagement and morale.
A recent survey from the South African Depression and Anxiety Group (Sadag) reveals that 61% of employed South Africans would leave their jobs if they could afford to, citing overwhelming stress, a lack of mental health support, and inflexible work arrangements.
Managing Director at Remchannel, Lindiwe Sebesho says businesses must adapt to the changing needs of the modern workforce to remain competitive.
“Today’s employees need more than just a salary – they need real support for their well-being and a healthy work-life balance.
“Employers who ignore this risk losing top talent to companies that prioritise mental health and flexibility,” she explains.
Ignoring mental health costs companies dearly
Sebesho warns that failure to address disengagement and mental health issues will lead to increased costs due to lower productivity, higher resignation rates, and expensive recruitment.
According to Remchannel’s October 2024 Salary and Wage Survey, the turnover rate has jumped by 42% from the previous year, with nearly half of all resignations driven by better career opportunities and higher salaries.
But it’s not just about pay.
Sebesho emphasises that flexibility and well-being are becoming top priorities for today’s workers.
“Flexibility is a key motivator for talent. The biggest reason employees are resigning is because they want work arrangements that support their financial well-being, career goals, and personal lives.”
The survey also found that while 83% of companies offer hybrid or flexible work models, many have recently required full-time office returns.
“This rigid approach has hurt morale, especially for employees who thrived on the flexibility introduced during the pandemic,” Sebesho says.
Remote work boosts retention
Research shared by Samad Masood from the Infosys Knowledge Institute at the Old Mutual Thought Leadership Forum in August supports this.
The findings show that while remote work options help retain staff, it’s the broader support for mental health, financial wellness, and career growth that truly boosts employee engagement and loyalty.
To close the gap between employee needs and current workplace practices, Sebesho suggests companies prioritise building employee value propositions that reflect the values of today’s workforce.
“Tools like ‘stay interviews’ help businesses identify areas for improvement and address employee concerns before they lead to burnout and high turnover rates,” she says.
Sebesho also stresses the importance of flexible pay structures, which allow employees to manage their compensation based on both short- and long-term needs.
Addressing financial, mental, and physical health can help alleviate many issues that lead to stress, absenteeism, and turnover.
Embracing diversity: The key to employee well-being and retention
Additionally, promoting workplace culture through diversity and inclusion initiatives is both cost-effective and essential for fostering a sense of belonging.
“These initiatives are key to strengthening human connection and improving morale,” says Sebesho.
In an environment where well-being and flexibility are key drivers for employees, South African companies that don’t evolve risk losing top talent to more forward-thinking workplaces.
Offering mental health support, flexible work, and personalised benefits isn’t just a nice-to-have; it’s essential for sustainable growth and resilience.
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