ENSURING EMPLOYEE FINANCIAL WELLNESS – CURRENT SCENARIO
We know that debt is a big concern in South Africa and that its impact on work life is something that has become more and more apparent. With this view in mind, we see an opportunity to apply a positive philosophy of personal financial management to the debt situation and its impact on the average South African household.
Countries looking to increase capacity through infrastructure and development are hindered by the debt environment that limits liquidity and availability of cash for investment in these areas. In addition, there is the obvious socio-economic impact on each and every South African. The debt crisis often translates into social problems such as high stress levels, associated health risks, alcoholism and domestic violence that result in high levels of absenteeism. Corruption is a major factor to consider and the impact that all of the afore-mentioned areas have on productivity levels.
There can be no doubt that the majority of employees are so indebted that it affects their work performance. In general these employees have no idea on how to rid themselves of this debt and the only solution that they see is to borrow more money. The first option is to approach their employer and if that does not work, they go to the loan sharks.
Ultimately the employer is burdened with the garnishee orders and demotivated employees who have hardly any take-home pay. I have personally witnessed numerous instances where employees cannot come to work because they do not have sufficient money for transport.
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