By: Nzwa Shoniwa, Managing Executive at Sanlam Umbrella Solutions

With South Africa’s workforce buckling under the weight of stress, there’s never been a more pressing need for corporates to invest in mental wellness as a core asset. Recent SA Federation for Mental Health findings reveal that over a third of South African workers face overwhelming stress, with 13% living with a diagnosed mental health condition. The toll is not just personal but economic. Globally, an estimated 12 billion working days are lost annually to anxiety and depression.

Sanlam's 2024 Benchmark Survey highlights financial pressure as a significant driver behind this crisis, with 80% of respondents admitting that financial stress impacts their well-being.

Nzwa Shoniwa, Managing Executive at Sanlam Umbrella Solutions, highlights the critical role of comprehensive workplace support programmes. “South African employers need to take a proactive approach through integrated solutions. By providing financial education workshops, personal debt management support, and mental health resources, corporates can create an ecosystem of support that helps employees thrive financially and emotionally. These programmes are essential investments in our workforce's well-being and productivity.”

The tangled relationship between debt and mental health

Dr Marion Borcherds, Senior Manager and Head of Well-being at AfroCentric, a Sanlam subsidiary, unpacks how debt is often a hidden struggle that can deeply affect our overall well-being. “The stress of financial pressures can take a significant toll on mental health, creating a cycle that’s hard to break. Addressing this issue openly and offering support can help individuals navigate these challenges more effectively. Breaking the stigma around debt and mental health isn’t just necessary for personal well-being – it’s essential for fostering a healthier, more resilient society”

South Africa's ongoing inflation and high-interest rate cycles have strained household budgets, exacerbating existing financial pressures on employees. Shoniwa says that many respondents (49%) struggle with debt, leaving little at the end of the month for savings or medical benefits. He adds that four in 10 standalone employer funds and umbrella sub-funds have reported an increase in absenteeism due to stress, anxiety and mental health issues among staff over the past two years.

Sanlam’s 2024 Benchmark Survey also reveals that between 0.1% to 4.2% of a country’s GDP is lost due to workers with depression attending work while unwell (presenteeism). The cost of mental health-related presenteeism in SA has been estimated at R96 500 per employee annually, totalling R235 billion or 4.2% of GDP, versus R14 000 per employee and R33 billion or 0,6% of GDP annually for absenteeism.

“These statistics are not just numbers. They represent the human cost of our debt-laden society, often resulting in individuals unable to participate fully in the workforce and whose creativity and productivity are stifled under the heavy burden of financial insecurity.”

Employers bear the cost of employees’ financial stress

Shoniwa says, from an employer's perspective, this stress does not just affect the individual but has a knock-on effect on productivity. Increased absenteeism, medical boarding due to mental health issues, decreased employee morale, and higher turnover all reflect the economic cost of financial security.

“Employers have a crucial role in supporting their workforce through these challenges. Our Benchmark Survey reveals that 49% of standalone and 53% of umbrella funds believe in the value of integrated health and financial wellness programmes in delivering high productivity and staff happiness. Employee wellness is not just about productivity but also about creating a compassionate workplace culture that acknowledges and supports employees as complete individuals, including their mental health challenges.”

The psychological toll of delayed retirement

The financial pressures highlighted in Sanlam's Benchmark Survey are further compounded by a concerning trend identified in recent data revealing South Africa’s real retirement age. While most South Africans anticipate retiring at 65, internal member data from Sanlam Corporate reveals that the age at which most can afford to retire comfortably is closer to 80.

“The dream of a well-earned rest, replaced by the reality of continued work demands, can be deeply unsettling. Employees, particularly those in their fifties and sixties, may struggle to maintain their employability in a competitive job market. Sanlam Corporate's data also highlights the challenging tension between retaining experienced older workers and creating opportunities for younger employees in a country grappling with high youth unemployment. This pressure to remain relevant and productive, to constantly prove one's worth in the workplace, can take a severe toll on mental health,” adds Shoniwa.

How SA corporates can break the cycle

Shoniwa says alleviating employees’ financial pressures and improving their mental health will require a range of solutions, including:

• Financial Education and Advice: According to the Benchmark Survey, 66% of respondents reported feeling financially vulnerable or exploited. Shoniwa says reliable financial advice can play a vital role in breaking this cycle of insecurity and stress. “Support from advisers can help people better understand their financial options and the potential benefits or consequences.”
• Fair Compensation and Reward Structures: Ensuring fair pay and reward structures is crucial to alleviate employees’ financial burdens, particularly during tough economic times. Shoniwa stresses that competitive remuneration and recognition of employee contributions improve financial stability, enhance morale, reduce stress, and foster loyalty. “Fair compensation has a cascading effect, from empowering individual employees to reducing financial anxiety, boosting productivity, and ultimately contributing to economic resilience.”
• Holistic Employee Wellness Programmes: Integrated employee wellness programmes that cater to physical and mental well-being are critical. Shoniwa says services like counselling, financial education, and assistance in managing debt can help alleviate some of the burdens employees carry. Employers can also consider implementing specific interventions like employee assistance programmes (EAPs) that provide counselling and advice on a confidential basis.
• Digital Solutions for Mental Health: Another considerable trend noted in the Benchmark Survey is the importance of technology in providing access to mental health support. Digital platforms, like virtual psychologist consultations and mental health apps, can make a significant difference, particularly when stigma prevents individuals from seeking help.

How to foster a culture that values mental health

Breaking the stigma around mental health in the workplace is a critical step for South African companies looking to break the cycle of stress, burnout, and declining productivity. Shoniwa says many employees hesitate to speak about their mental health struggles for fear of being seen as "unfit to work" or incapable of handling responsibilities. This often leads to silent suffering, decreased engagement, and negatively impacts individuals and organisations.”

He encourages companies to foster a culture where mental health is valued as much as physical health. “This includes implementing confidential support systems, providing access to mental health resources, and encouraging open conversations without judgment. By normalising mental health discussions and ensuring employees feel safe seeking help, businesses can create healthier, more resilient workforces while improving overall performance and well-being.”

Shoniwa concludes, “Debt should not define a person’s worth or capability. It’s just a challenge we must navigate together. By embracing financial literacy, access to holistic healthcare, and a commitment to mental wellness, South Africa can take significant strides toward creating a financially confident and mentally healthy society.”