By: Lindiwe Sebesho, Managing Director at Remchannel

South African employers face an escalating retention crisis as post-pandemic pressures and economic strains drive low employee engagement and morale. A recent survey by the South African Depression and Anxiety Group (SADAG) reveals that 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.

To stay competitive, businesses must adapt to the evolving needs of today’s workforce, says Lindiwe Sebesho, Managing Director at Remchannel. “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 says.

Sebesho warns that without addressing employee disengagement and mental well-being, companies risk incurring high costs due to low productivity, eventual resignations, and the expense of recruitment. Remchannel’s October 2024 Salary and Wage Survey reports an overall turnover rate of 15.5%—a 42% increase from the previous year—with nearly half of all resignations attributed to better career prospects and higher salaries.

Beyond pay, Sebesho highlights that flexibility and a greater emphasis on well-being have emerged as 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 also revealed that while 83% of companies offer hybrid or flexible work models, many have recently mandated full-time office returns. “This rigid approach has hurt morale, especially for employees who thrived on pandemic-era flexibility,” she notes.

Research presented by Samad Masood from the Infosys Knowledge Institute at the Old Mutual Thought Leadership Forum in August supports this trend. Findings reveal that while many companies rely on remote work options to retain staff, it is broader support for mental health, financial wellness, and career growth that truly strengthens employee engagement and loyalty.

To bridge the gap in South Africa between employees’ needs and current workplace practices, Sebesho suggests that companies need to prioritise building employee value propositions around 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 says.

“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 focused on financial, mental, and physical health can address many issues that often lead to stress, underperformance, absenteeism, and staff 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,” says Sebesho.

In a climate where employees are increasingly driven by well-being and adaptability, South African companies that fail to evolve risk losing top talent to more progressive workplaces. Meeting the growing demand for mental health support, flexible work, and personalised benefits isn’t just a nicety; for companies intent on sustainable growth and resilience, it’s an essential strategy.