Employee benefits, especially in a developing nation like South Africa’s, have long been regarded by some economists and financial institutions as a means of promoting financial inclusivity, especially for blue-collar workers.
That’s according to Leroux Delport, African Unity Life (AUL) Chief Distribution Officer, who adds that benefits should not be regarded as a cold, numbers game only.
“ They should be viewed in the context of it being a positive toward building South Africa’s socio-economic stability; as a contributer to the overall well-being of the family and by extension, society as a whole.”
Employee benefits, should also foster a culture of saving, in a country like ours where income to household debt ratios has hampered this economic ideal.
Additionally, suitable employee benefits would make a prospective employer more than an attractive proposition for the ideal candidates.
“The role that well-structured group benefits can play in positioning a business as an employer of choice should not be underestimated or overlooked either,” says Delport.
“It creates sustainability for the employee and most definitely contributes to peace of mind to the employee and his or her family.
“It can also alleviate some TAX burdens for the employee while contributing towards much needed benefits, for example: contribution to retirement annuities and medical aid.”
Delport says that different market segments require different benefit packages, as would be expected. Ultimately it is up to the employer to tailor-make these incentives to suit the requirements of the workforce.
“High-end market segment needs and disposable expenditure differs significantly from the lower income market needs and disposable expenditure. For example: the high-end market will include products like life cover, income protection, disability cover etc.
“While the lower end market will typically include benefits such as: standard family or single funeral option with an imbedded repatriation benefit and sometimes some hospital covers as well.”
He argues that a more comprehensive, needs-basis approach will prove to be profitable for company and employee.
“At African Unity we pride ourselves that we customise white label products and specific offerings to the specific needs of our clients.”