Why SMEs should consider offering employee benefits to boost engagement and retention

In the ever-evolving landscape of the South African economy, the discourse surrounding employee benefits has primarily been dominated by large corporations, leaving small and medium-sized enterprises (SMEs) often overlooked.

However, Thabang Thaoge, Executive Head of Employee Benefits at FNB, argues that the notion that SMEs cannot afford employee benefits is both outdated and fundamentally flawed.

“Employee benefits aren't just for big companies. SMEs can offer them too, and it's easier and more affordable than many think,” Thaoge said.

As the competitive labour market intensifies, the advantages of employee benefits have become indispensable for businesses of all sizes.

Thaoge notes that offering such perks is not merely about ensuring employee happiness; it provides a tangible edge in attracting and retaining quality talent.

This strategic investment not only uplifts employees but can also shield businesses from unexpected financial setbacks stemming from incidents such as illness or unexpected death of employees.

One of the most accessible entry points for SMEs to introduce an employee benefits programme is through basic offerings such as funeral cover.

Thaoge highlights that this benefit holds significant importance for many employees and their families, acting as both an emotional and financial safety net during tough times. “Initiating an employee benefits programme does not require a hefty investment or elaborate planning,” he explains.

With a straightforward foundation laid via basic cover, SMEs can progressively enhance their benefits package to include options such as life insurance, ensuring families are financially supported during critical times, and income protection plans, which offer peace of mind for employees facing potential incapacitation due to illness or disability.

Retirement savings plans present another valuable stream of employee benefits that SMEs can consider.

Thaoge indicates that while some employees may simply desire a savings account with competitive interest rates, others may yearn for a more structured, employer-sponsored retirement fund.

The adaptability of these offerings is highlighted in Thaoge’s statement: “The beauty of a sound employee benefits strategy delivered by a reputable and innovative provider, is its modularity.” This allows for benefits to be tailored to not only the current landscape of the business but also to the evolving needs of its workforce.

Thaoge underscores the need for flexibility in a successful benefits programme, paired with a deep understanding of both employer and employee needs.

This adaptability ensures that the employee benefits strategy evolves alongside the business’s growth and the changing aspirations of its workforce.

“Employee benefits are not a luxury but a strategic necessity for SMEs,” Thaoge passionately stresses.

He further recommends partnering with a knowledgeable employee benefits provider like FNB, which has a clear understanding of the unique challenges SMEs face and how to cater to the diverse needs of their employees.

Such partnerships can make a significant difference in constructing an effective and sustainable employee benefits strategy that aligns with both employee welfare and business objectives.

BUSINESS REPORT