Why financial literacy is essential for employee retention and confidence

As National Savings Month coincides with the opening of the South African Revenue Service’s (Sars) tax season, Afri Training Institute is calling on employers to treat financial literacy as a strategic business tool.

According to general manager Sandra Pretorius, too many companies underestimate how financial stress undermines productivity, engagement, and retention.

“Every year around this time, I am reminded of a truth that rarely makes it into boardroom conversations: financial stress walks into work with your employees every day. It does not matter whether someone is earning R6,000 or R60,000 a month; if they are struggling to manage their money, they are distracted, anxious, and more likely to disengage,” says Pretorius.

Pretorius believes it is time for business leaders to move beyond superficial wellness programmes and start equipping staff with essential life skills. “Confidence in personal finances leads to confidence in performance, decision-making, and loyalty. That is why financial literacy has become a business imperative.”

The business impact of employee financial stress

“Over the years, I have worked with many businesses trying to build better cultures and retain good people. But I have seen time and again how financial anxiety chips away at even the most talented employees,” says Pretorius.

Pretorius points to market research showing that only around 51% of South Africans understand essential financial concepts like budgeting and saving. This is compounded by findings from the DebtBusters’ 2024 Money Stress Tracker that around 75% of respondents say they experience financial stress, where 93% of these respondents felt their financial stress impacted their home life, 76% their work, and 74% their health.

Younger employees, in particular, often enter the workforce without a foundational understanding of money management. “They are not taught how to plan, track their spending, or think long-term. By the time a crisis hits, whether it is medical, family-related, or something unexpected, it is already too late,” says Pretorius.

“However, this doesn’t just affect first-time or young employees. Some of the most financially stressed employees I have met are earning upwards of R50,000 a month. But without the skills to budget, save, or manage debt, that income becomes a revolving door,” Pretorius explains. “And financially stressed employees are more likely to be distracted at work, experience more frequent absenteeism, experience health problems, and change jobs.”

Turning insight into action

At Afri Training Institute, financial literacy has become part of the company’s internal culture. “We have introduced internal sessions that focus on real-world habits: how to budget for the month, navigate debt, and build a savings mindset. The result? More focused, resilient employees with stronger interpersonal relationships,” says Pretorius.

“We offer short, high-impact financial literacy power sessions for groups of up to ten employees. These sessions can be delivered virtually or on-site and are designed to provide practical takeaways in just a few hours. It is not about role-plays or theory but about showing people how to take control of their money so they can show up more confidently at work," Pretorius says.

Empowering people, strengthening business

“I have seen firsthand how people show up differently at work when they feel more in control of their money. They are less anxious, more present, and more likely to stick around. This kind of training helps create a work environment where people can focus on doing their jobs without that constant mental burden," she says.

With Human Resource and Talent teams under constant pressure to meet and retain the business’s talent needs and build inclusive skills pipelines, Pretorius believes financial literacy is a smart and underutilised addition to any talent strategy. “It is a low-cost, high-impact step that ticks both the human and compliance boxes.”

“As tax season gets underway, I want to encourage business leaders to move beyond the usual thinking. Don’t just ask, ‘What are we paying people?’ Rather ask, ‘Are we equipping our people to make their money work?’ Because when your people feel financially capable, everything else becomes easier,” says Pretorius.

PERSONAL FINANCE