Kaya 959 Reporter
Employers across the country have experience some tremendous pressure over the last financial year, both with economy and the hard impact of the COVID 19 pandemic.
According to a recent poll commissioned by leading on-demand pay provider, Floatpays South African employees will not be have the extra boost they need his fesive season.
The poll revealed that almost 50% of South African employers surveyed will not be issuing 13th cheques as part of their employee value proposition (EVP).
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Kaya Biiz with Gugulethu Mfuphi spoke to Triya Govender, Head of Marketting at Float Pays who shared more insights on the recent poll conducted by Flotpays.
| Many local companies continue to face financial pressures exacerbated by a struggling economy amidst the Covid-19 pandemic. |
In the poll Simon Ward, Founder of Floatpays gave an idea of why the current economic climate makes it extremely difficult for employers to provide bonuses to their employees.
“Unfortunately, due to increasing financial strain, many South African employees have become reliant on their 13th cheque, rather than seeing it as a ‘nice-to-have.’”
“Without it, a large proportion of employees turn to credit,” says Ward.
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The reality for many South Africans is that, many have used up their saving, or emergency funds as a result of the pressures of the pandemic.
“According to a study from Old Mutual, in 2019 only 38% of people had enough money saved up to last them 3 months should they lose their job or be rendered unable to work. In 2020, given our tumultuous economic climate, that number decreased to 26% – and will likely decrease further this year,” says Ward.
