Business imperative or tick-box exercise?
While wellness interventions do require planning and budget, the cost of inaction is higher, writes Lynette Dicey
It’s a commonly accepted fact that more engaged employees are more productive at work, build better customer relationships, close more sales and are absent less. However, employee wellbeing is at one of its lowest ebbs currently, according to Gallups State of the Global Workforce 2025 report. Sub-Saharan Africa has the second lowest regional percentage of thriving employees. Only 19% of employees in the region say they are engaged and 72% say they are struggling.
Gallup estimates that if the world’s workforce was fully engaged, the global economy could add $9.6-trillion in productivity.
Dr Themba Hadebe, clinical executive at Bonitas, says South African employers are underestimating the real cost of poor employee health and need to shift corporate wellness initiatives from a soft HR policy to a hard business strategy.
Wellness may well be the buzzword of the day right now, but not all organisations are getting it right. Wellness activities and interventions vary from the occasional mental health webinar or training session to smaller everyday gestures like fruit baskets in the canteen and daily email reminders on self-care. However, the reality is that wellness needs to be more than a tick-box exercise if it is to be effective, particularly given that its bottom-line impact is often underestimated.”
According to a 2024 GIBS study, the combined cost of mental health-related absenteeism and presenteeism in SA is estimated at R250bn a year, or roughly 4.5% of the country’s GDP. Added to this, the surge in chronic conditions such as hypertension and type 2 diabetes is causing a widespread health crisis to play out in boardrooms, on factory floors and Zoom calls.
The question is whether businesses and HR leaders are investing in wellness in a genuine
attempt to protect their workforce or if it’s merely to tick a compliance box?
Between January and April this year, Bonitas Medical Fund screened more than 5,000 employees at Bonitas-affiliated companies during on-site wellness days. Its findings were concerning with incidences of elevated blood pressure, abnormal cholesterol and high blood glucose levels common. Particularly alarming was that these adverse findings were often the case in employees who showed no outward symptoms.
“These are the very risks that slowly and silently drain productivity, because workers grappling with chronic conditions are more likely to take sick days, underperform, disengage and burn out, says Hadebe. When left untreated, these are issues that escalate into more serious and costly outcomes for both the employee and the organisation. This is where the business case for strategic wellness becomes undeniable.
Bonitas identified elevated risks in thousands of employees during these on-site wellness days, many of whom had no prior diagnoses. “Early interventions led to targeted disease management support and, in some cases, the prevention of far costlier downstream claims. More than R29.6m in early-stage claims was paid out under the fund s Benefit Booster initiative during this period, a figure that underscores how early detection can be a powerful tool for risk mitigation, he says.
While wellness interventions do require planning and budget, the cost of inaction is higher, says Hadebe.
productivity, pressure on team members to compensate, poor morale and high churn, and the business risk grows exponentially.
Hadebe says most organisations are already, unknowingly, sitting on a ticking health timebomb. “The data tells us that once we start screening, we immediately uncover significant, actionable health risks across all sectors, whether it s mining or finance.
Addressing this challenge, he says, requires a culture and perspective shift among businesses to treat wellness more like a core driver of business continuity and less like an HR line item or once-ayear campaign.
Healthier employees drive stronger performance, lower risk and more sustainable businesses
“Employee wellbeing requires a long-term, integrated plan that is supported by leadership and aligned to company goals. This might include ongoing risk screening and reporting, mental health support and coaching and preventative care access, including vaccination and lifestyle screenings. There is no question that healthier employees drive stronger performance, lower risk and more sustainable businesses.
“Absenteeism alone is estimated to cost South African businesses more than R19bn annually. Factor in the indirect costs, such as lost
Wellness, he says, is no longer an optional extra, but the foundation of a high-functioning, future-ready organisation. “Don’t wait for a claims crisis or a burnout epidemic to act, because the data is already telling the story.
Workplace wellbeing has become a critical business strategy
Workplace wellbeing isn't just a buzzword anymore but has become a critical business strategy. Companies are realising that looking after their employees’ physical, mental, social and financial health is no longer a nice-to-have but actually makes a big difference to their bottom line.
Research by the McKinsey Health Institute in collaboration with the World Economic Forum reveals that when employees are well, they’re more productive, more resilient and give their company a competitive edge.
The study showed organisations that prioritise the health and wellbeing of their employees often see marked improvements in productivity, reduced absenteeism, lower healthcare costs and heightened employee engagement and retention. In addition to being more resilient and adaptive, they are more capable of navigating the uncertainties and challenges of a rapidly changing world.
Workplace wellness needs to remain a priority, even during uncertain economic times. This is because strategically planned wellbeing initiatives build organisational resilience, proactively tackling issues such as burnout, which typically cost organisations significantly in lost productivity. However, when employees feel genuinely supported, they bring their best to work, boosting creativity, problem-solving and customer service.
Arianna Huffington, author of Thrive and The Sleep Revolution, calls wellbeing “the ultimate productivity multiplier” explaining that “when companies invest in their people s wellbeing, it sa win-win creating workplace cultures where individuals can maximise their productivity and creativity, which in turn enables businesses to grow and maximise their impact”
The World Economic Forum s (WEF) Thriving
Workplaces report says only a quarter of workers are happy at work and that despite recognising that investing in people is good for business, less than a fifth of companies have made investing in their people a strategic priority. The report says boosting workplace wellbeing could help the global economy grow by $11.7-trillion. The WEF’s Centre for Health and Healthcare is working with its partners to strengthen both the investment case and evidence base for prioritising holistic workplace health to improve productivity and the overall health resilience of the global workforce.
It’s time to rethink how success is defined in the workplace, says Shyam Bishen, head of the WEF s Centre for Health and Healthcare. The evidence is clear that when organisations put people s health and wellbeing at the heart of their strategy, everything else improves, from innovation to resilience to business performance.”
He says this is a pivotal moment to make workplace health a shared priority across leadership teams, for the sake of employees and the future strength and sustainability of organisations. Critically, good leaders need to create an environment of wellbeing for their teams. As such, businesses need to ensure that their leaders and managers are equipped to support their teams’ wellbeing.
Managers need to be trained in emotional intelligence and stress management to help them create psychologically safe environments and model healthy behaviours. Key managerial skills include planning, assessment and compassionate leadership while regular check-ins with employees can help spot burnout risks early and foster a sense of belonging.
Dr Themba Hadebe.
Doing better in the new world of work
It’s time to rethink employee support benefits need to resonate across diverse age groups and values
In an era where the traditional boundaries of work have shifted, the role of employee benefits is more critical than ever. However, many current offerings fall short, failing to equip individuals for the complexities of modern life and careers.
It s time for employee benefit providers to fundamentally shift their approach to make it possible for members to live better, work better and retire better, says Yaheen Modi, chief marketing officer at Discovery Corporate and Employee Benefits.
The problem, he says, is that most employee benefits suffer from a lack of differentiation, resembling a ‘Soviet era’ uniformity with no differentiation, just functionality.
For too long, the primary focus has been on price. The most obvious consequence of this is that many South Africans don t have sufficient funds at retirement. While the newly introduced ‘two-pot’ retirement system aims to address this, a significant portion of available funds are being withdrawn, indicating that people continue to battle financially.
Escalating health issues are another consequence. “Our latest annual claims data insights reveals that the past decade has seen a concerning rise in health problems. Between 2010 and 2020, there was a twofold increase in diabetes, a 10% rise in obesity, a 30% surge in cancers and a 25% increase in cardiovascular diseases. While smoking has decreased slightly, there has been an increase in alcohol abuse.
Given these challenges, particularly at a time when the workplace itself is undergoing a profound change, it’s time to rethink employee support, particularly as today’s offices span multiple generations, says Modi.
Benefits need to resonate across diverse age groups and values. They also need to factor in the fact that more than 60% of South African companies now operate on a hybrid model, with some generations having never experienced a full five-day week in the office. This shift impacts everything from team dynamics to mental wellbeing. Another factor that needs to be taken into consideration is an ageing workforce with the proportion of over-60s in the workforce projected to nearly double (from 9% to 16%) in the next three decades. This demographic shift requires a fundamental re-evaluation of retirement planning and career longevity, says Modi.
According to the Deloitte Human Capital 2023 report, more than 80% of employees now consider benefits as a key decision in the recruitment process. Modi says benefits must be tailored to
What is clear is that there is a strong imperative for employee benefit providers to evolve beyond mere functionality and price
appeal to and support a multigenerational workforce, including providing mental wellness support A global workforce expects digital tools and digital-first solutions and benefits that transcend geographical borders. Critically too, benefits need to address the stress and uncertainty caused by technological disruption, helping employees adapt and thrive.
Retirement planning needs to adapt to shifting career dynamics and longer lifespans. Our mission at Discovery is to deliver the future of benefits, today’, by creating a workforce that lives better, works better and retires better. We’re doing this by helping our clients grow their financial wellness by actively helping them to manage their financial stress and reduce debt, better manage their mental wellbeing and by continually encouraging physical wellness.”
There is a compelling link, he says, between wellness engagement and workplace performance, productivity and career progression.
For example, Discovery s data indicates that Discovery Group Risk members who actively engaged with Vitality progressing from Blue to Diamond status achieved salary increases averaging 4% above inflation over a three-year period. In contrast, members who do not actively engage with the Vitality programme saw only a 1% increase relative to inflation, demonstrating the impact on improved workplace performance, productivity and career progression.
Discovery Corporate and Employee Benefits annual claims data also shows that Group Risk Gold and Diamond members claim 40% less, while benefiting from extra cover through Mortgage Protector and even a Group Risk Payback incentive system when they don t claim. The company has introduced targeted case
Benefits need to address the stress and uncertainty caused by technological disruption, helping employees adapt and thrive
management with scientific risk assessment and occupational therapy intervention. This has led to impressive results with 44% of members with complex cases successfully returning to work within two years, which is three times faster than before the programme was introduced.
According to the Alexander Forbes Member Insights survey, the average preservation rate for assets is between 10% and 15%. In contrast, Discovery Retirement Fund members who engage with Discovery s boost programme preserve assets at a rate of more than 20%,” says Modi.
Members with multiple Discovery products are
assessing their projected retirement outcomes on Discovery s website and app at a five times higher rate compared to those with only one product, demonstrating the power of integrated platforms.
“Discovery members earning less than R100,000 per year but demonstrating strong financial habits made four times fewer withdrawals than members earning more than R1m per year who show poor financial habits, typically those with Blue Vitality Money status. This illustrates that financial behaviour not just
income drives long-term savings discipline.”
What is clear, Modi says, is that there is a strong imperative for employee benefit providers to evolve beyond mere functionality and price.
“By understanding the dynamic shifts in the world of work and proactively developing integrated, behaviour-linked solutions, companies such as Discovery Corporate and Employee Benefits are not just offering benefits; they are empowering employees to live better, work better and retire better in an ever-changing landscape.”
Yaheen Modi.