Lindiwe Sebesho, Managing Director of Remchannel
Remchannel’s April 2025 Salary and Wage Survey indicates that employees in South Africa continue to face cost-of-living pressures, even though the Consumer Price Index (CPI) has decreased to around 3%, and companies have granted salary increases above the rate of inflation.
Lindiwe Sebesho, Managing Director of Remchannel, observes that although salary increases continue to exceed inflation at an average of 5.82%, the gap between the two is narrowing, as salary increases averaged 6.09% in the previous year. This trend suggests a more cautious approach by employers, who must also prioritise cost control amidst a constrained economic environment.
Resignation trends and the hidden risk of disengagement
The survey report further reveals a reduced overall turnover rate of 13.5%, a decrease from the previous rate of 15.5%. While this reduction suggests much-needed stability, it also reflects a market with fewer new job opportunities due to widespread downsizing by companies. This data confirms the financial pressures employees are under, as 39% of those who resigned were seeking better pay and career growth, while 31% left due to dissatisfaction with their current roles.
Sebesho cautions that the true concern may extend beyond employees resigning, encompassing the challenge of retaining disengaged staff members. “Even with above-inflation salary increases, many employees still feel financially constrained and undervalued. Therefore, the lower turnover may be due to a constrained job market that leaves individuals with limited options. When employees feel stuck and unsupported, it may lead to burnout, presenteeism, and a decline in productivity.”
Time to rethink your EVP
The report’s findings suggests that employers should re-evaluate their strategies for attracting, engaging, and retaining talent. This should go beyond ensuring fair and competitive salaries and involve addressing the total reward elements employees seek when feeling financially strained: comprehensive benefits, skills development, career growth, formal recognition, and flexible work arrangements.
“It is therefore clear that pay adjustments alone are no longer adequate. To remain competitive, employers must shift focus towards strengthening the broader employee value proposition by integrating financial and non-financial support into everyday practice and experience.”
Skills development: A critical component of EVP
Sebesho states that in a market experiencing high unemployment, skills development is increasingly becoming a crucial component of a company’s employee value proposition. “Investment in skills, specifically through technical education not only addresses the skills gap but also enhances the EVP,” she explains. “This investment can be demonstrated as part of Total Reward Statements to help employees understand the financial commitment involved in skills initiatives and to highlight an organisation’s dedication to long-term employee growth.”
Flexibility remains essential
Sebesho further notes that flexibility is another critical component of a holistic EVP. However, the survey shows that many companies are reviewing their flexible working arrangements in favour of in-office work — a trend that may increase commuting costs and adversely affect employee satisfaction.
“Flexibility is appreciated by employees who can work remotely or independently,” she states. “It can improve well-being, satisfaction, engagement, and productivity. Reducing flexibility without valid reason or consideration may result in disengagement and higher turnover.”
Sebesho concludes, “Salary increases, while important, are no longer the only talent attraction lever. Employers need to rethink their strategies and embrace a broader EVP that integrates flexibility, skills development, career growth and well-being. These are not optional extras — they are vital investments in creating a more engaged and resilient workforce that contributes effectively to sustainable business success.”
ENDS
