Humphrey Mkwebu, Old Mutual Corporate’s General Manager: Employee Benefits Solutions
In response to the mounting personal finance and mental pressures faced by South African workers, businesses have a duty to develop solutions that tackle prevalent debt and wellness challenges that employees face.
Humphrey Mkwebu, Old Mutual Corporate’s General Manager: Employee Benefits Solutions, says that financial uncertainties, the lingering aftermath of the Covid-19 tragedy, and a complex regulatory environment present multifaceted challenges to employees.
Speaking on the launch of a transformative suite of well-being solutions aimed at being available to their existing clients in South Africa, Mkwebu said it is important that financial institutions like Old Mutual be part of improving well-being.
Mkwebu states, “The burgeoning weight of loans and debt has taken its toll on a significant portion of our working class, leading to diminished take-home pay and sometimes even no income at all. In a country where financial challenges have far-reaching implications for individuals and families, our initiatives offer a lifeline to South African workers.
“With this in mind, these solutions aim to enhance the overall quality of life for South Africans. Whether freeing up cash flow, preventing crippling debt, or prioritising physical and mental health, we believe employee benefits must ensure South Africans have a brighter and more secure future.”
The new solutions follow the launch of Old Mutual Health Solutions earlier this year, a comprehensive health insurance package aimed to provide low-income earners better access to quality healthcare, bridging the gap between medical aid and traditional health insurance plans.
Introducing Right Track: Empowering Financial Freedom
Many employees today grapple with personal financial challenges that negatively impact their performance and overall well-being. Old Mutual’s comprehensive analysis of payslips across industries has revealed startling instances where employees take home only a fraction of their pay due to payroll loans and predatory lending practices.
Right Track aims to break this cycle of financial distress. With just a name, surname, and ID number, Old Mutual, through solutions offered by Empowerfin, initiates a financial diagnostic process to liberate employees from issues such as reckless lending, prescribed loans, illegal garnishees, and overpriced credit life policies.
Mkwebu says, “This initiative not only injects cash flow back into employees’ pockets but also empowers them to make informed decisions regarding their savings and insurance options. In compliance with POPIA regulations, Old Mutual offers essential employer level reporting and insights to inform people strategies.”
Presenting Smart Salary: Navigating the Financial Landscape
Smart Salary, is designed to prevent employees from prematurely falling into debt traps and accessing their long-term savings. It addresses emergency events, income-expense timing gaps, and limited savings, often eroding financial well-being.
Smart Salary provided by PayCurve, allows employees of Old Mutual’s existing Corporate clients to access a portion of their earned/accrued salary before the end of the pay cycle. This flexible solution incorporates gamified financial education and controls, offering employees a lifeline to escape the short-term debt cycle.
For a nominal “ATM-type” withdrawal fee, the service is up to 90% cheaper than other credit options. In cases where Right Track may not free up sufficient cash flow, Smart Salary provides a responsible and sustainable alternative, even to accessing Two-Pot retirement savings funds via the proposed “Two Pot” early access reforms” says Mkwebu.
Discover Strove: A Holistic Approach to Wellbeing
To combat rising employee burnout, physical inactivity, and mental health issues, Old Mutual enlisted Strove to build a unified solution that addresses physical and psychological well-being. Strove acknowledges the critical importance of physical fitness and mental health in the workplace, especially in the post-COVID era.
The platform offers various features to motivate employees to establish and maintain healthy lifestyle habits. The Thrive mental health section provides tools to monitor and enhance mental well-being while offering resources for those facing crises. The platform seamlessly integrates with smartphones, fitness devices, and activity-tracking apps that employees already use.
“In a world where about 52% of all employees are feeling burned out, increased sedentary time and low physical activity drive chronic disease risk, and one in seven working-age adults live with a mental disorder, we offer a unified solution. Where Right Track and Smart Salary offer financial wellbeing, Strove offers physical & mental wellbeing, ensuring we have a complete and future-ready approach to employee wellbeing,” Mkwebu concludes.
ENDS
