Momentum Corporate research highlights the evolving nature of employee benefits in a digital age
24 Nov, 2023

Dumo Mbethe, CEO – Momentum Corporate

 

South Africans live in a time of crisis where they have to weather a poor economic climate, high inflation, and little improvement in the unemployment rate. Local and global market volatility is also a concern and it’s driving a lot of uncertainty.

 

As employees navigate a cost-of-living crisis, 1 in 4 people are considering flexing their individual benefits to meet their personal needs. When it comes to financial planning of employees in terms of their employee benefits, there is a definite move towards more personalised solutions that fit into the unique needs of the member rather than the group.

 

Great strides have been made in terms of combining digital technology with the human touch, therefore shifting dynamics of employee expectations and values.

 

This is according to the latest Partnership Connect research by Momentum Corporate, which explores the evolving landscape of employee benefits in South Africa, addressing the challenges faced by businesses and employees alike in a dynamic global economy.

 

Momentum Corporate CEO, Dumo Mbethe, says the 2023 Partnership Connect report findings reveal that, even in the face of ongoing economic uncertainties, the employee benefits industry has proven resilient.

 

“The data shows us that employees are increasingly concerned with personalisation of products, which is greatly aided by new data-led technologies powering the employee benefits industry globally,” says Mbethe.

 

The 2023 Report found that 64% of surveyed employees purchase their own financial products in addition to what is provided by the employer, reflecting increased responsibility for financial wellbeing. Of these, more than half bought their own retirement annuities, life, and savings products; and close to half bought disability and critical illness cover.

 

Looking at different generations, more than 1 in 3 Gen X individuals and Millennials buy long-term insurance products compared to just over 1 in 4 Baby Boomers. Gen X and Boomer individuals also bought more retirement products than Millennials.

 

According to the report, employers foresee advanced data analytics leading to greater personalisation, predictive risk assessments, and needs-based management.

 

“We now live in an age where financial advisers can use digital technology to identify and address pain points far more swiftly than they ever have before. The trend is to now shift from one-size-fits-all to personalised financial products.”

 

Employees can feel overwhelmed by the complexity of financial products, requiring simpler solutions and content that is educational, engaging, and empowering. “Digital channels provide the tech and humans provide the touch, both elements being critical to enrich our clients’ experience,” Mbethe concludes.

 

Download the 2023 Partnership Connect report by Momentum Corporate – click below:

 

MORE STATS & INSIGHTS FROM THE REPORT:

 

Financial Needs of Clients:

  • Consistent financial needs include healthcare, retirement savings, and investments.
  • Gig workers prioritise healthcare, while retirement products, long-term insurance, and investments face challenges, possibly due to affordability and access issues.

 

Role of Digital Transformation:

  • The Fourth Industrial Revolution and the Internet of Things (IoT) will bring profound technological advancements.
  • The Fifth Industrial Revolution focuses on human-centeredness, sustainability, and collaboration between humans and machines.
  • Adaptation to evolving employee needs through advanced digital capabilities is crucial for business relevance.
  • Powerful data analytics will enable individual targeting and engagement through multiple channels.

 

Global Trends and Impact on SA:

  • Trends include machine learning in retirement plans, AI transforming insights, and the rise of InsurTech and FinTech in the employee benefits space.

 

Client Engagement and Education:

  • Complete and current employee contact data is crucial for engagement and effective use of digital channels.
  • Robo-advisers are accepted if personalised and knowledgeable.
  • Employers prioritise education on retirement planning, savings, investment, and tax optimisation.

 

EB Industry Response:

  • Increasing use of virtual and digital channels for client engagement is a growing trend.
  • A seamless omni-channel experience is sought, combining technology and human interaction.

 

ENDS

Author

@Dumo Mbethe
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