Employees worried about job losses
Research fintech company, CompariSure, has revealed the state of panic of South African workers in the midst of Covid-19.
CompariSure’s data revealed that 68% of respondents feared retrenchments in the current environment and only 38% believe that “life will go back to normal” post-pandemic.
When asked about the state of their employer, 48% indicated their employer “was in trouble”, with only 19% indicating business “was busier than ever”.
The data further revealed 66% of respondents said they were financially unprepared for the pandemic and the ability to work from home had now become critical to sustaining an income.
Matt Kloos, CFO of CompariSure, said the recently announced plan by President Cyril Ramaphosa to inject R500-billion into a social and economic support package had provided businesses and workers with a glimmer of hope.
“This announcement, coupled with recent interest rates cuts and potential tax-relief measures, should result in more disposable income becoming available to South Africans – critical to ‘jump-starting’ our economy,” said Kloos.
The South African Reserve Bank recently revealed that the Covid-19 pandemic could lead to over 370 000 job losses.
According to the results of a new Statistics SA business impact survey, one in five businesses have laid off staff due to the impact of the coronavirus pandemic, with just under a third saying they had reduced working hours.
Blessing Utete from Momentum Consultants and Actuaries said while the government had announced a gradual lift of the lockdown, the impact of Covid-19 on businesses and their employees would be far-reaching.
“Unfortunately, as businesses experience unprecedented cost pressures employee benefits are often seen as a discretionary expense – which is concerning at times when employees will need the resources more than ever,” Utete said.
“Not being able to pay employee retirement fund contributions and group life cover premiums will have a far-reaching impact on working South Africans and their families.”
