Some people celebrate their birthday by taking their friends out; I am more of a “Take me out for a drink, it’s my birthday” kind of a guy. Similarly, when it comes to Workers Day, which is celebrated around the world on May 1st, I will not be reminding workers that they could give more, but asking the bosses if they are giving enough back.
Most workers give plenty more than 100% of their contracted energy and skills for 40 hours a week to keep their employers happy (and the paycheques rolling in), but too few employers give more than a timely paycheque by way of thanks.
We all know someone who seems to be stuck in a job with low pay, zero respect and no benefits, not even so much as a free cup of tea. And then there are those who hardly seem to notice how good they have it: endless cups of quality machine coffee, extra time off on birthdays, oodles of respect and top-of-the-range perks, such as a free counselling service to help with everything from family dramas to financial planning, and membership of a low-cost, high-performing retirement fund.
Unfortunately, South Africa’s appallingly high unemployment rate means that employers in the first category can keep their businesses fully staffed and operational. It is those in the second group, however, who recruit and retain the best and most experienced staff, which pays many dividends over the long-term.
Retaining the best employees is a core driver of productivity and efficiency. Besides, keeping staff happy and engaged is not only a driver of success, it is a measure of it. A happy team and a successful business are inextricably linked, which makes taking care of employees as much about a company’s bottom line as it is a moral issue.
Even if too few employers offer excellent benefits – such as financial counselling, education around retirement planning and membership of a high performing retirement fund – these are the real value-adds when it comes to being seen as an employer of choice.
With this in mind, it is obvious that ensuring every penny a company spends on staff is well-spent. So why enrol employees in in a retirement fund that under-performs and is ruinously expensive to run? Also, why force them to join a fund that nobody engages with or understands, much less capitalizes on?
I would like to propose that in honour of Workers Day all employers who are in any doubt about their retirement fund of choice do a little thinking about it. They should ask themselves: Do their staff benefits provide the best value possible to their team members, and how does this impact their bottom line? Besides, the bosses are probably members too. Download our free e-book that gives corporate retirement fund members the low-down on getting the most out of membership.
Any analysis of a corporate retirement fund should include user engagement (do people understand it, are they maxing out on their benefits) as well as an evaluation of performance and fees (fees are an important predictor of retirement savings success because an apparently small saving in fees compounds to make a significant difference over a savings lifetime).
Bear in mind that the money workers accumulate in their retirement fund will be the biggest investment many of them ever make. Make sure you help them to get the best out of this investment by asking the right questions. Your bottom line might just depend on it.
Happy Workers Day!
Get in touch with 10X Investments to request a free, in-depth analysis of your current fund: corporate@10x.co.za
Jonathan Sierra is a Product Specialist in Employee Benefits at 10X Investments
The content herein is provided as general information. It is not intended as nor does it constitute financial, tax, legal, investment, or other advice. 10X Investments is an authorised FSP (number 28250)
