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Momentum Corporate research highlights the evolving nature of employee benefits in a digital age

21 November 2023 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.

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