Financial Stress Raises Employer Risks

Financial pressure is becoming one of the biggest hidden risks facing South African employers, with growing numbers of workers taking on side hustles not out of passion, but out of financial necessity.

While South Africa continues to earn praise for its entrepreneurial spirit, new research suggests that many employees are turning to additional income streams simply to survive rising living costs and mounting debt.

According to the Old Mutual Savings and Investment Monitor, nearly three in five South Africans have a side hustle. Meanwhile, global remittance company Remitly ranked South Africa as the world’s most entrepreneurial nation, highlighting the country’s resourcefulness, determination and innovative mindset.

However, the Wealthbit 2025 Financial Stress Report paints a more concerning picture. The study found that 48% of South African employees have either started or seriously considered starting a side hustle because of financial stress, rather than as a creative or entrepreneurial pursuit.

The financial burden facing households continues to grow. Data from the South African Reserve Bank shows that more than 60% of household income is spent repaying debt, while 38% of consumers were unable to pay at least one bill in full during the first quarter of 2025.

Financial stress is also affecting higher-income earners. Nearly 29% of emerging high-income South Africans have no emergency savings, leaving them vulnerable to unexpected financial shocks.

The report further reveals that four out of every five South African employees regularly worry about money, regardless of their income level.

The Cost of Financial Stress at Work

According to Alex Cook, Chief Executive Officer of Wealthbit, financial stress has a direct impact on employee performance.

“When people are worried about money, they struggle to remain fully present at work because financial anxiety consumes mental capacity,”.

says Cook

This often results in:

• Lower productivity
• Increased distraction
• Reduced motivation
• Higher levels of presenteeism
• Greater likelihood of seeking new employment

Wealthbit’s research indicates that financially stressed employees are twice as likely to search for another job, while 70% are actively considering changing employers to improve their financial situation.

For businesses, this translates into increased recruitment costs, higher staff turnover and the loss of valuable skills and institutional knowledge.

Financial Wellness Can Reduce Business Risk

Experts believe employers can reduce these risks by investing in employee financial wellness programmes.

Improving financial literacy helps employees better manage debt, budgeting and savings, ultimately reducing stress and improving workplace engagement.

Cook believes the key lies in making financial education practical and relevant to employees’ everyday lives.

“Financial wellness programmes bridge the gap between available financial information and real-world application. Better financial stability leads to lower stress levels, more engaged employees and improved business outcomes,”.

he says

As economic pressures continue to mount, organisations that prioritise employee financial wellbeing may not only improve productivity but also strengthen staff retention and build a more resilient workforce.