Talent attraction and retention - reimagining SME employee benefits

In today's business environment, Small and Medium Enterprises (SMEs) face a critical challenge - attracting and retaining top talent while managing tight budgets. Traditional employee benefits packages, centred around comprehensive medical scheme benefits and pension funds, have long been the gold standard in the corporate world. However, these offerings often prove financially prohibitive for smaller businesses and are even less accessible to lower-income employees.

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This is where non-life (short-term) insurance solutions can play a crucial role. By strategically leveraging products such as health insurance, emergency evacuation insurance, group personal accident cover and funeral insurance, SMEs can create compelling, affordable benefits packages that protect employees while supporting talent attraction and retention.

The traditional benefits dilemma

Medical schemes and pension funds remain cornerstone benefits, and for good reason. They provide substantial long-term security and healthcare coverage. Yet, they come with significant barriers not only for SMEs, but also for employees.

These barriers include:

Cost barriers

A medical scheme can consume up to 20% of an employee's salary, making it unaffordable for many lower-income workers. For small businesses operating on thin margins, subsidising these costs by 50% or more can strain resources beyond capacity.

Complexity and administration

Managing traditional benefits requires substantial administrative effort, from compliance requirements to ongoing management. SMEs often lack dedicated HR departments to handle these effectively.

One-size-fits-all limitations

Standard benefit packages may not address the specific needs of diverse workforces, particularly younger employees who prioritise different types of coverage or flexibility.

The non-life insurance advantage