Reducing the healthcare burden in South Africa is a corporate imperative - By Sandile Mbele

Health is more than the absence of illness, it refers to a comprehensive state of physical and mental and social well-being. Businesses in South Africa are recognising their obligation to improve employee health to promote overall well-being and lessen the burden on the national healthcare system. The indirect costs of healthcare in South Africa are also substantial. The aim of corporate wellness now extends past fundamental health insurance, acknowledging that healthier staff members contribute to reduced absentee rates and heightened productivity.

AfroCentric and Sanlam recently conducted a survey to understand corporates' appetite to improve the well-being of their employees. The Sanlam Benchmark 2024 Survey revealed 39% of Sanlam Umbrella Fund participating employers have experienced increased absenteeism due to stress, anxiety, or other mental health issues. In addition, more than 50% of respondents believe that a holistic, integrated health and financial wellness programme will deliver higher productivity and staff happiness.

Understanding the cost of well-being

Poor health doesn't just affect individuals—it also impacts the productivity of South Africa's workforce and economy. Direct costs associated with ill health relate to the ever-increasing burden on healthcare funding resources for members, which they access through medical schemes and health insurance or cash available for healthcare service providers and medication, as well as transport and other associated costs. Indirect healthcare costs in South Africa relate to absenteeism, medical boarding due to ill health or injury, decreased employee morale, increased employee turnover, loss of household income and decreased workforce productivity. Both contribute to the country’s economic burden.

Largely unrecognised is the mental well-being of South Africans [which can be bedded down as one of the major root causes of corporate absenteeism and presenteeism]. The Mental State of the World 2022 report states that South Africa had the lowest MHQ (Mental Health Quotient) score of 46% out of 34 countries. Mental health-related presenteeism—when employees are physically present at work but are not functioning at full capacity—costs in South Africa reach R96,500 per employee each year, adding up to R235 billion or 4.2% of GDP. Absenteeism, on the other hand, costs the country R14,000 per employee, which equates to R33 billion or 0.6% of GDP. Combined, they constitute 4.8% of GDP, which is substantial. According to the South African Depression and Anxiety Group (SADAG), one in four workers has depression, especially those between 25 to 44 years old, resulting in the average days off work due to depression exceeding 18 annually. Additionally, more than 40% of work-related illnesses are due to job strain and mental disorders like major depression, burnout, and anxiety.

Tackling mental health challenges at work is a matter of ethical, legal, and financial importance. South Africa's commitment to mental health can lead to higher productivity, economic advancement, and overall societal health.

The burden of non-communicable diseases such as hypertension, cardiovascular diseases, diabetes, cancer and mental illnesses is high and accounts for half of the top ten natural causes of death in South Africa. This trend is expected to continue unless measures are implemented, such as early detection through screening, preventive health strategies including health education, and optimal disease management at a primary healthcare level.

Developing integrated solutions for employees

Companies should take a holistic approach to employee health, addressing physical fitness, mental well-being, proactive wellness measures, and healthy lifestyle management. They should create strategies that offer services to assess individual health risks and promote proactive care. Additionally, Employee Assistance Programs (EAPs) are crucial for supporting employees' mental health and overall well-being by providing professional therapy, mental health resources, and assistance with financial and legal issues. These initiatives are valuable for improving the balance between work and personal life and increasing employee satisfaction.

Corporate wellness impacts the wider community beyond individual companies. Corporations can play a significant role in improving public health by recognizing the link between employee well-being and overall societal health. Collaborating with other businesses, such as innovative healthcare providers, is crucial to advancing a healthier workforce and community.