Why Employee Benefits Matter for Small Businesses

Small businesses are the backbone of South Africa’s economy. They make up over 90% of formal businesses and play a key role in job creation and the country’s GDP. However, workers in this sector often lack support when it comes to financial protection and retirement planning.

This gap is more than just a personal issue, it touches on a larger, pressing concern in South Africa: financial exclusion. Without sufficient savings and protection against risks, many employees face the harsh reality of being vulnerable to financial shocks. An illness, accident, or loss of income can lead families into long-term struggle and hardship.

This is where group risk and retirement benefits become more than just a perk, they become a real opportunity for financial inclusion and shared prosperity.

At ASI, we believe financial inclusion starts with a simple principle: everyone deserves the right to a secure financial future.

The role of Group benefits in building resilience

Group schemes are designed with inclusivity in mind. They help break down the barriers that have long kept employees on the margins of the financial system by:

· Pooling risk to keep premiums low and affordable

· Making it easy to join, especially for those new to formal financial products

· Building a savings habit through payroll deductions

When structured well and communicated clearly, these benefits become powerful tools. They give employees the means to protect their families, plan for retirement, and face life’s uncertainties with confidence.

Partnership is key

Expanding access to these benefits in the small business sector will require more than just new products. It calls for collaboration between employers, workers and policymakers.

Employers need to be supported and incentivised to offer group schemes, even if they operate with thin margins. Workers must be educated on how these benefits work and why participation matters. And most importantly financial services providers must ensure that offerings are tailored, transparent, and inclusive.

This is especially urgent in South Africa’s current climate, where inequality and economic precarity remain high. Creating more financial resilience among working-class households many of whom are employed by SMEs is key to national stability and long-term growth.

This shared ownership creates a culture of care and accountability where every rand invested builds towards something bigger.

Why it matters for small businesses

We understand that offering benefits may feel like a big step for small businesses. But the returns are undeniable:

· Greater employee loyalty and lower staff turnover

· A boost in morale and productivity

· Peace of mind, knowing you are doing the right thing for your team

· Alignment with national goals around financial inclusion and equality

But more than anything, it’s a reflection of your values that looking after your people matters just as much as growing your bottom line.

In today’s economic climate, we can’t afford to leave anyone behind. Retirement and risk benefits are a real, tangible way to bridge the gap between the financially secure and the financially vulnerable.

We call on employers, advisors, and providers to step forward not only to implement these benefits, but to educate, engage, and empower.

Let’s make benefits more than a product let’s turn them into a mission.

To the small businesses already offering benefits to their staff we salute you. Your commitment makes a difference.

And to those still considering it we encourage you to be bold. Investing in your team’s future is more than a business decision. It’s a legacy.

At ASI, we’re ready to walk this journey with you helping you take care of your people while building a more secure foundation for your business.

Written by Christina Forman, Financial Advisor at ASI Wealth