Debt-ridden employees 'a liability'
14 November 2008, 07:33
By Hazel Sambo
Employee debt is having a profoundly negative impact on companies as productivity dips further, a consumer expert has said.
Absenteeism and fraud, which is already at unacceptably high levels, have risen as employees battle to cope with rising debt.
Furthermore, by the third week of the month employees can't get to work for lack of cash to pay for transport.
Consumer Assist CEO Andre Snyman says workers are sabotaging companies by refusing to answer phones because they fear creditors are on the line.
"We are increasingly being called in by companies, ranging from very large banks to retail organisations and industrial producers, to run financial wellness workshops to help their staff," said Snyman.
Productivity SA and the 2007 IMD World Competitiveness Yearbook announced earlier this year that after a decade of sustained growth, South Africa's productivity rating fell from 38th to 50th of 55 countries rated.
Consumer Assist spokesperson James Seele said: "People have savings where they earn 11 percent interest, but they are paying 23 percent on credit. They must pay off their debt, especially store accounts and credit cards and make their savings work for them."
Employee debt is having a profoundly negative impact on companies as productivity dips further, a consumer expert has said.
Absenteeism and fraud, which is already at unacceptably high levels, have risen as employees battle to cope with rising debt.
Furthermore, by the third week of the month employees can't get to work for lack of cash to pay for transport.
Consumer Assist CEO Andre Snyman says workers are sabotaging companies by refusing to answer phones because they fear creditors are on the line.
"We are increasingly being called in by companies, ranging from very large banks to retail organisations and industrial producers, to run financial wellness workshops to help their staff," said Snyman.
Productivity SA and the 2007 IMD World Competitiveness Yearbook announced earlier this year that after a decade of sustained growth, South Africa's productivity rating fell from 38th to 50th of 55 countries rated.
Consumer Assist spokesperson James Seele said: "People have savings where they earn 11 percent interest, but they are paying 23 percent on credit. They must pay off their debt, especially store accounts and credit cards and make their savings work for them."
- This article was originally published on page 7 of The Pretoria News on November 14, 2008
Pretoria
