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Why employee benefits shouldn’t be a dying trend

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The rise of the “gig economy” – relatively new in South Africa but growing fast – is transforming the employment landscape. This trend towards independent contracting, rather than formal employment, and the simplicity with which the internet and apps can connect those in need of a service to those who offer it, is turning some industries upside down.

However, there are concerns about this development in the labour market. Progressive changes to legislation globally and in South Africa over the last 100 years or so, , have sought to protect workers by ensuring that their employers give them paid time off to be sick, to have children and to rest – and to ensure basic standards of financial health while at work and after they retire. Research conducted by Momentum backs up the notion of the value to companies in caring for their employees – it’s as much a benefit to their bottom line as it is a moral issue.

In the case of the “gig economy” worker of the future, they could opt to have the “employer” or contractor pay a percentage of their fee into a “security” or benefit account for them. What is absolutely certain, however, is that in the absence of legislation and best practice in this growing part of the labour market, workers who do not make sure that they are covered for necessary health, retirement and insurance benefits run the risk of becoming a cost to their families or, ultimately, to the state itself. 

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