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The lasting economic impact of the pandemic, the conflict in the Ukraine, volatile oil prices are just some of the factors that are causing inflationary pressure. This is a global phenomenon and not limited to a South African context, however, South Africans face their own set of challenges that further exacerbates the stresses that come with financial predicaments that many salary earners face. Couple this with the results of a CreditWise (USA) survey, released in December 2020 which indicated that finances are the No. 1 cause of stress (73%) and the magnitude of the problem becomes evident.

A quick trip to the supermarket highlights the real impact of inflation. A litre of milk is now the same price as what 2 litres would have cost six months ago. Consider the increase in a loaf of bread, fruit, vegetables or meat. Ever increasing input costs, a troublesome power supply, expensive transport costs, the list is endless and these all impact on a South African’s ability to maintain their lifestyle.

How do South Africans cope? Most increase their debt and then need to deal with the stresses that accompany that predicament. A study by the University of Cape Town in 2020 found that debt often leads to psychological problems. In support of these findings, debt relief agencies report that anecdotal proof from clients applying for debt counselling indicate that debt causes anxiety, loneliness and depression, even for those who have never had to deal with these issues before.

The Money and Mental Health Policy Institute in the United States conducted studies on the relationship between mental health and finances and found the following:

  • 46% of people with debt also have a mental health diagnosis
  • 86% of people with mental health issues and debt say their debt makes their mental health issues worse
  • Those living with depression and debt are four times more likely to still have debt in 18 months (compared to their counterparts without debt)
  • Those with debt are three times more like to contemplate suicide (due to that debt)

So how does your business reduce the impact? The accurate administration of payroll and the timeous payment of staff will go along way to reducing the stress that your staff may be experiencing.

LSPinc offer a suite of products suited to businesses of all sizes that reduce the burden of payroll, ensure legal compliance and contribute to an efficient “pay day” process. Imagine software that provides your staff with user-friendly tools to update their personal details, apply for leave, submit claims and view payslips online.

If you have not already done so, visit our products page and see what solution best meets your needs. Reduce employee stress by ensuring that you meet your commitments to your staff on time and accurately.