More than half of South Africans are not sleeping well at night due to crime-related anxiety, which is undermining the well-being of South African workers, according to the GIBS October Health Workplace Well-being Report 2024 released on Wednesday.
One of the metrics the report looked at the economic and psychological burden of crime in South Africa. The World Bank estimates the cost of crime to be 10% of the nation’s annual gross domestic product. This underscores the significant impact of crime on both individual well-being and the overall economy.
According to the report, conducted in partnership with October Health, crime’s psychological and economic toll is staggering. The World Bank estimates that crime costs South Africa 10% of its annual GDP. Analysis of survey data from over 500 working South Africans revealed that this pervasive sense of insecurity affects various well-being factors—from mental health to productivity.
Notably, sleep quality, a fundamental indicator of health, showed significant disruption, with only 32-43% of workers at different levels of management reporting adequate rest.
The report notes that mental health presenteeism alone has been estimated to cost R235 billion (or 4.2% of GDP), or R96 500 per employee annually. Absenteeism pales in comparison at a cost of R33 billion.
The economic impacts are similar to those found in a previous October Health study, which estimated that employee mental health challenges, due to both presenteeism and absenteeism, drain an additional R250 billion annually, reducing GDP by as much as 4.5%.
Factors that influence well-being
The report found that age, gender, and income had no statistically significant association with overall well-being. However, racial differences were noted with white participants reporting lower overall well-being compared to Black participants. Overall, participants revealed that despite the prevalence of mental health challenges, they are surprisingly resilient and they recorded relatively high well-being scores except for the financial domain.
Dr Frank Magwegwe, the Principal Researcher, GIBS faculty, said, “Leaders and managers can directly influence the mental and emotional state of employees. Intentional initiatives that boost the well-being of staff can significantly enhance workplace productivity and resilience by reducing absenteeism, improving employee engagement, and fostering a supportive work environment.
“When employees feel supported, they are more likely to perform at their best, be highly engaged, and remain loyal to the organisation that provides not just employment and security, but a sense of purpose and fulfilment,” he said.
The report explored six main domains of well-being: mental, physical, financial, social, emotional, and work. Respondents indicated that crime, financial hardship, and job insecurity were top contributors to their well-being challenges. Additionally, while age, gender, and income levels showed no significant impact on overall well-being, racial differences were notable, with white participants reporting lower well-being than Black participants.
Despite these challenges, South African employees displayed considerable resilience. Although many faced adversity, respondents reported relatively high well-being scores, with the exception of financial well-being.
The study highlights the essential role of workplace culture in shaping employee well-being. Over 67% of respondents reported supportive relationships with their managers regarding well-being, and 77% felt that their workplaces fostered a relatively healthy environment. Organisational culture, including psychological safety and supportive leadership, was cited as a critical factor in fostering resilience.
Alon Lits, theco-founder of October Health, said, “Organisations that foster open, supportive environments see better employee engagement and mental health outcomes.”
The report revealed that the top employee-desired benefits included flexible work hours (27%), wellness programs (23%), remote work options (23%), and mental health or self-care leave (22%). Other priorities were a culture of balanced performance and well-being, support for caregivers, and mental health resources within the workplace.
South Africa’s economic challenges add another layer to the well-being crisis. With high unemployment, low economic growth, and stark inequality, the majority of respondents reported feeling financially strained. Over 60% expressed concern about their income compared to peers, and 42% admitted to struggling with late or missed payments. Financial insecurity, coupled with limited career growth opportunities, is also a major stressor, cited by 35% of respondents as negatively impacting their well-being.
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