Employee benefits in South Africa are facing increasing pressure to do more than cover the basics. With rising healthcare costs, many employees on medical aid still find themselves footing significant bills for hospital stays, surgeries, and specialist treatments. These shortfalls can easily run into tens of thousands of rands, leading to financial stress that affects workplace performance and overall employee satisfaction.
According to James White, Director of Sales and Marketing at Turnberry Management Risk Solutions, “Medical expense shortfalls can run into tens of thousands of Rands. Without support, these costs create enormous stress that spills into the workplace.” Group gap cover, he adds, is an effective way to bridge this divide between what medical schemes pay and what healthcare actually costs, providing essential financial protection for employees.
Health, productivity, and financial pressure
When employees can’t afford out-of-pocket medical expenses, they often delay treatment, resort to short-term fixes, or take out expensive loans. These coping mechanisms can negatively impact their focus and performance at work, ultimately affecting business performance. “Employees shouldn’t have to choose between their health and financial survival,” says White. “Gap cover ensures they get treatment sooner and recover faster, benefiting the individual and the business.”
Group gap cover plans can include cover for medical shortfalls, co-payments, and even additional value-added benefits such as trauma counselling or cover for cancer treatments. By making necessary care more accessible, businesses support faster recoveries, reduce absenteeism, and promote better mental wellbeing. This approach to health and wellness can significantly improve work-life balance and stress management for employees.
A strategic wellness tool
Brokers are in a unique position to help employers build meaningful employee benefits strategies that go beyond checking boxes. Rather than offering generic plans, brokers can work with businesses to align gap cover options with their existing medical aids and the needs of their workforce, creating a comprehensive benefits package.
“Brokers need to move beyond checklists,” White explains. “It’s about tailoring benefits to the medical aid in place and the needs of the workforce, whether that’s life stage, income level or family structure.” This approach not only supports wellness but also helps position the broker as a strategic advisor, driving greater value for clients and contributing to improved performance metrics.
Affordability in a high-inflation economy
With medical inflation consistently outpacing the Consumer Price Index (CPI), the cost of maintaining comprehensive health cover has become unsustainable for many businesses. “For many companies, gap cover offers better value than trying to stretch already tight budgets for full medical aid upgrades,” says White.
Group gap cover provides a cost-effective solution. With preferential premiums, minimal underwriting requirements, and often no waiting periods, it offers meaningful protection without placing strain on payroll. It’s also tax-efficient when structured as a payroll deduction, and it introduces very little additional administrative burden, making it an attractive addition to health insurance benefits.
Competitive edge in talent retention
In today’s competitive job market, companies are competing for talent not just with salary but with holistic support. Job seekers want to feel seen and supported, and employee benefits play a key role in achieving this. Offering comprehensive benefits packages that include gap cover can significantly boost employee retention and attract highly skilled candidates.
“In competitive sectors, meaningful benefits are a differentiator,” White notes. “Gap cover builds trust, loyalty, and long-term commitment.” Companies that show concern for their employees’ health and financial wellbeing stand out, especially in industries where high turnover is common. This approach can lead to improved team morale and overall job satisfaction.
Real benefits drive real loyalty
Ultimately, the goal of modern employee benefits is to add tangible value to employees’ lives. In an era of rising medical costs and economic uncertainty, benefits that reduce stress, support wellness, and prevent financial hardship are more important than ever. Incorporating an Employee Assistance Programme (EAP) and mental health support into the benefits package can further enhance employee wellbeing and productivity.
“It’s not just about covering bills,” White concludes. “It’s about empowering employees to take care of themselves without added stress. That’s how you build a loyal, productive workforce.” By addressing both physical and mental health needs, companies can create a positive feedback loop that benefits both employees and the organisation.
Group gap cover is no longer a nice-to-have; it’s a critical tool for safeguarding the wellbeing of both employees and businesses in a rapidly changing world. By offering this additional layer of financial protection and support, companies can demonstrate their commitment to their workforce’s health and financial stability, fostering genuine loyalty and driving long-term success.
