Image: Unsplash 
South Africans are navigating a rapidly changing economic landscape, and the way households approach healthcare is evolving with it. As medical inflation continues to outpace the Consumer Price Index (CPI), many families are reassessing how they access and fund essential care. This shift is increasingly visible in the workplace, where employee wellbeing directly affects performance, attendance and overall morale.
In this environment, employers are recognising that relying solely on traditional medical schemes may no longer be enough. Rising costs and widening affordability gaps have created a need for more flexible, accessible healthcare solutions. This is where health insurance is stepping forward—offering a practical, cost-effective alternative that can help bridge the divide between quality care and financial reality.
A practical, high-value solution
Health insurance is emerging as a vital alternative for employees who can’t afford full medical aid. It can provide a more accessible entry point into private healthcare, covering hospitalisation for accidents and illness, day-to-day care and essential medical services. Importantly, it does this at a cost level that’s more aligned with the financial realities of South African workers today.
For businesses, modern health insurance offer the flexibility to tailor benefits to different segments of the workforce, making it easier to extend meaningful cover to permanent staff, contract workers or new entrants. Simplicity is also a major advantage, as clear benefits and straightforward administration reduce the confusion that could limit employee uptake. And because these solutions scale effectively, they work just as well for small businesses looking to introduce healthcare for the first time as they do for larger organisations aiming to broaden their benefit options.
What connects all these elements is the ability to help employees access care earlier and more consistently. Early intervention tends to reduce the severity of health issues, shorten recovery time and support more stable attendance patterns – a genuine win-win for both employees and employers.
A closer look at the productivity link
Productivity is often linked to operational terms, but the health of the workforce one of the strongest predictors of performance. When employees can consult a doctor before a minor concern becomes a major problem, manage chronic illnesses like diabetes or hypertension with proper guidance, and avoid long queues or delays that push treatment out by days or weeks, the business can reap many rewards.
While fewer sick days play an important role, the greater impact lies in presenteeism: employees who are physically at work but unable to perform at their usual standard due to unmanaged health conditions. This is where businesses often lose the most time, energy and momentum. Health insurance enables regular check-ups, screenings and early treatment pathways that help prevent these silent productivity losses.
Retention in a shifting labour market
South Africa’s talent landscape is evolving rapidly, and organisations are competing fiercely to attract and retain the right people. In this context, healthcare benefits have become a subtle yet powerful differentiator. Employees pay close attention to how employers support their wellbeing, especially in the times of economic uncertainty.
Research consistently shows that healthcare benefits ranks among the top factors influencing an employee’s decision to stay or leave. For industries that rely heavily on knowledge, personal expertise or long-term client relationships, the cost of losing talent far exceeds the investment in quality healthcare. Offering accessible, quality healthcare signals organisation’s values and priorities, and this resonates strongly with those who are evaluating where they want to build their careers.
The long view: Healthcare as part of business resilience
During tough financial cycles, it’s natural for leadership teams to scrutinise spend. But the instinct to cut back on employee benefits can create unintended vulnerabilities that ripple throughout the organisation. Poor health outcomes do not remain isolated; they influence absenteeism, service delivery, customer experience and even organisational culture.
A well-structured health insurance offering provides an alternative approach. It helps protect employees without overwhelming budgets, and it ensures that healthcare can stay within reach for the people who keep the business in business. For leaders thinking about long-term resilience, this becomes part of a broader strategy: maintaining the capability, energy and stability of the workforce, even when external pressures are high.
Our suite of solutions include: health insurance, medical aid, gap cover, occupational health, executive wellness, onsite clinic management and an employee assistance programme. Value adds include access to our financial wellbeing programme including financial advice and tools, debt management and free wills. Visit our website at www.oldmutual.co.za/employeebenefits for more information about our employee benefit solutions. DM
Note: Health insurance is regulated under the Insurance Act and medical schemes are regulated under the Medical Schemes Act.