Palesa Mabasa
SMEs that do not prioritise employee productivity, as a crucial part of their overall strategy, could significantly hinder the success and growth of their businesses. “The key to driving productivity is a clear, people-first strategy built on the four pillars of incentives, benefits, culture and education”, says Palesa Mabasa, Business Development Head: SME Funding at FNB Business.
Incentives:
“Incentives are one of the most effective levers for boosting performance,” says Mabasa. “These don’t have to be complex, think commission, performance bonuses or even creative perks like weekend getaways or high-ticket items for top performers. What’s critical is that they are fair, transparent, and directly tied to results.” “Even the best incentive programmes can backfire if they’re seen as opaque or biased. That’s why clear KPIs and regular performance feedback are vital”, she adds.
Benefits:
Employee benefits also play a crucial role in improving productivity and retention. While many SMEs assume benefits are too costly or complicated, she urges business owners to think differently. “Simple offerings like funeral cover, pension contributions, or medical savings options can go a long way towards making employees feel secure and valued.
Culture:
The third pillar on which employee productivity rests is an open and inclusive culture, rooted in shared purpose and values. “If your team understands where the business is going, and they believe in that vision, they’ll offer your business that highly prized discretionary effort, that only comes from truly engaged employees. Strategy must be explained in a way that everyone understands their role in delivering on it,” says Mabasa. “Culture isn’t just about feel-good values on a poster; it’s about daily behaviours that everyone buys into and very importantly, the behaviours that are not acceptable.”
Education:
The final piece of the productivity puzzle is employee education – particularly around financial literacy and tax matters. “Many employees don’t understand how a bonus affects their tax, or why certain deductions appear on their payslips. Without that understanding, even generous benefits can cause confusion or frustration.
To address this, she recommends that SMEs focus on delivering financial education to staff. “It not only reduces misunderstandings around payslips and benefits but also builds a more financially responsible and resilient workforce, who are not only confident financial but also driven to driven to perform.”
“Ultimately, productivity isn’t about pushing people harder. It’s about creating an environment where people want to show up, contribute and grow. “With the right approach, even the smallest business can attract, build and retain a team that performs like a powerhouse,” she concludes.
Palesa Mabasa, Business Development Head at FNB. She writes in her personal capacity.
