Four in five South African employees regularly worry about money, with experts warning that financial stress is hurting productivity and increasing staff turnover.
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South Africa's growing financial pressures are increasingly spilling into the workplace, with nearly half of employees either taking on side hustles or considering additional income streams because of financial stress, according to new research from fintech company Wealthbit.
While recent studies have highlighted the country's entrepreneurial spirit, Wealthbit's 2025 Financial Stress Report paints a more concerning picture of why many South Africans are seeking extra sources of income.
According to the report, 48% of South African employees have either started a side hustle or seriously considered one due to financial pressure rather than personal ambition or creative fulfilment.
The findings come against a backdrop of mounting household debt and rising living costs. Data from the South African Reserve Bank shows that more than 60% of household income is being used to service debt, while 38% of consumers were unable to pay at least one bill in full during the first quarter of 2025.
Although side hustles are often celebrated as a sign of innovation and resilience, Wealthbit chief executive Alex Cook said the underlying financial strain is creating significant challenges for both employees and employers.
"Wealthbit's 2025 Financial Stress Report shows that four in five South African employees across income levels regularly worry about money," said Cook.
"That's most of our people, most of the time."
Financial stress is often viewed as a problem affecting lower income households, but the report suggests the issue is widespread across all income groups. According to the findings, 29% of emerging high income South Africans do not have emergency savings available to help them navigate unexpected financial shocks.
Cook said persistent concerns about bills, debt repayments and household expenses consume mental energy that employees would otherwise devote to their work.
"People who are worried about money are not fully present because the brain can't compartmentalise well when it is under financial threat, and this is evident in presenteeism, distraction, motivation loss, and earlier job seeking," he said.
The impact extends beyond individual wellbeing and has direct consequences for business performance. Wealthbit's research found that financially stressed employees are significantly more likely to seek alternative employment opportunities.
"Our numbers show that financially stressed workers are twice as likely to look for another job, while 70% are looking at changing jobs to alleviate the financial pressure," said Cook.
"Replacing these employees is a big expense that most companies would rather avoid."
High employee turnover remains one of the most costly challenges facing businesses, with recruitment, onboarding and training expenses adding significant financial burdens. The loss of experienced employees can also disrupt productivity, customer relationships and institutional knowledge.
Cook believes employers have an opportunity to address the problem by helping workers improve their financial wellbeing.
In recent years, workplace wellness programmes have traditionally focused on physical and mental health, but financial wellness is increasingly being recognised as an equally important factor in overall employee performance and retention.
According to Wealthbit, one of the biggest challenges is bridging the gap between access to financial information and employees' ability to apply that knowledge to their personal circumstances.
"Financial wellness programmes can address the gap in employees' financial literacy, make it relevant to their situation and teach them how to manage their money better," said Cook.
He added that helping employees gain greater financial stability can deliver measurable benefits for businesses through improved engagement, productivity and staff retention.
"Financial stability has a measurable effect on their stress levels, ultimately resulting in more engaged employees," Cook said.
The findings come as South Africans continue to grapple with elevated living costs and economic uncertainty, prompting many households to seek additional income streams simply to maintain their standard of living.
While the country's entrepreneurial culture remains a source of optimism, Wealthbit's research suggests that for many workers, side hustles are less about pursuing passion projects and more about coping with financial strain.
As employers seek ways to improve workforce productivity and reduce turnover, addressing financial stress may prove to be one of the most effective and overlooked strategies available.
PERSONAL FINANCE