Small and medium-sized enterprises (SMEs) are the backbone of South Africa’s economy, employing millions and driving growth. However, they are facing a silent crisis: the disease burden on their workforce is significantly greater than previously thought due to the average age of our workforce increasing, leading to absenteeism, declining productivity, and financial strain.
According to the Human Capital Review, absenteeism costs the South African economy approximately R19.1 billion annually, with around 15% of employees absent on any given day. For SMEs, where every employee plays a critical role, even one worker being off sick can disrupt operations, leading to missed deadlines and revenue losses.
“The reality is that SMEs cannot afford a high burden of disease in their workforce,” says Neil Kinsley, Global Head of Sales and Distribution at Unu Health. “Unlike large corporations that have the resources to absorb productivity losses, small businesses operate with lean teams where each absence is felt more acutely.”
So, what is the Disease Burden Facing SMEs?
- Non-Communicable Diseases (NCDs): Chronic illnesses such as hypertension, diabetes, and cardiovascular diseases are on the rise in South Africa, accounting for approximately 37% of all deaths. Employees struggling with these conditions require regular medical attention, which many SMEs are ill-equipped to support.
- HIV/AIDS: South Africa has one of the highest HIV prevalence rates in the world. Nearly 33% of businesses report experiencing negative effects from HIV/AIDS in the workplace, with an additional 43% anticipating future adverse impacts. The disease leads to prolonged absences, increased healthcare costs, and, ultimately, a diminished workforce.
- Occupational Stress: Work-related stress is a significant contributor to absenteeism and declining mental health, with over 40% of work-related illnesses in South Africa linked to stress. Long hours, high expectations, and financial instability in SMEs exacerbate this issue, affecting employees’ overall well-being.
- Absenteeism Costs: The South African economy loses approximately R3.9 billion annually due to illness-related absenteeism. Unlike large companies that can redistribute workloads, SMEs often struggle to compensate for missing staff, directly impacting output and revenue.
- Employee Healthcare Accessibility: Many SMEs rely on the public healthcare system, forcing employees to spend long hours in queues when they fall ill. This not only affects the business but also discourages employees from seeking timely medical care, often leading to worse health outcomes.
Many larger corporations have opted for onsite clinics to mitigate absenteeism, but these facilities often go underutilized due to privacy concerns. Employees fear that using such clinics could expose their health conditions to their employer, leading to stigma or job insecurity.
For SMEs, providing in-house medical services is not financially viable. Yet, without an accessible alternative, employees are forced to delay care, self-medicate, or rely on overstretched public health facilities—none of which contribute to a healthier, more productive workforce.
“We need to rethink how we provide healthcare for SMEs,” Kinsley emphasizes. “Small businesses are essential to economic growth, yet they face disproportionate challenges when it comes to employee health. The right healthcare solution needs to be affordable, accessible, and designed to fit their unique operational needs.”
Innovative healthcare solutions, such as telemedicine platforms, offer a practical alternative. Unu Health provides SMEs with an affordable and efficient way to connect their employees with private medical professionals via a mobile app. Employees can receive immediate medical advice, prescriptions, and referrals without needing to take excessive time off work.
“Telemedicine is a game-changer for SMEs,” says Kinsley. “It allows employees to access professional healthcare without the barriers of cost, time, and accessibility that often deter them from seeking help. This is the future of workplace health support for small businesses.”
Investing in employee health isn’t just a moral obligation—it’s a business necessity. By ensuring their workforce has access to timely and affordable healthcare, SMEs can reduce absenteeism, improve productivity, and contribute to a stronger economy.
“SMEs are the lifeblood of South Africa’s economy,” Kinsley concludes. “If we want to see them thrive, we must prioritize healthcare solutions that work for them. The right investment in employee health today will pay dividends in business success tomorrow.”
As South Africa continues to navigate economic recovery, supporting SMEs with smart, scalable health solutions will be critical to ensuring their resilience and long-term growth.
