Do Deskless Workers Need Financial Education? Here’s What the Data Says

Financial stress, gaps in literacy, and preferred channels for learning – this is what the data says about whether deskless workers need financial education (and HR’s vital role)

Financial stress is a silent disruptor in SA workplaces, particularly for the 18.75 million deskless workers that make up 75% of the South African workforce

This is according to the latest research published in Jem’s 2024 Deskless Worker Pulse, a report containing actual feedback and opinions from over 1,600 South African deskless employees and their HR teams.

And while frontline and deskless workers form the backbone of many SA industries, the research shows that they face unique financial challenges, from low wages to inconsistent cash flow. For HR teams trying to address this stress, financial education is one tool that can help because the data suggests many deskless workers need financial education.

Deskless Workers Need Financial Education: Insights for HR Teams

1. Financial Stress Leads to Poor Borrowing Habits

Deskless workers are often in a precarious financial position. 44% say they run out of money before month-end, every month, while 71% have less than R500 saved for emergencies.

72% report significant stress over finances, leading them to a point of desperation where they need to borrow money to cover essential expenses like transport, food and healthcare. And it’s exactly this “desperate” mid-month borrowing that’s exacerbating the problem – see point 2 below.

2. Gaps in Financial Literacy Trap Workers in Debt Cycles

While financial stress is a pressing issue, it’s the lack of financial literacy that drives 36% to borrow from friends and colleagues who charge interest and 22% toward loan sharks and other unregistered lenders that charge exorbitant rates (sometimes as high as 100%).

Without understanding the long-term impact of these borrowing habits, workers fall into a cycle of debt they struggle to escape. And it could be entirely manageable: 97% of deskless workers borrow money for essentials like transport and food, not luxury items. Yet, instead of planning for these recurring expenses, they’re stuck paying compounding fees.

Employers have an opportunity to break this cycle by providing financial education that focuses on budgeting and debt management. The obstacle is that deskless workers by definition don’t have regular internet access, and thus need to be engaged on a more suitable channel.

3. Deskless Workers Need Financial Education on Specific Learning Channels

Deskless means workers aren’t in a central location (like an office) and don’t have ready internet access, which impacts how employers can deliver education and financial literacy programmes. They can’t conveniently attend a class or dial into a Zoom meeting, but mobile technology offers a promising solution.

WhatsApp, used by 95% of smartphone-owning South Africans, has proven to be a highly effective channel for delivering accessible financial education. Programs like Jem HR’s financial literacy modules achieve industry-leading engagement rates because they fit seamlessly into workers’ lives.

4. Financial Education Enables Productivity & Career Growth

Among deskless workers, 60% say they know the steps needed to earn a promotion, yet financial challenges often hold them back. Workers who understand how to budget, save, and plan for training or upskilling are better positioned to advance in their careers.

One survey respondent shared how learning to manage her finances helped her prioritise training opportunities, which ultimately led to a promotion. For HR teams, offering financial education is a strategic way to foster both personal and professional growth, creating a more motivated and engaged workforce.

5. HR Can Help Alleviate Financial Stress

HR teams are uniquely positioned to address the financial stress affecting deskless workers. By implementing tools like Earned Wage Access and comprehensive financial literacy programmes, HR can directly reduce the stressors that impact productivity and morale.

When financial stress is alleviated, the results are clear. Numerous companies have seen remarkable and measurable results with Jem’s WhatsApp-based solutions, including:

• A 100% reduction in employee loan requests and R45,000 saved annually in interest fees after implementing Jem Earned Wage Access at manufacturing company, Lasec.
• A 96% reduction in loan processing time and a 100% reduction in loan requests, coupled with lower absenteeism, after introducing Jem EWA at financial services company, Mukuru.
• 470 hours saved weekly on employee communication and a 5% reduction in staff turnover after adopting Jem’s communication tools at cleaning and hygiene services company, Wasteplan.

How to Get Financial Education for Your Deskless Employees

Jem HR offers a free, fully digital financial education programme that is accessible via WhatsApp along with any of its advanced HR digitisation products. Employees can learn at their own pace, with interactive modules covering budgeting, debt management, business skills and saving.

Key Features:

• Available in four languages: isiZulu, Afrikaans, English, and isiXhosa.
• Interactive lessons are delivered in engaging, anecdotal formats.
• 24/7 access, ensuring learning fits into workers’ schedules.

Getting Started:

To empower your employees with free financial education, simply integrate Jem’s services into your HR operations. Contact Jem today to learn more.