Productivity could be the difference between growth and survival for many South African SMEs. But while funding and market access remain hot topics, employee performance is often overlooked as a core part of business strategy.
Palesa Mabasa, business development head at FNB | image supplied
For small businesses trying to stay competitive in a tough economy, a structured approach to employee productivity can deliver major returns. Four key areas stand out: incentives, basic benefits, culture and education.
Tie performance to clear, fair rewards
Incentives don’t need to be expensive or complex — even simple rewards like performance bonuses, commissions, or team outings can move the needle. But for these to work, they must be clearly linked to KPIs and seen as transparent.
Without clear targets or regular feedback, incentives can backfire, creating resentment instead of motivation.
Don’t underestimate basic benefits
Many SMEs dismiss benefits as unaffordable, but small gestures matter. A funeral policy, basic pension contributions, or medical savings options, even optional ones, can help employees feel valued, reducing turnover and boosting morale.
Culture still matters — especially in small teams
A shared sense of purpose and clearly defined values can drive what experts call "discretionary effort", the kind of above-and-beyond work that doesn't come from pressure but from genuine engagement.
Crucially, culture isn't about buzzwords or posters. It's about how people behave every day, including what’s tolerated and what isn’t.
Educate your team — especially about money
A surprising source of workplace friction is financial confusion. Many employees don't understand how bonuses affect their tax or why certain deductions show up on payslips. For SMEs, offering even basic financial education can build trust and help staff feel more in control of their income.
A shift in mindset
Productivity isn’t about pushing employees harder; it's about creating the kind of environment where people want to show up and deliver. For SMEs, this shift in mindset could be the key to building a more sustainable, resilient team.
“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,” says Palesa Mabasa, business development head at FNB.
