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<\/a><\/p>\nImpact of the recent protests<\/strong><\/p>\n To determine whether the recent protests had reversed renewed business optimism since conducting the survey in April, Remchannel conducted a snap poll at the end of July 2021.<\/p>\n It revealed that 68% of businesses would go ahead with increases as budgeted in April 2021. However, of the remaining 32% of respondents, 80% indicated that salary increases would be reduced, while 5% said that salary increases would be cancelled entirely.<\/p>\n Richter said that the most affected industries in the latest findings were construction, retail, fast-moving consumer goods and manufacturing.<\/p>\n Impact on retirement<\/strong><\/p>\n According to Richter and Ndlovu, the past 12 months have also impacted employers’ ability to continue contributions to retirement funds.<\/p>\n Remchannel data from June 2020, indicated that 35% of respondents said their business had been offered a payment holiday by their retirement fund service provider. Of the companies that were offered this respite, 48.5% of respondents opted to use this.<\/p>\n \u201cMore than a quarter of our clients, namely employers on retirement funds administered by Old Mutual Corporate, chose some form of financial relief during the height of the hard lockdown. However, 90% of these had been unwound by the first quarter of 2021,\u201d said Ndlovu.<\/p>\n Ndlovu said that aviation clients were heavily impacted as were companies providing services related to property and business travel. \u201cAt the start of the pandemic, all industries were affected, with essential services like financial services and retail being the least affected.<\/p>\n “Mining and primary resources were significantly impacted initially. However, the subsequent resource price hikes helped them weather the storm.\u201d<\/p>\n He pointed out that contributions to retirement funds formed the backbone of most people\u2019s retirement savings and should be prioritised. \u201cWhile it is reassuring that companies have by and large resumed employee retirement contributions, it would be prudent for businesses to continue to emphasise the importance of these benefits.<\/p>\n \u201cWe believe the pandemic was a Black Swan moment, a once-in-a-lifetime disruption, while the looting and unrest were also unprecedented. It is great news that most businesses have unwound most of their financial relief arrangements, and we encourage all businesses to get back on track with supporting their employee\u2019s retirement savings,\u201d he said.<\/p>\n<\/a><\/p>\n<\/a><\/p>\n