In response to the industry bargaining council's mandate, Albimix embarked on a journey to create its own employee benefits fund, setting a new standard for employee-centric initiatives.
The initial proposal from the bargaining council appointed broker, presented a scenario where both the employer and employee were required to contribute 5% of the employee's monthly salary to the provident fund. However, the breakdown of the employer's contribution raised concerns, with the entirety of the 5% going towards covering costs, which seemed excessive.
The need for a more equitable and employee-friendly solution led Albimix to establish its own employee benefits fund, setting a precedent for a more balanced approach. As part of this fund, Albimix partnered with disruptive digital insurance provider Simply Simply to offer life, disability, and funeral cover at significantly reduced costs. This move not only optimized the benefits provided but also ensured a fair distribution of funds towards employees' well-being.
Moreover, by administering the fund internally, Albimix eliminated brokerage fees and other costs entirely, further enhancing the value offered to its employees. This strategic decision showcased Albimix's commitment to prioritizing the financial wellness of its workforce.
In addition to the risk cover and administrative aspects, the savings/investment component of the fund was designed to empower employees to grow their wealth effectively. Through a collaboration with Franc Franc - Home , an online platform offering low-cost investment opportunities, Albimix employees gained access to a range of funds, including the Allan Gray money market fund, Satrix Top 40 ETF, and Sygnia Itrix S&P 500 ETF. With a recommended investment horizon of 1 year, which is the employment period of the average employee, a mix of 65% money market fund and 35% Satrix Top 40 ETF was proposed, promising maximized returns with minimal costs.
For the average Albimix employee, the impact of this benefits fund cannot be understated. Even a seemingly small increase of R271 per month in contributions can translate to a significant 91% boost in savings over a period of 5 years. This not only highlights the tangible benefits of the fund but also underscores the positive effect it can have on employees' long-term financial security and stability.
This unique employee benefits fund was developed in conjunction with Fitech Ventures Home | FiTech Ventures, a venture fund focused on improving the wellbeing of South Africa's population through financial inclusion.
In conclusion, Albimix's innovative approach to employee benefits fund management serves as a testament to the transformative power of prioritizing employees' well-being. By redefining traditional norms and championing a more equitable and employee-centric model, Albimix has set a new standard in fostering a culture of financial empowerment and security within the organization.
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