Here is how SMEs can prioritise their employees

Many businesses often forget to prioritise their employees, overlooking the fact that they are the ones who put in the work and make ideas become a reality. If employees are not happy, it often shows in the business’s performance.

FNB is warning small and medium enterprises (SMEs) that not prioritising employee productivity could significantly hinder the success and growth of their business.

“The key to driving productivity is a clear, people-first strategy built on the four pillars of incentives, benefits, culture and education”, says Palesa Mabasa, Business Development Head: SME Funding at FNB Business.

She highlights that productivity is not about pushing people harder, but creating an environment where people want to show up, contribute and grow.

Incentives for employees

Mabasa highlights that incentives are one of the most effective levers for boosting performance.

It does not have to be anything complicated; it can be a commission, performance bonuses, or creative perks like weekend getaways or vouchers for top performers.

However, it remains important that these incentives are fair, transparent and directly tied to results.

“Even the best incentive programmes can backfire if they are seen as opaque or biased. That is why clear Key Performance Indicator (KPIs) and regular performance feedback are vital.”

ALSO READ: Work and lifestyle goes hand in hand: Game-changing benefits to attract top talent in 2025

Employee benefits

Mabasa notes that employee benefits play a crucial role in enhancing productivity and employee retention.

“While many SMEs assume benefits are too costly or complicated, she urges business owners to think differently.

“Simple offerings like funeral cover, pension contributions or medical savings options can go a long way towards making employees feel secure and valued.”

Company culture

Another factor that boosts employees’ productivity is an open and inclusive culture, rooted in shared purpose and values.

“If your team understands where the business is going, and they believe in that vision, they will offer your business that highly prized discretionary effort, that only comes from truly engaged employees.

“Strategy must be explained in a way that everyone understands their role in delivering on it.”

She highlights that culture is not just about feel-good values on a poster; it’s about daily behaviours that everyone buys into and, very importantly, the behaviours that are not acceptable.

ALSO READ: How to create a healthy work environment for employees

Importance of education

Mabasa says the final piece of the productivity puzzle is employee education, particularly in areas such as financial literacy and tax matters.

“Many employees do not understand how a bonus affects their tax, or why certain deductions appear on their payslips. Without that understanding, even generous benefits can cause confusion or frustration.”

She recommends SMEs to focus on delivering financial education to staff, as this will reduce misunderstandings around payslips and benefits.

Employee education can also foster a more financially responsible and resilient workforce, one that is not only financially confident but also driven to perform.

“With the right approach, even the smallest business can attract, build and retain a team that performs like a powerhouse.”

NOW READ: Remote work vs return to office: The battle for workplace culture, pay and productivity