Financial pressure is pushing more South Africans to start side hustles, but for many, the motivation is survival rather than passion.
While South Africa’s entrepreneurial spirit continues to attract praise globally, new research suggests that financial stress is increasingly influencing employees’ decisions to take on additional work, affecting workplace productivity, engagement and staff retention.
More South Africans are turning to side hustles
Recent studies highlight South Africa’s strong entrepreneurial culture.
The Old Mutual Savings and Investment Monitor found that almost three in five South Africans have a side hustle. Meanwhile, global remittance company Remitly ranked South Africa as the world’s most entrepreneurial nation, citing the country’s resourcefulness, determination and willingness to innovate.
However, behind these positive findings lies a growing financial challenge.
According to the Wealthbit 2025 Financial Stress Report, 48% of South African employees have either started a side hustle or seriously considered one because of financial stress rather than as a creative outlet or business opportunity.
Debt and rising costs are increasing financial pressure
South African households continue to face mounting financial strain.
The South African Reserve Bank has reported that more than 60% of household income is being used to repay debt. At the same time, 38% of consumers were unable to pay at least one bill in full during the first quarter of 2025.
Financial stress is no longer limited to lower-income earners.
The Wealthbit report found that 29% of emerging high-income South Africans do not have emergency savings available to help them manage unexpected expenses.
Across income groups, four out of five employees regularly worry about money.
How financial stress affects workplace performance
Financial concerns often follow employees into the workplace.
According to Alex Cook, Chief Executive Officer of Wealthbit, financial stress reduces employees’ ability to focus on their work and affects overall performance.
“That’s most of our people, most of the time.”
“People who are worried about money are not fully present because the brain can’t compartmentalise well when it is under financial threat, and this is evident in presenteeism, distraction, motivation loss, and earlier job seeking,” he says.
The impact extends beyond productivity and can directly affect employee retention.
Financially stressed employees are more likely to leave
The Wealthbit research found that financially stressed employees are twice as likely to look for another job.
In addition, 70% of employees experiencing financial pressure are considering changing jobs in an effort to improve their financial situation.
Replacing staff comes at a significant cost for employers, making employee retention an increasingly important business priority.
“Our numbers show that financially stressed workers are twice as likely to look for another job, while 70% are looking at changing jobs to alleviate the financial pressure. Replacing these employees is a big expense that most companies would rather avoid,” says Cook.
Why financial wellness programmes matter
Employers are increasingly looking at financial wellness initiatives as part of broader employee wellbeing strategies.
Financial wellness programmes aim to improve financial literacy, provide practical money management skills and help employees make informed financial decisions.
According to Cook, helping employees gain greater financial stability can lead to measurable improvements in engagement and workplace performance.
“Financial wellness programmes can address the gap in employees’ financial literacy, make it relevant to their situation and teach them how to manage their money better. Financial stability has a measurable effect on their stress levels, ultimately resulting in more-engaged employees,” concludes Cook.
FAQ
How many South Africans have a side hustle?
According to the Old Mutual Savings and Investment Monitor, almost three in five South Africans have a side hustle.
Why are employees taking on side hustles?
The Wealthbit 2025 Financial Stress Report found that 48% of employees have started or considered a side hustle due to financial stress.
How does financial stress affect employees?
Financial stress can reduce concentration, lower motivation, increase presenteeism and encourage employees to seek new jobs.
Why should employers address financial wellness?
Improving employees’ financial wellbeing can reduce stress, improve productivity and help retain staff.
Read SA Business Integrator online
