Why companies are rethinking bonuses and benefits in 2026 (OM Remchannel)

South African employers are reassessing how pay and benefits decisions are made as cost pressure, governance scrutiny and transparency developments reshape reward strategies, according to Old Mutual's Remchannel.

The 2025/2026 Remchannel Employee Benefits Guide shows that this reassessment is translating into concrete trade-offs, with employers pulling back from broad, non-statutory extras.

Instead, they are favouring total remuneration that can be measured, defended and linked to sustainable performance.

Employers are being challenged to prove competitive employee value propositions, says Lindiwe Sebesho, MD of Remchannel.

"(This is) not just for attracting and retaining talent by meeting their diverse needs, but proving it to multiple stakeholders. Every element of remuneration, from guaranteed pay competitiveness and performance-based incentives to flexibility, wellness and parental support, now has to justify its cost, its sustainable impact and its risk.”

Among the insights provided by the data, is the shift towards a requirement for employees to work from the office, at least three days a week.

According to the 2025 survey, 40.7% of hybrid organisations prescribed specific in-office days in 2023.

By 2025, 67.4% required at least three days in the office, and 41.3% had increased minimum office day requirements.

This hybrid environment we've gotten used to has become a lot more prescriptive, Sebesho says:

"Obviously it's about collaboration, about rebuilding that culture that was lost when people were working behind screens."

Also falling out of favour along with remote work, are the idea of 13th cheques and sign-on bonuses for new employees.

"Those were perks that were used to bring people on board. We're seeing quite a big decline: 52.1% in 2023, now down to 28.3% of the surveyed employers that provide sign-on bonuses. There is less emphasis on past performance and much more future, sustainable performance."

For more detail, listen to the interview audio at the top of the article