Understanding the impact of HIV/AIDS on your company

There is no doubt that the productivity of the South African workforce is decreasing as a result of HIV/AIDS. It is increasingly recognised that the HIV/AIDS pandemic not only presents a human tragedy but also has a profound effect on the economic health of many companies.

South African companies are losing profit because of HIV/AIDS
In South Africa, some 40% of South African manufacturing companies surveyed reported a reduction in profits due to HIV/AIDS. More than half reported lower productivity and increased levels of absenteeism. Losses to the manufacturing sector were due mainly to the effects of increased labour costs, a decrease in productivity and increased labour turnover.

An economic impact assessment can help your company understand the effects of HIV/AIDS
To understand the distinctive impact that HIV/AIDS will have, companies need to conduct a company-specific HIV/AIDS economic impact assessment. Its purpose is to study the workforce in relation to factors that are known, through research, to affect the way in which a company will experience the effects of the HIV/AIDS pandemic. These researched factors include: gender, age, job category, region/location, salary band, length of service and the percentage of workers who receive medical aid or a pension contribution.

Solid predictions will enable your company to develop strategies to mitigate the impact of HIV/AIDS
By using company-specific demographic and organisational factors, it is possible, through a process of actuarial modelling, to predict the likely numbers of employees who will contract HIV/AIDS over the next ten years. For each year, it is possible to predict how many employees will be at each stage of the disease and therefore calculate how many employees are likely to die or retire as a result of the pandemic. It is also possible to estimate how many employees would need to be replaced because of deaths, early retirements and loss of productivity. It is further possible to calculate the likely cost to the company in terms of the impact of HIV-positive employees; loss of experienced employees; the recruitment, training and support of replacement employees; the costs of medical aid and pensions as well as a total cost figure relating to the impact of HIV/AIDS over the next ten years.

It is clearly very important for companies to obtain the best possible predictions about the likely impact of HIV/AIDS on their business so that strategies may be implemented to maintain longer-term viability and economic sustainability.

Free Workplace Research, Accredited HIV/AIDS Training & Support

Redpeg’s Strategic HIV/AIDS Workplace Programme
Redpeg is encouraging companies to apply to take part in the funded (completely free of charge) ‘Strategic HIV/AIDS Workplace Programme’, which aims to enhance each participating company’s ability to strategically manage HIV/AIDS. Importantly, not only does the programme include an economic impact assessment for each participating company, it also includes accredited unit-standards based HIV/AIDS coordinator training (aimed at the person that manages HIV with the company), additional workplace-specific baseline research in the form of an knowledge, attitudes and practices (KAP) survey, guidance and support in the development of an HIV/AIDS workplace policy & strategy; and more.

More information on the programme
The programme is taking place in Cape Town, Durban, Johannesburg and Port Elizabeth through an incremental rollout nationally. If you would like more information please contact Tim Boshoff from Redpeg at tim@redpeg.co.za or (011) 476 5355.