An exodus of staff from East London’s Frere Hospital has placed a strain on those remaining at the facility.
The hospital has lost 83 employees, which CEO Dr Rolene Wagner blamed in part on new regulations regarding pension payouts.
But despite this, there was a positive staff turnover in the current year compared to international hospitals.
“The annual turnover for hospitals in was 27% in 2012, higher than the 22.6% experienced by other industries.
At Frere in this financial year to date it is 4%,” she said, adding that 83 employee contracts had either come to an end or people had resigned, retired or been transferred.
Wagner said staff retention at the state facility was comparatively good.
The exodus, mainly of nurses, is happening against a backdrop of staff shortages.
In one instance 11 trained nurses from a single general ward left in two months – only three of whom were retiring.
“The loss of staff from a unit for whatever reason does place great strain on the remaining staff and can contribute to low morale in that unit,” said Wagner.
“The nursing profession appears to be the most mobile of all professions in the sector.
“Of the 83 who exited our employ, 46 were nurses.”
Wagner said 12 of the 46 were retiring and 34 resigned.
The hospital had employed 102 nurses in September to help relieve the units that experienced staff exits. Exit interviews revealed that the main reason for leaving was financial.
“On the one hand employees have pressures of debt and on the other they have concerns about getting less of a payout at retirement due to the introduction of the new regulations with respect to the pension payouts,” said Wagner.
“They therefore resign to get their pension payouts under the old dispensation and at the same time relieve their immediate financial burden.”
She said the hospital management had brought in financial institutions to assist employees understand the new regulations and advise them on the best way to manage their finances.
The new regulations will see employees leaving government posts and not being paid their provident funds upfront as has happened to date.
From next year the state will keep the funds and pay it to retired individuals on a monthly basis.
However, funds accumulated before 2015 will be paid to employees who resign.
This only affects provident fund employees.
Wagner said employees who resigned ended up reapplying for their posts.
Koliswa Tota, provincial secretary of the Democratic Nursing Organisation of South Africa, said the nurses’ union was strongly against the practice of resigning for payouts. — vuyiswav@dispatch.co.za
Staff exodus from Frere at new retirement law
The hospital has lost 83 employees, which CEO Dr Rolene Wagner blamed in part on new regulations regarding pension payouts.
But despite this, there was a positive staff turnover in the current year compared to international hospitals.
“The annual turnover for hospitals in was 27% in 2012, higher than the 22.6% experienced by other industries.
At Frere in this financial year to date it is 4%,” she said, adding that 83 employee contracts had either come to an end or people had resigned, retired or been transferred.
Wagner said staff retention at the state facility was comparatively good.
The exodus, mainly of nurses, is happening against a backdrop of staff shortages.
In one instance 11 trained nurses from a single general ward left in two months – only three of whom were retiring.
“The loss of staff from a unit for whatever reason does place great strain on the remaining staff and can contribute to low morale in that unit,” said Wagner.
“The nursing profession appears to be the most mobile of all professions in the sector.
“Of the 83 who exited our employ, 46 were nurses.”
Wagner said 12 of the 46 were retiring and 34 resigned.
The hospital had employed 102 nurses in September to help relieve the units that experienced staff exits. Exit interviews revealed that the main reason for leaving was financial.
“On the one hand employees have pressures of debt and on the other they have concerns about getting less of a payout at retirement due to the introduction of the new regulations with respect to the pension payouts,” said Wagner.
“They therefore resign to get their pension payouts under the old dispensation and at the same time relieve their immediate financial burden.”
She said the hospital management had brought in financial institutions to assist employees understand the new regulations and advise them on the best way to manage their finances.
The new regulations will see employees leaving government posts and not being paid their provident funds upfront as has happened to date.
From next year the state will keep the funds and pay it to retired individuals on a monthly basis.
However, funds accumulated before 2015 will be paid to employees who resign.
This only affects provident fund employees.
Wagner said employees who resigned ended up reapplying for their posts.
Koliswa Tota, provincial secretary of the Democratic Nursing Organisation of South Africa, said the nurses’ union was strongly against the practice of resigning for payouts. — vuyiswav@dispatch.co.za
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