Edited by Sharyn Macnamara
Prepaid adumo debit cards provide mineworkers with a versatile financial tool to incentivise positive behaviour, says Steve Mallaby, CEO of adumo Payouts.
Steve Mallaby, CEO adumo Payouts. Image supplied by adumo Payouts
“Our debit card transcends the limitations of paper vouchers,” says Mallaby. Instead, the adumo debit card is continuously reloadable and serves diverse purposes – incentivising early and late shifts, and overtime and public holiday work; promoting health and wellness initiatives and linking incentives to production and safety targets.
Mallaby expands, “Simple and scalable, our solution caters to the varied needs of mining operations, whether they employ five or 5 000 workers.” Real-time loading onto adumo debit cards upon target achievement or other milestone attainment enhances operational flexibility.
The company’s journey into the mining industry has evolved organically over time, with a notable milestone being its partnership with a major industry player since 2012, which at the time was handing out grocery vouchers as an incentive for their workers. “We proposed a more versatile approach by introducing prepaid adumo debit cards, enabling mineworkers to use them for a wide range of needs. This marked the inception of a transformative approach that has evolved since then,” says Mallaby.
He adds, “Our solution enables mines to replace paper vouchers with a dynamic card that can be continually topped up as needed.” These cards serve various purposes, including introducing incentives aimed at health and wellness – such as getting vaccinated during the Covid-19 pandemic, or if mineworkers voluntarily elect to be tested for HIV – and linking incentives to achieve or maintain certain key production targets.
For instance, if a mine hits a specific target at say 15:00 on a Friday – by the time the mineworkers return home at 18:00, the funds are already loaded onto their adumo debit cards. Mining clients have two options: adumo Payouts can be supplied with the load instructions and details, or the client can manage the process themselves via their dedicated self-service customer portal. “In our experience, we have found that the mines prefer to interact directly with our team, building close personal relationships as a result,” notes Mallaby.
Mallaby expands, “The corporate mine is our client, and by extension, the mineworker also becomes our client.” Any card queries such as balances can be easily checked via an online portal, using a USSD code, or by contacting the multilingual adumo Payouts call centre offering support in all 11 national languages. “This inclusivity builds trust and ensures effective communication, whether the mineworkers are from the Northern Cape or the North West.”
While the onboarding process is exceptionally quick, the sales process in the mining industry can be lengthy, as it is necessary to secure buy-in from various internal (finance, human resources, safety, etc.) and external (trade unions) stakeholders. “While we do not interact directly with the trade unions, they have been very supportive of the adumo solution, as it places the mineworkers at the core of the process,” stresses Mallaby.
Interestingly, most of the interactions and decisions occur at the mine level rather than at the mining house level. The company has also engaged with junior and emerging miners as the adumo payouts solution is ideally suited to any incentives that they may wish to pay out that relate to workforce engagement, production and safety.
“At the heart of our solution, and the tangible benefit, is the focus on safety and production targets – top-of-mind for the mining industry. Production is uninterrupted if there are zero incidents, plus there is no attendant negative publicity and impact on the community, especially in the event of fatalities. By adding a human dimension to these targets through our incentivisation solution, we can influence positive behaviour,” says Mallaby.
The mining industry in South Africa has played a pivotal role in the nation’s economy for decades. Export data from the South African Revenue Service indicates that, for the first half of 2023, the value of mined material exports was R575-billion. According to Statista, the industry is home to a substantial workforce, with 475 561 mineworkers employed in 2022. These statistics indicate the continued importance of mining to South Africa’s economy, contributing an impressive R493.8-billion to GDP in 2022.
Incentivising the mining workforce can be challenging, particularly when it comes to safety and overtime. The adumo Payout process allows mines to offer immediate rewards for going the extra mile. The process enables instant gratification, which in turn enables immediate behavioural change.
“When a mine partners with us, we disburse the funds directly onto each of the mineworkers’ adumo cards,” says Mallaby. The cash in hand incentive payment is still processed through payroll to ensure compliance with tax authorities such as SARS. However, mineworkers now have their personal adumo debit cards, ensuring the funds are immediately and exclusively theirs.
“Traditionally, mines tended to hand out grocery vouchers as an incentive. But what if it is the middle of the month and you need to pay school fees, or in fact you want to try and save money for the end of the year for other needs?” questions Mallaby. “Our approach is finely tuned to drive positive behaviour and engagement. For example, when a mine hits multiple targets relating to different safety initiatives, they instruct us to carry out separate payouts for each target. We also send an SMS communication to all mineworkers congratulating them on each of these milestones as part of our reinforcement strategy.”
“It is always about making the employee feel recognised and giving them a choice. They become much more engaged at the end of the day, and it has a knock-on effect. Mineworkers are more empowered as we have increased their spending power, while increased production in parallel means the mining industry contributes more to economic growth. If the mining industry is doing well, as a result, service providers such as adumo Payouts benefit as well,” concludes Mallaby.
It is a win-win solution with benefits for all.
Source: Supplied by adumo Payouts