Financial Wellness in its simplest terms is the lack of money-related stress, and a person’s ability to manage their short-term finances and long-term savings proactively. Like physical wellness, the financial wellness of your employees is a fundamental aspect of their overall wellbeing that you need to consider as their employer. PWC reports that 30% of employees are worried about not meeting their monthly expenses and 50% of employees cite insufficient savings as a significant concern. Such stresses can impact employee engagement, absenteeism, productivity, and more, with a knock-on effect for employers and employees alike.
Financial stress can rule your workforce, and therefore your bottom line. Fortunately, there are ways to battle against financial burdens; one of the best ways is to implement a financial wellness program in your workplace. There are many programs you can put in place to help your employee’s wellness. Some examples include:
- Ensuring employees thoroughly understand and utilise the benefits available from your business, i.e. Health Insurance.
- Offering budgeting tools or workshops that help employees create and manage a budget.
- Provide access to financial planners or coaches for savings goals; mortgage advice or retirement planning.
- Providing short term company saving plans for specific occasions, i.e. Christmas or Back to School.
Aside from aiding employee wellness, you may wonder how offering a financial wellness programme benefits you as an employer and your companies’ goals or bottom line. There are a host of benefits:
- Employees who are financially healthy may be less troubled by money problems and better able to focus on their role.
- Employees are more likely to remain loyal to employers providing such programs, therefore reducing turnover.
- A financial wellness program is often a highly attractive recruitment tool, giving you a competitive edge for top talent.
- A workplace that invests in wellness experiences higher employee engagement and better morale.
You may worry, that financial wellness means a bigger bill for your payroll department. However, it is important to note that higher incomes and financial wellness are not mutually exclusive, so there is no pressure to increase employee’s salaries. Wellness is more related to giving your employees the tools and knowledge they need.