Financial Stress can affect a lot of aspects of life, including job. Therefore, your company should make financial wellbeing in the workplace a top priority. 'Personal finance' is a term that is used too literally.
Even while the financial situation may be referring to a specific person, its effects are felt by a larger group of people. Employers have a great opportunity to adopt programmes that promote financial health because of the responsibility for improvement. These will give workers the tools they need to achieve financial security, a sense of balance in their lives, and a productive workplace.
In a time when many businesses are optimising their spending and bonuses and competitive salary increases are rare, employers can look to reward staff by investing in employee financial wellness.
Why Financial Wellness in the Workplace is Important
Most people have little financial knowledge, beyond understanding the basics. As a result of this, they experience financial angst when having to make financial decisions. As an employer, it is advisable to get an understanding of your employees’ financial literacy.
Many companies have seen the positive impact on employee happiness of having Discovery vitality days and mental wellness days at office. What about financial wellness at work? Holistic financial wellness.
Millennials currently make up the majority of the workforce. It is well known that this generation faces significant financial challenges, including debt and college loans. And Generation Z is right behind them.
For the younger new recruits, many are earning an income for the first time. Think about how the temptation of spending and living from paycheck-to-paycheck can quickly result in employees increasing their standards of living with each pay raise, as opposed to increasing their savings.
Most workers are stressed about their overall finances and many report that these financial problems are a distraction at work.
Financially unstable or insecure employees have low productivity and efficiency in the workplace. An employee who is stress-free and engaged is likely to be more productive and bring value to a team, compared to a financially stressed employee.
Improved Workplace Morale
Making poor financial decisions will probably result in financial difficulties, which can lead to anxiety, depression, and sleeping disorders from constant thinking about finances, savings, and approaching retirement.
Employees don't have to work past retirement age unless they want to if they are ready and prepared for it. It has been demonstrated that financial wellness initiatives at work increase employee involvement in retirement savings schemes.
Improved Business Profitability
Having staff with the education to understand how to maximise their personal finances is likely to spill over into their ability to deliver this for your business as well. Once financial astuteness is embedded, staff will begin to understand workplace finance.
Consider the positive impact of a workplace consisting of happy staff who understand the importance of reduced expenditure, efficient use of resources, and asset growth? How much easier would it be to explain why certain expenses need to be cut? When promoting financial wellness in the workplace you might well find that staff implement these strategies without you even asking. Wasteful expenditure will be a thing of the past with happy employees.