- Financial wellbeing
- 4 minute read
How does your business benefit from improved financial wellbeing at work? Let’s explore how employee lives and outlooks improve with organisational education and assistance.
Whether or not you love your job, odds are you find it stressful — at least some of the time. Recent studies have shown that 90% of UK employees are stressed most of the time. We’re all busy juggling demands, goals, expectations and commitments. When you add anxiety relating to personal finances to the mix, it’s no surprise that some employees find it hard to cope.
Poor financial wellbeing affects more than 25 million UK employees at work and not all employers understand what this means. Poor financial wellbeing has far-reaching effects, both for the employee and for the organisation that hires them. Conversely, when businesses take control of financial wellbeing at work — when they put measures in place to support employees through challenging times and to make plans for their futures, businesses benefit in a number of tangible ways.
Below are the five major reasons employers should take financial wellbeing at work seriously.
1. Your company will see increased levels of employee engagement
Employee engagement is complicated and multi-faceted. There are few absolutes, but the general consensus is that employee performance and employee engagement increases when employees feel their organisations have their best interests at heart. Employers need to listen to what’s troubling their employees. If your employees are showing signs of struggling financially and their company reacts, this is a clear sign that the company is committed to them and their wellbeing, which will encourage commitment and drive productivity in return.
While we know that money is not the most important aspect of employee engagement, we also know that when employees are given raises or offered benefits, they are 15% more engaged on average. Furthermore, when people believe their employer cares about their health and wellbeing, they are 38% more engaged.
Related: Employees fear for their financial wellbeing in retirement
2. Employees will be happier
Money may not be able to buy happiness, but financial education and improved financial wellbeing can certainly give us increased peace of mind. Think about how much the morale of your employees would improve if they had fewer financial struggles hanging over their heads on a daily basis. Or if they simply had a practical, long-term plan in place to help them overcome their financial obstacles and meet their future goals and aspirations. It’s vital we don’t underestimate the importance of employee morale. It can impact engagement, satisfaction and productivity. In fact, happier employees are also less likely to have issues with absenteeism, which brings us on to our next point.
3. Your organisation will experience lower levels of absenteeism
As we have recently discussed in our blog about the importance of financial protection for employees, stress has a huge impact on our bodies. When employees experience near-constant money worries, this can take a physical toll. Employees can become ill, anxious, depressed and worn down.
In the UK, 87% of millennials are affected by money worries at work. In the USA, 72% of adults feel stressed about money, with 22% experiencing extreme financial stress. When employees suffer, work suffers. Days are lost, focus is lost and productivity takes a nosedive. With improved financial wellbeing at work, employees are better able to put their financial problems in perspective. They’re also better able to take care of their bodies and minds, which improves absenteeism rates in organisations.
4. You’ll enjoy improved productivity, performance and motivation
A PwC survey showed that employees suffering financial stress are less productive and less motivated. Employees feel distracted, frustrated and hopeless. They are also more likely to feel undervalued by their employers, which will have a direct bearing on their motivation levels. According to Forbes, 80% of employers report that financial stress lowers employee performance levels.
This is one of the biggest benefits of improved financial wellbeing at work. When employees are doing better financially, they are better able to focus on the work at hand. They’re also more inclined to perform well and go above and beyond for the organisation that is taking strides to help them.
Related: 8 ways of measuring employee financial wellbeing
5. You’ll see lower levels of employee turnover
Employees who are engaged are more likely to remain loyal to their organisation. Furthermore, when employees know they’re being helped and that their employer cares about them and their financial wellbeing, they won’t be inclined to jump ship to a competitor.
High levels of voluntary turnover can be costly for an organisation, but it can also be time-consuming when you consider the recruitment involved. Not to mention the time required to get new employees up to speed, which can result in a loss of productivity. It’s an employees’ market out there right now, with record-low levels of unemployment. Companies are doing all they can to retain their top talent and providing the means to improve financial wellbeing at work is certainly a perk that will keep employees happy and loyal.
Are you looking to improve levels of financial wellbeing at your work? Contact Close Brothers today to find out how we can help your organisation and your employees.