Employers are increasingly putting financial stability on their agendas. It’s easy to see why 69 per cent of workers are upset about personal earnings and 72 per cent worried about their financial affairs at work.
As a result, an increasing number of companies are creating financial wellness programmes for their personnel to regain control of their finances. According to Bank of America research, more than half of businesses in the United States now offer such programmes, up from only 24percentage points in 2015.
We’ll be looking at why workplace financial knowledge is important, what a financial wellness programme is, what such a programme looks like, and also what income protection technologies are available in this post.
What is the concept of financial wellness?
Financial wellness, also known as financial contentment, refers to a human’s liquidity position and the absence of financial stress.
Why is it important to be financially fit?
Unfortunately, financial pressure negatively impacts your employees’ personal and professional relationships and your company’s bottom line. We’ve compiled a list of reasons why financial wellbeing is critical.
Work engagement and absenteeism are two terms that are used interchangeably.
Financial stress leads to a 34 per cent rise in suspensions and expulsions, according to the Association for Human Resource Department. Employees concerned about money miss approximately twice as frequently days per year as those who are not.
Funds pressure can also promote presenteeism when employees work while being physically and psychologically ill. While it may appear to be less of a problem – after all, employees are physically present at work – presenteeism has major consequences for businesses. It can require a significant amount of money.
Employees who are happier and healthier
Employees’ financial worries can lead to various (severe) health concerns, ranging from anxiety and depression to ulcer and even cardiac difficulties.
In other words, removing your employees’ financial concerns from the mix will bring you one inch ahead to a healthy and positive staff.
Financial pressure impacts individual employees’ wellness and morale, but it also has an impact on their members of the team and other coworkers.
Loss of productivity
It’s no surprise that financial stress causes a surge in attendance, reduced absenteeism, and sick employees, but it also lowers their productivity.
According to a poll of more than 10,000 Americans conducted by Salary Finance, US businesses lose $500 billion each year due to their employees’ financial hardship.
What is an income protection programme, and what are the benefits of participating in one?
Employee financial wellness initiatives assist employees in budgeting and reducing financial stress. As a result, they help employees to have a better financial outlook.
Employees will be educated through a financial wellness programme. This can be accomplished in various ways, ranging from financial counselling and mentoring on specific themes like student loan repayment to using a website that professionals are working on in managing their finances.
Below, we’ll look at a handful of related instances to financial wellness programmes.
Instances of financial wellness programmes
There are numerous instances of financial wellness programmes, just as there are numerous examples of employee wellbeing programmes.
Because it’s such an easy approach to educate your staff about their own money, you might not think of it right away. It’s also a low-cost approach to a basic financial wellness plan.
You might also invite someone from the company finance manager to do a session, which varies according to your organisation’s size.
Establishing cooperation with a company specialising in personnel personal finance is another option.
Depending on your budget, you may, for example, form a partnership that provides your employees with discounted services and knowledge to make them improve invest their finances.
Make use of financial wellbeing instruments. There are numerous software products aimed at improving employee financial wellness.
To increase your employees’ financial awareness, these technologies can provide everything from personalized coaching and financial advice to specialized training and e-learning.
Conclusion:
Financial wellness, also referred to as financial wellbeing, refers to a patient’s individual financial fellow human and the availability of economic stress. It’s the outcome of good expenditure management.
The financial wellbeing of your employees is very important since it will increase attendance and withdrawal behaviors and lead to more sick employees and reduced productivity.
Workshops, specialized relationships with organizations that specialize in personal finance, technology services, or a mixture of these relate to financial wellness programmers.