Majority of employees have admitted that finance is one of the biggest stressors in their lives. For some of them this stress is overwhelming while others experience deterioration in their mental and physical health in the form of reduced sleep, irritability and many other issues. And it doesn’t need mentioning that stress majorly impacts an individual’s performance and efficiency at work. Financial concerns aren’t always about how much money a person is earning. It could also be about retirement, budgeting, managing loans etc. It’s important that an individual achieves confidence in such money matters and this is what we call financial wellness. Employees with monetary worries not only exhibit diminished performance at work but also damage the business. Being an employer, you must be aware if your employees are under any kind of financial strain and should be proactive to maintain their financial wellness.
How Financial Concerns of Employees Can Impact the Business?
The number of employees struggling with their finances is rising day by day. Be it about saving for future or dealing with a personal debt, financial worries are severely impacting personal health and job performances. Recent research suggests that financial stress is one of the most important causes of lost productivity, increased turnover and heightened absenteeism. Stressed employees negatively impact the overall efficiency of the team by being distracted at work, being absent and suffering from health issue. Health issues also lead to higher healthcare cost which then impacts both the employee and the employer. Reduced work quality may also lead to conflicts among co-workers, reduced pace of work and faulty procedures which not only damages the productivity but also the reputation of the business.
Why Employers Need to Develop Effective Financial Wellness Programs?
Providing some assistance to employees for managing their finances can be beneficial for both employees and employers. One of the top financial concerns these days is retirement and helping employees with good retirement plans can help alleviate this concern. Organization can host seminars on the issue and hire finance professionals for providing education and advice to the employees on how to handle finance based on personal preferences and circumstances. Developing and implementing good financial wellness programs can lead to noticeable positive impact on productivity. According to various studies, a large portion of employees agree that involvement of employers in providing financial assistance can help them a great deal to reduce their worry. An annually scheduled financial review also helps employees in becoming more efficient in financial planning.
What Constitute an Effective Financial Wellness Program?
There is no one-size-fits-all solution for developing a financial wellness program for your organization. Every employee has his or her own financial preferences and needs. However there are a few basic elements which every program must have in order to be effective.
- Understand the financial concerns of individual employees and provide personalized solutions or suggestions.
- Encourage employees to inculcate financial wellness in their lifestyle. Financial wellness programs should continually engage the employees for long term benefits. Clear communication is the key.
- Measure the improvement rates and document all the data to update and improve your programs.
- Confidentiality is important in financial matters. Make sure that the personal information on individual employees are recorded and stored safely.
- Make sure your vendor is providing truly beneficial services to your employees and does not have any hidden agendas that may harm your employees’ financial wellbeing.
By contributing in the financial wellness of employees, employers can hugely contribute to their business growth. Instead of offering assistance on the usual retirement planning or student loans, try to address more diverse issues like fraud protection, budgeting, home loan etc. Financial wellness programs can bring a win-win situation to the organization.