“Financial wellness” isn’t the new or emerging topic for the industry. It has been always apart of wellbeing strategy and had a prominent importance within itself. So you must be wondering what’s new or what has changed over the years and how do individuals feel about financial wellness in today’s era or why should I reconsider my strategy?
Tables have turned now as standardized perspective of wellness, mainly targeted on employee’s fitness and nutrition which seems to not be enough to head around and actually meet the needs. Frankly speaking, look around and see the real world, if everyone ate and exercised perfectly, life would be so better for all of us. But the reality is heading to the gym all day or eating healthy is not going to be worth it if you are stressed about money.
Time has arrived where one should look beyond the traditional views and focus on understanding the correlation between financial wellbeing and bottom line of the business.
Below are underlined some reasons why financial wellbeing is no more the NEED but it is a MUST for employers to look upon.
- Finances are on the top of the list when it comes to stress
Work isn’t the only thing stressing employees out ─ money can be a huge source of anxiety. In a 2017 CIPD survey of working adults in UK, 40% of employees’ state money worries have caused them stress over the past year and One in three workers aged between 25 and 34 report money worries have affected their work (CIPD 2017). According to PWC study, 46% among the one survey reflected that money concerns them the most.
It’s not only employees who are affected, financial stress has costs the UK economy £120.7 billion and 17.5 million hours were lost because of absence from financial stress (Neyber 2016). Using the UK retail sector as an example, stress attributed to concerns about personal finances cost the industry an estimated £7 billion because of employees taking time off work and 1.7 million hours are lost through employees taking time off because of financial stress (Neyber 2016).
We understand that health and nutrition is a must but the lack of financial wellbeing makes things worse for the individuals.
- Putting up with finance is stressful and time consuming
Getting your head around finances isn’t just stressful but it’s also very time consuming. According to PwC report, 37 percent of those surveyed by PwC said they spend three or more hours at work each week thinking about their personal finances.
There has been a significant rise to the levels of absenteeism and presenteeism at workplaces. According to Neyber survey 2016, 8% of the UK workforce admit to taking time off work because of financial stress and Higher levels of financial stress can result in higher absenteeism, which damages productivity: individuals in a high financial stress group averaged 6.2 full-time equivalent (FTE) days lost to absence compared with 3.8 FTE days in a low financial stress group (WTW 2016).
- Financial stress is costing companies
According to PwC survey, employees financial wellbeing is not only affecting employees wellbeing but its directly affecting the company. Stressed employees are found to be less productive, take more time off to deal with financial matters, are more likely to leave the company for higher compensation, and are more likely to cite health issues caused by financial stress. Financial stressors are not only negatively impacting employees, but are costing the employers.
According to Barclays 2014 survey, for every £1 million an organisation spends on payroll, it is estimated that it loses 4% of productivity due to poor employee financial well-being, 0.19% of employees have lost sleep worrying about their finances (CIPD 2017); disturbed sleep patterns contribute to lower employee productivity. Surveys at four US organisations estimated that fatigue-related productivity losses cost $1,967 annually per employee (Rosekind et al 2010).
So there is a direct correlation between an employee’s financial well-being and company’s bottom line and may help justify an investment in a financial wellness program.
The above reason validates why employers should consider Financial wellbeing today and you see we believe that by financially wellbeing not only empowers your employees but makes them more productive too.
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