Why is it important to support employees with financial wellbeing?

Supporting employees with financial wellbeing is important for several reasons, both for the individual employees and for the overall success of the organisation.

Here are some key points to consider:

1. Improved Employee Productivity and Focus

Financial stress can significantly impact an employee’s ability to focus and perform at work. When employees are worried about paying bills, managing debt, or planning for the future, it can lead to distraction, lower engagement, and reduced productivity. By supporting their financial wellbeing, you help them feel more secure and able to concentrate on their work.

2. Increased Employee Retention

Employees who feel supported in their financial wellbeing are more likely to stay with an employer long-term. Offering financial wellness programmes, guidance on saving and investing, and assistance with managing finances creates a sense of loyalty and trust. This reduces turnover, which can be costly and disruptive to the organisation.

3. Enhanced Job Satisfaction and Morale

Financial stress is a leading cause of anxiety and dissatisfaction in life, and work is no exception. When employees feel that their employer is invested in their financial health, it improves overall morale and creates a positive work environment. Higher morale leads to greater job satisfaction, and employees are more likely to go the extra mile.

4. Attraction of Top Talent

A strong financial wellbeing programme can make your company more attractive to potential hires, especially as younger generations are increasingly seeking employers who provide comprehensive benefits. Companies offering financial wellness benefits can stand out in competitive job markets, helping to attract skilled talent.

5. Healthier Employees

Financial stress can contribute to a wide range of health issues, including anxiety, depression, and even physical ailments like heart disease. By supporting financial wellbeing, employers can help reduce stress-related health issues, leading to healthier employees who take fewer sick days and perform better overall.

6. Long-Term Financial Security for Employees

Financial wellbeing programmes help employees build healthy financial habits, plan for retirement, and manage day-to-day financial challenges. This creates a more financially secure workforce, which is particularly valuable in an environment where long-term financial planning can be difficult without guidance.

7. Stronger Employer Brand and Reputation

Companies that prioritise the financial wellbeing of their employees are seen as more socially responsible, compassionate, and forward-thinking. This can enhance the organisation’s reputation both internally and externally, potentially improving customer loyalty and enhancing the brand.

8. Lower Stress, Lower Absenteeism

Financial stress can contribute to absenteeism, either because employees are struggling to focus or because they are dealing with the emotional toll of their financial difficulties. Providing support in the form of financial education or counselling can help employees reduce their stress, which leads to lower rates of absenteeism.

9. A More Inclusive and Equitable Workplace

Not all employees have the same level of financial knowledge or resources. Financial wellbeing initiatives can help level the playing field by offering support to those who may be struggling or who don’t have access to the same financial tools as others. This promotes equity in the workplace and ensures that all employees have an opportunity to succeed.

By prioritising financial wellbeing, companies not only demonstrate care for their employees but also contribute to a more productive, loyal, and engaged workforce. The benefits extend beyond the individual, positively impacting organisational performance and long-term success.

Ready to Prioritise Your Team’s Wellbeing?

In collaboration with a health and wellbeing training provider Hands On At Work offers the following 1 hour webinars.

FINANCIAL WELLBEING DE-BUNKING DEBT

Understanding debt and its misconceptions

Credit cards: a double-edged sword

How credit scores work, and how to improve yours

How mortgages work, and how to approach repayment

You’re in problem debt: what now?

Where to go if you need help/support

FINANCIAL WELLBEING 101

Quick wins to reduce outgoings

Understanding debt