Financial planning is such an important aspect of a person’s lifestyle, regardless of their income. However, these day most people are struggling, often living paycheck to paycheck, and never giving two thoughts towards their financial future or how to make their money work for them.
Many employers make benefit programs, investment programs and retirement plans available to employees, but
very little effort is put forth into teaching and advising them about financial wellness, which can be a huge asset to both the employee and the organisation for a number of reasons.
Some of the many benefits to employees offering their workforce financial planning and wellness advice are as follows:
Financially Stressed Employees are Less Productive
When employees are plagued with personal worries, there is no doubt they are less productive at work, and are distracted.
Financial worry is one of the largest stress factors adults face, and has a serious impact on both their emotional and physical well being, making them a less valuable employee.
Financial stress can have a serious effect on an employee’s ability to perform and excel at their job, therefore it may be in a company’s best interest to provide them with the skills necessary to address their financial concerns.
Direct Effects on Employee Health
Great amounts of stress, like that when being under financial strain, can be extremely detrimental to a person’s health. When people are unhealthy they are more reliable in the workplace, not to mention less productive.
More illness leads to increased absences, more sick pay claims, and other inconveniences to both employer and employee.
With finances being the number one stressor, and stress leading to such debilitating health conditions as high blood pressure, ulcers, and heart conditions, it is in everyone’s best interest to be looking after the financial well being of all employees.
Less HR Issues
When employees are feeling good, doing well in their personal lives and able to financially meet their obligations, they are able to get through the work day smoother, and have better relations with co workers, having less negative interactions with coworkers and management, thus will experience higher job satisfaction and will result in less interference from the human resources department, because worker morale overall is higher.
This allows workers to be focused on their duties and be more successful in their positions.
Everybody wants to feel like they have a great job that they can be proud of, and that they are a valuable asset to their company.
Providing employees with financial wellness advice will make the employees feel as though they are receiving another form of compensation, which will increase employee loyalty, as well as provide them with the skills and knowledge necessary to to get the most out of their income, and live within their means comfortably.
We spoke with Quantum Refunds and they said that employee morale will be positively affected by being better able to provide for their families, prepare for their futures, and feel satisfied with their current pay rate, therefore making them more satisfied with their positions, keeping them working for the company longer and harder.