Provide your employees with the best care, and they will provide you with the best service. That’s a simple concept, but it’s quite effective. And it’s one of the reasons why workplace wellness is now a key priority. For a long time, employee wellness was defined as their emotional and physical well-being. Both are significant contributors to an individual’s sense of well-being. However, they are not mutually exclusive. A person’s health, enjoyment, and productivity at work also have a bearing on the individual’s well-being Employee financial wellness is one of the most important of them. We believed it was time to bring it into the spotlight because it’s a relatively new (and sometimes underappreciated) player on the field.
What exactly is financial well-being?
Financial wellness is defined as having peace of mind when it comes to personal finances. Further investigation reveals the following critical components:
Manage: We all have to make financial decisions on a daily basis. Knowing that you put thought and effort into those selections is crucial to your financial well-being.
Freedom: Money should assist us to fulfill day-to-day personal goals and complement our own beliefs, in addition to supplying the necessities of existence.
Stability and security: Unprecedented happenings are a part of life. And the majority of them have a price tag attached to them. With enough money set aside to carry you through seasons of uncertainty, whether it is a job loss, a medical emergency, or a big house repair, you can feel more stable and at ease.
Planning: Having a goal in mind encourages us to save. Taking efforts to plan for the future is a crucial element of feeling secure in our financial situation.
What are the benefits of financial well-being in the workplace?
More people are faced with challenging financial decisions and coping with unpleasant financial issues in today’s more commercial society. But why should employers care about this? Let’s have a look at what we’ve got.
Supports the duty of care concept :
The majority of companies recognize the important role they play in their employees’ lives. And they are conscious of their obligation and duty of care. In a survey conducted by the Chartered Institute of Professional Development in the United Kingdom, 85 percent of companies indicated they actively promoted financial health for their employees because it was “the right thing to do.”
Employee engagement is increased :
According to research, money problems are at the top of the list of the most common employee concerns. Offering financial health benefits can increase employee engagement by demonstrating that companies are aware of the issue, care about it, and are actively helping.
Combats the effects of an aging workforce :
Older workers can better prepare for retirement by receiving financial wellness recommendations, counseling, and support. This minimizes the number of employees who are unable to retire due to financial constraints. It also allows new talent to enter the pipeline.
Enhances efficiency :
It’s difficult to concentrate on the task at hand if you’re nervous. According to the aforementioned CIPD poll, money worries prevent people from sleeping properly and functioning at their best at work. Taking actions to enhance employee financial wellness leads to improved concentration, creativity, and problem-solving, as well as increased output.
Encourages employees to be healthier and more present :
Stress, anxiety, and sadness are among the symptoms of poor financial health. And are of the most typical reasons for employees taking time off. That’s why, in addition to mental, physical, and emotional wellness, it’s critical to include employee financial wellness in your well-being strategy.
What does financial well-being look like at the workplace?
Focus on two main topics when establishing an employee financial wellness program: What training can I provide? And what advantages do I have to offer? Here are some suggestions for both.
Financial wellness training for employees
Develop sound financial practices :
It’s a good habit to get into to learn how to budget. It’s a terrific method to keep everything under control. And it’s a fantastic approach to free up some cash to do more of the things that count. Increase your employees’ financial wellness by providing them with the knowledge and tools they need to create a solid budget plan and stick to it.
Get a handle on your debt :
Debt isn’t always a negative thing. However, if not appropriately controlled, it can be a huge source of stress. The good news is that there are many effective debt management tactics you can teach your staff. You’ll be able to assist them in reducing stress and improving their financial well-being in this manner.
Find out more about pensions :
It is critical to contribute to a pension plan to help with life after work. And it’s a significant component in improving employee financial well-being. However, the world of pensions has become much more complicated and daunting over time. Assist employees in navigating the various options (state, occupational, and personal) and selecting the best pension plan for them.
Make a list of objectives to work toward :
Money is merely a tool for achieving a goal. Financial goals must be attainable for employees before they can pursue their dreams or purchase things they have always desired. The financial well-being of employees can be improved by providing incentives and the means to reach them.
Make an effort to save money :
The advantages of saving are self-evident. Saving, on the other hand, is easier said than done. Employees will feel more secure if you share some easy-saving ideas with them to help them set aside a reasonable and realistic amount each month. And it’s one of the most crucial financial wellness strategies to have in your arsenal.
Advantages of Financial Wellness
At the outset of your employees’ journey with you, introduce the notion and demonstrate a company-wide commitment to employee financial wellbeing.
Advice and education :
Combine a formal financial wellness training program (as outlined above) with lunch-and-learn seminars, resources, and access to industry experts.
Healthy living programs :
Provide practical solutions and support (for example, work-from-home or paid time off policies) to assist employees in meeting large expenses like childcare, travel, or health care.
Counseling and referrals on an individual basis :
If you have an employee assistance program (EAP) in place to help employees with personal issues that could affect their work performance, make sure financial wellness is a part of it.
Purchasing in bulk :
Look for group pricing options to provide employees with discounted offers, products, and services.
Preparing for retirement :
Create an ongoing internal communications campaign to raise awareness about retirement planning and the services you provide. Include in-depth training sessions to encourage participation and demonstrate the retirement plan’s financial wellness benefits.
Few financial wellness tips
Our financial wellness tips will help you get started designing an engaging and effective employee financial wellness program.
- Align employee financial wellness with your DE&I culture to ensure that benefits may be tailored to specific requirements.
- Make sure that financial initiatives are part of a long-term strategy rather than a one-time occurrence.
- Encourage a culture of personal financial responsibility among your staff, and be prepared to refer them to independent, specialized sources of help if necessary.
- Conduct a survey to learn more about your employees’ financial wellness needs, and then create benefits that meet those needs.
- Invest in a training program to ensure that your employees understand how to access and use all of the financial benefits you provide.
- To offer personalized messaging to distinct workforce segments, hook into relevant events (births, marriages, and housing moves).
- Make sure there’s something for everyone. Remember that even those with greater incomes can get into debt, make poor financial decisions, and be concerned about their finances.
- Create a comprehensive employee wellness program.
- Financial wellness should be given the same level of attention and investment as physical, mental, and social wellness.
A smart move
It’s a big win to expand a well-being strategy to include employee financial wellness. It provides businesses with a high return on investment by increasing productivity, performance, engagement, and retention. Employees, on the other hand, benefit from it. They’ll feel happier, more comfortable, and more prepared for whatever life throws at them and their dependents if you provide them with the tools and information they need to confidently and sensibly manage their finances. This is why we agree with the 85 percent of businesses who say that investing in employee financial wellness is “A smart move ” above everything.