What is Financial Wellbeing?
Financial Wellbeing is when people are in control of their money. They have a healthy relationship with their money and are not worried about mounting debts or money troubles out of their control.
Can poor financial wellbeing impact an employee’s mental health?
In a recent study, 39% of employees believe if their finances are in a bad state, it will negatively impact their mental health. Therefore, it will impact them at work negatively. Poor mental health has been shown to reduce productivity, increase presenteeism and absenteeism, which all effects the bottom line of the business.
Bad financial health will impact employees retiring. Results from a recent survey showed that 59% of employees do not think they are saving enough for the future. Therefore, it is highly likely that employees will not retire for longer. This will have a knock-on effect for career progression and many other factors within the workforce.
Financial wellbeing is fast becoming one of the focus wellbeing points for many companies.
What can companies do to help the financial wellbeing of their workforce?
To start your financial wellbeing policy, we suggest these 3 first steps.
- Open communication with your employees and find out how they feel about their financial situation. This could be done by a one-to-one chat or survey.
- Make sure your employees are aware of the benefits your company has to offer and see if they are making the most of them.
- Find free financial advice from governments and authorised bodies in your country.
Building a good financial wellbeing policy will take time. However, the benefits to your employees will be long-lasting.
This post was written by Novative. They are an exhibitor on the HRTech247 Payroll, Time & Attendance floor in the Technology Hall here.
