As a business owner or senior executive, you are responsible for the success of your company and the well-being of your employees. While you may be focused on increasing profits and productivity, have you considered the financial well-being of your employees? Financial stress can have a significant impact on employee productivity, engagement, and overall well-being. In this blog, we will discuss why business owners should care about the financial well-being of their employees and how implementing a financial wellness program can benefit both employees and the company.
Financial stress affects employee productivity
Financial stress can have a significant impact on employee productivity. According to a study by PwC, 53% of employees report being stressed about their finances, and 46% say that financial stress has a negative impact on their productivity. Financial stress can lead to absenteeism, presenteeism, and decreased engagement, all of which can impact the bottom line of your business.
Financial wellness programs can improve employee engagement
Implementing a financial wellness program can help improve employee engagement. By offering financial education and resources, employees can feel more confident and in control of their finances, leading to reduced financial stress and increased engagement. Additionally, offering financial wellness programs can be a valuable employee benefit that can help attract and retain top talent.
Financial wellness programs can improve financial literacy
Financial wellness programs can also help improve the financial literacy of employees. By offering financial education and resources, employees can learn about budgeting, saving, investing, and other financial topics that can help them make informed decisions about their finances. Improved financial literacy can lead to increased confidence and financial well-being, which can benefit both employees and the company.
In summary, as a business owner or senior executive, you should care about the financial well-being of your employees. Financial stress can have a significant impact on employee productivity, engagement, and overall well-being. By implementing a financial wellness program, you can help improve the financial well-being of your employees, leading to increased engagement, reduced financial stress, and improved financial literacy. Ultimately, this can benefit both employees and the company. To discuss how Inspired Money can assist you in implementing a financial wellness program within your business please reach out to one of the team via the contact details on the website or call 0862227909.
This blog contains general information that should not be considered personalised financial advice. If you have specific questions or concerns book a session to review your investment plan or any other financial planning issue contact Shane directly on 08 6222 7909 or book a meeting now via his booking page.
Articles cited in blog:
1. PwC’s 2019 Employee Financial Wellness Survey found that 53% of employees report being stressed about their finances, and 46% say that financial stress has a negative impact on their productivity. Source: https://www.pwc.com/us/en/private-company-services/publications/assets/pwc-2019-employee-financial-wellness-survey.pdf
2. A study by the International Foundation of Employee Benefit Plans found that 80% of employers believe that financial education programs can help employees make better financial decisions, and 70% believe that financial education programs can help reduce financial stress. Source: https://www.ifebp.org/pdf/research/financial-education-2019.pdf
3. A study by the Society for Human Resource Management found that 60% of employers offer financial wellness programs, and 24% plan to offer them in the future. Source: https://www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/Documents/2019-Employee-Benefits-Survey-Report.pdf
4. A study by the Consumer Financial Protection Bureau found that employees who received financial education and counselling had higher credit scores and were more likely to pay their bills on time. Source: https://files.consumerfinance.gov/f/documents/201408_cfpb_report_financial-wellness-at-work.pdf
5. A study by the National Endowment for Financial Education found that employees who received financial education reported reduced financial stress, increased job satisfaction, and improved productivity. Source: https://www.nefe.org/Portals/0/WhatWeProvide/PrimaryResearch/PDF/NEFE-Financial-Education-at-Work-Report.pdf
6. A study by the Employee Benefit Research Institute found that employees who participated in financial wellness programs were more likely to feel in control of their finances and less likely to report financial stress. Source: https://www.ebri.org/docs/default-source/ebri-issue-brief/ebri_ib_481_finwell-2019-1apr19.pdf?sfvrsn=2
