In today’s day and age of fast-paced jobs and cut-throat competition, it’s important for any business to keep their employees satisfied and stress-free. One of the biggest reasons for stress in employees around the world is the lack of financial security. By empowering your employees with the right financial know-how, you can help your office become a productive and more efficient place to work.
It’s easy for financial worries to bog your staff down. If it is allowed to fester, it can end up leading to a noticeable drop in performance across the organisation. The best way to deal with such a situation is to look towards financial wellness programs.
A study conducted by Mercer in the United States showed that businesses lost close to USD 250 billion a year due to employees being stressed about their financial situation. This clearly indicates a direct correlation between organisational success and the financial knowledge of the employees. A financial wellness program can effectively improve your staff’s productivity and keep them satisfied with their jobs. If you’re still not convinced that you need a financial wellness program for your organisation, here are 4 reasons to change your mind. –
- The Power Of Financial Literacy – Creating a strong financial foundation is the basis of financial wellness. With the right financial knowledge being imparted to them, your employees are well-equipped to deal with their present and future financial responsibilities. Educating your employees on the basics of finance like tax filing and budget allocation will help them significantly for the rest of their lives. The most important part is that having your basics right will encourage employees to actively seek support for their financial troubles.
- Understanding Budgets – According to a study by Bankrate, almost 60% of working professionals have no emergency funds, even to cover simple expenses like car repairs. If they are taught proper budgeting techniques, they can effectively balance their expenses and their income with ample savings for unforeseen circumstances. Another study found that 17% of people who enrolled into financial wellness programs were more confident about their financial future right after their first session, and 12% said that they even had more clarity about their retirement goals. In general, financial wellness programs being offered at the workplace have helped numerous individuals reduce their debt and increase their savings.
- A Better Future – With age comes problems, and with problems come expenses. Lack of financial security is forcing people to retire late, increasing their risk of lifestyle-related disorders, and indirectly affecting business due to lack of motivation and drive. Most people realize too late that they haven’t planned for retirement. Unfortunately for the younger generation, they get to know about retirement planning years after they join their careers. This leads to having reduced avenues and having to pay more for necessities like insurance premiums; things which are much cheaper to avail of when you are younger. Introducing the concept of retirement planning in your workforce should be an integral part of your financial wellness program if you intend to start one or are already running one at your office.
- Reduced Attrition – Stress of any kind negatively affects your employees, whether it’s financial or emotional. In fact, both emotional and financial stress go hand-in-hand, and if your staff doesn’t have their finances in order, they are probably not working in their best frame of mind. This can cause immense dissatisfaction with their jobs and in the majority of cases, leads to attrition, even if it means getting only a marginal increase in pay. With a robust financial wellness program in place, you can enable your employees to make the most of their salaries and not feel like they’re not getting enough.