Empowering employees to work at their best with financial wellbeing
It’s no secret that employee productivity and engagement are crucial for the success of any organisation.
While there are various factors that contribute to employee performance, one aspect that often goes overlooked is financial wellbeing. Concern about finances is emerging as one of the biggest causes of stress in the workplace. In fact, in recent studies 34% of workers cite financial stress as the biggest cause of stress in their lives. This surpasses other common stressors such as work and personal relationships.
When employees are burdened with financial worries, it can lead to decreased productivity, increased absenteeism, and even higher turnover rates. Whereas, employees who are financially secure and have peace of mind are more likely to be focused, motivated, and productive in their work.
Recognising the importance of finance wellbeing and taking proactive measures to address it can make a substantial difference in the workplace.
But what measures can employers take? Here we look at three.
1. Provide financial education
One way organisations can empower their employees to work at their best is by offering financial education and resources. Many employees lack the necessary knowledge and skills to effectively manage their finances, leading to poor financial decisions and increased stress.
By providing online resources on topics such as budgeting, saving, and investing, organisations can help employees develop essential financial literacy skills. This not only equips them with the tools to make informed financial decisions but also boosts their confidence and reduces financial anxiety.
A great way to do this is by using a Financial Wellbeing Education platform from financial wellbeing companies. These online platforms are full of educational content, presented in a variety of formats. This allows your team to be educated in a learning style that suits them.
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2. Provide debt advice
In addition to education, employers can also offer access to financial advisors who can assist employees in managing their debt.
Unmanageable debt is a larger problem than many people realise. It is estimated that 10% of all UK households consider their loan and interest repayments to be a heavy financial burden. This is a 35% increase from the previous year.
The same study revealed that In the UK the average monthly loan repayments reached a record £373 in 2021, up 22% on the year before.
Worrying about repaying debt is a huge contributing factor to workplace stress.
A great way to help your employees manage their debt and reduce the stress that may be impacting their level of productivity at work is by providing access to a Personal Debt Advice service. These online services offer employees expert honest and tailored advice to help them to manage their debts, whatever their situation.
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3. Support mental health
Prolonged stress can lead to a whole raft of mental health challenges for employees. Any financial support that you offer needs to be given in conjunction with general mental health support for it to be effective.
The first step towards this is creating a safe and non-judgmental environment that allows employees to address life’s challenges proactively and seek assistance when needed.
Employee assistance programs (EAPs) are a great way to deliver information and professional advice on a whole range of mental health issues. These online platforms provide access to confidential professional counselling services to help employees tackle any mental health problems they may be facing.
These initiatives not only provide practical solutions but also send a powerful message that your company genuinely cares about its employees' mental wellbeing.
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Financial wellbeing: the key to productivity
Prioritising the financial wellbeing of employees is not just an act of benevolence but a strategic investment in the success of your business. By empowering employees to work at their best through financial education and by providing debt advice and mental health support you can create a positive work environment that promotes productivity. Taking these steps not only benefits the individual employees but also leads to improved organisational performance and success in the long run. Remember, when employees thrive financially, everyone wins.
