Financial wellbeing and stability play an important role in the mental health and performance of employees, however, is something many companies fail to include within their corporate wellness areas.
Financial stability is one of the goals that most people would like to achieve and financial stress can be a huge distraction for employees. Financial literacy levels vary with education and income, however, studies have shown that even those with high income and education can benefit from improved financial literacy.
When we say corporate wellness, most people will associate it with exercise and nutrition. Technically, the previously mentioned areas are part of it but corporate wellness means more than that. In a corporate wellness environment, all aspects of life should be considered, and by that, it means taking care of your employees holistically, which includes financial wellbeing.
Corporate wellness should be an integral part of any company. By having it, your employees will see and feel their presence within the company and their importance. When employees are happy, it helps the company in so many ways.
Why is financial well-being an important part of your corporate wellbeing strategy?
Not all people have the same salary, depending on your role or position within the company, your salary can be higher or lower than other employees. How people spend their money is something not revealed in public and if there are debts or bank loans involved, that is something personal to the individual. By saying that, it also means that not all people are comfortable with discussing their financial status and problems, which is understandable.
Financial wellbeing is an important part of the corporate wellbeing strategy because money can be a constant source of stress. A study found that 72 percent of adults feel stressed about money at least some of the time, and 22 percent experience extreme financial stress.
When it’s extreme, health suffers. It was found that those in lower-income households with extreme financial stress are more likely to engage in unhealthy behaviors to manage that stress such as watching TV for hours, ice cream binging, and drinking one too many. Chronic stress is unhealthy on its own, but financial stress multiplies the impact.
Financial wellness improves engagement
Each company should have a salary scheme. Salary raises should be part of the plan because you can’t just educate and raise awareness without doing something internally to help your employees. Given the inflation, increased cost of living expenses, etc., as a company, it is necessary to ensure that your employees are taken care of. Certain studies have shown that salary raises improve engagement.
Providing financial benefits shows employees that the company cares about them as individuals, inspiring loyalty and motivation. When employees feel their employers care about their health and well-being, they’re 38 percent more engaged.
Financial problems can affect mental health
According to research, money is one of the key reasons why people suffer from mental health challenges. Individuals that are suffering from financial issues tend to be more irritable, prone to having arguments, always hot-tempered, and not performing well in whatever they do.
Managing finances is not just stressful, it is time-consuming. Without control, employees can bring their issues to their workplace which can affect their work, and their relationships with colleagues and it affects the company in general.
Employees need your support
HR managers can help to support employees by raising awareness on financial wellbeing. Finsbury Associates conduct complimentary financial wellbeing workshops which can help educate employees on the basics of finance including debt, savings, investment basics, credit cards and much more.
Companies can also help raise awareness on the importance of life insurance policies or retirement plans so they will be able to guide their staff and refer them to a trusted professional where necessary.
Providing your employees with the knowledge they need about financial wellbeing will have a positive impact on employees’ mental and financial health.
Financial Wellbeing Workshops
Since financial health is personal, providing your employees support through awareness and education will help them understand their situation more. An expert should be involved when it comes to this and should be able to provide them with sound financial advice privately if needed.
Since most banks nowadays offer financial wellbeing services, many companies should be careful that they are not falling into the trap of banks trying to offer more credit or debt that will then turn out to be more problems. If you are looking for financial experts, Finsbury Associates can be of help. Finsbury can talk to you about financial health and wellbeing without selling any credit cards, etc., and will purely be a talk about how you can manage your finances.
If you are experiencing financial difficulties, the Finsbury Advisors can be of help as well to guide you and your family on what makes sense for you and your situation.
Every company should provide a means for this kind of talk or session as it involves education around financial management and is a good way to see if you as a company are providing enough help to your precious assets.