28 April 2020
Money, or the lack of it, is a major cause of stress in adults. Often, when working adults are facing financial issues, the resulting stress and anxiety can follow them to their workplace. Unsurprisingly, these stressed employees are unable to deliver to their full potential.
If we ask about what is considered the ideal state of financial wellness, It shouldn’t be very surprising if different employees have different opinions. For some employees, financial stability means the ability to pay all their bills and be prepared for unexpected events that may require monetary effort. However, some employees expect more when they think about a strong financial state. But one thing remains very clear whether employers take note of it or not – financial wellness programs are desired by all employees, along with other job benefits.
We don’t need extensive research to determine how morale can affect a professional’s working efficiency. Being able to give our best when our interests align is human nature. With this in mind, HRs have been tirelessly working to keep the team morale high even in challenging situations. However, ever-increasing financial worries among employees makes task an uphill battle.
Now, more than ever, employees find themselves struggling to navigate through their financial problems, and resulting stress and pressure starts to negatively reflect in their workplace performance. Although the issue seems to be largely affecting employees, it has serious repercussions for employers as well.
Lack of financial stability can mount significant pressure on employees. If employees are under stress or pressure, they are likely to waste their work hours thinking about their financial issues. Furthermore, stressed employees tend to have lower morale that can result in their diminished productivity or even absenteeism. This can subsequently lead to a financial loss for employers due to unachieved goals. Therefore, keeping employees motivated and stress-free is very much in the interest of both employers and employees.
Numerous sources of research have provided compelling evidence that a lack of financial stability is the most common issue plaguing employees across every industry. As per a survey report by PwC, a large part of the workforce is facing challenges with managing their financial liabilities. Due to rising unemployment and living costs, employees perceive that the compensation they get from their employer is not enough to sustain their financial needs. This, in return, has become the root cause for most of their worries. The survey further highlights:
Employers are not completely aware of the need for employee financial wellbeing programs in their workplace. A large number of organisations can be seen running some great financial wellness programs for their employees. While the primary goal of these programs is largely to provide the proper aid to employees through various means and making them able to improve their financial soundness, these programs can also play a significant role as part of an employee retention strategy.
PwC’s survey, with several others, projects a very clear picture of the significance of financial wellbeing. These provide a decent opportunity for employers to assess if they need to take the necessary steps to ensure that their employees are financially secured. Employers need to recognise that prioritising employee financial wellness will go a long way, generating value through stress-free and motivated employees utilising their full potential.