Should employers be concerned with workers’ financial well-being?
The consensus from academic research, professional and trade associations, media, and leading employers is that employee financial problems negatively impact the employer’s bottom line. Employers who provide employees access to information and resources to increase their personal financial literacy and money management behaviors improve their profitability.
The strong correlations among personal finances, stress levels, health, and family relationships are well established. So are the correlations between financial well-being and the direct employee costs of absenteeism, administration, lost productivity, and turnover. An employee’s financial well-being conditions his or her job satisfaction, engagement, and productivity. Low engagement from just one employee impairs the productivity of co-workers.
Studies show that employee financial wellness can improve morale in the workplace. Benefits of financial wellness programs in the workplace include:
- Improvement in workplace productivity
- Improvement in employee morale
- Improvement in organization loyalty
- Reduced absenteeism
- Reduced turnover
- Reduced workplace distractions
Financial education programs can be a cost effective benefit that can create a more focused, engaged, and productive workforce.
To learn more, visit the PFEEF (Personal Finance Employee Education Fund) website
DO YOU HAVE A HAZARDOUS WAIST? #MHW2017
Men’s Health Week 12-18 June
Mental Health Foundation have produced a paper on key findings from a survey carried out in March 2017, to understand the prevalence of self-reported mental health problems.
The Line Managers Resource, produced by MHFA England, provides helpful guidance and advice to employers who would like to improve the way they support employees experiencing mental health issues and create mentally healthy workplaces within their organisations.
Click here to read more
MHFA Line Managers Resource document
The CIPD’s survey Financial Well-being: The employee view (2017) finds:
- 19% of respondents are losing sleep at night because they are worried about money. That translates into a negative impact on their ability to concentrate at work and their productivity.
- 30% are also making uninformed financial decisions – they say they don’t use advice or information from any source when weighing up options about saving or spending.
- 58% face barriers to managing their finances, including lack of time, difficulty in understanding financial products and services, only earning enough each month to get by and the hassle involved in taking action to save money by researching products and services.
Within the CIPD’s model of well-being financial well-being and financial education are placed within emotional well-being as part of personal growth.
This highlights the importance of money management in contributing to people’s sense of security and confidence in being able to live comfortably and stresses the opportunity for empowering people to improve their financial affairs.
CIPP Financial Education saving through payroll
Financial Education in the workplace saving through payroll
Financial well-being practical guidance report