Why Employees Financial Wellness Should be Your Top Priority?

When PwC asked US employees what their top source of stress was, 59 percent said financial or monetary difficulties. Job-related stress, on the other hand, came in second with 15 percent.

Fremont, CA: As the cost of living and mandatory expenses such as healthcare continues to rise, financial wellness is a critical concern for employees across organizations. Furthermore, employee financial wellness has a significant impact on the bottom line of the business – research suggests that financial security can significantly reduce stress levels, allowing employees to be more productive and focused at work.

So, what are the main reasons why employee financial wellness should be high on your priority list? How can you use technology to provide financial wellness programs that result in measurable business outcomes? Let us investigate.

Why You Need to Keep an Eye on Employees' Financial Wellness:

Reducing Stress from Money Matters, and Related Turnover

When PwC asked US employees what their top source of stress was, 59 percent said financial or monetary difficulties. Job-related stress, on the other hand, came in second with 15 percent. With your employees concerned about financial security, both in terms of day-to-day expenses and long-term savings, it is only natural for them to look for new opportunities outside of the organization. Simply put, employee financial wellness is critical to keeping an engaged workforce that is not at risk of turnover.

The Prevention of Absenteeism to Address Financial Problems

The Centre of Economics and Business Research (CEBR) discovered a direct link between employee financial wellness and absenteeism in a study of UK employees. In the previous year, 2 percent of workers reported taking time off due to financial difficulties, taking an average of 8 days off. This equates to 4.2 million person-days lost per year or £626 million in output. By implementing a clear roadmap for employee financial wellness, one can reduce absenteeism and achieve significant long-term efficiency gains.

Mitigation of Productivity Drops Because of Financial Concerns

Stress from a difficult financial situation is bound to have an impact on innovation readiness, collaboration, and productivity. According to the CEBR study, 11 percent of employees' productivity was reduced at some point due to their financial well-being. Despite the fact that these employees were present at work, the stress of financial concerns caused them to perform at a level below their true potential.