The Financial Element of the Wellbeing Equation

 
We all know how stressful money worries can be but have you ever thought about the impact these concerns have on how productive you are at work? Barclays (2014) found that 1 in every 5 employees they questioned admitted that financial worries negatively affected their work and productivity levels. Research has also found links between financial stress and absenteeism (Jinhee and Thomas, 2003). All of this has a detrimental effect on both the individuals involved and the bottom-line of their organisation.
 
Financial education programmes in workplaces have been shown to increase levels of financial literacy in participants which has a positive knock-on effect on the confidence with which they view their future financial prospects. This has in turn has been linked with employees feeling more satisfied with and committed to their organisations (Hira and Loibl, 2005). In fact 38% of people asked said they would like to move to an organisation where financial wellbeing was more of a priority (Barclays, 2014).
 
Maybe the first thing that organisations think of when considering the financial wellbeing of their employees is education surrounding pensions however it is essential that companies realise that they need to go further than this in order to realise the benefits associated with providing these programmes. Nudge (2016) highlight the importance of taking a holistic approach including employee benefits and personal finances in addition to pension information. 
 
Finally it is essential to remember that what is relevant to one employee may not be relevant to another – organisations need to tailor their programmes to the needs of different groups within the workforce. A good place to start is with stage of life. For example; the youngest members of a workforce will probably have different needs to individuals nearing retirement (Nudge, 2016). 
 
 
Three things to take away…
 
Financial wellbeing programmes can make good financial sense for employees and their organisations
Programmes can indirectly lead to an increase in employees’ productivity and loyalty to their firm and even reduce absence rates 
To get the most from their programmes organisations need to take a holistic approach and tailor them to the needs of different employee groups
 
 
Written by Nicola Murray
 

Nicola is nearing the end of a PhD in the Management of Employee Wellbeing. Viewing the area from a holistic perspective she is passionate about the potential for positive lasting change to take place on an individual, organisational, economic and societal level. 

 

Nicola is nearing the end of a PhD in the Management of Employee Wellbeing. Viewing the area from a holistic perspective she is passionate about the potential for positive lasting change to take place on an individual, organisational, economic and societal level.