54% } The percentage of employees who are stressed about their finances according to a survey conducted by PWC in 2018.
Financial wellness is just as important physical wellness. Think of it this way, if your employees are constantly worried about paying school fees for their children, servicing that mortgage, retirement and more, they are not 100% focused on work and therefore, they are not being productive.
According to the PWC report, employees define financial wellness in terms of aspirational goals like
freedom from stress and financial worry and being able to make choices to enjoy life. Researchers have
discovered that employee financial wellness is not only beneficial to your employees but to your company as well.
Citing the PWC report 48% said that finances have been a distraction at work, while 50% spend three or more hours a week thinking about or dealing with personal finance issues. When employees are not worried about their finances, they are able to focus on their work and are therefore productive.
Increased Employee Loyalty
Who doesn’t like to be helped? Chances are that when a person helps you, you’re likely to become loyal to them as well as to the relationship. The same applies to employees and employers. Employers who take their time and resources to educate their employees on financial planning are likely to experience low employee turnover. According to a study conducted by US Insurance company MetLife, 51% of employees are likely to accept job offers with a new employer if financial planning programs are being offered. While 53% would be more loyal to their employers.
Lower Healthcare Premiums
According to the American Psychological Association, the number one cause of stress is money. Stress has been linked to increased heart rate, blood pressure, suppression of memory, slower metabolism and more. Stress can be caused by many things. And finances are no exception. The Human Resources Magazine states that more than 53% of financially stressed employees spend hours on the clock dealing with their financial issues. Increased health complications translate to increased doctor’s visits. Therefore, a company is tasked with increased costs of treatment for its employees. This can be alleviated by ensuring employees are trained on how to manage their finances at a personal level.
Retirement Planning and Financial Wellness
At a glance, retirement planning may not seem to have a direct effect on your bottom-line. A study conducted by American management consulting firm Gallup reported that more Americans will retire after the age of 65, However, when put into perspective, ageing brings with it age-related, health complications. This in return increases your health insurance premium. By having employees participate in financial wellness programs which include retirement programs, employees are able to retire in a timely manner. By having employees participate in financial wellness programs which include retirement
programs, employees are able to retire in a timely manner.