In layman's terms, financial wellbeing is the relationship between an individual and their money; how they feel about and treat their finances.
Employees’ poor financial well-being costs UK employers £15.2bn each year due to factors such as absenteeism, leavers, and lack of productivity caused by stress. Additionally, 17 million UK adults have less than £100 in the bank (2019), with many in major debt, a fact made worse by Covid. Therefore, it is clear that financial wellbeing is of the topmost importance regarding overall workplace wellbeing. Without support, your people could face inconceivable consequences, further affecting your team and company.
Why you Should Help your People’s Financial Wellbeing:
Increase in Productivity
When your people feel stressed, they are distracted. Financial worries are the most common cause of stress. If companies disregard this, it threatens employee engagement and productivity.
Employee Wellbeing
It may come as no surprise that financial wellbeing will cause significant damage to an individual's overall wellbeing. Forward-thinking, progressive and fair companies care about their people’s wellbeing and happiness. Rewards and recognition can help your people through tough times, paired with financial help, such as employee vouchers, which can really make a difference.
How to Help your People’s Financial Wellbeing:
The Four Pillars of Wellbeing
The Four Pillars of Wellbeing can aid in the successful implementation of support. These pillars include physical, mental, financial, and social wellbeing. Lacking support in one area can have adverse effects on another. For example, those experiencing financial issues may experience a decline in mental wellbeing through stress and anxiety. Therefore, offering simultaneous support for these areas is vital to promoting your peoples’ wellbeing.
Here at Each Person, we will be launching our groundbreaking Wellbeing Hub in early September. The hub will be where your people can easily access the information they need to navigate these areas. By supporting your people in this way, you’re bettering their lives and building stronger relationships in the process. Both of which link with retention and employee engagement.
Encourage Employees to Save
To refer back to 17 million UK adults who have less than £100 in the bank. With many individuals turning to payday lenders that incur shocking interest rates, their financial wellbeing depletes. Encouraging saving is a positive and helpful way to create a financial cushion to unexpected costs.
Each Person is developing our Savings Club, launching later this year. The Savings Club will allow employees to establish health savings habits.
Sometimes, financial stress is unavoidable. However, financial wellbeing is not. With the correct, healthy, and manageable support systems, individuals can prepare for any eventuality. In other words, companies need to begin to invest in ways to help their people's financial well-being.
To find out more about how we can help your people's financial wellbeing and perks at work, contact us at info@eachperson.com. Also, follow us on social media today to keep an eye on our new launches, such as the Savings Club.
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