An employee’s performance depends on their physical, mental and financial wellness and employers around the globe are increasingly becoming aware that providing employees with a fair and regular pay check alone does not necessarily guarantee financial health, mental peace or financial wellness. As is the case of every other issue that influences the performance of the employees, the concept of financial wellness is also now of paramount importance for employers worldwide.
Financial stress is not a new concept for employees. Ever since the beginning of time, employees have struggled to manage their expenses and limit their wants to meet their income. This is one of the major stressors affecting employees and is a primary concern for them. In the work place, financial stress is one of the top contributors of lost productivity. Hence, guiding employees to financial wellness is an important ancillary function for many organizations. Organizations around the globe are taking an active interest in this pursuit and are engaging with their employees in a multitude of ways to help them find a niche that they are comfortable in.
The primary step towards Financial Wellness is Financial Literacy. There is a glaring lack of financial literacy amongst today’s workforce and this crisis is affecting the financial health and overall wellness of the average worker. Too many people just don’t understand how to manage their money, and as a result, they are experiencing financial stress that is consuming their focus both at home – and now at work. This takes a toll on the productivity of the employee and is also cause for increasing turnover.
And this problem is not just restricted to a select few members of the population:
- The new members of the workforce often have to deal with what looks like never ending student loans while struggling to survive on a beginner’s salary.
- Young families and baby boomers are attempting to find their feet and manage their rising expenses. They are struggling to meet the expectations placed on them.
- While the Middle aged members of society are trying to cope with the increasing education costs for their expanding families while simultaneously dealing with the emotional and financial costs of caring for their elderly family members as well. Add to this mix the task of juggling, home and student loans, EMI’s, medical bills and credit card payments.
- Many employees who are facing retirement, often borrow against their retirement funds (without understanding the consequences) to meet normal costs or augment their incomes, when it comes to meeting expenses that they cannot afford.
Often these people are at the edge of a precipice and require very careful handling.
The immediate consequence of all this is a rising shift in the viewpoint of employee benefits – supplementing traditional wellness models with a more well-rounded and holistic strategy focusing on the individual’s overall personal health. It’s a positive change that benefits more than simply employees. It’s beneficial to the company. Many folks just do not have a lot of disposable cash. Money worries are the leading cause of missed productivity. Furthermore, financial concerns force healthy activities such as exercise and eating to the back burner.
Finding a solution begins with recognizing the financial health issue and its influence on the employee and the organization. A range of techniques are available to address your worker’s unique issues, once there is a clear understanding about the extent of their problems. Some may be employer-sponsored, while others may be offered up as low-cost voluntary benefits.
There exists a multitude of solutions that can be offered up to sort out the issues for the employees. These could take the form of techniques to avoid credit card debts, hidden fees or interest charges. Employee Purchasing programs to help in the purchase of big ticket items through payroll deductions, also providing employees with low interest installment loans to cover unexpected expenses etc… These measures could assist people in avoiding unscrupulous payday loans, which might exacerbate their financial difficulties.
In the present scenario employee wellness is synonymous with the physical, mental and financial wellness of the individual. Therefore providing comprehensive solutions for the workforce that tends to live from paycheck to paycheck tends to be a win-win situation for all concerned.
www.smartmoneyeducation.com will give you a new outlook on managing your money better.