What is Financial Wellness?
Financial wellness is that financial situation where you can meet all your expenses like your bills, debts, investments, etc. on your monthly income without worrying about it. However, financial wellness is not just about getting your finances under control. It is about getting to a state of mind where finances don’t cause you any stress.
As an employer, financial wellness of your employees should always be on your mind as it can help you get the best out of your employees. It improves your employees productivity and job satisfaction.
How does financial wellness benefit employees?
Encouraging financial wellness among your employees can help reduce their stress. Once they have all the resources and tools they need to make more informed decisions about their finances, employees can develop a plan to wisely use their money to pay their bills, save, and invest, creating a more secure financial future.
It can also help reduce the negative image of money in your employee’s minds. As they plan their finances and start living on a budget, they will realise that the money they earn covers their essential requirements. Also, as they become more financially secure, employees will develop a more positive mindset as they get to spend some more time with their families instead of just worrying about money all the time.
What are the ways to ensure financial wellness of employees?
If you ask an employer how they plan to improve their employee’s financial wellness, the first thing they will do is increase their income. This will not help as financial well-being is not dependent on the income but rather on financial literacy and discipline. Employers need to get a bit more creative in the way they help their employees with their finances.
- Give them the training. Teach your employees about financial wellness and how to achieve it. You could do this in the form of seminars or online courses. You could also provide them with access to financial tools that can help them achieve their financial goals
- Provide access to financial advice when required. This can prove to be extremely useful for every single employee in your organisation. For example, if the employee needs to take a loan, they can speak to a financial advisor in the company and figure out the best plan for them. It helps employees become more financially secure, reduce dependency on company benefits, and create a positive impression about the company in their minds.
- Tailor the benefits package to the employee’s specific needs. This is probably the most effective way for employers to ensure their employee’s financial well-being. Companies can speak to their employees and understand their goals. Depending on the feedback, the benefit’s package can be designed to the specific requirements of the employee. This way the employee can actually benefit from all the offerings.
How does employee financial wellness benefit the company?
- Employees will be more productive because they are not stressed out about their finances or spending company time managing their finances.
- Also, cost to the company will reduce as employees will stop depending on company benefits in case of emergencies. Eventually these programs will cost the company less and the company will be able to sustain them.
- Great benefits can also help businesses attract and retain top-notch staff, because financially content employees are more likely to stay with the company for the long haul.
Your employees are what makes your company tick. And as an employer, it is important to make sure they have everything they need to work efficiently, including financial security.
At SmartMoney Education, our goal is to motivate, inspire, and guide you in your journey towards financial well-being. To learn more, get in touch with us today and set up a one-on-one session.