Employees are a business’ most crucial asset The relationship between employee well-being and financial health is well-established, while financial wellbeing is being pushed up the business agenda, it is still the least covered area in HR strategies.
Proactively addressing employee financial wellness can help attract and retain top talent, foster a happier, healthier and more productive workforce and even reduce business costs.
Financial health and employee wellbeing: What the data tells us
PwC's Employee Financial Wellness Survey reported that 45% of employees stated financial matters as the most stressful factor in their lives. Meanwhile, a study by Willis Towers Watson found that employees with financial woes were twice as likely to have health issues.
The Money and Mental Health Policy Institute’s research demonstrates the cyclical relationship between financial stress and poor mental health. Struggling with money can make managing mental health more difficult, and worrying about finances can further negatively impact mental well-being. This, in turn, leads to decreased productivity, low morale, and increased absences in the workplace.
Poor financial wellness doesn't just leave a dent in an employee's wallet. A report from the Financial Health Network states employees who are financially stressed are twice as likely to report poor health overall. Furthermore, these employees take twice as many sick days, thereby impacting their productivity and overall team performance.
According to Morgan Stanley, employees struggling with their finances are nine times more likely to have troubled relationships with co-workers, and are twice as likely to be searching for a new job, leading to increased retention, HR and training burdens for employers.
Employee financial wellness: A win-win strategy
When organisations invest in employee financial wellness, it brings a multitude of benefits for both parties. According to a survey by the Society for HR Management, 83% of employers noticed an improvement in worker performance when financial wellness programs were implemented, and 81% noted increased employee satisfaction.
Employees who are financially secure are engaged, healthier, and more productive. A decrease in financial stress leads to lower turnover rates, with 60% of employees more likely to stick with an employer that offers a financial wellness programme.
A proactive approach to financial health is critical in retaining and attracting employees as it moves up their list of concerns - 76% of employees state they would be attracted to another company that they perceive cares more about their financial wellbeing
Focus now to future-proof
Financial wellness has gone from being a nice-to-have , to an absolute essential employee benefit. The mounting financial uncertainties underpin the necessity of supporting employees in gaining control over their finances. Investing in this through 2024 and beyond, serves a dual purpose - enhancing your employee's financial health and fostering a more vibrant, productive workplace. It's high time we view this not just as a winning business strategy, but as a move towards sustainable growth in building a happier, healthier and wealthier workforce.
Moneyhub makes it easy to incorporate financial wellness into your employee benefit strategies. Get in touch with us to find out more about pre-purchasing bulk licences to our award-winning consumer app, or our suite of financial wellness tools available through our white label personal financial management platform >