Top Priority in HR Benefits: Financial Wellbeing of Employees

November 27, 20158:38 am1448 views

Current studies show that worries about money top all other employees’ concerns, even over their own personal health and relationships. Worrying about paying their bills and saving for the future is the number one cause of stress at home and in the workplace.

Financial stress is taking its toll on every aspect of employees’ life, including work production and efficiency, waistlines, relationships and sleep. A stressed-out workforce will never be able to help businesses compete on a highly competitive level.

Statistics on Financial Stress in the Workplace

Employee absenteeism and productivity loss are linked to financial stress in the workplace.

Nearly 1 in 5 employees say their finances have been a distraction at work, according to accounting firm PwC’s 2015 survey of financial wellness programs. About 50% of all employees were concerned about not having enough savings for unexpected expenses.

Less than half (46%) of employees have evaluated life insurance needs within the last year and only 53% of employees indicated they were covered by disability insurance.

Helping HR Build a Stronger Workforce

Supporting employees’ financial well-being is now a smarter priority, and companies are pursuing financial wellness programs to guide their employees to take more control of their finances.

Implementing a financial wellness solution reduces workplace costs while lowering employees’ financial stress and boosting their workplace engagement and productivity. Focusing on financial wellness also gives human resource directors the opportunity to help employees navigate their financial future.

The benefits include a reduction in employees dipping into their personal savings for emergency funds and fewer requests for pay check advances and emergency loans.

HR Worries at the Workplace

Human resources professionals are concerned about the worrying fact for many professionals is the funds in their savings account is spent on meeting short-term emergencies, thus undermining an expensive benefit program.

Customer-centric businesses are worried that financially stressed employees will not provide the level of service required to succeed in a competitive marketplace.

Many employers believe financial wellness programs are an important way for employers to show they genuinely care about employees and are an effective way to reduce employee turnover and build loyalty.

See: Employee Benefits: Can Creative Benefits Make Up For Lack Of Cash?

Simple and Effective On Demand Financial Education

A real-time approach to critical financial skill building uses technology to build a financially sound workforce. There are no shared documents, classrooms and/or counselling for human resources department to market or manage their team.

A sound and comprehensive financial wellness benefit program designed by organisations helps understand the complete financial picture of employees, reviews how all the pieces of their financial life fit together and the recommends actions that need to be taken to bring about change in financial happiness.

A complete review of assets, expenses, debt burden and emergency savings are made to measure their overall financial health while defining short and long term goals. Building regular habits while focusing on the simple building blocks to security and wealth is what individuals strive for.

Organisations are offering Financial Benefits that Build a Better Future

  • Employees learn the smartest ways to save and secure their assets.
  • Focus on where their money goes and meeting monthly expenses.
  • How to build emergency funds and cope with financial pressures in real time.

The Role of Financial Education in the Workplace

Companies are already in the financial education business. They provide benefits and educate employees about complicated financial and investment products.

Employees make some very important financial decisions at work, including how much to save for retirement, health, disability and life insurance. Additional decisions made at work include the spending of child care, medical expenses and specialized savings accounts.

As more and more employers give their team the ability to split their pay checks into savings, investments and checking accounts, the workplace is helping their employees save for college, a new car, a home and even a rainy day.

A less-stressed workforce is a more productive and competitive one for business with less turnover and a more confident and dedicated staff. It is time to make workforce empowered by educating them towards a financially secured future.

Source: hrdive.com

Also read: Benefits Cost Management in Asia Pacific: Value Perception among Employees

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