Employee Financial Wellness: Driving Performance and Improving Your Bottomline
Employee financial wellness has emerged as a crucial concern for employers in recent years.
While a staggering 63% of the SA population worry about their money on a daily- or weekly basis, according to a recent study conducted by PWC, 55% of financially stressed employees spend 3 hours per week dealing with their finances at work!
The reality is that financially secure employees exhibit heightened productivity, engagement, and loyalty towards their employers. These positive outcomes, in turn, can have a profound impact on a company’s financial performance.
70% of the population spend more than they earn
Establishing the Link Between Financial Wellness and Employee Performance
Studies have consistently demonstrated that employees who enjoy financial security are more likely to be productive and engaged in their workplace. Financial stress, conversely, can act as a significant distraction, resulting in diminishing focus and productivity levels. When employees are burdened by concerns about their financial well-being, they are more prone to taking risks, making poor decisions, and displaying a decreased inclination towards taking initiative. These factors collectively impede employee performance, thereby adversely affecting the company’s bottom line.
Unlocking The Benefits of Financial Wellness Programs
To support their employees in achieving financial security, employers can introduce financial wellness programs into their workplace training. These programs equip employees with the necessary knowledge, skills and tools to make informed decisions and cultivate stability. By offering financial wellness programs, employers actively contribute to their employees’ financial well-being, which in turns, fosters improved performance and bolsters your company’s overall financial help.
The Crucial Role of Retirement Planning
Retirement planning stands as an indispensable aspect of employee financial wellness. Adequate planning ensures that employees possess sufficient savings to maintain their desired lifestyle during retirement. Employers can play a pivotal role in assisting employees by granting access to retirement planning resources. Through this, employers facilitate employee preparedness for retirement, instilling a sense of financial security and alleviating retirement-related financial stress.
Harnessing the Power of Financial Education
Another critical component of employee financial wellness is financial education. By empowering and equipping employees with the knowledge and skills required to make sound financial decisions, you can actively contribute to your employees’ financial security. In addition, financial education empowers employees to comprehend the significance of budgeting, saving, and investing, enabling them to fortify their financial well-being and positively impact the company’s financial standing.
Employee financial wellness can profoundly influence your company’s bottom-line. By offering comprehensive financial wellness programs, retirement planning resources, and financial education initiatives, such as WealthyMe or WealthyCouples , employers actively empower their employees to achieve financial security.
This concerted approach not only enhances employee performance but also contributes positively to your organization’s bottomline.
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