Every employee brings financial concerns into the workplace:
Eolas Financial Wellbeing programs tackle employee concerns by helping employees gain control over their finances, leading to a more focused, motivated and productive workforce.
The workplace is a natural location for financial wellbeing initiatives to take place because it’s the conduit through which people earn money. As a result, financial wellbeing initiatives within the workplace create a mutually beneficial environment of education, engagement, motivation and increased financial security:
- Improving employee physical and mental health (people with high levels of financial stress are more prone to sickness);
- Augmenting the perception of your company brand;
- Increasing employee engagement, productivity and retention;
- Decreasing financial worries and distractions; and
- Reducing employee absenteeism.
Organisations have every reason to want their employees to be financially sound, and an effectively designed employee financial wellness program can help employers reduce a key barrier to productivity and motivation in the workplace.
What is Financial Wellbeing?
The US Consumer Financial Protection Bureau (CFPB) describes financial wellbeing as a state of being in which an individual:
- Has control over day-to-day and month-to-month finances;
- Has the capacity to absorb a financial shock;
- Is on track to meet financial goals; &
- Has the financial freedom to make choices that allow them to enjoy their life.
“Financial wellbeing is not about an individual meeting certain quantitative criteria, but instead is about a state of being that changes throughout one’s life stages. For employers, this state of being can directly impact employee engagement, absenteeism and (subsequently) productivity. Employers are therefore increasingly looking to better understand their own employee’s financial wellness realities and how they can help to programmatically improve them over time“.
This 2017 publication from PwC’s employee financial education and wellness practice tracks the financial well-being of full-time employed US adults nationwide and incorporates the views of more than 1,600 full-time employed adults. Results highlight how financial stress, student loans, and retirement plan withdrawals all present obstacles to employee financial well-being and a potentially significant cost to employers
“A growing body of evidence shows that anxiety about finances leads to poorer mental,
physical and social well-being, which can affect attendance and performance at work. For
example, research by the Chartered Institute of Personnel and Development (CIPD) found
that money worries were the biggest source of stress to UK employees.
Our research showed that 90 per cent of employers agreed that financial concerns have an impact on workplace performance. Both employers and employees agree that if employees knew where to go for help and guidance, they would have better control over their money and would seek help when they needed it“.
FCA, Financial Wellbeing in the Workplace – A Way Forward, 2017