This informal CPD article, ‘Financial Wellbeing: Why it should be top of the agenda for employers’, was provided by Money First Aid training, who provide participants with the necessary knowledge and skills to assist their colleagues in overcoming financial difficulties, while also helping create a supportive and understanding work environment.
In the ever-changing landscape of employee benefits, the focus has shifted beyond traditional offerings like healthcare and retirement plans. Employers are increasingly recognising the importance of addressing the overall wellbeing of their workforce. This includes the physical, mental and now financial wellbeing of their teams. Financial wellbeing was less of a priority for many organisations until the COVID pandemic and cost of living crisis forced this to be moved up the agenda for both employers and employees. PwC Financial Wellness survey1 found 57% said that finances were the top cause of stress in their lives.
Financial wellbeing support is not just a benefit for the employee. There are clear strategic advantages for companies that invest in providing financial wellbeing support to their employees.
1. Boosting Employee Morale and Productivity
A financially stable workforce is a more focused and productive workforce. The link between financial stress and decreased productivity is well established. When employees are burdened with financial worries, their ability to concentrate on work diminishes. CIPD research2 found 28% of employees said money worries affected their performance at work, most commonly through lost sleep, health problems such as stress or anxiety, and finding it hard to concentrate or make decisions at work. By offering financial wellbeing support, employers can alleviate this stress, creating an environment where employees are better equipped to bring their best selves to work each day.
2. Job Satisfaction and Engagement
Employee satisfaction and engagement are critical factors in a company's success. When employees feel supported in their financial goals, it translates to higher job satisfaction. Employers that go beyond the basic benefits demonstrate a commitment to the holistic wellbeing of their workforce. This commitment fosters a positive work environment, increasing overall employee engagement.
3. Attraction and Retention of Top Talent
In a competitive job market, attracting and retaining top talent is a constant challenge. Companies that offer comprehensive financial wellbeing programmes gain a competitive edge. PwC Financial Wellness survey1 found 73% said they would be attracted to another employer that cared more about their financial wellbeing.
Prospective employees are increasingly looking beyond salary figures; they seek employers who care about their overall wellbeing. By investing in financial wellbeing, companies can position themselves as attractive employers, reducing staff turnover and ensuring a stable, skilled workforce.
4. Reducing Absenteeism and Associated Costs
Financial stress often contributes to health issues, leading to increased absenteeism. Employers who address their employees' financial concerns may see a decrease in absenteeism and the associated productivity losses. By promoting financial wellbeing, companies invest in the health and resilience of their workforce, reaping the benefits of a more present and engaged team.