Bolstering Blue-Collar Financial Health: A Strategic Imperative for Employers

By Prabhav Rakhra, Salary Hero

The rise of the digital economy, coupled with the ongoing challenges of a global pandemic, has brought about a significant shift in the world of work. Amidst these changes, a critical segment of the workforce often overlooked in the financial health conversation is blue-collar workers, particularly in Thailand. It is time we changed this narrative.

As a society, we must acknowledge the indispensable value blue-collar workers bring to the table. Their work is the lifeblood of the Thai economy, and their financial well-being is not just a moral responsibility but also a strategic imperative for businesses. Financial health can be the catalyst for happier employees, higher productivity, and increased employee loyalty and retention. To underscore the point, we refer to results from an employee survey conducted by Salary Hero in Thailand’s manufacturing industry. The survey represented companies from eleven Thai provinces and over 150,000 employees.

Leveraging HR for Financial Wellness: An Area of Focus

The role of Human Resources (HR) is pivotal in shaping and implementing policies that directly affect workers’ financial health. This importance is even more pronounced for blue-collar workers, who often lack access to comprehensive financial resources and education.

The results from the survey paint a stark picture: about 70% of workers surveyed admitted to using loan sharks, and 83% reported experiencing financial stress. These alarming figures highlight a vital opportunity for HR to step in and create a significant positive impact by championing financial wellness.

Financial Wellness and Productivity: The Unmissable Link

Financial stress can have a detrimental effect on the overall productivity of the workforce. Employees struggling with financial worries are more likely to be distracted and less engaged, directly impacting their performance and, in turn, the company’s output.

By investing in financial wellness programs, companies can help their employees better manage their finances, leading to a more focused and productive workforce. Moreover, 82% of the surveyed employees noted they would view their employers more favorably if they facilitated access to financial health tools like Salary on Demand, financial education, and other wellness tools.

Enhancing the Employer Value Proposition with Financial Health

The Employer Value Proposition (EVP) is a unique set of benefits an employee receives in return for their skills and capabilities. A strong EVP is critical to attracting and retaining a high-quality workforce, particularly in Thailand’s tight labor market.

Incorporating financial wellness into the EVP can significantly enhance a company’s appeal. It sends a strong message to current and prospective employees that the company genuinely values their people. This commitment can boost employee loyalty, reduce turnover, and cultivate a positive company culture.

The Compelling Business Case for Investing in Financial Health

Investing in the financial health of blue-collar workers is not just a moral obligation - but also makes sound business sense. The results from the survey further strengthen this assertion. Companies that prioritize their employees’ financial health stand to benefit from increased productivity, improved morale, decreased absenteeism and lower turnover and recruitment costs.

Moreover, demonstrating a commitment to employees’ financial health can significantly enhance a company’s reputation and branding. In a world where companies’ social footprints are closely scrutinized, businesses that invest in the financial wellness of their employees distinguish themselves as responsible employers and thought leaders.

By adopting the right HR tools and technologies, companies have a unique opportunity to make a tangible impact on the lives of their people and with the availability of tools and quality technology in 2023 – this has never been easier to execute.

Conclusion

The financial health of blue-collar workers is an issue of crucial importance that requires urgent attention and action. By leveraging data and new technologies, companies can implement effective financial wellness programs that are easy to implement with seamless integration to their existing systems.

Investing in the financial wellness of employees is a win-win strategy that yields happier employees, a more productive workforce, a stronger employer brand and a tangible boost to the company’s bottom line - making it not just the right thing to do but also smart business.