5 ways to improve employee financial wellness

Making work worth more 5 ways to improve employee financial wellness

Business owners pay their employees, offer them benefits, and if the employees work long enough, they become eligible to contribute to a retirement program— like a 401(k) or RRSP — often with some employer matching.

That’s about the extent of involvement employers have in the financial wellbeing of their employees. But why isn’t it more?

According to a recent survey by e-commerce platform Jungle Scout, more than half of American consumers are living paycheck to paycheck. People who struggle with their finances have more on their mind than the job they’re supposed to do each day. This reality was confirmed by a another Canadian study that reported lack of financial confidence can generate workplace stress. This can have cascading consequences for the employer, including “lack of engagement, distraction and, ultimately, impaired productivity and higher absenteeism”.

Another financial confidence study in Australia reported that, regardless of job role, income or generation, many employees are uneasy about their current or future financial wellbeing.

Reducing financial stress is good for the business because this pressure can distract employees — negatively affecting their wellbeing, decreasing productivity and impacting organisational wellbeing. Findings show how past and present financial stress affects employees in different areas of their lives:

63% 44% 37% 36%

experience a negative influence on mood and demeanour

experience an inability to meet home or family commitments

report that monetary stressors create health difficulties

report that monetary stressors create relationship challenges

Internal strife caused by compounded financial woes often accompanies employees to their worksite, where it can lead to increased absenteeism as well as reduced productivity. It’s time companies took a more active role in providing resources to their employees to help them become financially secure so they can become more focused on their work. They will perform better and work harder for an employer that demonstrates concern for their fiscal well-being.