Like physical wellness, financial wellness should occupy a central place in our list of life goals. Unlike physical wellness though, it is often ignored or taken casually by people. According to research, with 69% of workers being stressed about their finances and 72% worrying about their finances at work, it’s not hard to see why financial wellness is a serious topic to discuss. It is also proven that an employee who maintains a balanced financial life will be more productive and more focused on their work.
Financial wellbeing or wellness is a person’s overall financial health and the absence of money-related stress. It refers to how secure your money is. It’s an integral part of overall employee wellbeing, consisting of physical, mental, and financial wellness.
Generally, financially healthy people have the following four elements in place:
- Their income covers their costs and permits them to handle their debt repayments
- They have reserve funds for monetary crises or emergencies like basic home repairs, medical charges, or job misfortune
- They save and look forward to long-term monetary objectives
- They have the liberty to choose for themselves and enjoy their lives
Financial wellness can be classified into three major types:
1. Financial health
Financial health describes an individual’s financial situation involving several dimensions: savings of your employees, fixed expenses, and how much he tends to save in a month
Sound financial health indicates a steady flow of income, a few transactions in investments with solid returns, and a steady cash balance. EarlySalary can help improve your financial health by budgeting, building a contingency fund that can be used in case of emergencies, and paying off your debts as soon as possible.
2. Financial behavior
The financial behavior of an employee is his attitude towards his financial situation. It involves successfully managing finances to achieve both short-term and long-term financial goals. EarlySalary helps you control your finances and face a financial shock. We also help organizations to incorporate financial wellness programs. This can improve the employees’ financial behavior and give them a feeling of care.
3. Financial literacy
Financial literacy can help you impart financial education to the employees. This will help them learn skills, which will help them achieve financial stability, lower their financial stress, and improve their financial health. In addition, this will boost their confidence in money matters, debt management, preparation and planning for retirement, etc.
Since the employees will be under less financial stress, this will reduce absenteeism and reduce the organization’s health care expenses. It will also increase employee retention and their output in the organization.
Why should you care about financial wellness?
- Imbalanced finances could be stressful
Money can be a constant source of stress for people these days. Worrying about finances can result in health issues for employees, varying from depression and anxiety to ulcers and even heart problems. Some respondents said they thought about skipping or did skip doctor visits because of financial concerns. EarlySalary helps reduce the employees’ financial stress. It can lead to a healthier and happier workforce, leading to higher productivity.
- Managing finances takes time
Managing finances is both stressful and it’s time-consuming. Employees bring their worries into the workplace when they can’t control their financial health. Some employees even miss work due to money woes or financial emergencies. It is found that lack of sleep, financial concerns, and family members’ care are negatively associated with productivity. When they worry about their financial wellbeing, they lose focus and become less productive at work. The organization must take care of their employees’ time management, helping them manage their financial wellness.
- Employees want support
Employees nowadays want their managers to help support financial wellness and want financial planning benefits. In addition, they want to avoid financial stress since it leads to increased absenteeism, presenteeism, and illness, affecting their productivity. Therefore, EarlySalary helps improve employees’ financial wellness.
- Financial wellness improves engagement
Employers should provide cost-of-living to their employees, especially to lower-paid employees. Employees who receive this are 15 percent more engaged, on average. They may alleviate their stress, allowing them to work with focus.
This gesture also shows the employees that the organization cares about them, inspiring loyalty and motivation. And when they feel so, they’re 38 percent more engaged. So, investing in financial wellness boosts the overall wellbeing of employees, increasing their health, productivity, and engagement.
Enabling Financial Wellness & Financial Wellbeing
It is very challenging for any organization to formulate a financial wellness program that fits the bill for all employees. Learn more about some strategies to make an excellent Financial wellness program by connecting to EarlySalary. We can take care of all of your organization’s financial wellness needs.
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