What is financial wellbeing?
Financial wellbeing has a significant influence on your overall wellbeing.
Financial Literacy Australia define financial wellbeing as when you are:
- able to meet expenses and have some money left over;
- in control of your finances; and
- feeling financially secure, now and in the future.
We know financial literacy underpins financial wellbeing. 95% of “financial superstars” have strong or very strong financial literacy. This compares to only 4% of those identified as “financially unwell”1.
Poor employee financial wellbeing costs your business, daily.
Core Data’s Financial Fitness paper revealed that more than 50% of Australians feel financially stressed. 85% say it negatively impacts their wellbeing. These stresses are carried into the workplace.
Not only does this have a negative impact on your employees’ wellbeing, it also impacts your bottom line. Reduced employee engagement and productivity, and increased absenteeism and mental health issues can all be linked to money worries.
The cost of poor employee financial wellbeing has been calculated at 13-17% of payroll. That’s an average $150,000 per year, or around $3,000 every week, per $1 million payroll.
Financial wellbeing; the optimal employee benefit
Improving employees’ financial wellbeing offers impressive benefits. Both for your team members, and your organisation. When employees are less stressed and more confident about money, they are empowered to be more engaged and productive.
60% of organisations who have implemented a financial wellbeing program believe their workplace financial wellbeing improved within 6 months1. These improvements have positive impacts on workplace morale and productivity. Organisations offering financial wellbeing programs saw a direct correlation to increased employee retention (56%), wellbeing (50%) and productivity (45%).2
Money is often seen as a taboo subject. However, it is without doubt employees want help with their financial wellbeing. Research by Zellis revealed 63% of employees said workplace financial education would make them feel more looked after. An impressive 88% said it would have a positive impact on their personal situation3.
Conversely, 62% of employers also believe improved financial literacy of their employees is either very valuable or extremely valuable1.
Offering financial education programs which improve financial wellbeing is the optimal employee benefit. It can assist you to reduce workplace stress, increase productivity and employee engagement. It can also help differentiate you as an employer of choice.
What can you do to improve your employees’ financial wellbeing?
Financial literacy is one of the key drivers to improved financial wellbeing. A solid financial education is the cornerstone of good money management. Financial literacy programs are the most effective tool available to provide a low cost solution to a wide audience.
There is very strong evidence that financial education works. A meta-analysis of 126 evaluation studies found that financial education significantly impacts financial behaviour.3
As Erik Porter, CEO of the Money Charity observed, “Most of us didn’t receive financial education in school. There is an opportunity for employers to support the development of financial knowledge, skills and behaviours that will have a positive impact on employees’ financial wellbeing”.
“It’s important to provide a roadmap that will enhance employees knowledge about a broad range of financial topics, and empower them to take the necessary steps towards financial wellness.”4
Each stage of life brings its own financial challenges, some anticipated, and some unexpected. A successful financial wellbeing program needs to be broad and continuous to be effective.
Money101 delivers an online financial wellbeing program covering 7 key life stages across 110 modules, plus a treasure trove of current and relevant articles for engaged learning.
- believe everyone should be empowered to make better financial decisions.
- is a brand trusted by industry super and government since 2004.
- deliver flexible online learning, available whenever and wherever.
- offer fast and easy set-up.
- allow private and confidential access.
- provide jargon-free, product-free, online financial education, without a hidden agenda.
Financial Wellbeing by Money101, the optimal employee benefit, delivered today.
- 1 https://www.coredata.com.au WSSA Workplace Financial Wellness Index
- 2 https://www.ey.com/en_us/tax/how-do-you-know-if-financial-wellness-is-paying-off-for-you-and-your-people
- 3 https://www.hrzone.com/lead/change/financial-wellbeing-why-2020-should-be-the-year-that-employers-offer-financial-education
- 4 https://www.ey.com/en_us/tax/how-do-you-know-if-financial-wellness-is-paying-off-for-you-and-your-people