The impact of poor financial wellbeing in the workplace
Did you know that almost all (98 percent) employers believe that their employees’ financial wellness has a direct impact on productivity and their business performance?
These figures come from the Future of Pay research study by tech company ADP, who surveyed 4,000 employees and 2,900 businesses, to explore solutions to some of the biggest human resource management concerns. The two areas most heavily impacted are employee productivity (67 percent) and engagement (62 percent).
These findings are also supported by research from the Money and Mental Health Policy Institute which found half (55%) of those employees who are struggling financially are less productive, and almost as many (53%) admitted to working less carefully as a result of emotional issues stemming from their financial stress. Two thirds (67%) of employees who are in financial difficulty report at least one sign of poor mental health, compared to 41% of those who are financially comfortable.
The link between financial wellbeing and mental health
Financial difficulty is both a common cause and consequence of mental health problems. One in four people with a mental health problem is also in problem debt, and half of people in financial difficulties have a mental health problem.
Financial difficulties also affect relationships with work colleagues, motivation and likelihood of sickness. In some cases, financial difficulties worsen mental health problems, meaning employees become too unwell to work and need time off. For others, financial concerns mean they feel unable to take time and instead continue to attend work while productivity drops (presenteeism).
The expectation of employer assistance with financial wellbeing
The Future of Pay report also revealed that almost four out of five (79 percent) employees expect their employers to help them with their financial wellbeing. While many organisations implement a variety of initiatives to help boost productivity, employee expectations for workplace financial wellness programs are on the rise.
Organisations need to review the role they play in their employees’ financial wellbeing journey. Businesses can support their employees by becoming financial wellbeing advocates and facilitators. They can also provide access to financial literacy tools which can help build employees’ financial resilience.
The benefits of addressing financial wellbeing in the workplace
Organisations like Stanwell understand the key role financial wellbeing plays in the mental health and wellbeing of their team, and the benefits derived from addressing financial wellbeing in the workplace. You can read more about their journey here.