How Financial Well-Being Improves Employee Performance
Whether large or small, businesses thrive and falter on teamwork.
Looking for ways to improve your workplace? Want to inspire your employees and take your business further?
Did you know that 55% of employers offer some type of financial wellness programs?
It’s no surprise that employees in the US are not only concerned with salary. With a changing economy and uncertainties about healthcare, financial literacy is crucial.
Let’s take a look at how financial well-being improves employee performance.
What is Financial Well-Being?
Financial well-being focuses on personal security against unpredictable life events.
These financial risks include things like out-of-pocket medical expenses and diminishing retirement funds. Focusing on financial well-being can provide employees with education, tools, and support.
Implementing programs can support financial well-being. These can help employees to better understand their finances and the associated risks.
By doing so, firms are likely to see an increase in employee performance and a strong retention rate.
Stress and Employee Performance
Many businesses offer employees healthcare benefits as a part of compensation packages. Healthcare is only one aspect of employee wellness.
Finances can wreak stressful havoc on your employees.
According to the American Psychological Association, 72 percent of adults have money-related stress. 22 percent reported feeling extreme financial stress.
Stress is a large factor in physical and mental health. Both of these affect employee performance.
Stress often leads to unhealthy coping behaviors at home.
Financial stress may impact the quality of an employee’s work. It can also affect their ability to interact with co-workers.
The Cost-of-Living Changes
Performance-based raises and market-based raises are generous benefits to offer. Take these benefits a step further with cost-of-living raises.
Understanding an employee’s standard-of-living is important for building trust as a manager. Living expenses vary wildly depending on the area. They can also change over time.
Understand how cost-of-living factors into the financial well-being of your employees. This will help you to educate them in finance.
It can also help foster stronger interpersonal communication and relationships at work.
Time is a Factor
Financial planning and education take time. This is especially true for full-time employees with families.
For example, finding retirement planning information, resources, and advice can take many hours. Employees may feel under the gun to get their finances in order. That pressure could go as far as causing them to miss work.
Depending on their education, your employees may have very little financial background. You could ease the time commitment for them. Try offering free personal finance seminars at the office.
Offer solutions based on employees’ individual and family needs. This will remind them that they are a valuable asset to the company.
Tying It All Together
Financial pressures create stress that can impact employee performance.
Start looking after your employees’ financial wellness.
With time, you’ll see increased productivity and retention rates at the office. You’ll notice that your employees are healthier, happier, and more attentive at work.
Want to learn more about how your employees are feeling about their finances?
At POPIn, we help you find answers by giving your employees a voice!
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