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14 Mar 2018

What benefit does focusing on financial wellness bring to employers?

Ultimately, wellbeing is about having peace of mind. Money is a big consideration for most employees and as such, this can affect employee productivity and enthusiasm in the workplace.

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Worrying statistics, reported by the CIPD in their wellbeing report published in January 2017, show that 55% of UK employees have said that facing financial pressures affects their behaviour at work and ability to perform in their job. It also highlighted that employees of all types and earning levels can be at risk of poor financial wellbeing and may require financial education.

With financial stress costing the UK economy £120.7 billion, and losing 17.5 million hours because of absence from financial stress, it’s clearly an issue for employers across the UK.

The solution need not be complicated 

It’s the small things that can really make a difference. Financial wellbeing achieved by having security and not having to worry about money is a really important factor in an employees’ life. Stress caused by pay levels, lack of financial awareness or an absence of employee benefits can have a huge impact on an employee in the workplace.

As money woes are the leading cause of stress and anxiety, which can in turn lead to poor physical health too, it’s key for employers to help their employees resolve their financial troubles so as to reduce the impact on their physical and mental health.

It also means employers can take a truly holistic approach to their wellbeing, covering every angle, while reducing absenteeism and maximising productivity.

The CIPD report details that one in four workers report money worries have affected their ability to do their job, one in ten say they have found it hard to concentrate/make decisions at work because of money worries and 19% have lost sleep worrying about money. This provides a compelling case for employers to take steps to improve their workers’ financial wellbeing and so their businesses' bottom line.

The report identifies that poor financial wellbeing impacts employee health in terms of poor psychological wellbeing, higher stress and anxiety levels, and lower levels of good health.

In turn, this affects productivity in terms of poorer job performance, short-term decision-making, reduced ability to concentrate, lower productivity and absenteeism.

There’s a clear case for taking action and supporting employee financial wellbeing, making it an integral part of creating a healthy workplace where people can flourish, reach their potential and make a significant contribution to their organisation’s performance.

Providing benefits which help employees to budget and reduce their financial pressures, can be one part of this. Car benefit schemes are one such benefit where employees are able to budget better, with peace of mind that everything is taken care of. It makes the potentially complex, simple.

Work is just one aspect of an employee’s life, so maintaining a balance is important for employees’ overall wellbeing.

This article was provided by Tusker. 

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