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Importance of Financial Wellness for Employees

Financial wellness is an important issue that is still far from being universally accepted as worth paying attention by most organisations. This is when, one can easily figure out the fact that companies are directly benefited from a healthy financial condition of their employees. 

An employee going through tough financial conditions, is likely to stay under-pressure to make the ends meet. On the other hand, recession is another matter of concern, where a lot of workers suffer unemployment. Say, for an instance, you wish to buy a new house or a car, it isn’t easy if you are financially unstable or your company isn’t concerned about your financial wellbeing. These situations can result in serious employee grievances and low productivity. Here are a few points that show how a poor financial condition can effect employees as well as the organisation where they work.

Stressed at home and work

A financially weak employee is likely to stay depressed at home and at workplace too. His mental health starts to decrease, and he might get addressed by his employer for low productivity. Inability to pay mortgage, rent or not getting other benefits that are linked to his everyday livelihood can lead to serious depression and deterioration in his mental health.

Increased absenteeism

An employee not getting the desired payment or who is underpaid for several years, is likely to lose the energy to attend his office regularly, resulting in increased absenteeism rate that will affect the organisation’s productivity. This also effects employee turnover each year. 

These conditions can easily be changed if the employers pay heed to their employees’ financial health too. Considering this matter not as controversial but with open minds can help change the scenario. Employers can start with a survey, which can help them determine the ways their workers are leading their lives. If you are an employer too, ensuring a better position of your employees should be your responsibility. You can ensure the following things in your organisation.

Surveying the employees

You can survey the workers to know their financial wellness. You can learn about their interests, and if they have any financial requirement that is important. Make sure to lodge all of their opinions so that you arrive at a fruitful decision. 

Build programs

To resolve the issue of finance, you can re-structure some existing programs which will give them an extra incentive for their work. This will not only show a boost in their energy but will also benefit the organisation in terms of productivity. You can make this a short term or a long term plan basis the requirement of your employees and your organisation, whatever works best for you.

Look at the bigger picture

If you offer financial wellness to your employees, it will eventually prove to be a win-win situation for both. You are sure to get increased productivity and less absenteeism. This will make them feel cared for and will give them a confidence to work with a new zeal. There will be no employee grievance and you will get the best ROI for your business as well. 

Access to loans

As an employer, you can arrange for easy access to loans for your employees and also help them get student loan sanctioned easily. Not only them, if these small thing related to their families are also taken care of, they are more relaxed and stress-free to give their best to the organisation.

Every employee who provides their toil to the workplaces deserves good financial conditions. Hence, it’s important for employers to take care of this matter without further judgements and make the situation perfect for both. 

Post Author: Admin