0208 945 7733 hello@moneyheave.com

As humans, there are diverse elements that make up our wellbeing which includes mental wellbeing, social, relationship as well as health but little is marketed when it comes to our financial wellbeing. As individuals or professionals, our financial wellbeing is as important as every other aspect of our lives because money and overall financial growth is a necessary part of life.

According to a report by the Consumer Financial Protection Bureau, financial wellbeing is defined as follows:

  • You can absorb a shock to your finances, such as an expected event
  • You’re in control of your daily and monthly finances
  • You are able to meet the financial goals you have set for yourself
  • Your finances allow you to make the choices you want to enjoy your life

Furtherance to this, a research conducted below really highlights the scale of issue regarding financial wellbeing. In the UK alone;

  • As many as 24 million adults don’t feel confident managing their money (Money & Pensions Service).
  • Over 1.5 million people are experiencing both problem debt and mental health problems (Money and Mental Health)
  • 30% of employees cite financial pressure as a cause of stress outside of work
  • 29% of employees experiencing poor financial wellbeing are having their sleep affected by money worries.
  • With 94% of Britons workforce worrying about money and of this group, 77% say that money worries impact them at work. (Close Brothers)

Even though there is no law that binds employers to take care of the financial wellbeing of their employees, we often underestimate how financial wellbeing directly affects performance of employees and their work input. However, more enlightened employers will have a different take on this. By looking after employees’ financial wellbeing, there are benefits for the employer as well as the employee. 

For Employers, benefits may include:

  • Job Satisfaction
  • Increased productivity
  • Increased employee loyalty
  • Reduced absenteeism
  • Good reputation
  • Depth of support
  • Company improvement.
  • Better utilization of pension funds.

For the Employees, benefits include;

  • Solutions to financial stress and anxiety
  • In-depth knowledge on money management.
  • Achieving financial goals
  • Access to better value products
  • Make more informed decisions around their finances.

In view of these benefits, financial wellbeing is simultaneous to job satisfaction. Thus, employees will be in the right frame of mind to execute their duties as required of them. 

The issue of financial wellbeing is very broad and subjective i.e. a person’s idea of financial wellbeing may be clearing their debt while another may be excited once they achieve building their dream house. So a company that is ready to take on this challenge should however note that there is no laid down rules when it comes to solutions to putting in place a financial wellbeing program. Just as health related issues, when the financial wellbeing of your employees is good, it automatically translates to job satisfaction. Unlike in the past where little was talked about financial wellbeing, mental health issues among many others, the world has evolved so much that these aspects of our lives have become very important to the overall wellbeing of an individual.

Financial wellbeing is a major driving force behind a person’s overall wellbeing and has a big influence over their mental health. Whiles it may seem as a smart move to take on responsibility for your employees’ financial wellbeing, one of the best possible outcomes of putting in place this program at your company is that it equips employees with the required skills and knowledge to take control of their own finances in a positive light which automatically reflects positively on work productivity and in the end becomes a win for all thus both the employer and the employee.

If you are a company or an organization that would like to put in place a financial wellbeing program for your employees, MoneyHeave is available to provide the needed service.

Contact MoneyHeave on:

Email: hello@moneyheave.com

Phone: 02089457733

Website: www.moneyheave.com

 

References:

  1. https://www.consumerfinance.gov/consumer-tools/financial-well-being/about/
  2. https://championhealth.co.uk/insights/financial-wellbeing-statistics/
  3. https://www.worldometers.info/world-population/uk-population/