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Emotional, physical and mental wellness are all important for employees to succeed in the workplace but how about financial wellness?
Money problems have been noted to be a major cause of stress and this can affect the productivity of your staff. Many of them are nervous about their financial future and don’t know where to learn how to manage finances or find available options. When they are deep in debt and money isn’t coming in as expected, it may take a toll on their health and thus affect focus on work. Therefore, financial education is very important.
Make financial literacy programs part of your employee training and development. This will enable your employees make informed and effective financial decisions. When employees have good financial knowledge, it indirectly benefits the employers too. This is because the company’s goals can only be achieved with a competent workforce. A financial-miserable employee cannot be productive!
So what is in it for employers?
Below are 4 benefits you will gain as an employer just by training your employees to be prudent with their finances.
- Focus and higher productivity
Poor financial management can lead to bad debts. Employees battling with bad debt will spend most of their time at work figuring out how to sort out money problems instead of working. Distress/worry + Divided Attention = Performance Issues. But when you teach them how to manage their income and expenses properly, they will know how to handle debts responsibly.
- Fewer requests for salary advances and low rate of absenteeism
Lower financial stress and better employer support can result in more satisfied employees, thereby reducing the burden on the HR department. It also reduces the number of requests for salary advance.
Financial stress can also lead to high rate of staff absenteeism. When employees suffer from financial stress, it affects their health and total well-being and at some point they begin to request for leave or some time off work. But if they are able to manage their finances well, the rate of absenteeism arising from this factor will be reduced.
When employees learn how to make their own budgets and stick to it, they learn discipline in the process. This discipline will be useful when given tasks involving finances for a project. They will apply this knowledge when managing all company finances.
- Employee retention
Up-skilling opportunities like financial education coupled with other wellbeing initiatives can play a key role in attracting and retaining quality talent.
If you haven’t been doing this, take steps to give your staff/team a financial education today!