Financial wellness (or financial wellbeing) refers to a person’s overall financial health and the absence of money-related stress. It is the consequence of effective expense management.
Financial wellness constitutes a significant component of the holistic well-being of employees, which also includes mental and physical health.
Why financial wellness matters
It is not unexpected that financial strain negatively affects the personal and professional lives of employees and consequently, the organization as a whole. Several reasons for the significance of financial wellbeing are enumerated in the following section.
Absenteeism
As per the findings of the Society for Human Resource Management, absenteeism and tardiness increase by 34% when employees experience financial stress. Additionally, employees who experience financial anxiety miss nearly twice as many days annually as their less anxious peers.
Additionally, financial stress may contribute to a rise in presenteeism, which occurs when employees report to work despite experiencing physical or mental illness. Although it may appear to be a lesser concern, given that employees are physically present in the workplace, presenteeism has significant financial repercussions for businesses.
Healthy and content employees
An employee’s financial concerns may lead to a variety of (serious) health complications, including ulcers, depression, anxiety, and even heart problems.
Put simply, eliminating the financial concerns of your employees will bring you one step closer to ensuring that your workforce is both healthier and more satisfied.
In addition to having an impact on the health and morale of the affected employee, financial stress will eventually have repercussions for their team members and other coworkers.
Productivity loss
It is unsurprising that financial stress has an impact on employee productivity, given that it increases absenteeism, presenteeism, and illness.
What is a financial wellness program
Employee financial wellness programs assist personnel in (improving their) financial management and alleviating financial concerns. As a result, they aid in improving employees’ overall financial wellbeing.
The purpose of a financial wellness program is to instruct staff. There are multiple approaches to accomplish this, including providing financial counseling and coaching on particular subjects (e.g., student loan reduction) or utilizing a platform that assists staff members in money management. A few examples of employee financial wellness programs are provided in the following section.
Programs for financial wellness
Similar to the wide array of instances that illustrate employee wellness programs, financial wellness programs also encompass a diverse selection of instances. A selection has been provided below.
Workshops. This is one that is perhaps not at the forefront of your mind, given how straightforward it is to instruct your staff members regarding their personal finances.
Dedicated partnerships. Forming a partnership with an organization specializing in employee financial planning is an additional alternative.
Employ tools for financial wellness. Unsurprisingly, an abundance of software solutions exist with the objective of enhancing employees’ financial well-being.
Select Yabi for Expert Budgeting Assistance
In navigating these financial decisions, Yabi stands as a powerful ally. Yabi empowers you to manage your budget effectively. Make your money work harder for you by utilizing the personalized financial tips and insights provided by Yabi’s renowned financial coaches. Whether you aim to achieve specific financial goals or enhance your overall financial health, Yabi’s user-friendly interface allows you to choose and track your financial objectives. As you embark on the financial planning journey for the upcoming year, let Yabi be your guide in managing budgets and addressing all your financial concerns.
