Introduction: The Shift in Employer-Employee Dynamics
In the last decade, the business world has witnessed a radical change in how an employer values its employees. With organizations charting substantial budgets to augment an employee’s experience at work, employee financial wellbeing continues to lurk in the shadows behind all the training programs and workshops. According to the survey published by The Times Of India, Indians rank highest in the world at 89% when it comes to anxiety due to financial predicaments. This only indicates that most employees are either working under financial pressure or mental stress, which might affect their performance, productivity, and the organization’s turnover in the long run.
The Importance of Employee Financial Wellbeing
With the risk running high, the wellbeing of employees financially is imperative to help the workforce bring the best to the table without worrying about the finances. Employees supported financially by their company with discount programs, provident funds, retirement plans, etc., will indubitably feel motivated to be more resourceful at work. Although most companies willingly offer to open a bank (or salary) account as a part of the induction, there’s more to employee financial wellbeing that can benefit the organization.
Emotional and Financial Wellbeing for Organizational Growth
An employee’s emotional and financial wellbeing is crucial for the organization’s growth. Also, a company with secure employee financial wellbeing programs will inadvertently attract the best talents in the market. As a matter of fact, HR management highlights perks such as timely pay, provident fund, employee discounts, and more in the packages to boast about their company’s employee financial wellbeing and security. Additionally, willing candidates are no longer “okay” with hefty salary packages only. They want perks and financial security in return for the expertise and skills they’ll bring to the organization.
The Need for Financial Education
Besides this, employees are open to financial education. Organizations must organize finance management programs, workshops and counsel the workforce as a part of the employee financial wellbeing strategy to help them comprehend and manage their finances. Although giving an employee a raise seems like a lucrative step to take, sometimes all that an employee needs is counseling to make long-term financial plans, especially when it comes to topics such as retirement plans or buying a house. Also, finance management programs as a part of employee wellbeing will enhance employee performance and work experience and increase the employee retention rate of the company.
Impact of Financial Wellbeing on Employee Retention
Organizations with a secure employee wellness program have witnessed a high employee retention rate. The reason being, employees want to stay put in a company that understands and cares about their financial wellbeing. Plus, several tools and technologies on the market aid in simplifying the employee financial wellbeing programs for the company and the employee. Despite that, HR management must create a cordial environment in the organization, where employees feel free to discuss their financial predicaments. Moreover, the management must advocate positive financial management habits and encourage employees to invest time in financial tools for long-term benefits.
Conclusion: The Key to Organizational Success
Today, it’s fair to state that employee wellbeing programs are no less than stepping stones to success for an organization. More like an unintended key to success, a company where employees are comfortable and supported financially is likely to witness high productivity, retention rate, and engagement, thus making these programs a triumphant move for everyone.
References:
- Make every day a payday: How companies can reduce the financial stress affecting 80% of employees | The Times Of India | Dr Muneer | August 22, 2020
- 5 ways to help your employees improve their financial wellbeing | Wellness At Work | June 29, 2020
- Employee Financial Wellbeing Benefits the Bottom Line | HR Bartender | Sharlyn Lauby | May 11, 2021
