As an employer, there are many benefits you are legally required to provide so that the overall wellbeing of your employees is cared for. But there is also room for some non-legal requirements, known as perks, that can aid the everyday life of your team.
Good perks can have positive trickle-down effects on employees’ mental wellbeing, work productivity, company loyalty and general levels of self-confidence. They can also attract new recruits, especially Generation Z, who look for more than just a good salary when negotiating contracts.
Financial wellbeing is one of the most popular perks that employees are looking for. Claro Wellbeing carried out some research and found that 50% of employees are eager to have financial education and wellbeing benefits offered by their employer. We’re exploring why it’s a win-win for both employers and employees to have this perk.
Financial wellbeing contributes positively to mental wellbeing
One in four people in the UK have experienced a mental health problem. It’s likely that the less financially confident you feel, the worse your mental wellbeing is likely to be, as money worries make your mental health worse. According to Claro Wellbeing’s Mental Health Report, the average mental wellbeing score drops by more than 37% from people with high financial confidence to those with the lowest.
Poor mental health can also have a negative knock-on effect on work performance, with people more likely to be disengaged with their tasks if their mind is elsewhere worrying about finances. A financial wellbeing perk can minimise the potential for finance-induced stress.
Showing that you care boosts employee satisfaction
The quickest way to boost your approval rating with your employees is to show that you genuinely consider their welfare, both in and outside of the office. Some 55% of employees believe that their employer doesn’t care about their financial wellbeing, which can create a hostile atmosphere between management and staff.
Rather than meaningless gestures, real benefits are required to maintain high levels of staff loyalty. More than three-quarters (76%) of employees said they would use a financial wellbeing programme if they were offered one, and 81% said it would increase their satisfaction as an employee.
A satisfied employee is more likely to be motivated in their work, stay loyal to the company and remain there longer.
A financially-confident employee is a productive employee
More than two-in-three staff (67%) say that financial stress affects their performance at work, according to Claro Wellbeing’s Workplace Today Report. As a result, 3.5 days a year are spent (on average, per employee) handling their finances during work hours.
If you boost financial confidence, you are empowering staff to make well-informed decisions about money rather than stressing about it at work. When something is on your mind, it can be consuming until you find a resolution. By intervening with employee financial wellbeing benefits, you’re minimising the danger of staff getting into financial difficulty, which can lead to increased sick days, lower levels of productivity and potential mental health issues.
You’re providing a service employees may not be able to get elsewhere
When asked what’s stopping employees from getting help with their personal finances, Claro Wellbeing research found that 30% said it’s because financial advisors are too expensive. It’s true. A financial adviser in the UK has certain barriers in place before they will take on a client, including having upwards of £100,000 in assets. This eliminates a large portion of the population, leaving them alone in their struggle to get financial guidance.
By providing a means for employees to improve their money management skills, you’re giving them access to something they may otherwise have to go without. Almost half (40%) of people rely on Google searches to educate themselves on financial matters. As it’s an unregulated space online, staff can get into more difficulty if they’re not getting advice from qualified professionals.
Improved financial knowledge can be applied to work life
A heightened understanding of financial management is a valuable skill to have, both in and outside the workplace. Employees’ confidence levels will improve in line with their financial knowledge. This can have positive effects on work tasks, as there are transferable skills that can be applied to managing budgets, fiscal responsibility, and decision-making processes.
The effects can vary based on the employee’s particular area of work, but an improved understanding of the economy and money will inevitably end up having beneficial outcomes for the individual and business.
Financial wellbeing benefits can boost your B-Corp status
B Corporation is a private certification of for-profit companies recognising their social and environmental performance. If it’s something your company is working towards, introducing policies that support staff’s financial, mental and physical wellbeing is a great way to add to your suitability for being certified.
Businesses must be able to show they provide a number of workplace features to improve the financial health of its employees. This could include a pension or other retirement saving option, or offering financial coaching and debt management services. Learn more about how it can benefit your business here.