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5 ways financial wellbeing adds value to your organisation

5 ways financial wellbeing adds value to your organisation

Adding a new benefit to your employee benefits package might seem like one muscle-pulling Twister move too far.

But the reality is, your people are struggling with heightened stress levels. And much of this is due to facing higher costs in every aspect of spending.

In our recent UK report, we revealed that 1 in 5 employees intends to leave the company they work for within 12 months if the cost of living crisis worsens. 

The toll this crisis is having on employee wellbeing is impossible to avoid. And most, if not all, of your employees have had their finances affected. 

And that’s why offering financial wellbeing has become such a powerful new addition to employee benefits packages.

So, here are 5 ways financial wellbeing is a valuable addition to your employee benefits package.

 

1. Increase productivity


Two-thirds (67%) of employees say money worries affect their work. Of these, 59% say it makes them less productive.

These are startling statistics because we see in them the direct admission of the tangible relationship between stress and productivity. 

As our report on the link between money and mental health shows, the two are inextricably linked. The less financially confident an employee feels, the worse their mental wellbeing is likely to be. 

The Mental Health Foundation has shown that supporting workplace wellbeing results in a 12% increase in productivity.

By offering financial wellbeing initiatives and programmes, you can help alleviate stress caused by poor financial wellbeing.

Interestingly, we’ve also seen that the more you earn, the more likely you are to work on personal finances while at work. 

That’s why it’s essential to also offer personal finance platforms – like open-banking budgeting tools and WhatsApp with a financial coach – to dramatically reduce the time employees spend when they do inevitably tackle finances at work. When those on higher salaries spend time on tasks other than work, it costs the business.

 

2. Improve employee retention


The Great Resignation may be waning, and the job market tightening, but HR leaders and benefits managers should not fall into a false sense of security. 

Almost 1 in 5 (23%) of employees who worry about money say they are looking for higher-paying roles while at work. 

Offering financial wellbeing as an employee benefit delivers value by supporting employee wellbeing – in turn improving levels of satisfaction across the business. This can help your organisation save on the costs of recruiting and training new talent. 

Indeed, it could see employees stay longer in their jobs. According to our CIPD-cited The Workplace Today report, 26% of people say they’d stay over a year longer if they had access to a financial wellbeing programme.

Just as they did throughout the pandemic, employees are taking note of how their employers are treating them during this difficult time. They’ll vote with their feet.

 

3. Remain cost-effective


As our financial wellbeing ROI calculator shows, the benefit is incredibly cost-effective.

The tool uses Office for National Statistics data to predict the likely return on investment of a financial wellbeing programme for your organisation, depending on:

  • Your industry
  • Number and average age of employees
  • Average employee salary

For example, if your company is in insurance, has 2,000 employees, whose average age is 37 and average salary is £42,000, then you could save your organisation a whopping £900,000 per year through financial wellbeing programme – by reducing time lost to poor productivity, absenteeism and recruitment costs. Enough money to hire 20 extra people.

With Claro Wellbeing’s platform, you can start offering financial wellbeing to your employees from as little as £1.49 per employee per month. An annual investment as low as £3,000 could see you make massive returns.

 

4. Enhance your employer brand

Employee wellbeing is fundamentally about problem-solving. And when an organisation takes it seriously, it can do wonders for the employer brand and reputation in the talent market.

Financial stress is right now the biggest problem an employer can solve for its people. It’s the biggest barrier to employee wellbeing.

For most people, their employer helping them out is the most likely way they’ll improve their financial wellbeing. If not through a salary increase, then through financial wellbeing support.

The returns this can do for an employer brand in terms of reputation is huge. 

 

5. Increase employee engagement

Financial stress can hold an organisation’s culture back and prevent your people from bringing their best selves to work. 

With the right kind of financial wellbeing support, you can tackle the obstacles holding your employees back. Our research shows that 73% of employees would welcome guidance from their employer that helps them save money every month.

For instance, having Financial First Aiders in your organisation who can facilitate open conversations about money, promote financial wellbeing work and guide people to the right resources for them and ensure every employee feels listened to. 

 


 

To sum up, financial wellbeing can add significant value to your employee benefits package. In particular, it can:

  • Increase productivity
  • Improve employee retention
  • Remain cost-effective
  • Enhance your employer brand
  • Increase employee engagement

 

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