The business case for financial wellbeing

Traditionally, the concept of workplace wellbeing equated to a handful of lifestyle-related discounts and the occasional onsite exercise class during lunch hours. For others, the word ‘wellbeing’ sparks images of a specific group of people who align wellbeing with a way of life, full of organic vegetables and yoga. Yet, positive wellbeing shouldn’t be reserved for the few; rather, it is a state of mental, physical and emotional being that every individual experiences and can seek to improve. Wellbeing isn’t only about physical health or mental wellbeing either; a significant influence on our overall state of wellbeing is how we feel about our finances.

Employers may wish to write off the financial worries of their workforce as outside their remit. Money has long been a taboo topic both at home and in work, leaving employers to skirt around the issue and push it to one side. However, the impact of financial worries on the workers that keep businesses functioning shouldn’t be underestimated; 70% of the UK workforce admit to spending time at work worrying about their finances.

Poor financial wellbeing underpins a wide range of people-related costs that can heavily impact a business. Financial stress experienced by employees can manifest itself in a range of ways in the workplace, from heavy distraction during working hours, tiredness or irritability as a result of lack of sleep and in some cases, lengthy absenteeism due to financial stress and poor mental health. By investing in a comprehensive employee financial wellbeing strategy, companies can see people-related costs drop significantly. From decreased absence driven by financial worries through to stronger employee retention, investing in financial wellbeing can truly boost your bottom line.

The good news is that the business case for putting financial wellbeing on the agenda is clear: according to a PwC report, for every £1 million an organisation spends on payroll, there is an estimated four per cent loss in productivity due to poor employee financial wellbeing.

People and performance lie at the heart of a successful business. When you invest in your people e and create a positive work environment, improved performance can follow closely behind. Maintaining a positive workplace culture can present a huge challenge for many organisations. In tough economic times, team spirit can quickly spiral downwards. The impact of demonstrating that an employer cares about its employees’ wellbeing can be seen through an uplift in the day to day work environment, as well as measures such as referrals and employee feedback. After all, no one wants to feel as though they are simply a cog in a machine; supporting employees as individuals to thrive in their personal lives as well as their careers can go a long way for employee loyalty.

The numbers are clear: whether you’re a business owner, HR professional or employee advocating for better financial wellbeing support at work, the case for investing in a financial wellbeing strategy to change an organisation for the better is rock-solid.In the midst of the cost-of-living crisis and uncertain economic times, companies have a valuable chance to enhance their Employee Value Proposition by adding financial wellbeing support. When this holistic approach is applied, they will see the benefits of a happier, healthier workforce.

So, what does a comprehensive and effective employee wellbeing strategy look like? Find out more about how we can support you and your employees by visiting the Moneyhealth website: Moneyhealth - our financial wellbeing offering for your employees.

[1] Money & Mental Health Policy Institute – “Money worries in the workplace” – Research from Axa

[2] Financial Wellbeing - How reducing workforce money worries can bolster your bottom line. PwC, 2018