Personal finances can have a huge impact on your employees’ overall well-being. When you care about your employees and your organization, it’s a no-brainer — you make sure you’re including financial well-being in all workplace well-being efforts.
- 53% of all employees are stressed about their finances.
- Nearly 1/3 of all employees are distracted by personal financial issues while at work.
- Almost 1/2 of them spend 3 hours or more each week handling personal finances at work.
- Those who are stressed about finances miss work on account of their personal financial issues and often cite health issues caused by financial stress.
“These findings are concerning and potentially significant for companies looking to evaluate the return on investment of a financial wellness program,” wrote Kent E. Allison, a PwC Partner and National Practice Leader.
But, let’s be honest, there is more at stake than an organization’s financial bottom line. Employees’ financial well-being is on the line big time. Financial well-being is, of course, one of the five widely recognized, interconnected elements of overall well-being. When financial well-being is out of whack, more than likely other areas are, or soon will be, too.
- High blood pressure.
- Weight gain.
- High blood sugar or diabetes.
- Heart palpitations.
- Stomach pain.
- Irritable bowel syndrome.
- Clinical depression.
According to the Consumer Financial Protection Bureau’s research, “Consumers can experience financial well-being — or a lack of it — regardless of income.”
The 4 elements of financial well-being are:
- Present — Control over day-to-day, month-to-month finances and the financial freedom to make choices and enjoy life.
- Future — Capacity to absorb a financial shock and being on track to meet financial goals.
Factors that lead to financial well-being at any particular moment include:
- Social and economic environment — What surrounds an individual — family and community.
- Personality and attitudes — How one tends to think, feel and act.
- Decision context — How a particular decision is presented.
- Knowledge and skills — What an individual knows and what she or he knows how to do.
- Available opportunities — What options are open to an individual.
- Behaviors — What a person actually does, and how she or he handles a situation.
So, what can employers do to help support financial well-being?
“Without question, the only way to provide financial wellness is through unbiased financial education, free of any conflicts of interest, with absolutely no sale of financial products or services or management of assets. A company must think of financial wellness programs as an employee benefit and communicate the value of offering this benefit to employees,” wrote Liz Davidson, founder and CEO of Financial Finesse.
Simply put, a proactive, employee-centric organization chooses to offer educational programs and information that help employees develop the necessary knowledge, skills and mindset while also providing them with opportunities to enhance their own financial well-being.
Check back next week when we continue our look at the various elements of well-being. Next up: physical well-being.