Why employers should care about the financial wellbeing of their workforce
As we restart the clock for the new financial year, it’s common for individuals and households to be looking at their finances and budgets, and forecasting for the year ahead.
Almost three years on since the start of the worldwide pandemic, for many, thoughts of finances and budgets, has become synonymous with anxiety and insecurity.
A weekly survey of Australians by the Melbourne Institute: Applied Economic & Social Research at the University of Melbourne, found that around 30% of Australians are experiencing moderate to high levels of financial stress, defined by their ability to pay for essential goods and services such as their rent, mortgage or bills, in response to the impact of COVID-19.
As businesses and employers plan ahead for the next financial year, it cannot go ignored that around 1 in every 3 employees could be experiencing financial stress, impacting their performance in the workplace, and ultimately hurting the businesses bottom-line.
For every business in 2022, and particularly for those affected by COVID-19, it would be remiss to not be thinking about ways to support, and improve, the financial wellbeing of your workforce.
You might be asking “why is this my responsibility as an employer, I already give them a paycheque?”
We’re glad you asked!
Keep reading to find out why financial wellbeing is a big deal for your business and its bottom line.
Financial health affects mental health
Whether we like it or not, it’s human nature to bring our homelife worries into the workplace (as much as we might try to avoid it).
With about a third of Australians living with financial stress, climbing above the proportion that is “just making ends meet”, it’s about time businesses look at the real cost of COVID-19, which includes the impacts on the workforce, with a particular spotlight on the cost of employee performance.
Common indicators that an employee could be suffering from financial stress include:
The Melbourne Institute Survey found that the largest proportion of respondents experiencing financial stress were in the 18-44 age group, with approximately two in five (44%) experiencing moderate to high levels of financial stress, and more than half of the nation’s under-35s facing financial troubles.
This is compared to nearly 70% of respondents in the 65+ age group who reported that they were either moderately or very financially comfortable.
So, why should employers care?
Nowadays, employees expect more from their employers and are prepared to leave their current job and join a company that meets their expectations. Employees believe their workplace has a certain duty of care, and they want to work for companies that genuinely care about their mental, emotional, and physical wellbeing.
To stay competitive and retain good staff, it’s important for businesses to create a “people first culture”, where employees are engaged, feel included, respected, looked after and therefore are more likely to remain loyal.
The reality is that poor mental health and loss of productivity can be extremely costly to a business and its bottom line.
Supporting your employees’ financial wellbeing can demonstrate your business puts its people first, while also improving productivity and workplace morale.
NEED MORE INFORMATION?
If your business is interested in beginning the journey into supporting the financial wellbeing of your workforce, or would like some further information on the topic, please contact Akyra on 07 3204 8830 or book a free 30-minute consultation, for an obligation-free conversation.
How can your business support financial wellbeing?
You’ve read why it’s important to support the financial wellbeing of your workforce, and now you’re feeling inspired to do something about it? Great!
For next week’s blog, Akyra has partnered with our trusted partners at MAX Solutions to provide important and practical tips and information to help businesses get started on their journey to supporting the financial wellness of the workforce.
NEED MORE INFORMATION?
Akyra can help your business to assist and support all your questions and concerns related to recruitment and pre-employment screening documents. Please contact Akyra on 07 3204 8830 or book a free 30-minute consultation for an obligation-free conversation.
Disclaimer – Reliance on Content
The material distributed is general information only. The information supplied is not intended to be legal or other professional advice, nor should it be relied upon as such. You should seek legal or professional advice in relation to your specific situation.
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