Does Employee Financial Wellness Impact Your Bottom Line?
The importance of financial wellness in the workplace cannot be overstated. Employee financial health and associated stress can have a substantial impact on your organisation’s success and overall profit margins. In many ways, having a financial wellness strategy in place is just as important as having a health and well-being strategy.

After all, when employees are overly worried about paying for their mortgage, childcare costs, and the ability to sustain themselves through retirement, it can ultimately impact on their health and mental well-being.

In most, if not all industries, employees are increasingly looking to employers for financial support. Ensuring financial wellness as part of your employee engagement is imperative to business growth.

The Importance of Employee Financial Health
In today’s business world, organisations are increasingly embracing the idea that there is a connection between employees’ physical health and their work performance. This is primarily because it’s easy to see how productivity is impacted when an employee is absent due to an illness. But, in recent years, employers have started to see that employees’ work performance isn’t just impacted by their physical health, but by their financial health as well. Money is a significant source of stress for your employees.

The CIPD have explored this further by research into the impact of poor financial well-being on employees and employers. A key finding is that one in four people surveyed say that financial concerns have affected their ability to do their job.

The research also indicates that poor financial well-being impacts employee health in terms of:

– Poor psychological well-being

– Higher stress and anxiety levels

– Lower levels of good health.

In turn, this affects business productivity, in terms of:

– Negative job performance

– Making multiple adverse short-term decisions to mitigate decreasing operational efficiency

– Reduced ability to concentrate

– Lower productivity and absenteeism.

This shows a clear case for businesses to support the notion of employee financial well-being. Hence, making it an integral component for any enterprise to adopt in order to create a healthy work-ecosystem that facilitates staff-members to flourish, reach their potential and make a significant contribution to an organisation’s operational performance.

There’s also, the ethical argument to consider, of organisations making the moral decision to act because it is the just thing to do.

For organisations that provide a financial wellness program, employees aren’t the only ones who benefit.

Recent research from Towers Watson found that a company focus on employee health and financial well-being is directly correlated with increased workforce productivity, competitive edge, and an employer’s ability to attract and retain top talent.

Pivotal to the success of any employee well-being programme is understanding the importance of how financial concerns can affect employee mental and physical health. As income providers, employers have a pivotal role to play in their workers’ financial lives. Stress caused by pay levels, lack of financial awareness or absence of employee benefits can affect productivity, and ultimately your bottom line.

Financial Wellness and the Bottom Line
A financial wellness program focuses on providing employees with greater in-depth knowledge to help reduce their chances of making poor financial choices, thereby, enabling them to change the way they handle money and plan for their financial future.

There are three key ways in which employee financial wellness programs can impact your organisation’s bottom line:

Financially healthy employees will be less distracted by money problems and better able to focus on their jobs, thus increasing business productivity.
Employees who are offered assistance in financial planning and saving for the future are more likely to remain loyal to employers providing such a program, therefore helping to reduce employee turnover in the long run.
Having a viable financial wellness program is often a highly attractive recruitment tool. This demonstrates to interested job applicants that an employer is genuinely concerned about the well-being of employees.
All are key drivers for why your organisation should have a financial wellness strategy in place. Ensuring financial wellness is part of your employee engagement plan is imperative to business growth, as employee engagement strategies have been proven to achieve up to 5 times more growth revenue, reduce staff turnover by 67%, improve productivity and efficiency by up to 50%, retain customers, and potentially increase profits by as much as 20%.

A Financial Wellness Program for you
Now all you need is an employee engagement package that works for your organisation, and one that focuses on employee financial, emotional, and physical well-being.

As an employer you have the power to transform the lives of your employees, by providing them with bespoke offerings including rewarding workplace pensions and VIP Benefits, allowing them to genuinely appreciate their relationship with you.

The benefits, support and unique services offered by the MIT portal equip employees with purpose and dedication, enabling them to remain part of your organisation, leading to outstanding employee engagement and significant improvements in business performance.

The MIT Employee Engagement portal provides visibility on the entire value exchange between the employer and the employee. All within one powerful visual tool, you can demonstrate to employees that you have their financial security on the agenda. The real-time pension tracker gives employees full visibility that their financial future is being taken care of, with a clear and easily understood illustration of their pension position.

The financial clarity provided by the MIT portal gives your employees the holistic picture and genuine peace of mind.

We all know financial concerns can have a significant impact on employee health and mental well-being. That’s why we have a range of health and well-being services for every employee to take advantage of including our free confidential helpline giving support to your employees facing stress, whether that be from bereavement, addictions, family matters or financial issues. By implementing a confidential helpline your employees get easy and immediate access to support services to reduce ongoing pressures from work and home, in turn, your organisation stands to gain a boost in employee engagement and productivity.

Additionally, the MIT range of VIP benefits and discounts allow your employees to do more for less money, whether it be going to restaurants, the cinema, shopping and much more. Giving your employees the ability to treat their families and themselves outside of work increases their engagement in the workplace. Upgrading employee lifestyle with our full and wide-reaching range of benefits offers more to the employee experience they have with you, thereby, you reap the business benefits of happier and more engaged employees.

Employee retention is crucial in any organisation, as you don’t want to invest months in training only to have employees leave, resulting in a cycle of hiring and training again. This costs you time and money which could be saved if employee retention rates were kept at high levels. MIT’s VIP benefits and discounts enhance your employee engagement and allow you to attract and retain top talent.

Recent statistics have shown that there is a 50% higher level of performance from engaged employees. Therefore, it is important to add value to the lives of employees through complementary health and lifestyle benefits that keep engagement levels, motivation levels, and productivity high.

Summary
Financially healthy employees not only impact your bottom line, but they also result in your business having a healthier and happier workforce.

Employee financial concerns within an organisation can have a significant impact on engagement and productivity. Providing employees with financial support, that goes beyond base salaries and pensions, ensures employers are getting the best from employees.

Empower and educate employees by focusing on employee financial wellness and save your business time and money by enhancing the employee experience and see the difference it makes to your bottom line.

Learn more about how you can unleash the power of employee engagement and reap the business benefits in our brochure.