4 March 2023
In today’s time, financial wellness benefits have become a sine qua non for employee job satisfaction, no matter the designation, salary, or the industry. The importance of ensuring employee financial wellness is being recognized by every organization, be it a small startup or a multinational corporate organization. In fact, to know more about how great companies deliver the best financial wellness programs, read our previous blog post here.
Broadly speaking, a financial wellness program is a support or assistance given by the employer to their employees in matters of personal finance and wealth management. It is a collection of services offered directly by the employer or through a third-party expert like Fibe (Formerly EarlySalary). These services can include workshops on building a balanced personal finance portfolio or financial crisis management, providing contingency funds in cases of emergency to the employees, or offering rebates or discounts in the day-to-day expenditures of its employees.
In this generation, employee satisfaction is higher up on the priority list for companies than ever before. In Gallup’s State of the Workplace Report, it was seen that all organizations that made employee satisfaction an integrated goal within their business strategy saw impeccable results in terms of increase in productivity, reduction in employee absenteeism, and reduction in employee turnover. It is important that due care and attention is given to all aspects of employee wellness – mental, social as well as financial. Therefore, financial wellness programs assume importance from the viewpoint of both the organization as well as the employees. To know more about the importance of financial wellness from an organizational viewpoint, refer to one of our previous posts.
A sound financial wellness program is one that helps both parties involved – the employer and the employee. In fact, according to Salary Finance’s Survey, businesses in America suffer losses of $500 billion USD per year on account of employees’ personal financial stress.
Therefore, while the former gets a more focused and driven workforce as well as goodwill in the industry, it is the latter which enjoys more direct benefits from a well-rounded financial wellness program. The following points highlight the crucial role a good financial wellness program plays in aiding you, as an employee, to get the best from your job. Here’s how:
In a 2019 survey, it was clearly illustrated that as many as 69% of workers had stress due to their shaky financial position. It is a universal fact that financial stress is one of the major factors adversely affecting not only your personal health as an employee but also the organization, indirectly. So, by offering a sound financial wellness program, this stress can be better managed and you can focus on performing better at work without having to worry about how to meet the next EMI or rent deadline.
Asset creation in terms of big investments in real estate, cars, and market instruments, among others, is one of the most important personal goals for any individual. By either providing financial assistance to you in the form of salary advances, loans at a lower rate of interest, or giving you cognitive assistance by way of workshops, seminars, or professional assistance in financial goal setting and wealth management, the employer can make asset creation an easier and hassle-free process.
Even though most countries have some form of post-retirement security schemes in one form or the other in the public sector, it is not as prevalent in the private sector. A sound financial wellness program, therefore, helps in financial goal setting and encourages better financial management, helping you to manage finances on a macro level, and ensure your financial stability in the long run.
A comprehensive financial wellness program, apart from making an individual better at managing their personal finances, can also involve making loans available at lower rates than the market, or even zero interest (which consequently makes their repayment easier). It can also include easier repayment options for internal loans and deferred EMI options, making the repayment of loans less stressful. In addition to a smoother repayment, it also helps in credit score building which is also a contributing factor in getting an economical repayment plan with banks or other financial institutions in the market.
As already discussed, financial wellness is one of the driving forces behind an employee’s productivity at the workplace. In fact, with the stress that can be caused to you as an employee, there can be a dire impact on your performance and job satisfaction. Further, according to EBRI’s Employer Approaches to Financial Wellbeing Solutions Survey, as many as 39 percent of employees seem to think that the best way to measure if the organization is offering a comprehensive financial wellness program is overall improved job satisfaction.
Since, according to Maslow’s Theory of Need, job satisfaction is a major component of an individual’s social and security needs and has a great impact on self-esteem, it is pertinent that you look into the financial wellness program that your employer is offering you and to what extent is it adequately aiding in achieving higher job satisfaction.
It is clear as day that an exhaustive financial wellness program is required not only to benefit the employees but also the organization and society at large. However, putting together a program like that can pose to be a serious challenge to any organization on account of lack of specialized knowledge about finances, lack of dedicated and trained staff to enforce it, and alterations required to meet the requirements on an individual level. That’s where the role of a specialized financial services provider like Fibe comes into the picture. It offers a wide range of benefits to employees and can curate the same as per individual needs and wants. A team of specialized professionals can assist you at every step which is why increasing numbers of organizations are enthusiastically opting for it. Contact us, or send a referral to your HR, to put an end to your financial wellness woes at once!
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