Income vs Expenses: The Key to Employee Happiness

Highlight: Employee wellbeing is the direct consequence of a balance between sufficient income and affordable expenses.

We’ve often come across the saying, “Money can’t buy happiness.” Although true in certain aspects of life, access to material things can give a temporary rush of joy, if not a prolonged sense of fulfillment. With changing standards of living, the need to maintain a certain lifestyle has increased substantially. People love to spend money on their comfort and luxury. As such, the comforts and luxuries of yesterday have become today’s necessities. 

A majority of the salaried class today owns a car, their children study in private schools, loves branded stuff such as watches, shoes, clothing, etc and plans to have vacations abroad. These upscaled changes in lifestyle preferences have also been fueled by the easy availability of credit cards, instant personal loans that could be customized to suit the borrower, and seamless virtual transactions across e-commerce platforms. Money might not be able to buy or sustain our happiness but spending it in the right way can surely earn memories, experiences, and satisfaction. 

Also Read: Financial Wellness Isn’t Just A Buzzword Anymore. What Is It?

An increase in salary won’t hurt us but could be an extended means towards the happiness we deserve. 

• Increased income is a direct factor driving employee motivation. When employees have more income at their disposal, happiness is guaranteed. 

• People are often happier when they have sufficient funds to invest in themselves and in their loved ones. Financial stability reduces the overall stress and helps strengthen their social bonds organically. 

• Money can buy us more time to enjoy the things we love and to cherish more time with our loved ones. Having more time in hand automatically implies that we can afford to indulge in our hobbies or maybe just enjoy a relaxing trip on the weekend. Purchasing “experiences” such as leisure activities, counseling, or going on holidays has also been linked to greater enjoyment than purchasing tangible objects.

•  Experiences foster cherished memories and closer ties with family and friends, improving emotional well-being long after the experience has ended. It’s crucial to highlight that occasionally material objects are part of that “experience” investment; for example, buying art tools to start a new hobby necessitates a material purchase. However, the goal of this spending will be more rewarding than simply amassing more items.

• The act of supporting a charity, feeding the needy, or supporting a strong social cause can increase the feeling of pride and satisfaction in oneself and create a stronger sense of purpose. Research has shown that any act of generosity has the potential of stimulating brain regions linked with social bonding and pleasure. With increased feelings of happiness and acts of spreading joy, cases of morbidity and death also reduce.

How can HR ensure the happiness of Employees?

In the world we live in today, the cut-throat competition,  the compulsion to maintain a certain lifestyle and have a particular social standing urges employees to move towards jobs offering better financial prospects both in terms of compensation and wellness programs. This fact further reiterates the sentiment that financial happiness induces personal happiness.

A financially sound employee is a happy and productive employee

Employees’ mental and emotional well-being increases when they feel good about their financial decisions and are comfortable with their financial circumstances. Individuals addicted to shopping or reliant on material objects to lift their spirits may experience stress and feelings of inadequacy if they are not earning their potential salaries as per their expectations. For that, Companies can assist employees in improving their relationships with their finances by offering guidance on suitable spending patterns.

Financial wellbeing results in the emotional well-being of the employee

Financial health in a holistic wellness program is more than just retirement gains or a steady income; it must also address the employees’ connection with money, budget management, and everyday spending patterns that affect their entire lifestyle, physically and emotionally.

Financial wellness programs have always been a good idea to recenter the idea of productivity around employee happiness. A report by the Consumer Financial Protection Bureau states how wellness programs have always helped in enhancing the working environment and have resulted in happier employees. These employee wellness programs encompass the mental health and wellbeing of employees as well. Wellness programs which include educating the workforce in budgeting and saving goes a long way in reducing their stress levels. Introducing wellness schemes such as healthcare also boosts company morale.

Financial wellness and Stability are prime motivators for efficient employees. While hard skills are important for a company’s growth, mental health and overall wellbeing must also be given attention to ensure a fruitful working environment.

Also Read: As an Employee, Why Should You Care About Financial Wellness Benefits?

The goal of Fibe’s corporate employee benefits programme is simple: we want to change the way salaried professionals get credit by introducing the concept of an instant digital salary advance. Our corporate partnerships for employee wellness initiatives are among the most appealing on the market. To solve your money problems, visit Fibe today!

Download the Fibe app here, or log in to our website and be a part of the #OneSmallStep experience.