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The Importance of Improving Employee Financial Wellness

HR Tech Outlook | Thursday, May 27, 2021

The Importance of Improving Employee Financial WellnessFinance-related stress can also result in an increase in presenteeism. Employees can come to work in spite of being physically or mentally unwell, which can affect their productivity. This can lead to potential losses for the organization.

FREMONT, CA: Surveys revealed that 69 percent of workers are stressed about their finances, and 72 percent worry about their personal finances at work. The global socio-economic crisis that the world is going through due to the coronavirus pandemic has only increased employees' financial stress. A financially secured employee is likely to be more dedicated to their work. This is why many organizations now focus on improving employees' financial wellness.

Let us look at why organizations need employee wellness programs:

Presenteeism and Absenteeism

It is needless to say that financial security is the key to a stress-free life. It not only allows people to concentrate on their work but also boosts their confidence. Surveys suggest that financial stress leads to a 34 percent increase in absenteeism and delays. Employees who worry about their finances also take leaves far more than their unstressed colleagues.

Finance-related stress can also result in an increase in presenteeism. Employees can come to work in spite of being physically or mentally unwell, which can affect their productivity. This can lead to potential losses for the organization.

Healthier employees

Worrying about finances can impact employees' physical health. It can cause them depression, anxiety, ulcers, and even heart problems. Here, employers can help employees live a healthy lifestyle by relieving them of financial worries. Stress is also as contagious as happiness. Hence, if an individual employee is running low on health and morale because of financial stress, it may also affect their team members and other colleagues.

Low Productivity

Apart from the fact that financial stress increases presenteeism, absenteeism, and unhealthy employees, it is no real secret that it can also impact their productivity. A survey showed that over 10,000 Americans show that US companies lose $500 billion a year because of their employees' personal financial stress.

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