The benefits of lowering financial stress for your employees

Why financial wellbeing is so important in the workplace

Financial wellbeing can significantly reduce your employees’ stress levels, which then leads to improved mental health and overall wellbeing.

Being financially secure makes people less likely to experience symptoms of anxiety and depression, which leads to increased productivity. Not stressing about money gives your employees more capacity to focus on their work and perform at their best.

Supporting your employees

There are actions you can take to effectively support your workforce, so they feel more comfortable raising financial issues.

Identify the signs

Some common indicators that an employee might be struggling financially, are:

• they appear sad, exhausted, and defeated
• they seem overwhelmed or helpless
• they lack motivation
• they show a noticeable decline of self-care

Show your support

If you’re open and approachable, and show you have compassion and empathy, your employees will be more comfortable sharing their experiences.

Encourage them to seek help

Offer reassurance that it’s never too late (or too early) to find support and provide appropriate resources (see more below).

How you can promote financial wellbeing

For a happier and more productive workplace, try some of these strategies to encourage and support your employees’ financial wellbeing:

• Run educational workshops – that offer opportunities for your employees to learn about budgeting, saving, investing, and managing debt.
• Financial wellbeing coaching via your EAP provider - offer employment assistance programs that include financial wellbeing coaching services, to help staff address financial challenges and develop strategies for improvement.
• Offer access to financial resources - like financial planning tools and counselling services, to help employees make informed financial decisions.
• Encourage super top-ups - to add extra to their superannuation (if feasible).
• Consider flexible work arrangements - like remote work, so employees can save on commuting costs and improve work-life balance.
• Organise financial wellness programs - with finance companies, to provide programs focused on financial literacy.
• Offer incentives – like bonuses or profit-sharing programs to reward employees for their contributions and help them achieve their financial goals.

Being mindful of the financial issues your employees might be facing, and offering ways to support them, is crucial to creating a happier, healthier and more productive workplace.

Sources

• The convergence of financial and physical wellness, a new paradigm - Apis
• Stress in America™ 2019 - American Psychological Association
• The negative impact of employee poor personal financial behaviors on employers - Journal of Financial Counseling and Planning
• More than half of Australians are only just making ends meet - Pursuit
• AMP Financial Wellness Report 2024 - AMP
• Financial stress at record high for Australia - ifa

The information contained in this article is for educational and informational purposes only and is not intended as health or medical advice. Always consult a physician or other qualified health provider regarding any questions you may have about a medical condition or health objectives.