Financial Wellbeing = Greater Productivity
Factors effecting productivity has been a longstanding concern for many employers and employees alike. However, recently a spotlight has been shone on the impact that good financial wellbeing has on workplace productivity- especially in the wake of Covid-19 and the devasting effects it has had on many peoples financial circumstances.
Poor financial wellbeing has been rising over recent years- according to recent surveys, 1 in 5 employees would describe their financial wellbeing as ‘poor’ or ‘very poor,’ with 45% also stating this has affected their productivity, relationships and attendance at work.
But why is financial wellbeing so important?...
Well studies have found that employers who show an interest in wellbeing can increase employee productivity by 38% - with staff more likely to work faster and get more done in each working hour.
Good financial wellbeing should be important to employees & employers alike as financial stress can reduce and individuals creativity, initiative and problem-solving abilities. A consequence that should not be ignored as poor productivity can affect a company’s bottom line by 4%.
Good financial wellbeing is also valuable in attracting sought after individuals to your workplace- as 7 out of 10 employees now feel their employers have a social responsibility to look after their wellbeing and 61% of individuals now expect their employers to make allowances for their personal and financial circumstances affected by Covid.
For example, in 2020, The Hoteliers’ Charter was drawn up to raise the profile of the hospitality industry and promote hospitality as a profession of choice to parents, schools, colleges, universities and careers influencers alike. Having already secured the support of a range of industry bodies, hospitality companies are encouraged to become a charter hotelier to demonstrate their commitment to their people and elevate their credibility as an employer for great career development. Naturally, as part of this charter, employers are required to commit to offering access to financial and pension guidance.
So, what can you do to improve your employees financial wellbeing? In our recently published research report, DAM found a lack of financial education to be a leading cause of poor financial wellbeing. However, this is not for lack of wanting- as we uncovered that 43% of 18 to 25 year olds and 66% of 26 to 34 year olds would like to attend financial wellbeing sessions.
In addition, our DAM Community offers valuable information on a range of financial topics including; pensions, saving and investing, budgeting, mortgages and health/ protection. We also have a library of videos from our team of qualified advisors, as well as a range of extremely useful financial tools. All designed to help improve Financial Wellbeing.