How your business can promote financial wellbeing for a more productive workplace
Posted on November 21 2017
We believe that everyone deserves to live their Good Life. To make this happen, we need to combat stress. Research conducted by WayAhead and comparethematket.com.au has revealed that financial pressure is the leading cause of stress in Australia, with 45% of those surveyed stating that their finances cause them to feel stress.
We always hear about what general wellbeing means to us, but up until recently, there was no research into exactly what financial wellbeing looked like to us as Australians. A recent report by the Centre for Social Impact and Social Policy Research Centre has given us a better idea of what financial wellness means to us, as well as a greater insight into the factors that influence our sense of financial wellbeing.
What is financial wellbeing?
The study revealed important information on how we define financial wellbeing. It states that financial wellbeing is when a person is able to meet expenses and has some money left over, is in control of their finances and feels financially secure, now and in the future.
The report found that the segments that make up a person’s financial wellbeing are heavily influenced by six aspects. Of these, the research suggests that financial capability, financial inclusion, social capital, and income are the strongest determinants of financial wellbeing, meaning that improving these areas are the most likely to enhance a person’s financial wellbeing. If done properly, employees can create a positive impact on all four of these factors, resulting in a happier and more productive workforce.
Three of these factors – financial capability, financial inclusion and social capital, can be improved through a Financial Wellness Program.
Financial capability, financial inclusion & social capital
In the report, financial capability (also known as financial literacy) is seen as a combination of financial knowledge, attitudes and behaviours that are necessary to make sound financial decisions. Financial inclusion is defined as having access to appropriate and affordable financial services and products. Finally, social capital is recognised as a person’s level of social support in times of crisis.
Financial capability, the most widely acknowledged element when considering financial wellbeing, is thoroughly covered in our Financial Wellness Program. By breaking down our program into three main sections – cashflow, investment and contingency (risk management), we provide your employees with the knowledge necessary to manage their finances. We then go over the importance of planning so that your employees can manage their finances in a way that will allow them to live their ideal life. This can include anything from everyday expenses, managing mortgage repayments whilst still being able to afford holidays, putting kids through secondary school, or having enough money to retire comfortably.
A Financial Wellness Program will make life easier for your employees
58% of everyday Australians feel pressure to afford food and basic necessities. 45% of us have concerns about providing for our family’s future. 37% are concerned about paying our mortgages or rent (survey of 1000 Australians by WayAhead and comparethemarket.com.au, 2017). Our programs use these common causes of stress to inspire your employees with scenarios and choices that will be relevant to your employees lives. Gaining a better understanding of their finances through our program gives your employees greater financial confidence and increases their overall financial wellbeing.
The Tribeca differenceRather than delivering a stock-standard financial education spiel, the aim of our Financial Wellness Program is to educate employees and build a social support network where employees will feel comfortable to seek help in times of financial uncertainty. This means that by choosing to run our Financial Wellness Program in your workplace, you are immediately improving your employees’ financial inclusion and social capital, just by giving them the option to access our services and support. After attending our program (which is run on site for employer and employee convenience) your employees will have improved three of the key factors that can hinder financial wellbeing. Our Financial Wellness Programs are tailored to suit each workplace’s individual needs and run for approximately 45 minutes.
The final issue that determines financial wellbeing is income. Whilst the amount of income is a concern for some, financial wellness is strongly affected by income stability. Because of this, simple actions such as letting an employee know how they are performing, that their job is secure and that they are valued, will see your workplace positively impact the fourth major cause of low financial wellness.
In a time where your company’s culture is one of the most important aspects for both attracting new candidates as well as retaining current employees, promoting financial wellbeing is a sure-fire way to establish your organisation as a thought leader in wellness.