How boosting the financial wellbeing of staff improves performance

Pay is important to every employee, and most people want to be paid as much as possible for the minimal amount of work. But, if this were a financially viable option, would businesses be prepared to pay their staff more?

Over half of workers believe they are underpaid, despite being paid at or above market rates. That perception of being undervalued is difficult for companies to overcome, but rather than simply forking out more in salary, there are other ways to boost your staff’s finances.

How to boost staff financial wellbeing

Solving employee financial wellbeing isn’t simply a case of throwing more money at them. Research shows that earning more money can make people happier but only up to a point when, to paraphrase the Notorious B.I.G., “more money equals more problems”. However, given the rising inflation costs worldwide, which is seeing wage rises outstripped by the increasing cost of living, wages and salaries are more significant than ever.

Employers can still help improve their staff’s financial wellbeing through services and support that can work as part of a tailored HR programme. For example, some people have money problems because they do not understand how their industry works. By including some formal training, education and guidance in a workplace, you can help staff improve their financial literacy, leading to better individual career choices and outcomes.

The types of financial support employers can provide staff include:

• Access to savings through financial products and services
• Low-cost loans
• Access to regulated advice, e.g., pension planning and insurance
• Cost reduction schemes, such as cycle to work or private health care
• Offer senior staff training to allow them to support employees
• Bonuses and perks to help with money worries
• Pay a fair salary and consider matching pay rises with inflation
• Maintain communication about finances and welcome feedback
  
  

 Better financial support leads to lower staff turnover

Staff who feel they are a vital part of the team are likelier to stick around for the long term. Financial support can help reinforce this feeling when employees know they are being helped and their employer has their financial wellbeing in their thoughts.

Happier staff are less likely to jump ship to a rival and are four times more likely to stay in their job than unhappy ones. Not only does it cost an organisation time when needing to find a staff replacement, but it also costs money.

From paying recruitment companies to find the right candidates to lost productivity which impacts a company’s output, it all adds up. By offering financial wellbeing support, a company can make itself more attractive to its current and potential staff in a competitive job market.

Enjoy improved staff engagement

It stands to reason that whenever an employee feels more valued, they are better engaged and contribute more to their working environment. If staff feel like their company is looking out for their best interests, their performance will rise, and engagement across the team will improve.

A company capable of stepping in to help an employee in need will show their intentions to help and their commitment to their staff. Evidence shows that when people believe their employer cares about their wellbeing, they are more engaged, while immediately following a raise or a new company benefit staff are 15% more engaged.

Easing employee stress

Finances are one of the most significant sources of stress, with 72% of people stressing about their finances at least once a month. Employees with such a heavy cloud hanging over them may struggle to be productive and part of the team when they cannot alleviate their anxieties.

This kind of stress also takes its toll on someone’s health, so first and foremost, it’s essential to support staff as much as possible to help them stay healthy. With a knock-on effect also impacting how well your company runs, financial wellbeing support must be capable of making a difference in someone’s life.

Stress is also a major contributor to workplace accidents, leading to further health problems. That peace of mind that their finances aren’t going to collapse in on themselves like a neutron star eases stress and boosts morale.

Increasing performance through financial wellbeing initiatives

A staff member suffering from financial stress will struggle to remain 100% focused on their job. Whether that be through tiredness due to lost sleep, their mind drifting towards their troubles or negative health impacts through their financial problems, stress impacts performance.

If a company can provide financial wellbeing solutions that take some of those money troubles away, they can enjoy a more productive and motivated workforce.

With fewer distractions, a better mood and a sense of their wellbeing being valued by their employer, staff are more likely to be better motivated, seeing them improve their productivity and performance. When their finances are in better shape, your team are more capable of focusing on their tasks while also going above and beyond their job roles more willingly.

Lower levels of absenteeism

Absenteeism costs UK businesses £77.5 billion a year, with mental health being the reason behind a significant portion of those absences. Stress can manifest itself in several ways that impact our physical health. From tension headaches and rapid breathing to a risk of heart attack, increased depression and a weakened immune system, stress can quickly take hold of our bodies.

Symptoms of chronic stress include:

• Anxiety
• Depression
• Irritability
• Insomnia
• Headaches

Employees experiencing these symptoms due to money troubles can be more inclined to call in sick. With lost days, productivity can be reduced by the absent person and those who pick up the slack trying to cover for their colleague’s absence. By introducing financial wellbeing measures in the workplace, these situations can be better avoided as people can better look after their bodies and minds.