Financial organizational well-being – care for your employees

The general organizational well-being, of which the financial one occupies a leading place, is no longer generically delivered concepts or just theoretical concepts. It should become an integrated multidisciplinary solution, in all companies, in the coming years. A solution that actively contributes to strengthening the brand and to the health and well-being of all employees.

Financial health has proven to be closely related to physical and mental health, but also to the general health of the company. When we talk about long-term employer brand impact, we’re talking about good employee retention.

People are distracted at work, need more days off, take excessive breaks, and are more anxious if they have trouble managing money effectively. It happens regardless of income level or position in the company.

The last years full of uncertainty, both economic, social, medical, and political, have outlined the clear need for access to financial education by a financial coach, for the health and well-being of company employees. Employers and employees have understood that fruits at the office, free coffee, or access to the gym are no longer the things that make the employee “leave” happier in the morning for the office.

One in four European workers say money worries are affecting their ability to do their job – and even the highest earners are not immune. Even before the rising cost of living (inflation), recession, and the war started hitting the headlines, one in eight employees in the UK, for example, had financial problems. Fewer problems were about lack of money and more about how they’re managed.

Employers who demonstrate a commitment to supporting financial well-being can make a very valuable difference to their country’s workforce. Even employers on a tight budget can access Financial Wellbeing webinars from time to time.

The concept of webinars brings much more flexibility, much faster and easier access by employees, but also very low costs of organization and delivery. If in the case of physical training, there is a need to organize the location, invitations, catering, and others, and in addition, the number of participants for physical training should not exceed 15–20 people. For effective implementation, a webinar can be organized for a number much larger number of participants (over 100) and with much less financial and logistical effort.

It appears that employees whose workplaces have a financial wellness policy feel that their workplace protects them from poverty and makes them feel in control of their finances. They also tend to be more satisfied with their employer’s benefits package; they know better what they need to do to get a raise and feel comfortable asking their employer for help with financial problems.

However, only around a quarter of employees across Europe say their employer has a concrete financial well-being policy. The same proportion believes that their employer does not do enough to support them in this area.

Employers who feel that now is not the time for financial education in the company may be surprised to find that more than half of employees say it is important that their future employer has a financial wellness policy. More than 81% of those whose employer already has a policy of attention to financial education are reluctant to give up this benefit once they have received it.

If we look at the data from 2022 regarding Financial Education, we notice in the study done by the World Economy Institute that in Romania still:

“53% of the respondents did not actually save or invest, mentioning the lack of financial resources as the main cause, the lack of financial skills and knowledge’’ (92% of the Romanian population is financially illiterate), the lack of trust in financial institutions (27% of respondents have a specific preference for saving in cash), reluctance to receive information (39% of respondents stated that they are not interested in receiving financial information)’’.

Overall, the results underline that financial well-being is unevenly distributed among individuals.”

Education and financial well-being should be seen as normal and essential in companies. The financial situation has a direct impact on the well-being and performance of employees. In the pandemic and with a war on the border, people have been asking themselves financial questions they haven’t asked in years about their safety nets and what decisions they should make. People dared to ask for raises and the pandemic restructured their way of relating to work and money, valuing time more.

People have been demanding more from employers as employers have recognized that it’s increasingly difficult to talk about true retention. Especially if you don’t pay attention to the well-being of your employees beyond normal minimal benefits packages.

Research consistently shows that financial hardship impacts physical health directly through intense stress. This once triggered and accompanied by anxiety at work, leads to the production of cortisone leading to poor results at work.

Financial difficulties negatively influence performance and increase absenteeism.

Financial difficulties affect people’s mental health because they are a stressful experience. On the other hand, poor mental and physical health can affect the work capacity of employees and reduce their income, also leading to an exacerbation of financial difficulties.

Those who experience financial stress are absent more and perform less.

When employees fail to go to work as scheduled, organizations suffer financial and productivity losses as well.

The link between mental, physical, and financial health has been proven in recent years by financial experts, and mental health experts. Doctors and organizational coaches. HR is sounding the alarm, are companies reacting enough?

React and Act. I love to share my experience with you and bring more well-being to people in your company, regardless of their concerns. Let’s hear each other! For the health of the people in your company -your company itself!