Remove Financial Stress for your Staff and see the Benefits
Employee financial stress is affecting workplace productivity. COVID-19 has escalated this problem. Now is the time for employers to take action.
Financial Stress is costing the nation in lost productivity at work
There is an overwhelming body of research demonstrating that financial stress, caused by a lack of basic financial literacy skills is costing employers millions of dollars.
Best Money Moves, in their article, How Financial Stress Impacts Job Performance, is a must-read for every employer. They estimated that in America, reduced productivity costs the employer $1,900 a year, per employee. That’s a lot of lost productivity.
Neighborhood Trust, in their article, Is Financial Stress Affecting your Workplace? Find out in Minutes, explains the cost, and what to look for in employees. Employers found that the issues likely to arise from financial stress are:
- The inability to focus on work
- Plummeting productivity levels
- Increased absenteeism and tardiness, and
- Decreased morale overall.
The good news for employers is that Financial Wellness Programs bring tangible benefits to employers:
- Lower employee turnover
- Less absenteeism and tardiness
- Fewer requests for loans and advancements and
- Increased employee happiness and company reputation.
The employee “health” umbrella is now merging mental, physiological, and financial stability.
In Australia, Financial Mindfulness found that 1 in 3 Australians suffer from significant financial stress which has now been examined by CoreData.
In my article, Is Financial Stress Affecting your Health, I explain just how serious this problem is for both the employer and their employees.
No doubt the fall-out from COVID-19 has escalated this problem. It is time for everyone to get behind the Australia Together and other financial literacy programs now.
When it comes to financial literacy Adviser Ratings has taken the initiative and is about to launch a national campaign called Together Australia.
Watch out for the launch – there will be a lot of media activity around this launch.
Financial Advisers have put their weight behind the project and major companies in the industry have funded the project. It is estimated that over the coming months 200,000+ will visit the website.
Over 500 Financial Advisers have got behind this project. They have provided excellent content in the form of articles about everything you need to know to protect your financial future.
Even better, your employees can ask a question and a Financial Adviser will provide the answer.
Employers can provide a free Financial Literacy Program with the help of Financial Mappers
Financial Mappers has always supported financial literacy by offering our free program called Money Smart Tips in 3 Minutes a Day.
The program is presented as a set of 34-automated emails. Each day, a link to a 3-minute video clip is sent, each explaining one financial concept. The aim is to deliver “bite-sized” information where the person has time to reflect on how the money tip of the day may change the way they manage their finances.
This is how employers can deliver a message to the employees demonstrating they care about the well-being of their staff without having to outlay any money. In the current economic climate, access to free tools is especially important.
There are many ways to manage this program. A lot will depend on the size of your company, the level of employee education, and the support HR staff you may have.
Here are some ways Financial Mappers can help:
Talk to all your staff about the Financial Mappers’ financial literacy program. Ask that they all register on the same day, so all are getting the same information each day.
Encourage staff to discuss what they learned and how they may change the way they manage their money.
If you have qualified HR staff who can talk about money issues, let them spend a few minutes at a staff meeting discussing some of the content. You need to get everyone talking about money and how they can better manage it.
Contact Financial Mappers for a copy of the videos and play them in the lunchroom on your TV monitor. This information needs to be absorbed over time.
During the 34-day program, contact a local financial adviser, mortgage broker, and accountant. Ask them if they would come and talk to your staff. A personal touch like this is always going to have more impact. Here your employees can ask questions and get answers from an expert.
I recall some years ago when I was having a manicure, the lady asked me what I did. Her comment was:
I would love to use something like that. I would be too embarrassed to tell anyone the stupid things I have done with my money.
Financial Mappers Lite
Financial Mappers Lite is white labeled, so your employees remember that you have sponsored the program.
Your employees will have access to a 5-Year Savings Plan, to manage their budget, loans, super, savings, and investments. The software will generate easy to read reports, which can be uploaded to their Plan Review for better understanding. The product does not give financial advice or recommend financial products.
Given the loss of productivity caused by a lack of financial literacy skills, providing your employees with Financial Mappers Lite could be a sound financial decision.
Watch how easy it is to use Financial Mappers Lite.
For more information contact Financial Mappers.
Glenis Phillips SF Fin
Designer of Financial Mappers
Disclaimer: Financial Mappers does not have an Australian Financial Services License, does not offer financial planning advice and does not recommend financial products.