According to a recent survey from PwC, 60% of full-time employees are stressed about their finances, and more than half reported that this stress impacted their sleep, mental health, and self-esteem.

It’s hardly surprising with the cost of living crisis, rental crisis, and rising interest rates. This stress has a knock-on on effect to employers, who run the risk of having their workplace productivity impacted.

So, should employers consider providing help with financial management to their employees?

BENEFITS OF FINANCIAL WELLBEING

Rebecca Maher, managing director of Money Happy, says that financial wellbeing is the “forgotten cousin” of other types of workplace wellbeing benefits such as fruit bowls, office yoga, and mental health coaching. However, it’s a valuable exercise.

“When you’re stressed about bills, you’re likely to be less productive at work. Also, it impacts other areas of health – you tend to eat worse, and delay investing in health aids like gym memberships or counselling sessions.”

A service like financial coaching can focus on areas like a person’s mindset and relationship with money, as well as the practical applications of this, such as how to budget, set goals, and manage income and expenses. It can also move into how to invest, manage super, understand insurance, and manage debt. The ways this type of coaching is delivered can range from one-to-one sessions with experienced and qualified financial advisers to tools like calculators, training, and webinars on a variety of topics.

Ensuring employees are in control of their finances means they have a better chance of being mentally and physically happier – which in turn means they are likely to be more engaged in their work.

“It’s a no-brainer for employers to support staff with their challenges around money and financial stress, just like they do across mental health and physical health, and in other aspects of their personal and professional development,” Maher says.

TALKING ABOUT MONEY

It’s common for businesses to worry that offering financial coaching can be expensive and will open the floodgates for staff to ask for more money, Maher says.  However, financially stressed employees are less engaged at work and are more likely to take time off.  They are also 2.2 times more likely to look for other work and 76% agreed they would be more attracted to a company that cared about their financial well-being.

“The truth is, employees already know what they’re getting paid and what their expenses are. They probably have a good idea of what they could get paid elsewhere. If employers avoid talking about money and financial wellbeing, they’re really just missing an opportunity to add value to an employee’s life,” she explains.

Also, a pay rise may not help anyway. As the PwC survey highlights, even among those earning $100,000 or more per year, nearly half (47%) are still stressed about their finances.

“Often, if someone’s financial management is poor, then a pay rise doesn’t solve the issue. On the other hand, once someone’s had some time to put in place strategies to reach their financial goals, a pay rise has a bigger impact,” Maher says.

She also says that although employers might have a pre-conception that financial coaching is beyond their means, if they look into different options, it need not be so. She recommends they weigh the benefits against the costs.

“Financial coaching is a great retention tactic. Think about all the money you spend on hiring replacement people after people leave,” she says.

“Also, there are the wellbeing benefits and the impact upon productivity, and decreased presenteeism.”

Not only that but with the cost of seeing a financial adviser beyond the reach of many Australians, it’s a valuable benefit for employees in a market where hiring good people is difficult.