The Benefits of implementing a financial wellbeing programme
The movement on mental health and wellness awareness is becoming more and more prevalent in our society today, and the emphasis is shifting towards financial wellbeing in the workplace. Employers are starting to take note but as many ask, what are the benefits and why should their organisations be offering this support?
To answer this question, we first need to understand what is meant by ‘Financial Wellbeing’. This phrase can conjure up a variety of connotations and emotions for many of us, but as a starting point, the Consumer Financial Protection Bureau have released their own definition as; “It’s a highly personal state, not fully described by objective financial measures. Instead, well-being is defined as having financial security and financial freedom of choice, in the present and in the future”.
At Planned Future we have developed this definition further to reflect the opinions and stories we have heard over the years we have been working in the financial educational sector to the following; “Financial wellbeing can be described as a feeling of confidence in controlling your daily finances, in the present and in the future, whilst having the knowledge and freedom to make informed financial decisions”.
Secondly, we must consider what bearing financial wellbeing has on an employee and for this we can consider the science behind the concept to measure its significance. A study by PricewaterhouseCoopers (2016) found that 45% of employees surveyed claim that money matters are their #1 cause of stress, a condition which leads to 15 million work days taken off each year in the UK. Further figures from a survey by the Chartered Institute of Personnel and Development in 2017 showed that 1 in 4 employees admitted that financial worries impact their productivity at work. These staggering statistics have led to concerned employers considering their options on how to best support their staff, and ultimately their organisations.
Many studies have been completed on the subject and their outcomes have concluded further the importance of offering a financial wellbeing programme to employees. However, there appears to be disparity between the requirement for financial wellbeing support and those who are actually offering this within the workplace. In a recent report released in April 2019 named “Health and Well-being at Work” by CIPD (The Professional Body for Human Resources and People Development), it showed us that just 1 in 7 organisations adopt a strategic approach to financial well-being, taking into account the needs of different employee groups.
So, what can be done? At Planned Future, we have been providing bespoke financial wellbeing programmes to support organisations in improving their employee’s financial wellbeing and overall organisational productivity for years. We have used our extensive experience in the sector to fine tune our financial education resources to be as concise and user friendly as possible, making financial topics relevant and accessible to all who attend. Whether through on-site workshops, online resources or tailored financial guidance, we can help you to support your employees.