Should businesses budget for financial wellbeing?
From aiding mental health and lowering stress levels to increasing performance and even pleasing investors, PSG Wealth Management MD, Paul Gilsenan, explores the benefits of company bosses addressing employee’s financial wellbeing.
One of the most common traits of any successful company is a contented and happy workforce. Unfortunately money worries can cause untold stress on the personal lives of employees, flooding over into their work life. In fact, research in 2019 found that 94% of UK employees had money worries, with three-quarters reporting that those concerns affected their work. Almost nine in 10 larger UK businesses say they have been impacted by poor employee financial wellbeing, through outcomes such as reduced productivity, loss of talent and more short-term and long-term absences.
Helping to alleviate such worries can not just enhance your company’s reputation but its bottom line too. A robust programme of financial support for employees forms part of a company’s environmental, social and governance (ESG) considerations. ESG is becoming an increasingly high consideration for investors, particularly in light of the Covid 19 pandemic which has drawn into sharp focus companies who genuinely care for their employees and those who merely pay lip service to the concept.
Financial support isn’t necessarily about the amount employees take home each payday, but rather how secure, confident and empowered each person feels about their finances. To achieve these goals there are a number of practical steps employers can take, from financial education to pension planning tools and internal PR to promote existing benefit schemes - every step can make a difference towards a happier, more financially savvy workforce that will ultimately benefit everyone.
This was posted in Bdaily's Members' News section by PSG Wealth Management Ltd .
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