In times past, health and safety were key buzzwords in the workplace – but they referred only to keeping people physically well and safe. Then, with the impact that Covid had on people’s the concept of health and safety expanded to include mental and emotional wellbeing. That was a move in the right direction.
But there’s another step that companies need to take if they REALLY want to ensure their people are focused, on their game and in the sweet spot physically, mentally and emotionally to perform to the best of their ability.
That next step involves financial wellness. If your people are financially distressed (and word is that the large majority of them are), you’re still not going to get the best from them. It’s therefore critically important that companies exercise their minds around helping their people achieve financial wellness, hope and stability in their personal and professional lives.
Financial wellness is not just about throwing (more) money at the problem. It goes far beyond monetary gains. Financial wellness encompasses a holistic approach to managing one’s finances, with profound benefits that can also extend to wealth accumulation from a generational point of view.
Here, then, are six benefits financial wellness can bring to your people, your company and the community in which your people live.
Reduced anxiety and stress
Financial stress is one of the leading causes of anxiety and mental health issues around the globe. However, with improved financial wellness, people can acquire greater control over their financial circumstances, thereby reducing stress levels and promoting overall well-being. Through astute budgeting, debt management and savings strategies, people can reduce financial uncertainty, leading to greater peace of mind and mental resilience.
Improved physical health
The link between financial wellness and physical health is well documented. Studies have shown that people experiencing financial strain are more susceptible to a range of health issues, including high blood pressure, heart disease and sleep disorders, all of which can affect their performance at work. However, by achieving financial stability and security, employees can alleviate the physical toll of financial stress, leading to better health outcomes, an enhanced quality of life and exponentially enhanced productivity and innovation in the workplace.
Enriched relationships
Financial wellness results in open communication and shared financial goals within relationships, whether with partners, family members or friends. By aligning financial priorities and working towards common objectives, people can strengthen their bonds and cultivate healthier, more meaningful relationships. Moreover, financial wellness empowers individuals to provide support and assistance to loved ones in times of need, nurturing a sense of community and mutual aid.
Greater productivity and performance
I’ve already made the point that financial stress can impair cognitive function and reduce workplace productivity, ultimately hindering professional success and professional growth and progress. On the other hand, people who make financial wellness a priority often experience heightened focus, motivation and productivity in their work. By proactively managing their finances and minimising distractions associated with financial worries, people can release their full potential and achieve greater success in their careers and personal pursuits.
Long-term financial stability
At its core, financial wellness is about laying the groundwork for long-term financial stability and security. While most people are under extreme financial pressure at the moment, by adopting prudent financial habits, such as saving for retirement, investing wisely and planning for unforeseen expenses, people can safeguard their financial futures and enjoy peace of mind knowing that they are prepared for whatever may come their way. Moreover, financial wellness enables people to weather economic storms and navigate unexpected challenges with resilience and confidence.
It empowers people
Financial wellness empowers people to take control of their financial destinies and pursue their dreams and aspirations with confidence. Whether it’s saving for a family holiday or helping children with further education, financial wellness provides the freedom and flexibility to turn aspirations into reality. By breaking free from the shackles of financial insecurity, people can embrace a life of abundance, fulfilment and purpose to leave a legacy.
In closing
In an increasingly complex and uncertain world, helping your people achieve financial wellness is more important than ever. Beyond the tangible benefits of wealth accumulation, financial wellness results in both the employee and the employer benefitting – a genuine win/win situation!
There is now a way for large companies (with over 2 000 employees) to help their employees attain physical, emotional, mental and financial wellness without impacting the company’s bottom line. If you’re curious, email me!
Alan Hosking is the Publisher of HR Future magazine, www.hrfuture.net and @HRFuturemag. He is an internationally recognised authority on leadership competencies for the future and teaches experienced and younger business leaders how to lead with empathy, compassion, integrity, purpose and agility. He has been an Age Management Coach for two decades and is the author of parenting best seller What Nobody Tells a New Father.
