Recently, the financial stress weighing on employees has taken centre stage, significantly impacting employee well-being.
A series of lockdowns between 2020 and 2022 left 21 million people unemployed, with the income of about 97% of the households declining. Subsequently, geopolitical tensions in Ukraine and Global Macroeconomic Uncertainty has meant that the cost of living has gone up.
Inflation soared to 6.7% last year on the back of huge rises in fuel and food, leaving many households with challenges.
According to a survey by EY, a study showed that 81% of Indian employees faced financial shortfall between pay cycles, and nearly half reported that they were stressed about their finances.
Why does this matter for businesses?
Well, employees grappling with financial insecurity often demonstrate a dip in their productivity, impacting the company’s performance, be it sales, service, process efficiency and profits.
Nearly three-fourths of employees said financial worries had a negative impact on their productivity.
A few organisations have recognised this predicament and pre-emptively given benefits and support through this challenging period.
However, a glaring challenge persists in transparency, especially when it comes to most companies outside a handful.
A majority of employees don’t feel comfortable sharing information about their finances based on a survey.
As we progress into the year, understanding and supporting employee financial wellness is pivotal for thriving workplaces.
By integrating robust financial well-being programs, companies aim to enhance employee well-being, drive productivity, and curtail absenteeism, attrition and related costs.
Visit the recent article posted by a business coach for entrepreneurs highlighting the vital link between financial wellness and employee well-being, stressing the impact of financial stress on productivity. It suggests tailored financial wellness programs and measurement strategies to create a positive work environment and boost overall employee happiness and efficiency.