Financial well-being in the workplace

In today's world, many employees spend more time at the office than at home, and they can spend more time on the job than with their loved ones. So it's no surprise that workplace wellbeing is a growing interest for many employers. In episode eight of the podcast, we discussed how in demand this now is for employees in New Zealand.

What are the three key areas employers want when it comes to well-being? Mental health, physical health, and financial wellness. It's hard to argue that employers offering any of these as a package will have an advantage in the recruitment and retention of staff. Happier, healthier, and less stressed workers are surely good for everyone.

We're certainly heading in the right direction with some employers now offering flexible work arrangements, mental health support programs, comprehensive health insurance packages, gym memberships, and professional development opportunities.

But what's lacking in our opinion? In a study done by PwC in 2020 on financial wellness 54% of employees said that financial or money matters/challenges attributed to the most stress in their lives. No surprises there. These concerns included the lack of an emergency fund, bad budgeting and cash flow management, debt traps, or insufficient retirement savings.

Broken down by age, 62% of millennials surveyed said their main issue was not having emergency savings for unexpected expenses. On the other side of the age scale, 52% of baby boomers were stressed about not being able to retire when they wanted to. Who would have thought?

And the effect? Increased absenteeism, lower productivity, retention issues, and increased costs to the company. So what are companies doing in this space? While some forward thinkers have included financial well-being workshops and subsidized financial plans as part of their employee package, there are plenty not doing enough in our opinion. We aren't sure if the roadblock is cost, a lack of understanding by managers or owners, or just plain "she'll be right attitude" but we're certainly on a mission to find out.

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