Employee expectations have changed significantly over the years, and nowadays business owners are expected to fulfil psychological needs like belonging and esteem, as well as supporting workers to achieve their full potential. While employers have focused heavily on mental health and wellbeing over the past few years, for many employees, the leading cause of stress is money.
Amid the cost-of-living crisis, and with an increasing amount of people living pay cheque to pay cheque, it is no wonder employees are looking for more support across different areas of wellbeing. With this in mind, employers need to find ways to provide support where it is really needed. While it isn’t always a viable option to simply increase wages, businesses can look at ways to improve financial wellbeing through financial mentorship, help with generating savings, or wage flexibility.
High job vacancies mean employees won’t stay
Australia is seeing its highest job vacancy rate in over 40 years, and with the pandemic exacerbating issues such as financial stress, leading to sick days and absenteeism, employers need to offer adequate levels of support to prevent employees from going elsewhere. Some industries are experiencing average turnover rates of up to 58% and with rising recruitment costs, replacing employees is becoming a lengthy and costly process, and employees are less willing to stay when their needs are not being met.
Financial wellbeing can help
Financial wellbeing is closely tied to other forms of wellbeing, including physical and mental health, and employees who are struggling financially are more likely to be absent from work due to health issues. Additionally, worrying about finances hijacks mental bandwidth, which can impact performance and engagement in the workplace.
Businesses can utilise tools and resources to help employees accumulate savings, access wage flexibility, and gain financial education. It is not merely about balancing the budget, but rather providing employees with the means and knowledge to feel confident in their own financial management, and being better prepared to make informed decisions now and in the future.
Employers can support employees by providing general financial education, developing and implementing a financial wellbeing program in the business, and discussing career planning at all stages of employment to keep an open dialogue and offer transparency when it comes to professional development and remuneration.
By supporting the financial wellbeing of employees through education, tools and different resources, employers can help to boost performance and engagement in the workplace, leading to more engaged and happier teams, and the ability to retain quality employees. Want more info? Get in touch with our team now, we can help!
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