In Australia today, a financial storm is brewing. With stagnant pay growth, the potential for rising interest rates and low levels of savings in many households, Australians are entering an unprecedented era of financial pressure.
Organisations and leaders who expect this pressure to be contained to an employee’s personal life are unrealistic. As individuals experience financial duress, they bring this stress to their work, with flow-on impacts to the organisations they work for. Low productivity, absenteeism and poor performance are simply par for the course.
Thankfully, it is not all doom and gloom. Rather, this era presents organisations with a timely opportunity to conduct a diagnostic of their employees’ financial wellbeing. Working hand-in-hand with an organisational mental health program, financial wellbeing may be a company’s most valuable investment.
While some organisations already have financial wellbeing programs in place, most of these are not measured, and are targeted toward employees nearing the end of their careers, with a focus on superannuation and retirement. However with Australians across generations currently experiencing low levels of financial literacy and high levels of debt, there has never been a more important time to invest in a company-wide program.
A financial wellbeing program will not only support an employee’s quality of life – due to the direct link between financial wellbeing and mental health – but will deliver clear organisational benefits. Supporting employees’ financial health has been proven to result in:
- Increases in engagement levels
- Uplifts in productivity
- Reductions in stress
- Lowering of absenteeism and presenteeism
While also enhancing the perceived value of benefits, so an organisation can attract and retain the best people across a multi-generational workforce. Put simply, a financial wellbeing program will provide better business outcomes.
To discover how your organisation – and your people – can benefit from a financial wellbeing diagnostic and the development of an associated program, contact Aon today.