Your employees are the backbone of your business. To operate at your best, your staff need to be highly engaged – showing focus, energy and commitment to their roles. There are many factors that contribute to employee productivity, as well as a range of stressors that threaten to hinder their workflow. One major issue that can impact the engagement of your workforce is their financial wellness. With over 40% of Australians predicted to be living paycheck to paycheck as well as the consistent rise in the cost of living, employers are realising that the problem is increasingly persistent and widespread.
Many businesses have started to implement financial wellness programs in their organisations to address the issue. When implemented, the uptake is usually excellent and the programs achieve their goal. According to ANZ’s Financial Wellbeing Report, three in five of these businesses benefit from an increase in their employee’s financial wellness over the following six months. Employees are asking for support and employers should listen. Here are three ways doing so may contribute to improving your bottom line.
Way #1: Financial Wellness Helps Improve Productivity
Australians are stressed about money! According to research from UBank, almost 60% of us report that financial stress keeps us up at night. Millennials have it even worse, with 44% saying that the stress impacts them constantly throughout the day, including when they are at work. Furthermore, Map My Plan found that those who are financially stressed may spend up to 10% of their paid working hours consumed by thoughts of financial issues, reducing their overall productivity.
Although these numbers are concerning, it is a clear message that financial stress impacts work productivity. If your employees are not completely focussed on their role, productivity declines and mistakes are made. This lack of task engagement naturally has a direct impact on your service offering and as a result, your bottom line.
Way #2: It Reduces Absenteeism
Absenteeism is a real problem in many areas of life, from school to the workplace. If you don’t show up, nothing gets done. Financial stress is not something that your staff can just easily leave at home, they lug it around with them throughout their day. A consequence of this is increased lateness, leaving early or taking longer than usual breaks throughout their day.
Financial stress can also lead to mental and physical issues that impact their health. An unhealthy employee is more likely to take sick days and be unable to perform at their best for your business Estimates from AMP Life suggest that high levels of financial stress may increase turnover and the number of sick days taken by Australian workers, costing employers up to $31.
Way #3: Minimise Employee Attrition and Turnover
Stress, including financial stress, is a leading cause of workplace turnover – with up to 40% of employees citing it as the reason for their departure. Think about it, staff that don’t feel financially secure are more easily lured to other roles. If a competitor offers them slightly more money, they are likely to accept it if they see it as a way to ease their financial worries, even if it’s not going to do any good to their career or professional development. In a competitive labour market, hiring and replacing good employees is not easy and it may cost your business a lot of money.
While financial stress can impact all types of workers, those on lower incomes or entry-level positions are increasingly vulnerable. They’re less able to meet their financial commitments due to having lower earning power. Don’t let your most susceptible staff get stuck in a financial rut. You risk them leaving your business before they are able to reach their potential. Do what you can to help them progress towards financial wellness.
How Paytime Can Help
Offering an Earned Wage Access solution allows you to directly play a role in improving your staff’s financial wellness. Paytime allows your employees to access their earned wages when they need it, instead of waiting until their next payday. This payment flexibility helps them meet their expenses, pay bills and avoid late fees and harmful payday loans.
Reducing the instances of financial stress within your workforce will impact your bottom line. If your company wants to empower your employees and improve their financial wellbeing by enabling flexible on-demand access to their earned wages, contact Paytime today!
