May 21st, 2014 by admin
Its Financial wellbeing: the last taboo in the workplace? research, which surveyed more than 2,100 UK employees and 100 employers, found that more than two-thirds (69%) of employer respondents believe their employees feel the organisation is concerned about their financial wellbeing,
The report called for employers to tackle the taboo of talking about finances in the workplaceand urged them to consider how they can help their staff become more financially savvy and better equipped to manage their personal finances.
It found that 17% of employee respondents would value more guidance from their employer around managing their finances.
The research applied four financial health categories to respondents: comfortable, coasting, balancing and slipping.
Nearly six in ten (59%) respondents are in the ‘balancing’ category, focusing on managing their current financial situation rather than saving for the future.
More than one in ten (11%) fall into the ‘slipping’ category, with no savings and regularly spending more than they earn.
The research also found:
- 46% of employee respondents worry about their finances, while just 35% feel optimistic about their financial future.
- 18% of employee respondents said they often lose sleep worrying about their finances.
- 20% of employee respondents said financial problems often interfere with their work.
Katharine Photiou, head of workplace savings at Barclays C&ES, said: “It is clear that simply providing someone with a steady salary does not ensure good financial wellbeing.
“Employers need to broaden their role by helping to improve employees’ capacity and capability to manage their personal finances, through education and guidance, by enabling employees more easily to manage their finances at work and through specific solutions provided in the workplace.
“While much work has been done in the physical and health wellbeing space in the last decade, our research reveals that employers are missing out a vital element in their strategies: financial wellbeing.
“In terms of financial health, our survey found that one in ten employees are in the ‘slipping’ category. If the same proportion of employees had a serious health issue, it would be viewed as an epidemic and the employer would apply urgent medical attention in the workplace.
“The same approach should be applied to addressing the critical issue of financial wellbeing.
“Talking about money is often seen as a taboo subject, not just in the workplace but in society in general. However, our research shows there is a clear desire from employees for help with managing finances from their employers.
“It is imperative that organisations tackle this taboo head on and put tailored solutions in place to ensure their workforce is financially healthy and secure, today and for the future.”
December 18th, 2013 by admin
How to ensure a happy workplace, pre and post festive season…
Spirits are high in the lead up to Christmas. There’s parties to attend, more food than usual and beer on tap.
It’s also common knowledge over the Christmas period that household financial pressures rise, once gifts have been exchanged and the string of parties are over, reality sets in.
We’d all like to ignore this fact but it can’t be ignored, financial stress can seep through your personal, family and work life and the sooner you take control of it, the less impact it has. The good news is it is a no brainer for a business to want to improve the productivity of their people often by working on the stressors that rob the business of their employees’ focus. In the new year, we’re making a sure bet the biggest stressor will be financial pressure … how am I going to pay off that credit card?
So what can you as an employer do about it?
Surveys asking people to identify the biggest causes of stress in their lives typically produce lists like this one:
- money (bills, debt, mortgage, bankruptcy, retirement income)
- work (employment security, job demands, demanding career ambitions)
- family (marriage, divorce, arguments, kids, caring for aged parents)
- personal life (control over events, time management, personal time and space)
- health (weight control, fitness, bad habits, sickness, medical costs)
- relationships (friendships, dating, marriage, break-ups, loneliness, emotional and time demands)
- death of a loved one (death of a spouse, child or parent is often extremely devastating, and can be especially stressful for a considerable time).
A decade old national survey revealed that 3 out of 4 Americans faced at least one significant financial problem recently, such as being unable to save for future needs, delaying medical care, or having problems with a collection agency (Chandler & Morin, 1996). This is a global issue that is equally relevant across Australia. Household spending, credit use, and stress have changed enormously in recent decades. Anecdotal evidence and media reports today suggest that a much higher proportion of people are experiencing stress about financial matters.
The Chartered Institute of Personnel and Development Benefex Reward Management Survey in 2012 found financially stressed employees spend 20 hours a month of work time trying to solve their financial problems.
So how can you as an employer help employees who may be getting back from the Christmas break with debts to repay and increased financial stress?
Future Map is offering 30% off all 90 minute Financial Wellbeing Lunch N Learn sessions in your workplace booked between January – March 2014. Join us to improve the financial health in your workplace by providing individuals with tools, knowledge and resources to remain in financial control.
The new year is also a great time to help employees set fresh new goals, for themselves personally and at work.
Contact Zoe Lamont on 0419 622 968 or email email@example.com to book your employee life planning and financial wellbeing session today. More information about the Future Map workplace programs can be found on www.futuremap.com.au.
June 24th, 2013 by admin
With changes to superannuation looming, Alisdair Barr looks at why financial wellbeing has a significant impact on employee productivity and retention, and what employers should be offering in this space.
Financially stressed employees spend 20 hours a month of work time trying to solve their financial problems, according to the Chartered Institute of Personnel and Development/Benefex Reward Management Survey 2012.
Further, Ernst & Young estimates workers with low-to-moderate wellbeing scores – including physical, emotional and financial health – cost employers $12bn every year in lost productivity. And with more than a third of Australian workers Read more »
June 7th, 2013 by admin
Improving the financial education of Australians has a profound impact on individuals, the communities they live in and their productivity in the workplace.
The problem is, if not at school or round the kitchen table, where do Australian’s get this financial education in an independent and engaging manner? Read more »
May 20th, 2013 by admin
“When leaders embrace the opportunity to improve employees’ wellbeing, they create more engaging places to work and greater returns for the organization. And they even help strengthen their employees’ families,” write Rath and Harter.
Let’s look at financial wellbeing
Financially stressed employees spend 20 hours a month of work time trying to solve their financial problems Read more »
November 7th, 2012 by admin
Employers who provide financial education as employee programs may see a decline in both the level of financial distress exhibited by employees and also a reduction in absenteeism.
Research has supported the relationship between financial distress and workplace absenteeism (Bagwell & Kim, 2003; Jacobson et al., 1996; Kim & Garman, 2003). Those reporting less financial distress miss fewer days of work.
Read more »
November 2nd, 2012 by admin
Weighing The Effects Of Financial Education In The Workplace…
The question is, does improved personal financial behavior lead to improved work outcomes?
The case is often made that financial education leads to improved financial decisions. In this paper, they begin by assessing the need for financial education by reviewing national trends in savings, debt, and retirement funding as well as by reviewing the literature linking personal financial behavior and participation in financial education programs.
They then describe the conceptual underpinnings of a link between improved personal financial behavior and work outcomes.
Read the full report: http://www.pfeef.org/research/vte/Weighing-Effects-Financial-Ed-in-Workplace.pdf
Does improved employee financial behaviour equal higher productivity? Financial education in the workplace is the solution. Call Alisdair Barr 0405 138 613.