High levels of financial stress affect 1 in 4 working Australians, according to research from TAL*. Half of workers are concerned about the longevity of their money, and three quarters want to do more to improve their financial health.
Its hardly surprising, in an environment of high living costs, unaffordable housing and growing uncertainty about making ends meet.
Financial stress can be just as big an issue as physical or mental health, due to its damaging knock-on effect. From an employer perspective, financial stress can negatively impact workplace performance and overall productivity. When employees are financially stressed, they become less engaged and are twice as likely to use work time to try and take care of personal financial issues.
Outside of the workplace, financial stress can negatively impact mental and physical health. Stress creates worry and anxiety, which can lead to a host of other issues if left unchecked. People who are having financial difficulties are more likely to experience mental health challenges.
For example, someone who is worried about money may choose to forgo medical appointments, gym memberships and other health services, which can have repercussions in the long-term. Someone who is financially stressed may avoid social outings or have increased pressure in their personal relationships.
Increasing employees’ access to financial literacy can help to reduce financial stress and in turn, help to ease other issues. A third of employees would use financial education and tools at least once a month if their employer offered these services to them. But sadly, only 15% of employers have offered financial education to their staff.
Why might there such a lack of financial wellbeing tools being offered in Australian workplaces? Providing financial education to employees isn’t the same as offering other health benefits. It isn’t the first thing that usually comes to mind when you think about wellbeing. It’s also probably not the first thing that comes to mind when an employer hears about their employees being stressed and the word ‘wellbeing’ gets thrown around.
Financial education isn’t always the hot topic or fashion. It’s not always trendy. And yet it can be one of the easiest programs to implement. By providing these resources to your employees, you aren’t just improving their financial wellbeing, and in turn increasing workplace productivity, you’re helping to improve their overall wellbeing.
*TAL, ‘Employee financial health and literacy’ report.
