The relationship between financial health and all-round wellbeing

The link between physical health and economic prosperity has long been acknowledged by academics and business-people alike. For obvious reasons, physically active human beings make for better employees. US research suggests that they miss fewer days, are more productive, more motivated, make more money and stay in the workforce longer.

HR and benefits professionals have, understandably, focussed their traditional ‘wellbeing’ efforts on the physical side of things; private health cover, corporate gym memberships, insurance schemes and dental care dominate the market - to shoe-horn an obscure Radiohead lyric in there, ‘make your people fitter, happier, the chances are they’ll end up more productive’.

Well-being is a two-way street

But what many fail to recognise is that this relationship between prosperity and wellbeing is a two-way street. Just as a healthy, happy, engaged worker will make you more cash, so the poor, stressed, financially indebted one will struggle to deliver their best performance at the office.

This, in a nutshell, encapsulates the cyclical nature of financial wellbeing. Consider, for example, just how difficult it is for a single parent, juggling household bills, credit cards and payday loans to be a healthy person, and a productive employee. These stresses and strains are all-consuming. Furthermore, consider that that individual might be driving your train, analysing your test results, or teaching your children.

In modern-day Britain, money lies at the very heart of our problems. It is little surprise UK employees are stressed about their finances; the average adult carries £3,600 of debt, average income is down 10% in real terms over the last decade, and a staggering 17m work-age Brits have less than £100 in savings.

Increasingly, these issues are affecting our performance at work. A Barclays Wealth study found one in two employees worry about their finances, while one in three admit that these concerns have a clear impact on their work.

Even more worryingly, these issues are putting people’s mental health at risk. 86% admit that their financial situation makes their mental health worse – and we know already that the millennial generation does not equate being healthy as simply ‘not being sick’.

Everything is linked

Forward-thinkers in human resources are starting to realise that physical, mental and emotional wellbeing are all intrinsically linked, but also that financial health plays an integral role in this food chain.

Like never before, employees are crying out for help with their personal finances. The 21^st century worker desperately wants to be fit, healthy and happy – and to deliver their absolute best for their employer – but they find it impossible to do so whilst carrying the unmanageable burden of unsecured debts and financial insecurity.

Innovative businesses are responding, and not just for CSR purposes. Yes, they may care deeply about their workers in an altruistic sense, but they also understand their ability to influence engagement, productivity, retention, and ultimately, to boost their bottom line.

The way in which we work and interact is changing; the best organisations see that taking an interest in their employees’ financial health – and having a stake in their wellbeing both inside and outside of work – can only have positive consequences.

Richard Sexton is client manager at Salary Finance.

This article was provided by Salary Finance.