How global financial exclusion can dampen employee wellbeing
The world is diverse and so are our ideas of what makes a fulfilled and happy life. And that sentiment spills into the workplace. As an employer, you might be thinking, how do I connect with my employees, when everyone has diverse needs, desires and challenges?
You also might have noticed that employee engagement has declined. New research shows many employees feel disconnected from their employer and the challenges people face today play a role in this. Inflation, armed conflict, market volatility and a looming recession has increased financial anxiety and, as a result, employer-employee relationships have been destabilised.
Global financial exclusion
Women in particular are suffering financial anxiety, with research highlighting that they’re underserved and less optimistic about money; 66% feel hopeful about their financial situation (compared with 83% of men) and only 51% expressing contentment (versus 75% of men).
These statistics are the result of wider complex gender pay inequities. For example, 74% of financial professionals in the US are male and therefore more likely to write literature geared towards men.
Financial exclusion also transcends marginalised groups. Research shows that half of the world feels excluded from the financial system and 53% of people believe that access to wealth is unfair.
There are communities who are more likely to feel outside of the financial system. For example in the UK, Travellers (89%) said they felt excluded, mixed race White and Black African Caribbeans (71%), Pakistanis (70%) and Arabs (78%) have experienced significantly more exclusion than White British (37%).
Without impartial financial education, these countries and communities will continue to be left behind. Organisations need to provide the resources and tools to empower their diverse workforce to take control of their finances.
Create a stronger employer-employee connection
While financial anxiety and exclusion has led to feelings of disconnection, research revealed that 59% of all employees believe their companies view them as interchangeable and replaceable. This is a problem for businesses because these feelings of disconnection can contribute to dissatisfaction, productivity issues and increased employee turnover.
Employers can become a driving force for financial wellbeing by using an impartial educational platform that demystifies money management and provides the skills to improve financial wellbeing. The result will be a stronger employer-employee connection, ultimately improving retention, productivity and employee happiness for a diverse workforce.
The benefit employees want and need
If financial wellbeing isn’t already a critical part of your wellbeing strategy, then it’s time to give your people the benefits they’re crying out for. A total of 61% of employees said that having diverse benefits, such as financial education support, helps to build commitment to their employer, and among employees who do not currently have access to diverse benefits, 68% would use them if offered.
With an inclusive financial wellbeing programme, employees are less worried about money and are therefore 20% more likely to experience hope and contentment with their finances. They are also 24% more likely to feel connected to their employer.
To read more on How financial empowerment can save the employer-employee connection, download nudge’s 2022 global financial wellbeing report: Can we connect?
In partnership with Nudge
A leading financial wellbeing benefit using behavioural science & technology to help employees.
