21 Mar 2018

How financial wellbeing is an important angle of the triangle of wellbeing

The importance of wellbeing to the performance of a business is increasingly being recognised. Wellbeing and employee engagement levels are more frequently being considered as leading indicators of performance and market value.

Holistic wellbeing is not a new concept, in 1948 the World Health Organisation published a report that said, “Health is a state of complete physical, mental and social wellbeing”.

We all know that financial worries can lead to sleepless nights and increased levels of stress. We know that physical illness can impact family finances and affect our emotional wellbeing.

And with 1 in 4 UK adults suffering from a diagnosable mental health condition each year, we cannot ignore the effect of poor emotional wellbeing on absence, productivity and employees physical health.

Physical health

When physical health deteriorates, any absence from work can cause both financial difficulties and emotional distress. While it is not always possible to pay each employee's gym memberships, or have a full on-site gym installed, incentivising exercise through planning active company outings, or offering salary sacrifice on items such as wearable fitness bands, can improve employee fitness levels.

Taking part in the cycle to work incentive, run and partially funded by the government, can greatly increase the number of employees choosing to ride their bikes into work. Who wouldn't get half an hour of exercise per day to save 32% - 42% on a new bike and/or cycling equipment?

Financial wellbeing

With a large portion of the population living pay cheque to pay cheque and 16.5 million people of working age having no savings at all, it is unsurprising that money worries are one of the major causes of employee stress and sleep loss. It’s simply not feasible for an employer to raise all wages, but what can you do to make sure that financial stress isn't rife within your workforce?

Offering access to affordable loans, which allow for repayments directly from payroll, and providing financial education can help ensure that your employees fully understand the options available to them.

You could also protect them against the financial strain of physical illness with access to private medical insurance, or a hospital plan. This allows them to safeguard themselves if they do fall sick and are unable to work, helping to lower their stress levels.

Emotional wellbeing

Stress is an unavoidable consequence of life, and for those already suffering from mental health conditions, stress can work to aggravate underlying issues.

One in four people are likely to be suffering from a mental health condition in any one year, and one in six of those is likely to be a worker (Deloitte, 2017). With over 31 million people in work in the UK, this means around five million employees could be suffering from mental health issues each year.

With those suffering from mental health conditions often having worse physical health, it makes sense for employers to do their best to aid their employees emotionally. Why not take a proactive, and preventative, approach to your employees' mental health?

Make talking about mental health the norm. Ensure your HR department is aware of the services that the NHS has to offer and have them relay this information to the rest of the workforce. How about offering some private counselling or therapy sessions that your employees can access themselves, without having to involve anyone else?

So, what's your excuse?

A little bit of extra time and effort in these three areas is bound to leave you with a happier, healthier and more financially sound workforce. Whilst there is no way of preventing all stress or health-related absences, greatly reducing the number of stressors in place could cut the figure significantly.

This article was provided by Personal Group.