Why financial education is one of the top benefits for employees
Good job perks can have positive trickle-down effects on employees’ mental wellbeing, work productivity, company loyalty and general levels of self-confidence. They can also attract new recruits, especially Generation Z, who look for more than just a good salary when negotiating contracts.
Financial wellbeing is one of the most popular perks that employees are looking for. Some 50% of employees want their employer to offer financial education and wellbeing benefits, according to Claro Wellbeing research.
It’s a win-win for both employers and employees to have this perk.
Financial knowledge goes a long way
One in four people in the UK have experienced a mental health problem. It’s likely that the less financially confident you feel, the worse your mental wellbeing is likely to be.
According to Claro Wellbeing’s Mental Health Report, the average mental wellbeing score drops by more than 37% from people with high financial confidence to those with the lowest.
Poor mental health can also have a negative knock-on effect on work performance, with people more likely to be disengaged with their tasks if they are worrying about finances.
Boosting employee satisfaction
The quickest way to boost your approval rating with employees is to show that you genuinely consider their welfare, both in and outside of the office. More than half (55%) of employees believe that their employer doesn’t care about their financial wellbeing.
Rather than meaningless gestures, real benefits are required to maintain high levels of staff loyalty. More than three-quarters (76%) of employees said they would use a financial wellbeing programme if offered one, and 81% said it would increase their satisfaction as an employee.
A satisfied employee is more likely to be motivated in their work, stay loyal to the company and remain with it for longer.
A financially confident employee is productive
More than two-in-three staff (67%) say that financial stress affects their performance at work, according to Claro Wellbeing’s Workplace Today Report. As a result, 3.5 days a year are spent (on average, per employee) handling their finances during work hours.
Boosting financial confidence empowers staff to make well-informed decisions about money rather than stressing about it at work. Good financial wellbeing benefits can help reduce the possibility of staff getting into financial difficulty, which can otherwise lead to increased sick days, lower levels of productivity and poor mental health.
Providing a service employees need
When asked what’s stopping employees from getting help with their personal finances, Claro Wellbeing research found that 30% said it’s because financial advisors are too expensive.
A financial adviser may also not deal with clients unless they have significant assets, for example more than £100,000. This eliminates a large part of the population, leaving them alone in their struggle to get financial guidance.
By providing a means for employees to improve their money management skills, you’re giving them access to something they may otherwise have to go without. Almost half (40%) of people rely on Google searches to educate themselves on finance. As it’s unregulated online, staff can get into more difficulty if they’re not getting advice from qualified professionals.
Financial knowledge can be applied to work
A heightened understanding of financial management is a valuable skill, both in and outside the workplace. Employees’ confidence levels will improve in line with their financial knowledge. This can have positive effects on work tasks, as there are transferable skills that can be applied to managing budgets, fiscal responsibility, and decision-making processes.
The effects can vary based on the employee’s particular area of work, but an improved understanding of the economy and money will inevitably bring beneficial outcomes for the individual and business.
Boost your B Corp status
B Corporation is a private certification of for-profit companies recognising their social and environmental performance. If your company is working towards it, introducing policies that support staff’s financial, mental and physical wellbeing is a steps towards being certified.
Financial wellbeing plays a part – learn more about how it can benefit your business’ B Corp status here.
In partnership with Claro Wellbeing
A financial wellbeing benefit to support your team where it matters most
