Why financial wellbeing needs to rival your other health benefits
On the journey to promote good health, we must bear in mind that the concept incorporates many areas, including mental, physical, emotional, spiritual, social, intellectual and even financial.
Businesses will always seek to support the wellbeing of their employees. To date, this focus has mainly been on physical and mental health, but the spotlight has been shining brighter on financial health of late, largely due to the continuing rise in the cost of living.
The core aim of a competitive workplace benefits package is to ensure that current employees feel valued, while also attracting high-quality talent to join the business.
Win-win benefits
From the company’s perspective, there are many advantages to these benefits, too. For instance, a benefit that gives employees a training budget can see workers improving their skills and applying their newfound expertise to contribute to the success of business. Put simply, benefits are a win-win for employers and their teams.
Companies will often prioritise physical health as a key part of their benefits package. Whether that’s through subsidised gym memberships or cycle-to-work schemes, the underlying aim is to keep workforces in good physical condition, which can contribute to preserving mental health.
It’s a benefit for both employers and employees, as good mental and physical health can mean fewer sick days being taken. But sick days don’t just come from poor physical health. Stress can also contribute.
Money-related stress is bad for mental health
There is an opportunity for the workplace to address financial wellbeing, particularly during an ongoing cost of living crisis. Money-related stress comes high on the list of sources of contributors to mental health issues.
According to Claro Wellbeing’s 2022 Financial Wellbeing Report, 43% of respondents cited money as their number one worry. Some 50% of employees are worried about their finances, with a staggering 86% saying that these worries impact their performance at work.
People work for many reasons, largely to ensure that they have a steady and sufficient level of income to live on. When that income is no longer enough due to the rising cost of living, their mental health can start to deteriorate.
Prevention is better than treatment
With the consistent rise in awareness about mental health, particularly in the workplace, companies are keen to prove that they value the mental wellbeing of their staff as much as their physical health.
The standard workplace benefits package usually has some form of offering in this department, whether it’s subsidised therapy or access to online resources. But this benefit facilitates treating the outcome rather than trying to tackle the cause.
Employers have the opportunity to get to the root of the problem before further issues arise. A good level of financial literacy can enable people to make well-informed decisions about their finances. Money-related stress can be alleviated through education (and pay rises, where available), which can minimise the risk of ensuing mental health problems.
Of course, financial wellbeing alone is not the golden ticket to impenetrable health. But the combination of solid physical, mental and financial health is a powerful defence against life’s unexpected challenges. The know-how to set up an emergency fund, for example, can leave people with a sense of confidence and empowerment that will trickle into other aspects of everyday life.
The workplace will always benefit from workers that are focused, happy and stress-free. By giving financial health the same prominence as physical and mental health, benefits packages are providing more well-rounded offerings that can attract and retain the best talent.
For employers looking to protect their workforce from ill health, the three-pronged approach of looking after mental, physical and financial health is a great place to start.
In partnership with Claro Wellbeing
A financial wellbeing benefit to support your team where it matters most
