Employee Financial Wellness and Health and Safety
The link between financial stress and overall wellbeing is well established. It is not surprising, then, that employee financial wellness has become a top priority for many forward-thinking organizations. By providing employees with resources and tools to manage their finances effectively, organizations can create a supportive environment that promotes employee financial well-being. However, what is less often anticipated is the impact that employee financial wellness can have on safety and health in the workplace. In this blog, we explore the top five health benefits of employee financial wellness in terms of safety and health.
Reduction in Stress and Mental Health Concerns:
Financial stress is a leading cause of anxiety, depression, and other mental health concerns. These issues can have a significant impact on productivity and safety in the workplace, with workplace stress alone costing U.S. companies around $300 billion annually in lost productivity. Financial stress-related illnesses are among the most common reasons for employees taking time off work, with studies suggesting that financial concerns contribute to up to 40% of employee absences.
By promoting employee financial wellness, employers can help employees develop the skills, knowledge, and confidence they need to manage their finances effectively. This can lead to a reduction in stress and the subsequent improvement in mental health and overall well-being, ultimately increasing productivity and safety in the workplace.
Decrease in Workplace Accidents:
Research shows that financial stress can lead to increased risk-taking behaviour, which can have serious consequences for safety in the workplace. For example, employees experiencing financial pressure may be more likely to work overtime or under dangerous conditions to make ends meet, increasing their risk of accidents and injuries. Furthermore, studies reveal that employees who report financial stress are 3 times more likely to be involved in accidents at work.
By investing in employee financial wellness, employers can help prevent financial stress from driving increased risk-taking behavior and contribute to a safer work environment.
Improved Physical Health:
The relationship between financial stress and physical health is a complex one. Issues like high blood pressure and cardiovascular disease often arise due to financial stress, leading to increased absenteeism in the workplace. In addition, employees experiencing financial stress may also be at risk of unhealthy coping mechanisms like smoking, overeating, and alcohol consumption to deal with stressors, which can, in turn, lead to chronic health problems such as obesity.
By promoting employee financial wellness and providing resources like financial planning education and debt management assistance, employers can help reduce financial stress and, consequently, lower the likelihood of employees experiencing chronic health conditions that may impede productivity and safety in the workplace.
Reduction in Sick Leave:
Studies have shown that employees experiencing financial stress take an average of two weeks more sick leave each year than their financially secure counterparts. These numbers represent a significant drain on productivity for businesses, leading to increased absenteeism, lower morale, and decreased engagement.
By prioritizing employee financial wellness, organizations can provide support that helps employees better manage their finances, leading to less sick leave and boosting overall productivity and engagement.
Increase in Employee Engagement:
As we’ve discussed, financial stress has a significant impact on both mental and physical health, leading to lower levels of employee engagement, retention, and workplace productivity. In contrast, employees who feel financially secure and supported are more likely to be engaged and productive in their work lives, leading to greater output and outcomes.
By supporting employee financial wellness, employers can foster a sense of security and well-being and boost overall engagement, which is an asset for any organization.
Conclusion:
Supporting employee financial wellness has become a top priority for organizations worldwide, given the significant impact financial stress has on employee productivity, mental health, and well-being. By providing resources, education, and support to employees, businesses can promote a safer, healthier work environment. While the benefits of financial wellness are many, this article highlights the top five health benefits of employee financial wellness in terms of safety and health in the workplace.
References:
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