The Correlation between Employee Financial Wellness and Employee Productivity

Appropriate recognition and reward for one's efforts and work are ethically and psychologically crucial to our being. And it only makes even more sense when we are talking about Employee Productivity in an organisation. While rewards can be in numerous guises, an employee's Financial Wellness has the most significant impact. Corporate wellness correlates with employee productivity, and so does Employee Financial Wellness. Inappropriate remuneration in the corporate sector causes financial stress and distraction to employees. Which further affects their productivity at work.?

As per a report by Manulife Financial Wellness Study 2016, 93% of them agree that financial wellness and employee productivity are positively correlated.

About 50% of employees, as per the same report, admit that 3 to 4 hours of work time are distracted by their financial struggles.

A worker's productivity is a principal factor in a country's economic health. Workforce welfare, therefore, is crucial.

As per the 2022 Employee financial wellness survey report by PwC, there is a 10% drop in the number of employees that are able to meet their lifestyle requirements through compensation amidst the rise in prices. The personal battles of an employee hinder the employee’s morale. A demotivated and less focused employee cannot be productive.

Such issues are not well contained to oneself; staff confinement and talent retention are one of the biggest challenges today; faced by the HR department in the corporates.

Key financial challenges faced by employees

Financial wellness can be taken care of by the HR department by understanding and addressing the issues faced by their employees.?

Some financial threats an employee deals with on a regular basis look like this:?

• Not able to look forward to a retirement plan because they are stuck with their daily financial struggles.
• Not able to meet their daily expenses or monthly utilities and necessities.
• Not able to even save money for an unforeseeable emergency.
• Living from one paycheck to another.?
• Sitting with debts they are incapable of paying back.
• Have no robust future financial stability plan.?

These challenges hinder an employee’s focus in work life owing to unproductive days. We need a sturdy counter to these problems in order to achieve more efficient and effective workplace wellness in the organisation and promote employee engagement.

How can we bring Financial Wellness to improve Employee productivity?

Let us dig down to the root cause of financial illness. Money management can be more problematic than earning money, itself. While appropriate payment for work is essential, enabling the employees to make the right decisions with their money can take this to a new level.?

• Conduct Employee Wellness Programs to discuss unaddressed financial issues.?
• Discuss financial literacy via workshops.
• Supply financial tools education for better money management.
• Encourage financial security plans.
• Offer employee benefits to make them feel supported in these times.

The financially literate employees who manage their funds well are able to have an enriching work-life. They are not only more likely to be consistent with their work quality but also prove to be a productive resource to the company.

At FatakPay, we offer a credit facility that can easily be incorporated by employers into the system for employees in mid-month financial crises. This helps employee meet their needs via an on-demand pay option at no collateral requirements. Also, no recourse to corporates for repayment. We offer friction-less and bulk approvals so it is smoother to unravel the financial illness at your organisation. Employees would appreciate this add-on as they would feel supported in the company, hence improving employee productivity.?

Avail the benefits of your first step towards a credit solution that is quick and easy with FatakPay at https://fatakpay.com/. See you there!