Employee financial stress is affecting workplace productivity. COVID-19 has escalated this problem. Now is the time for employers to take action.
Financial Stress is costing the nation in lost productivity at work.
There is an overwhelming body of research demonstrating that financial stress, caused by a lack of basic financial literacy skills is costing employers millions of dollars.
Best Money Moves, in their article, How Financial Stress Impacts Job Performance, is a must-read for every employer. They estimated that in America, reduced productivity costs the employer $1,900 a year, per employee. That’s a lot of lost productivity.
Neighborhood Trust, in their article, Is Financial Stress Affecting your Workplace? Find out in Minutes, explains the cost, and what to look for in employees. Employers found that the issues likely to arise from financial stress are:
- The inability to focus on work
- Plummeting productivity levels
- Increased absenteeism and tardiness, and
- Deceased morale overall.
The good news for employers is that Financial Wellness Programs bring tangible benefits to employers:
- Lower employee turnover
- Less absenteeism and tardiness
- Few requests for loans and advancements and
- Increased employee happiness and company reputation.
The employee “health” umbrella is now merging mental, physiological, and financial stability.
In Australia, Financial Mindfulness found that 1 in 3 Australians suffer from significant financial stress which has now been examined by CoreData.
In my article, Is Financial Stress Affecting your Health, I explain just how serious this problem is for both the employer and their employees.
No doubt the fall-out from COVID-19 has escalated this problem. It is time for everyone to get behind the Australia Together and other financial literacy programs now.
When it comes to financial literacy, Adviser Ratings has taken the initiative and is about to launch a national campaign called Together Australia.
Watch out for the launch – there will be a lot of media activity around this launch.
Financial Advisers have put their weight behind the project and major companies in the industry have funded the project. It is estimated that over the coming months 200,000+ will visit the website.
Over 500 Financial Advisers have got behind this project. They have provided excellent content in the form of articles about everything you need to know about protecting your financial future.
Even better, your employees can ask a question and a Financial Adviser will provide you the answer.
Employers can provide a free Financial Literacy Program with the help of Financial Mappers and MDTConnect
Malcolm Williams of MDTConnect is passionate about the importance of Financial Literacy. He is working with Financial Mappers to provide a financial literacy program for Employers wanting to improve the financial skills of their employees. The same program is being used by organizations who also want to improve the financial literacy skills of their members.
You simply register your email and each day, you receive a link to a new 3-minute video clip
The program will include these topics:
- Your Finances – The Basics
- Lifestyle Goals and Financial Targets
- Debt Management
- Passing the HILDA Questionnaire
- Preparing for the Unexpected
- Investments – The 3-Major Types
The aim is to introduce basic financial concepts, giving each person the opportunity to absorb that one concept and decide if that information is relevant to their current financial situation. No specific advice is given, and no financial products are recommended.
Please reach out to Malcolm for more information about the program.
Financial Mappers Lite
Financial Planning Software for Enterprise
Financial Mappers Lite is white labeled, so your employees remember that you have sponsored the program.
Your employees will have access to a 5-Year Savings Plan, to manage their budget, loans, super, savings, and investments. The software will generate easy-to-read reports, which can be uploaded to their Plan Review for better understanding. The product does not give financial advice or recommend financial products.
Given the loss of productivity caused by a lack of financial literacy skills, providing your employees with Financial Mappers Lite could be a sound financial decision.
Financial Mappers Lite may be upgraded to Premium where access to a 50-year planning tool is available.
Watch how easy it is to use Financial Mappers Lite.
For more information contact Financial Mappers.
Glenis Phillips SF Fin Designer of Financial Mappers