How Financial Wellness Improves Employee Engagement

It is evident that the physical and mental health of your employees is essential to their performance on the job. In contrast, the financial health and security of your workers is an often overlooked component impacting their engagement. Financial issues are a severe distraction for anyone as they play on your mind throughout the day.

Have you ever lived paycheck to paycheck? If you have, you will know the struggle of balancing your bills to minimise the late fees you will be charged due to there not being enough cash to pay them all on time. Payday does not align with your bills and other necessary living expenses. It is an unfortunately common scenario where financial stress can spiral out of control, consuming your thoughts at all times.

Financial Stress in the Workplace

Financial stress plays a significant role in the workplace. According to the ANZ Financial Wellbeing Report over a third of Australians are just ‘getting by’ or worse, ‘struggling,’ leading to:

  • Almost 50% of the Australian workforce worrying about their financial situation.
  • Them spending almost 10% of their paid working hours thinking about financial issues.
  • Increased employee turnover and sick days being taken, costing Australian employers between $47 and $55 billion each year.

Financial Issues Lower Productivity in the Workplace

It intuitively makes sense that an employee’s contentment in their personal life will play a role in their workplace performance. Their attention is likely to be split among multiple issues, making it harder for them to apply themselves to their job entirely. A 2015 study from the University of Warwick found that “happiness made people around 12% more productive,” highlighting the importance of positive employee mental wellbeing, including minimising financial stress.

Even more significantly, new research from Gallup shows that Australian companies are facing an employee engagement crisis. According to the study, only 24 percent of the workforce said they felt engaged with their work. Worse still, that figure is only getting worse over time, and recent events have done little to help employees feel secure in their roles.

Financial Security. How Can You Help Your Employees?

Employee engagement and productivity is a multidimensional issue that is more complex than just financial security. However, helping employees meet their financial obligations can go a long way to improving their wellbeing and workplace performance. Listening and understanding your employee’s financial situations can help them feel heard, as can reasonably increasing wages to reduce some of the burden.

Promoting and prioritising financial wellness within your workplace is a more sustainable solution than paying higher salaries. In addition to education, products such as Paytime, an early wage access app, can help ease the financial stress your employees may be facing. According to ANZ, people who had considerable variation in their household income recorded an almost 30% lower score in their perceived financial wellbeing. Paytime, which is completely free for businesses to use, offers employers a method to pay their employees daily without disrupting payroll.

Paytime is Not a Loan

Paytime is an Earned Wage Access solution to enable your employees to access what they have already earned – it is not a loan. Your employees can view how much they have earned via the Paytime app and access their money before payday (funds can be deposited even on weekends), allowing them to control their pay schedule depending on their needs. Paydays are a thing of the past with Paytime, easing financial stress and personal cash flow concerns faced by your employees.

Attract better talent by offering a unique pay solution that your competitors do not have.

If your business wants to enable your employees to improve their financial wellbeing, workplace engagement and productivity, contact PayTime today for a quick demo!