A guest posting by Chatty Garrate
More and more employees are learning to prioritize their mental health as awareness campaigns continue to propagate. With the stigma surrounding it slowly abating, mental health has just become as important as physical wellness. But, it’s important to note that there are multiple facets that affect one’s mental health. For instance, a healthy work-life balance leads to positive mental well-being – the opposite is true. Another stressor to one’s mental health is personal finance.
When employees start to pile up their debt due to availing of too many personal loans or failing to pay their bills on time, stress inevitably builds up. And when this gets too overwhelming, it can lead to severe mental health issues. Imagine having to worry about financial instability coupled with the rising costs of goods and services – not the best scenario to be in. Money-related issues can disrupt an employee’s personal life, from their relationships with their loved ones to their quality of sleep.
This is where employers step into the picture. An employee with deteriorating mental well-being will have a difficult time unleashing their full potential. One way to prevent these issues is to promote financial education in the workplace. This involves providing them with the necessary resources and tools to guide them toward the financial high road.
Benefits of Financial Education in the Workplace
There are plenty of benefits to educating employees on their finances. From increasing their productivity levels at work to increasing employee engagement, it’s evident that they don’t just positively impact the employees, but the employers as well. That said, here’s how financial education can benefit both parties in the office:
Increased Productivity
We all know how hard it is to work when you just can’t shrug that one thought off your mind. For some employees, this thought comes in the form of financial issues. Employees end up distracted from the task at hand, which results in lower productivity. A worker might then be unable to meet the KPIs, which may hamper an organization’s goals. A possible solution to this is to encourage an environment of financial literacy in the workplace, and that starts with educating employees on personal finance.
Reduced Stress
No one likes working in a stressful environment. Think of a scenario when you have deadlines to meet for the rest of the week, on top of the anxiety you get about whether you’d be able to pay your bills or loans on time.
Employers must do what they can to maintain a healthy working environment to successfully retain employees. While we do not have control over an employee’s personal finances, we do have control over how we can help them with their finances. With initiatives such as educational programs, we take a huge weight off their shoulders by helping them manage their finances wisely.
Increased Engagement
Another key to retaining employees is to keep them engaged. By implementing financial education programs, you show that you’re invested in an employee’s well-being – a good look for any employer. In turn, this keeps them engaged at their job and leaves them satisfied with it.
Implementing Financial Education Programs
Now that we’ve covered the benefits of implementing these programs, the question now is: how? It’s quite simple. First, you’ll need a helping hand from financial experts – but there’s a lot more to it than partnering with them. Here’s how you can take the financial education initiatives in the workplace:
Partner With Finance Experts
You don’t have to do all the financial work all by yourself. In these times, it’s your best bet to ask for help from finance experts. Not only does it add credibility to your program, but it also ensures that your employees receive sound financial advice. Experts can weigh in on various topics such as how to build an emergency fund or when to get a personal loan.
Provide Resources That Assist in Financial Education
Without the proper educational resources, gaining financial literacy will be difficult. Employers are in a position to provide educational resources for financial education. One way to accomplish this is by giving free access to paid budgeting apps and other educational resources that can boost their financial knowledge. Alternatively, employers can incentivize learning by providing an education allowance.
Foster an Open, Communicative Environment
Fostering a supportive environment that is open and receptive to your employees’ concerns can do a lot of good to their mental well-being. When you allow them to express any financial concerns, supervisors can step in to provide the necessary resources to help them financially.
In Conclusion
As mental health is increasingly prioritized in the workplace, we must also focus on other aspects that directly affect it, such as one’s financial health. Money-related problems negatively impact an employee’s mental health, leading to decreased productivity and increased stress in the workplace.
As employers, it’s beneficial to help them out on this front as it not only benefits them but your organization as well. Not only does it build a positive working environment, but it also increases employee engagement (and therefore, retention). That’s why establishing a proper financial education program is crucial to any company. After all, it’s one method to improve their financial literacy to prevent financial issues from arising in the future. And the results shouldn’t be surprising – you get happy and healthy employees in the workplace.
A guest posting by Chatty Garrate
Chatty is a freelance writer from Manila. She finds joy in inspiring and
educating others through writing. That’s why aside from her job as a
language evaluator for local and international students, she spends her
leisure time writing about various topics such as lifestyle, technology,
and business.
