*This content is brought to you by Brenthurst Wealth
By Dorothy Avvakoumides*
South African households are no strangers to feeling the financial pressure of high prices and a tough business climate. The thing is, this pressure doesn’t just stay at home – it follows employees to work, affecting their performance and well-being.
This places a greater responsibility on business owners of small or mid-sized companies to look after their employees’ financial wellness in order to keep productivity and job satisfaction up. Fortunately, the answer isn’t always to pay more, just to care more.
Understanding the impact of financial stress
Recent findings from the Sanlam Benchmark Survey reveal that a significant number of employees are experiencing financial stress. According to the survey, 73% of respondents admitted to feeling financial pressure, with 43% acknowledging that it negatively affects their work.
This stress manifests in various ways, including increased absenteeism, anxiety, depression, sleep disorders, and even substance abuse. It’s clear that financial wellness is intrinsically linked to both mental and physical health.
The hidden costs of poor financial health
Beyond the direct impact on employees, poor financial wellness also leads to higher absenteeism rates, decreased morale, and increased employee turnover. These factors collectively contribute to reduced productivity and can significantly affect a company’s bottom line.
The indirect costs of healthcare, including stress-related medical expenses and lost productivity due to illness, further highlight the need for a comprehensive approach to employee well-being.
Practical steps to support employee financial wellness
Employers can take several practical steps to help employees manage financial stress and improve their overall wellness:
1. Implement financial education programs: Providing employees with access to budgeting tools and financial literacy workshops can empower them to manage their finances more effectively. Teaching staff how to set a budget, pay off high-interest debts, and delay gratification can make a surprising difference.
2. Offer loyalty programmes and discounts: Many companies have found success with loyalty programmes that help employees save on everyday expenses. These programmes can include discounts on groceries, fuel, and other essentials, easing the financial burden on staff.
3. Provide retirement and pension plans: Offering comprehensive employee benefit programmes that include retirement and pension plans, risk strategies, death and disability cover can give employees peace of mind about their future. Knowing that they have a secure plan for retirement and unforeseen occurrences can reduce stress and improve mental well-being.
4. Encourage employees to set up emergency savings accounts to protect them from the stress of unexpected expenses. This safety net can prevent short-term financial crises from becoming long-term problems. The financial drama created by Covid made it clear why such accounts are important.
5. Support work-life balance: Flexible schedules and the ability to take time off for personal emergencies can help employees manage their stress levels. Creating a supportive work environment that values work-life balance is crucial for employee well-being.
6. Invest in stress management tools: Providing resources such as stress management workshops or creating relaxation zones in the office can help employees cope with stress more effectively. Simple measures like a quiet room or a time-out zone with a treadmill or trampoline can make a big difference.
It may seem like a lot to ask, but it can be managed to the benefit of employees and employers to engage financial professionals experienced in employee benefit programmes. Employee benefit professionals are experts at creating affordable (for employees and employers) and effective programmes and financial solutions for small and medium-sized companies can be created.
* Dorothy Avvakoumides is an employee benefits advisor at Brenthurst Wealth Fourways. [email protected]
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