WA Super News
Financial wellbeing and how it affects productivity
“Financial stressors are not only negatively impacting employees, but are costing employers,” said Paul Owen, General Manager – Client Services at WA Super.
We are seeing an increasing number of people face financial hardship issues as a result of not being on top of their financial situation.
“Various research studies have also found stressed employees to be less productive, take time off from work to deal with their finances, and are more likely to cite health issues caused by financial stress"* he said.
Some of the specific research findings include:
- 79% of people with debt are losing sleep, and the majority of those say it affects their mental health**.
- Only 45% of Australians feel financially educated***.
- 75% said they’ll regret not paying more attention to their super when they’re older**.
PWC in their Special Report: Financial Stress and the bottom line, 2017 found that nearly one in three employees reports that issues with personal finances have been a distraction at work and 46% of those who are distracted by their finances at work say they spend three hours or more at work thinking about or dealing with issues related to their personal finances*.
The cost to employers from this stress and distraction is significant. Absenteeism is estimated to cost Australian Employers $7bn pa.^
Each component of our wellbeing is connected and each part affects the other.
The good news is that organisations can not only help improve employee health outcomes and staff satisfaction but, by also investing in an employee health and well-being programme they can save money. Investing in wellness boosts the overall well-being of employees, increasing their health, productivity and engagement plus employees think it is also a great initiative. 92% of employees surveyed said “it was important to work for an employer that offers a wellness program."^^
It has been estimated that organisations’ can save an average of $5 for every $1 invested in these programs.^^^
Mr Owen said that while there is plenty of good, free online information available to help people to manage their personal finances, personal coaching is their most desired way to receive financial education and guidance. WA Super can help your employees understand their finances through on-site seminars and one-on-ones as well as our new online financial education program available here.
As your default superannuation fund we also are happy to assist you with the development of a Financial Wellness Programme that suits the needs of you and your employees.
To find out more email email@example.com.
*Special Report: Financial Stress and the bottom line 2017, PWC
**Financial Wellbeing - The Missing Piece in the Employee Wellbeing Picture 2014. Paul Barrett, The Work Foundation
***Australian Financial Health Index report 2015, BT
^Workplace Health Report 2015, Bupa
^^Workplace wellness in Australia 2010, PWC & Medibank Private
^^^Stress and wellbeing in Australia survey 2014, Australian Psychological Society