Financial Stress and Productivity
Why are financial benefits essential for workplace productivity?
Being caught in a fast evolving economic environment, organisations are increasingly challenged to maintain a competitive edge. Employees and employers alike are under constant pressure to give innovative output and maintain high levels of productivity. Thus, the need arises for employers to ensure the well being of their employees.
Findings from Cigna 36⁰⁰ survey reveal that 87% of Indians feel that workplace wellness programmes are important in choosing between two potential employers.
Financial well being is an indispensable component in obtaining optimum productivity and more often than not, it’s importance is underestimated.
Financial well being and why it is a serious issue?
Financial well being means gaining freedom of choice. It means having control over one’s finances- ability to pay bills on time, having the resources for an emergency situation and the freedom to enjoy basic luxuries.
Financial concerns are widespread, affecting employees of all age groups. Younger generations have lower income and savings which causes financial instability while the older generation have more responsibilities towards their families and are, therefore, more susceptible to emergency obligations and requirements.
A survey conducted by Willis Towers Watson on India’s employee well being found that almost half, 46%, of the employees surveyed have concerns about their financial state and more than 68% of these employees feel that financial concerns negatively impacts their workplace productivity.
The report mentioned that financially stressed employees lose 3.7 days per year to absence and 12.8 days per year due to reduced work productivity. This could incur huge losses for the concerned organisation. AMP Limited reported that financial stress of employees is costing Australian businesses an estimated $31.1 billion per year in lost revenue. To achieve organisational goals, employees well being is of utmost importance. While most organisations provide some form of healthcare benefits, financial well being is often not addressed.
How to address this issue?
Providing financial benefits shows the employer cares about them as individuals which results in more motivation and loyalty at work. One such benefit is introducing small short term loans that employees can conveniently avail for their financial needs. Incorporating such a program can save employees from the hassle of dealing with the lengthy processes and high interest rates that one faces when approaching a bank. Employers can also get a better understanding of the financial situation of their employees and how to address them.
According to a survey conducted, more than 68% of employees stated that they want loan benefits from their employer while only 33% employers provided said benefit.
By partnering with NIRA, you can offer your employees quick and easy loans at improved interest rates, giving them access to credit in their time of need. There is absolutely NO fee you have to pay. Enable your employees to avail credit without bearing any financial liability risk yourself . Give your employees the power of financial freedom and grow your organization to new heights.
