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Money is a touchy subject for many. We don't discuss our finances openly for fear of judgement and jealousy. While it's a valid concern, not discussing finances has bigger repercussions than we acknowledge. According to a recent study by PwC, approximately 75% of Indian participants expressed worry about their financial circumstances, in contrast to the global average of 50%.
Clearly, we are financially stressed! Considering that money plays a key role in our stability and lifestyle, we can safely assume that stress and anxiety in this aspect will affect the overall well-being of a person.
The major reasons that contribute to financial stress are:
1) Job uncertainties: With competition forever on the rise, the current generation is experiencing pressure like never before. Even when one gets a job, they must keep an eye out on the market to see how their company and the market are doing.
2) Family commitments and societal expectations: Many people graduate with the weight of loans on their shoulders. Apart from that, there is also an expectation to live a certain lifestyle that often includes owning a home, a car, and keeping up appearances in social circles.
3) Lack of financial knowledge: Making money is one thing; how to handle it for long-term benefit is a whole other ball game. Sadly, many do not have this knowledge, as financial education isn't a common practice.
Concerns and anxiety about finances can have a negative impact on mental health, leading to negative beliefs about one's money management skills and decreased financial wellness. When sustenance itself is a constant concern, it is easy to lose motivation and go down a negative thought spiral.
When you are doing financially well, you go beyond sustenance and think of things that can make you thrive rather than just survive. For example, investing in self-improvement, pursuing hobbies, or planning for the future contributes to your overall wellness. But you can only create space and time for these in your life when you are financially in a good place.
As the mental health of employees has become a critical concern for organisations, we are seeing an increase in wellness programs being provided to them. However, it is important to note that there are many aspects to mental health, with finances being a crucial one.
Financial wellness programs can be a valuable tool here. They aim to improve employees' financial literacy, provide resources for financial planning, and offer tools for dealing with financial stressors. By addressing these challenging aspects of employees' lives, companies can help relieve financial worries. This can have a positive impact on mental health and overall wellness. When employees feel more financially secure, they are likely to experience lower levels of stress and anxiety, leading to improved overall well-being.
Here are some strategies organisations can opt for to integrate financial wellness programs to provide a holistic approach to employee mental health:
1) Financial Education: To improve the financial literacy of employees, organisations can provide easy-to-access financial education resources, like workshops, webinars, and online courses. This will help them make more informed decisions about their finances.
2) Financial Planning: Budgeting, saving for the future, and managing debt are common financial challenges faced by people. Offering employees access to the financial tools available in today's market to manage these things can go a long way towards making them feel more in control of their finances. This will improve their money management and reduce the stress related to it.
3) Financial Support: Everybody faces unique financial challenges. So, going beyond generalised tools and education and providing access to financial coaching or counselling services can be of great help. This way, employees can address specific financial challenges like debt management or retirement planning.
4) Employee Assistance Program (EAP): Organisations can also incorporate financial wellness components into their existing EAP. EAP typically includes counselling and support for mental health issues, and by including financial wellness, organisations can provide a more holistic approach to employee well-being.
This holistic approach to employee mental health not only improves their wellness but also their productivity in several ways. Employees who are less stressed about their finances are likely to be more focused and engaged at work. When the financial support comes from the company itself, it builds loyalty, leading to improved job satisfaction and retention. So, by taking a holistic approach to employee well-being, organisations can create a positive culture that is a win-win for both parties.
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