Financial Well-being for Improving Employee Satisfaction

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                                                                                                    (Financial Advice Working Group, 2017)

HRM, or human resource management, is essential to the success of an organization. A core factor among the many variables affecting worker satisfaction is their financial situation. Realizing this, HR managers are using methods to help employees become more financially stable in order to raise employee happiness and, in turn, improve performance inside the company.

"Financial wellness (or financial wellbeing) refers to a person’s overall financial health and the absence of money-related stress. It is the consequence of effective expense management." (Souqalmal, 2022)

Why financial wellness matters


Financial difficulty is known to have a negative impact on employees' personal and professional lives, and as a result, on the organization as a whole. The importance of financial well-being is highlighted for several reasons in the section that follows.

Absenteeism ; As per the findings of the Society for Human Resource Management, absenteeism and tardiness increase by 34% when employees experience financial stress.

Healthy and content employees ; An employee’s financial concerns may lead to a variety of health complications, including ulcers, depression, and even heart problems. 

Productivity loss ; It is unsurprising that financial stress has an impact on employee productivity, given that it increases absenteeism, presenteeism, and illness.


Financial Wellness Program

Employee financial wellness programs assist personnel in  financial management and alleviating financial concerns. As a result, they aid in improving employees’ overall financial wellbeing.

Programs for Financial Wellness;

    • Financial Education Workshops

      • "The budget planning session, facilitated by our finance executive, was met with high levels of satisfaction and engagement from all participants. Attendees expressed genuine interest and happiness with the session's content and delivery."

    • Employee Assistance Programs
    • Retirement Planning Seminars
    • Financial Wellness Challenges
    • Employee Benefits Reviews

Prioritizing financial well-being in HRM practices is a strategic requirement for organizations aiming for sustainable success and improve employee satisfaction, not simply out of altruism. Human resources managers build a motivated and engaged workforce that can overcome barriers and take advantage of possibilities in the competitive business climate of today by funding programs that enable workers to attain financial stability.

References;

Financial Advice Working Group, 2017 [online] Available at: https://www.fca.org.uk/publication/research/fawg-financial-well-being-workplace.pdf/ [Accessed on 09.04.2024]

Newsletter, 2023 Available at: https://www.benefitscanada.com/benefits/health-wellness/financial-wellness-programs-should-have-measurable-tangible-impact-study/ [Accessed on 09.04.2024]

Souqalmal, Financial wellbeing Available at: https://yabimoney.com/the-role-of-financial-wellness-in-workplace-satisfaction-and-performance/ [Accessed on 09.04.2024]

Why Financial wellness matters Available at online: https://www.youtube.com/watch?v=kBVt79AHW8k [Accessed on 09.04.2024]


Comments

  1. Thushari Dilrukshi ( E-225496 )April 12, 2024 at 2:19 AM

    This blog showings how important it is for companies to help their employees with money issues. It says that when workers are stressed about money, it affects their work and their health. So, companies are starting programs to teach employees how to manage money better and reduce their financial worries. This helps make employees happier and more productive.

    ReplyDelete
    Replies
    1. Nadeeka SamarathungaApril 12, 2024 at 5:43 AM

      You've summed up the blog post's main points in your reply. It is true that taking care of employees' financial security is essential to their personal and professional lives. Companies that provide money management programs to their employees not only reduce stress levels but also cultivate a more content and efficient staff. The significance of this endeavor is further highlighted by your gratitude. I appreciate you expressing your opinions.

      Delete
  2. Ruvini DissanayakeApril 12, 2024 at 6:40 AM

    As you mentioned HRM is essential to the success of an organisation. And also recognising the financial situation of employees has a great impact on their satisfaction. Mentioned that financial stress leads to increased absenteeism and health issues among employees. I think that factor we all can experience in our workplace too. HR managers should motivated and engaged workforce capable of navigating challenges in the modern business era.

    ReplyDelete
    Replies
    1. Nadeeka SamarathungaApril 12, 2024 at 7:11 AM

      I appreciate you expressing your views. I value your perspective on the significance of HRM and the impact that financial strain may have on worker happiness and wellbeing. HR managers must unquestionably prioritize cultivating an engaged and driven team.

      Delete
  3. Sajana Rupasiri E223450April 12, 2024 at 8:35 AM

    It is very critical to address the stress and wellbeing of employees. According to the organization can promote work-life balance, open communication, and wellness initiatives. In today's changing workplace, it is imperative to prioritize mental health assistance, provide flexible work schedules, and spreading a positive culture in order to build employee resilience and well-being. Further more in your content has valuable theories to understand

    ReplyDelete
    Replies
    1. Nadeeka SamarathungaApril 12, 2024 at 10:14 PM

      I am grateful for your insightful feedback. You've provided more detail and an effective summary of the significance of putting employee well-being first through a variety of tactics than the earlier piece did.

      Delete
  4. Anjali Hettiarachchi E225448April 12, 2024 at 9:03 AM


    Thanks for emphasizing the importance of financial well-being in HR practices! It's clear that helping employees manage their finances can lead to happier, healthier, and more productive teams. By investing in financial wellness programs, organizations not only support their employees but also contribute to their own success. Excited to see more companies prioritize this essential aspect of employee satisfaction!

    ReplyDelete
    Replies
    1. Nadeeka SamarathungaApril 12, 2024 at 10:18 PM

      I am grateful for your insightful feedback. In my opinion, putting a strong emphasis on employee well-being is crucial to developing a positive and encouraging work atmosphere.

      Delete
  5. Ruki(Rukshan Dinesh-E232179)April 12, 2024 at 10:22 AM

    HRM practices should prioritize financial well-being for sustainable success and employee satisfaction, fostering a motivated workforce and funding programs for financial stability.
    Finally monitory or financial benefits matters a lot for self satisfaction

    ReplyDelete
    Replies
    1. Nadeeka SamarathungaApril 12, 2024 at 10:21 PM

      Thank you so much for your valuable comment. much appreciated!

      Delete

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