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Why Employers should be talking about Financial Wellbeing in the workplace

11 Jan 2022
Why are Employee Benefits important?
  • Financial wellbeing has emerged as a crucial part of overall employee wellness and employees are increasingly concerned about financial wellbeing.
  • Only ~40% of Singaporeans are financially literate, with literacy lower among women and some other specific groups1.
  • Whilst mental, physical, and emotional wellbeing are often the focus areas in the workplace, financial health can be overlooked despite the impact it has on employees and organisations.
  • By addressing financial wellbeing, employers can help reduce stress, boost productivity, enhance engagement and retention, and contribute to the overall wellbeing of their workforce.

1. Improved Employee Productivity

  • Financial concerns can have a significant impact on workplace productivity. Employees may find it difficult to focus on tasks, leading to lower productivity levels. By providing financial education and resources, employers can help enhance employees' financial knowledge, leading to improved concentration levels.

2. Enhanced Employee Engagement and Retention

  • Younger generations are being seen to value more holistic benefits and support from employers. Providing resources like financial planning services or workshops can align with personal values and therefore enhance employer brand, making it more attractive to top talent.

3. Future-proofing the workforce

  • 1 in 3 mass affluent Singaporeans do not have a comprehensive plan for retirement, with 6 in 10 expecting to work after they retire. 85% of those who plan to work after retirement are driven by financial concerns2.
  • Employers that provide education on retirement planning and offer tools to support are helping to future-proof their employees’ financial wellbeing and help ensure they can retire with dignity.

4. Promoting a Holistic Approach to Employee Wellbeing

  • Overall wellbeing is multi-layered, and financial wellbeing is a key aspect of this. A holistic approach to wellbeing should include financial health as it is closely tied to other elements of wellbeing, e.g., financial stress can lead to poor physical health.
  • Financial wellbeing has emerged as a crucial part of overall employee wellness, and employees are increasingly concerned about financial wellbeing.
  • Only ~40% of Singaporeans are financially literate, with literacy lower among women and some other specific groups1.
  • While mental, physical, and emotional wellbeing are often the focus areas in the workplace, financial health can be overlooked despite the impact it has on employees and organizations.
  • By addressing financial wellbeing, employers can help reduce stress, boost productivity, enhance engagement and retention, and contribute to the overall wellbeing of their workforce.
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Thrive Benefits can help simplify your benefits managements
  • All-in-one benefits platform that puts an end to juggling multipleproviders
  • Easily communicate with employees
  • Offer a range of ready out of the box offers for physical, mental and financial wellbeing
    • Includes complimentary memberships to Headspace, BenefitHub and free personal accident insurance of $100K
  • Modular benefits system lets you tailor benefits and addfeatures as your business grows
    • E.g. total rewards statement, holiday buy/sell, benefit reimbursement
    • Bring in and communicate any benefits you already have

Sources

1. The importance of financial literacy: Evidence from Singapore, Journal of Financial Literacy and Wellbeing, 2023.
2. HSBC Quality of Life Report, HSBC, 2023.