Alleviating Financial Stress Is a Key to Employee Retention Finds Wagestream

Financial wellbeing Fintech wage streamaccording to research and analysis from good shepherd australia new zealand,first Australian Financial Health Report To identify how employers can reduce financial stress at work for struggling employees.

The report is one of the world’s largest studies of employee financial well-being, conducted at a time when cost-of-living pressures are mounting and causing extreme levels of financial stress.

The survey covered 1,004 employees and 496 HR professionals across a wide range of industries and business sizes across Australia and was supplemented by: Roy Morgan Analysis of single source data to measure the financial well-being of Australian employees.

When it comes to financial well-being, a glaring disconnect between employees and HR personnel is revealed tool at work.

Nearly all HR professionals (84%) agree that financial well-being is related to the mental health of their employees, but only 58% of HR professionals believe their organization has some kind of financial well-being. A minority, 33%, have a financial well-being strategy. place.

This may explain why only 36% of employees believe their organization provides financial well-being support.

Employees also expressed a high need and desire for financial well-being support from their employers.

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Nearly 30% of employees lack funds for food and regular expenses, less than 50% are able to save regularly, and nearly 40% sometimes struggle to meet bills and commitments doing.

The Benefits of Providing Financial Wellbeing Tools

One in two employees said they would think more favorably of my employer if their employer provided them with financial benefits tools to help with these issues, nearly one in two People even said they were “more likely to stay with their employer.”

Employees under the age of 40 are more likely to say they want financial support from their employer. Given that the median age of Australian employees is around 37, this is an important group to consider, especially when it comes to future talent acquisition and retention.

But despite all this, only 6% of HR professionals are currently considering implementing a financial wellbeing program within the next 12 months. According to Wagestream Australia’s CEO, this represents a huge opportunity loss. Josh Vernon.

financial well-being pays off

Vernon said: If all Australian employees were experiencing financial well-being today, we would have a much happier, healthier, more engaged and productive workforce.

“Still our State of the Financial Wellbeing Report reveals that Australian employers are not taking advantage of the huge opportunity to enhance the financial well-being of their employees through a range of readily available resources and tools. We know that employees need more help in this regard, but data shows that very few are planning or able to roll out a financial wellbeing program in the coming year. increase.

Employers who are serious about the financial well-being of their employees expect great rewards. About one in two employees say they think more favorably of their employers or their employers In today’s tight job market, employers are fiercely competing to attract, hire and retain quality talent. Given that, this becomes even more important.

Other findings from the Financial Wellbeing Report:

income:

• Low-income groups report the highest levels of financial stress and are therefore likely to benefit most from the financial well-being of their employees at work.
• People earning less than $60,000 a year are the least likely to say they trust their employer.

Woman:

• Women are less likely than men to have $500 available in an emergency.
• Women also earn lower salaries on average, but are less likely (16%) than men (22%) to default on their bills.
• Women are also less likely than men to self-report that their employer provides financial health assistance (32% vs. 41%).

Year:

• Younger employees (aged 18-24) earn less, save less, and are more likely to default on their bills than older groups.
• Employees under the age of 40 are more likely to say they want financial support from their employer. Given that the median age of Australian employees is around 37, this is an important group to consider, especially when it comes to future talent acquisition and retention.

Overall employee:

• 83% of employees would be interested in a platform that could automate savings directly from earnings.
• 76% of employees would like a short, interactive course to learn about managing money.

Employer-wide:

• Top reasons for employers to consider implementing a financial wellbeing program include Improving mental health of employees (62%) and Improving overall wellbeing of employees (55%). It was
• 53% of organizations are also focusing on the financial well-being of their staff as a result of the pandemic.