Financial wellbeing key to retention
And attraction, says YuLife.
Why You Should Care
The world is on the brink of a recession.
Employees are worried about their finances, and they want their employers to step up and support them.
Here's where to start.
When thinking about wellbeing, the two types that come to mind are physical and mental health. But a third one is growing in importance: financial wellbeing.
This makes sense in the context of the COVID-19 pandemic and the financial stress it caused millions worldwide.
Not to mention that as unemployment rates began to recover, the world was rocked by an economic crisis that caused sky-high inflation rates, a cost of living crisis, and mass layoffs.
The financial stress that individuals are under is hindering their performance at work, according to research by YuLife.
A study of 1,200 US workers found that 55% were worried about their finances and seven in ten said stress due to financial wellbeing was negatively impacting their performance at work.
In the UK, where YuLife surveyed another 2,000 workers, 80% were worried about financial wellbeing, and the same percentage said this was impacting their productivity.
It is no surprise that workers in the US (45%) and the UK (49%) want their employers to step up. If companies fail to do anything, they could face a talent attraction and retention crisis.
66% of American workers said financial wellbeing support would be a key part of them applying for a new job. 61% of British employees agreed, and cited financial wellbeing is essential to their decision to stay in their currently job.
Only 7% in the UK and 8% in the US think financial wellbeing has no role in retention and attraction challenges.
How to get financial wellbeing right
Given the role that financial wellbeing plays on talent attraction and retention, it is crucial that employers take action – but where should they start?
YuLife’s research recommends that employers offer a comprehensive set of policies, programs and tools that help employees with their financial wellbeing – currently only 13% in the US have this type of extensive support, while 23% have no support at all.
These policies must include income protection (according to 28% in the US, three in ten in the UK), as well as confidential support. The latter is linked to the fact that 66% in the UK and 63% in the US wouldn’t feel comfortable telling their employee about their financial stress.
YuLife adds that employers must also better communicate the policies they have in place – a quarter of British and American workers said there had been no clear explanation of financial wellbeing offerings from their employer.
Talking about the findings, YuLife founder and CEO Sammy Rubin shares with UNLEASH: “HR leaders can use this data to better understand the challenges employees are facing, enable employees to be transparent about their concerns with their managers, and, above all, introduce tangible policies and initiatives to bolster employees’ financial wellbeing beyond just paying their salary.
“Workplaces that demonstrate extra commitment in supporting their teams navigate the issues relating to rising inflation stand to gain significantly from healthier and more productive teams in the short term, and a greater sense of loyalty and engagement in the long term.”
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Allie is an experienced business journalist and can be reached at firstname.lastname@example.org.