Corporate Wellness: Reducing Financial Stress

'Financial Stress’ is a main contender in contributing to employee’s stress levels, with research findings suggesting that staff spend up to 27 hours per month worrying about financial issues.

Quite often it is not that an employee has any immediate financial issues.   It is more likely that they don’t know whether they are on the right path to achieving their financial goals. Therefore the greatest fear isn’t even necessarily a reality – it is simply the fear of the unknown. Too scared to even look, in most cases employees have not even given thought as to what their financial goals actually are.

We read almost on a weekly basis of what would, in monetary terms, constitute a comfortable retirement. But what is included in a comfortable retirement?    And what of our financial needs before retirement? The initial focus should be on lifestyle, followed by the cost of this lifestyle. Employees will require help to determine their short, medium and longer term goals. You don’t start with a sum of money, you start with a list of requirements. This is costed in today’s dollar and indexed for future dollars. Too often we tend to put the cart before the horse.

There is good news if you are willing to sit down and face the unknown. Evidence suggests that employees who document their lifestyle requirements and establish where they are currently headed, will act and begin to move in a positive direction by making informed choices.

To ensure these informed choices will occur, financial education is a crucial step. Facilitating a program where personnel can work out what is important to them is the first stage of “Financial Wellbeing”. Employers are recognising that facilitating an “Education and Advice” program is a benefit highly valued by staff. This focus will intensify as competition for attracting and retaining personnel and providing them with work life balance escalates

A survey conducted by AC Neilsen and Inside Story found that 60% of employees wanted to receive financial advice and education in the workplace with only 12% indicating they were actually getting some form of financial advice. In excess of 50% of employees found information provided about superannuation too difficult to understand and would prefer to have somebody explain queries to them. Thus a comprehensive workplace planning program will benefit both employee and employer alike.

In a time where spending has replaced saving, where the credit card has replaced lay-by, it is important that employees begin to develop a comfortable and confident relationship with money matters.    As we are constantly reminded, wealth does not necessarily lead to happiness but a well thought out and achievable financial plan will reduce stress and promote peace of mind.

Written by Rob Berens, reproduced with permission from Corporate Wellness Magazine.