In today’s workplace, employee well-being has become a core component of human capital strategy. As physical and mental health initiatives gain traction, financial wellbeing is emerging as an essential pillar for employee satisfaction and productivity. A recent Wellbeing Diagnostic Survey by WTW, a global leader in employee benefits and risk management solutions, sheds light on this growing need and the significant gaps that remain in meeting it. WTW, with decades of experience advising companies worldwide, highlights that employers have made strides, yet a critical gap remains in providing employees with the financial well-being support they need to thrive.
Key Findings: Financial Wellbeing’s Undeniable Impact
According to WTW’s survey findings, financial stress is a leading concern for employees that directly impacts their engagement and performance. Despite the holistic well-being programs that many companies have implemented, financial well-being remains underserved, creating both a challenge and an opportunity for organisations that make it a priority. The report reveals some telling statistics:
- Two-thirds of employees report moderate to major challenges in one or more areas of well-being, with financial stress consistently ranked as the highest concern globally.
- Over half of employees worldwide cite financial well-being as their top need, yet only 22% of employers currently list it as a priority.
- Companies with highly effective well-being programs experience a 25% increase in revenue per employee and a 36% improvement in return on equity, showing that comprehensive well-being strategies can deliver measurable results.
Source: WTW, 2024 Wellbeing Diagnostic Survey
These findings highlight a clear gap between what employees need for financial wellbeing and what companies are currently providing. Addressing this gap can enhance not only employee satisfaction but also organisational performance.
Financial Wellbeing: A Strategic Asset, Not Just a Benefit
Financial wellbeing isn’t just about benefits packages; it’s about building a supportive culture that fosters employee security and resilience. Here’s why financial wellbeing should matter to organisations:
1. Boosted Retention and Talent Attraction
Financially stressed employees are twice as likely to seek new job opportunities, according to WTW’s findings. By offering tools and resources to help employees better navigate their financial futures, companies can cultivate a culture of stability and loyalty. This focus can be a strong draw for top talent in a competitive market.
2. Increased Productivity and Reduced Absenteeism
WTW’s research also shows that financial concerns are a top distraction for employees, leading many to take time off work. In fact, financial well-being issues led 2.5 million employees worldwide to miss work in 2023 alone . Comprehensive support initiatives, such as financial education sessions, digital planning tools, and personalised coaching, can empower employees to feel more secure, directly benefiting their productivity and engagement.
3. Strengthening Employee Engagement Across Demographics
Financial wellbeing initiatives have a unique ability to resonate across diverse employee groups, offering tailored support that meets individuals where they are in their financial journeys. When companies prioritise financial wellbeing, they create an environment where employees – regardless of role, age, or financial literacy – feel valued and equipped to succeed. This approach not only enhances overall employee experience but also ensures that financial security becomes an accessible goal for everyone in the organization.
WTW found that 81% of employers now target employee experience improvement as a primary goal of their well-being strategies, with financial wellness as a core part of the equation.
Practical Approaches for Supporting Financial Well-being
How can HR leaders and COOs respond to the increasing demand for financial wellbeing in a way that maximises impact and benefits?
1. Build Financial Resilience with Targeted Programs
Organisations can create financial resilience programs that go beyond workshops, offering ongoing coaching and support for decision-making around budgeting, debt management, and saving for goals. For instance, WTW notes that some companies are now implementing a total rewards approach that includes a financial well-being focus as part of retirement, health, and risk coverage benefits .
2. Provide Digital Financial Toolkits for Easy Access
Digital platforms like Teleskop can offer employees a secure space to consolidate and track their financial information, empowering them with a clear understanding of their financial landscape. With features like asset aggregation, secure digital storage, and advanced sharing functions, Teleskop can help employees manage their finances holistically, preparing them for unforeseen circumstances and easing the burden on their families should anything happen to them.
3. Establish Regular Feedback Mechanisms
To ensure wellbeing initiatives remain relevant, companies should use regular feedback loops to capture employee needs and adjust their strategies. Conducting surveys and creating focus groups can provide HR leaders with actionable insights into the effectiveness of financial wellbeing support, allowing them to align resources with real-time employee feedback.
4. Train Managers to Recognise and Respond to Financial Stress
Managers play a pivotal role in supporting a healthy workplace culture. Training managers to spot and address signs of financial stress can help prevent small issues from growing into significant productivity barriers. WTW’s report indicates that a work environment led by engaged and understanding leaders fosters wellbeing, which translates into long-term success for well-being programs.
Conclusion: Leveraging Financial Wellbeing for Organisational Success
As the demand for financial wellbeing grows, organisations that lead the way in providing comprehensive support will be seen as employers of choice. By recognising financial wellbeing as a strategic asset, HR managers and COOs can build a resilient, engaged, and productive workforce.
Digital tools like Teleskop can play a pivotal role by helping employees understand their finances and prepare their families for the unexpected. With features designed for clarity, security, and ease of use, Teleskop empowers employees to take control of their financial futures. This level of support, driven by the insights of experts like WTW, positions companies to make a positive, lasting impact on employee wellbeing, engagement, and retention.
