How technology can support financial wellbeing
Over the past month or so, many companies have been exploring the ways that technology can support our new normal, and one of the big focuses for many employers has been ensuring the wellbeing of their remote workforce.
Employee wellbeing has increasingly been top of the agenda for many HR leaders, even before COVID-19, however traditional wellbeing strategies have focused on tackling the symptoms of stress, rather than the root causes. We discuss how technology can help tackle one of the biggest root causes of stress and support financial wellbeing...
Why is financial wellbeing important?
According to the CIPD’s 2019 Health and Wellbeing at Work Survey, over a quarter of organisations report financial wellbeing as a cause of stress, however only 37% say that their health and wellbeing activity promotes financial wellbeing.
Financial concerns are on average responsible for over 5 million lost working days a year and according to the AON 2019 Benefits and Trends Survey, 22% of employees have said their financial situation causes them stress and negatively impacts their productivity.
Another study from Willis Towers Watson, shows that those struggling with their finances had taken almost seven days off work due to illness in a year, and 78% said they suffered above-average levels of stress.
This can also have an impact on the wider workforce who find themselves with a heavier workload due to increased absence of colleagues.
How can technology help?
According to a survey by Perkbox, 56% of people said the biggest cause of financial stress was being unprepared for unexpected expenses. Typically, employees facing an unexpected cost part way through the month, would have to reach for high cost credit which may have a long-term impact on their finances.
New technology such as on-demand pay apps, allows employees increased pay flexibility to deal with these unexpected expenses with access to their earned pay as and when they need it. Providing this kind of safety net removes some of the stress which contributes to poor financial wellbeing, at no cost to the employer.
In fact, a study by the Institute for Social and Economic Research at the University of Essex found that initiatives which improves financial wellbeing in this way have a more positive effect on employee health than offering an extra £1,000 a month.
From an employer perspective, those offering on-demand pay via Access EarlyPay have also seen a 22% increase in staff productivity and up to 25% decrease in staff turnover, showing that technology can have a clear impact on financial wellbeing to the benefit of both the employee and employer.
Speak to our team to find out more about supporting your employees’ financial wellbeing via on-demand pay with Access EarlyPay.
