The unexpected relationship between financial wellness and health
Financial wellness and overall wellbeing are far more interrelated than you might think. According to the American Psychological Association, money is the leading cause of stress among American adults[1].
Stress impacts both mental and physical health, inducing symptoms such as headaches, irritability, sleeplessness, lack of focus, and anxiety.
On the other hand, satisfaction with one’s financial situation has been shown to have positive impacts on happiness and overall life satisfaction[2]. Like stress, happiness also affects a person’s mental and physical state: Happier people sleep better, have stronger immune systems[3] ,and are 13% more productive at work[4].
Why should employers offer financial wellness benefits?
Evidently, finances have an extraordinary impact on an employee’s quality of life. Yet issues related to money, or the lack of money, are often difficult for employees to resolve on their own, especially when so many employees do not have sufficient financial education. Access to financial wellness benefits, whether they be literacy tools, financial counseling, savings options, or access to low cost credit, is critical to ensuring employees are equipped to improve their health and well-being.
Further, financial wellness benefits have positive outcomes for the business organization as well. The less financially stressed an employee is, the less likely they are to leave a role they are otherwise satisfied with[5]. Therefore, adding financial wellness benefits may reduce turnover at the employer. Moreover, financially stable employees are more focused on their job, more engaged in the workplace, and have a higher chance of retiring on time. This last benefit helps to keep younger employees moving up the ladder, and therefore keeps them satisfied with their career progression. Finally, offering employee wellness benefits shows your employees that you care about the things that matter most to them, helping to build their trust in you and remain satisfied in their roles.
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[1] https://www.verywellmind.com/what-are-the-main-causes-of-stress-3145063#:~:text=them%20in%20mind.-,Financial%20Problems,time%20during%20the%20previous%20month
[2] https://www.psychologytoday.com/us/blog/the-good-life/200806/money-and-happiness
[3] https://www.healthline.com/nutrition/happiness-and-health#TOC_TITLE_HDR_3
[4] https://www.ox.ac.uk/news/2019-10-24-happy-workers-are-13-more-productive#:~:text=Research%20by%20Oxford%20University’s%20Sa%C3%AFd,13%25%20more%20productive%20when%20happy.
[5] https://blog.accessperks.com/employee-engagement-loyalty-statistics-the-ultimate-collection