How Companies Can Support Workers’ Financial Health
Introduction
In today’s economic landscape, with the cost of living crisis, employee financial wellness is more important than ever. Many employees struggle with financial stress, which can impact their work performance and overall wellbeing. Companies that take proactive steps to support their workers' financial health not only foster a sense of loyalty and satisfaction among their staff but also benefit from increased productivity and retention.
Key Strategy to Support Workers' Financial Health
On-Demand Pay
One effective strategy for supporting financial wellness is offering On-Demand Pay, sometimes called Earned Wage Access. This system allows employees to access a portion of their earned wages before the traditional payday. It can be especially beneficial for those living paycheck to paycheck, helping them manage unexpected expenses without resorting to high-interest loans or credit cards. Read more about what On-Demand Pay is here.
Key benefits of On-Demand Pay:
No hidden costs, just a flat rate ATM-style fee
No debt, no credit checks, no owing anyone anything
Financially inclusive, available to everyone
Benefits of On-Demand Pay in Supporting Financial Health
Increased Staff Retention
Employees who feel financially secure are more likely to stay with their employer. By offering financial wellness programs, companies can reduce turnover rates, saving on recruitment and training costs. Financially satisfied employees are often more engaged and loyal, contributing to a positive company culture. Companies which use Level have seen up to a 50% reduction in staff turnover.
Decrease in Unfilled Shifts
Financial stress can lead to absenteeism and a lack of motivation. By supporting employees’ financial health, companies can reduce the number of unfilled shifts. When workers don't have to worry about their finances, they are more likely to show up and perform at their best. Some staff are also more willing to take on overtime when they know they can access their earned wages early. Companies which use Level have seen up to a 62% reduction in unfilled shifts.
Decrease in Absenteeism
Financial issues are a common cause of absenteeism. When employees have access to financial wellness programs, they are less likely to take unscheduled days off. This leads to better productivity and ensures that the company operates smoothly without frequent disruptions. Companies which offer their employees an On-Demand Pay benefit have seen up to a 13% reduction in absenteeism.
Conclusion
Investing in employees' financial wellness is not just a compassionate move – it makes good business sense. Offering On-Demand Pay and other financial support can lead to increased staff retention, a decrease in unfilled shifts, and reduced absenteeism. By prioritising financial wellness, companies create a more stable, productive, and engaged workforce.
Consider implementing On-Demand Pay and other financial wellness strategies in your organisation to support workers’ financial health. Book in to talk to a Level On-Demand Pay specialist today, and learn more about how we can help you support your employees' financial health and boost your business performance.