Mounting financial pressure affecting employee wellness and productivity
Adults across the globe are feeling the pinch of economic downturn and the high cost of living. A reality highlighted in Josh Bersin’s 2019 Wellbeing Imperative report, which revealed that 50% of American households have no savings, while 60% of adults admit to having no budget.
In one of the most recent studies available on South Africa (SA) literacy competencies, SA has come last in a poll of 30 countries when it comes to personal financial literacy. This is worrying considering the study, done by the OECD International Survey of Adult Financial Literacy Competencies in 2016, found that just under 50% of SA respondents reported that their income did not always cover their living costs and a third said they borrowed to make ends meet.
Financial problems do not only impact every facet of the lives of those affected, but also the organisations for which they work. It has been estimated that a company loses two out of twenty days in production for every employee who suffers from financial problems. This productivity loss, due to either physical or mental absenteeism, has been equated globally to just over R3.7 trillion per year.
From an employee wellness and business output perspective, employers are in a significant position to assist in helping to improve the financial well-being of their people and, in turn, their productivity.
Free To Grow’s Money Sense programme has equipped 23 669 employees with essential personal financial skills, providing not only key financial knowledge and skills, but also addressing the underlying values and attitudes toward money that shape spending patterns.
“Money Sense empowered the candidates with skills to improve and manage their personal and business finances. The practical exercises and case studies provided ample opportunity to create individual goals and action plans, complementing the De Beers Zimele Enterprise Development Incubator programme,” says Annami Engelbrecht, Business Development Superintendent, De Beers Namaqualand Mines Kleinzee.
With the recent increases in basic living costs in SA, such as electricity and fuel, don’t miss the opportunity to help your employees review their financial situation and take practical steps to budget more effectively.
Contact Kim van Schoor, Marketing Manager, at firstname.lastname@example.org for more information.