As the federal election looms, the conversation surrounding rising living costs and stagnant wage growth is growing. We are seeing the Government and businesses acknowledge that this is putting a lot of pressure on Australian workers. In fact, the average employee loses 43 hours per year to financial stress — that’s greater than a full working week. The truth is your employees are spending hours each month juggling funds between their accounts trying to scrape together the $76 to pay the electricity bill, which is putting an incredible amount of financial stress on their shoulders.
But it’s not just the employees who are worrying – the pressure felt by workers is ultimately felt by employers themselves. Data from AMP shines a light on just how severe this issue is for businesses – Australian businesses lose an estimated $31.1 billion revenue per year due to employee financial concerns affecting their productivity. Regardless of your size or industry, employee wellbeing has major implications for the future success and growth of any business.
That leads to the question: what can business owners do to solve financial stress in the workplace? In theory, financial wellness seems simple to achieve. It ultimately means that an individual has the ability to make educated and strategic financial decisions that benefit themselves now and into the future. But in practice, this is extremely difficult to achieve by yourself.
Fast-growing businesses and start-ups have begun offering employees benefits and incentives to help with overall happiness. Friday drinks, weekly yoga classes or regular team outings are common ways businesses are rewarding and incentivising staff to keep employees active and social. But given 2.1 million Australians aged 18 and over shared they experience severe or high financial stress, these measures aren’t enough to alleviate the financial stress and carry on effects it has on the business.
With staggering figures like that, it is important for businesses to offer ways for their employees to gain financial control – and subsequently, reach a state of financial wellness. That’s where instant paycheque access comes in. By offering workers access to their income as they earn it, businesses across Australia are helping drive smarter financial decisions and fight the need for predatory payday loans.
Having a flexible system for employees is important because we know financial demands are unique to every Australian. Should someone find themselves in a difficult financial situation, employers have the capability with tools to empower them to make a decision they can control, rather than turning to a payday loan, going into their overdraft or falling into credit card debt. The pay cycle is also a big part of this. Everything in our lives is on-demand, except for our pay, and having the ability to control that is proven to alleviate stress – especially during times where bills creep or rent is due more often than a paycheck comes.
For employees, having access to their income as they earn it allows them to budget appropriately and be supported by an employer-sponsored safety net if an unexpected expense occurs. It is also a benefit that employers can offer their employees to help with retention, productivity and morale – all critical to keeping a business running smoothly and profitably.
As employers, there is a responsibility to empower staff to make better financial decisions and avoid situations that are detrimental to financial health. Put the needs of your employees first and offer them a solution to help manage the twists life throws at us – and help your business in the process. It’s a win-win for everyone.
Josh Vernon, CEO, Earnd
