Financial Insecurities Hinder Employees’ Output: Survey
Financial insecurity is the biggest hindrance to employee’s professional growth at workplace, the new study has revealed. According to the 2016 Global Benefits Attitudes survey, 52 percent of employees think that they are less effective at work due to financial problems, while 35 percent feel financial worries are affecting their lives.
The study of over 2,000 employees in India found that almost 54 percent worry about their future financial state. A growing proportion of employees expect to work through their sixties to meet their financial obligations. All these factors pertaining to financial insecurities hinder performance of employees at the workplace. When questioned about their current financial state, as many as 46 percent of employees express concerns and more than 1-in-3 stated that their financial problems negatively affect their lives.
Among employees who have both short-term and long-term concerns, 75 percent admit to above average or high stress. In contrast, the same is true for less than 2-in-5 employees in the unworried group, employees who are not worried either about the short or long-term. Employees with both short- and long-term concerns are 1.5 times more likely to report poor health and twice as likely to leave for another job.
Kulin Patel, Director, Willis Towers Watson India said, “The growing insecurities of employees around long-term financial stability demands the immediate attention of employers. Companies are beginning to take steps by making their employees’ financial well-being a core component of their overall well-being strategy and employee value proposition. Gradually, employers are understanding the link between their employees’ well-being and their performance and productivity at work, and how this affects the organization’s bottom line. Soon, they will realise that a holistic approach is needed to address these issues effectively.”
According to the survey, 57 percent of Indian employees support the idea that their employer should have a role in encouraging them to save for retirement. However, 32 percent would be uncomfortable receiving targeted messages from their employer on these matters. Such complexity should be addressed with sensitivity.
Notably, 46 percent of employers intend to offer a comprehensive suite of tools, seminars and education that cover budgeting, planned large purchases, debt reduction, wealth accumulation, protection/insurance and tax assistance/advisory by 2018, as revealed by the findings of the survey.
The biggest growth in promoting financial well-being in India will be in the use of customized and targeted messages, where 50 percent of employers intend to do so over the next three years, on top of the 13 percent currently doing so. Employers should aim to help employees address their different issues, from short-to-medium-term savings, through to the traditional long-term retirement savings.
Kulin Patel further said, “There is a need to boost engagement and productivity by re-configuring the benefit package offered by employers. Different employee segments may require a different mix of benefits that depend on their financial priorities at their given stage in life. For employers to move beyond their conventional role and intervene to support their employees, a one-size-fits-all approach cannot be adopted consistently across all organizations as a solution.
The survey results also suggest that 1-in-4 employees, when asked about their top priorities, prefer superior retirement or health benefits to pay and bonus and more than 2-in-5 would prefer some alternative to pay and bonus.
(Image Courtesy: ca.finance.yahoo.com)
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