Linking health and wealth can boost employee productivity and engagement
Earlier this year, Manulife and Ipsos Reid surveyed more than 2,000 Canadians. The Health and Wealth Wellness Study revealed that taking a dual health and wealth approach can provide real value to a company’s employees—and to its bottom line. Here are four key take-aways from the survey results.
1) There’s a strong link between how financially prepared an employee feels and how healthy, engaged and productive he or she is in the workplace. The study found that employees who are financially unprepared are twice as likely to be distracted and unfocused while at work. Additionally, the financially unprepared are 80% more likely to be living paycheque to paycheque and twice as likely to be having difficulty making ends meet than those who are financially prepared (i.e., managing debt well, having adequate savings and putting away sufficient amounts for retirement). Worrying about their financial situation greatly takes away from employees’ productivity and overall engagement, affecting the employer’s bottom line. Financially unprepared employees are 16% less productive than their financially prepared colleagues and 22% less engaged in their workplace. These two figures are perhaps the most significant findings in the research, as they show the real impact that employee financial stress has on an employer’s bottom line.
2) Employees who feel financially prepared are more likely to be healthier than those who feel financially unprepared. We know that employees are more likely to come to work and perform well when they are in optimal physical and psychological health. The study also uncovered that employees who are financially prepared tend to get 24% more exercise and are 25% more likely to identify themselves as being very healthy than those who are unprepared. The likely reason is that the stress experienced by financially unprepared employees affects their health and motivation to exercise. The study also discovered that financially unprepared employees take 25% more sick days than those who are financially prepared.
3) Having workplace benefits and retirement savings plans is one way to become financially prepared. The research shows that workplace plans have a big impact on the lives of the employees who participate in them. Individuals with both a workplace benefits plan and a retirement savings plan are more than 50% more likely to be financially prepared than those without such plans. They are also two-thirds more likely to have personal retirement savings plans and debt management plans in place.
4) Financial advisors improve employees’ chances of being financially prepared. It’s hardly a surprise that a financial advisor can play an important role in helping people to become financially prepared, but the research shows just how great an impact an advisor can have. Financially prepared employees are more than five times more likely to be working with a financial advisor than those who are not prepared. This means that employers should actively encourage their employees to seek out financial advice so that they remain on a financially healthy path.
These research findings suggest that a broader, more holistic approach to wellness is required to enhance employee well-being in today’s work environment and to achieve maximum engagement and productivity. This new approach needs to include financial wellness as part of an interconnected system that also addresses employees’ physical and psychological wellness.
Matt Miles is vice-president, product and marketing, group benefits and retirement solutions, with Manulife Financial.
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