Most workers expect their company to help them out if they face financial difficulties, just as they expect health and insurance benefits.
According to a survey conducted by Plentina, a fintech company registered by the Bangko Sentral ng Pilipinas as an operator of a payment system (OPS), 9 out of 10 employees expect financial benefit programs from their employers, just as they expect health benefits and insurance. The survey, conducted last March, covered 1,600 employees from Metro Manila and Calabarzon.
Financial issues are the primary source of stress for most employees, according to Kat Valencia, the Customer Retention Head at Plentina, with 8 out of 10 respondents stating that money problems affect their work, resulting in low productivity, poor work quality, and even tardiness and absenteeism.
“Employees cited financial concern as a significant contributing factor to daily stress,” Valencia said. “Our study shows that the problem stems from not having enough resources for everyday living. When asked, survey respondents highlighted three main drivers of money worries—unexpected expenses from emergency needs like medical or repair needs for everyday living, paying down debt, or needing to resort to debt for everyday needs, and not having adequate savings.”
According to Plentina, 9 out of 10 employees expect their employers to help them out when they need financial assistance, and 89% said they are likely to stay longer in the company for the financial benefits.
“Employers have a critical role to play in helping their employees address their financial worries and goals,” Valencia said.
A financial benefit program reduces stress and ultimately benefits both employees and employers. The program could include investment or retirement plans, flexible spending accounts, and emergency savings accounts for automatic salary deduction. These can go a long way in providing people with reserves when unexpected expenses arise.
Other things a company can do to improve the financial wellbeing of their people include conducting a financial wellness survey to assess people’s needs, which also gives the employer a better understanding of their financial challenges.
Developing a financial education program, such as workshops and webinars covering topics on budgeting, saving, investing, and retirement planning, is also beneficial.