The economic situation of workers can directly affect the productivity of their professional activity. In this article, we show you the impact of employee financial health and consumption habits in the work environment, seeing how they affect it and what benefits companies can bring to the correct handling of the situation.
What is financial health
Financial health refers to the stability an individual enjoys in relation to their current financial and economic situation. It primarily determines whether a person is optimally managing their money (or not), and if their financial health is good, they will have a positive personal financial situation.
It is important to know that for the company to be able to carry out its activity in the most effective and efficient way possible, it is essential that its employees benefit from a positive financial health. Otherwise, many factors directly related to the business can be affected.
This type of situation generates stress and personal problems for employees, which results in a significant drop in their performance and, consequently, in a decrease in productivity. For this reason, the financial health of a company’s workers is a fundamental issue to maintain efficiency and achieve the proposed objectives and Accrual helps you achieve them.
How financial health affects the business
Employees under stress at work tend to take more time off work and may spend part of their day solving personal problems. This can drastically reduce business productivity.
Some of the most serious consequences that can cause a company’s workforce to be in good financial health are:
Customer service from employees is deteriorating. If your employees are in poor financial health, the quality of customer service will be affected. The work environment for people with financial problems is tense. If the general financial health of your employees is negative, the work environment will follow the same line. The workers will not feel like working, they will be in a bad mood and not very open to conversation, so the harmony of the work can be broken. Decreased efficiency. We have already seen that financial health affects the productivity of your workers. If they are unclear and demotivated, the overall performance of the company will decline. On specific and very exceptional occasions, workers can be in a limiting position and commit unethical practices that can cost you money. For example, unmotivated absences, distractions in the work environment, etc.
What are the benefits of good financial health for workers?
As we have shown you throughout the article, the financial health of employees can influence the development of business activity. Therefore, it is important that companies get involved and bet on improving the financial conditions of their workers, which translates into significant benefits such as:
Talent retention is increasing. If workers are motivated and satisfied with their work, the likelihood of leaving the company decreases. The turnover is also reduced, which helps to make the teams stronger. Increase the company’s reputation. If you take steps to ensure that your workers’ situation is the best it can be, you will improve their perception and satisfaction. Administrative costs are reduced. The management of advances is a measure that involves a high cost in time and resources in the financial departments. Absenteeism at work is decreasing. If employees are satisfied with their work, absenteeism rates and the number of leaves requested are reduced.
All of this has a positive effect on the company’s income statement, increasing profits and improving the working environment and public image.
You already know the importance of financial health in the development of business activity, impacting on fundamental factors such as absenteeism, productivity or customer service.
Do you want to know how you can improve the financial health of your workers? In this article, you can find out in more detail.