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Businesses are being encouraged to support staff cope with the rising cost of living as more report higher levels of stress and anxiety.
According to a recent NAB survey, more people are currently experiencing some form of financial difficulty.
“Research has found that one in five working Aussies experience[s] financial stress and anxiety, and the majority of these people will spend an average of 10.6 hours per working week trying to solve their financial issues,” said Terry Condon, co-founder of The Cashflow Co.
“Carrying financial stress can also impact one’s cognitive abilities and ability to focus. That feeling of scarcity distracts them in such a way that their cognition drops by 10 IQ points – that’s like turning up to work each day having slept only two hours the night before. As a result, this person tends to take 2.4 more sick days per year.
“The loss in productivity from this presenteeism and absenteeism costs Aussie businesses $66 billion a year in lost revenue.”
There is, therefore, a strong business case for supporting employees for rising cost-of-living pressures, according to Mr Condon.
“Most [people] admit they have never been taught about how money works and have not invested in their own education in this space, and because many of us have negative early experiences with both money and maths, we tend to ignore it or pretend that life and money are separate things.
“But research shows it’s not at all what we know about money that matters; it’s what we do – are we spending less than we earn? How soon do we get invested? Are we avoiding personal debt? These are the behaviours that most impact long-term results; at the end of the day, money is not a math problem, it is a behaviour puzzle.”
Mr Condon’s company, The Cashflow Co, has seen an uptick in small to medium-sized businesses seeking to roll out its corporate financial program as the rising cost of living worsens.
One of these businesses, FSC Group, invested in the group’s Money Minded program to support and educate staff on financial wellness.
“Professionals in the infrastructure construction industry are 37 per cent more likely to experience workplace stress than the general population, and with the nationwide infrastructure boom well underway, the demands on those working within the industry have only increased,” said FSC chief financial officer Ellen Connor.
To combat this, FSC implemented a “People First” Wellbeing Program, which takes a holistic preventative approach to health and wellbeing across the company.
“We felt it was important to us to include financial literacy as we believe it is an important element of wellbeing, so last year, we introduced ‘Money Minded’. It was so well received, we decided to run this program every year for our team,” Ms Connor said.
“I believe financial education is a critical life skill, and the workplace has a role to play in establishing and expanding these skills within our team.”
