Financially disorganised employees are the source of low productivity and reduced efficiency in the workplace. It’s a no-brainer that an engaged and stress-free workforce will be more productive and bring more value to the organisation than a team of financially stressed employees. So, what difference can an employee financial planning app make to your workplace?
An employee who is disorganised financially is more prone to absenteeism and performing poorly at essential tasks. However, the onus of learning more about finance lies not just with the employee but also with the employer. As much as every worker must find ways to remain aware of their finances, employers can play a significant role in making sure that their workforce is financially organised. The easiest way to do this is to look at what employee financial planning apps have to offer.
Duty of care.
Firstly, there is a duty of care to consider. An employer is obliged to take the steps necessary to ensure their employees’ health, safety, and well-being. Well-being can be mental, physical, or financial.
What do you need to do to satisfy your duty of care in employee financial well-being matters?
The financial case.
Secondly, there is a financial case to consider.
Money worries can be hugely amplified in the workplace with lost engagement, absenteeism, presenteeism, and stress-induced lousy behaviour.
It’s time for employers to step up and support their workers who may be suffering from financial worries. While employers may not be able to offer bigger wage packets or prevent their employees from getting into debt, providing them with access to mental, physical, and financial well-being assistance programmes can make a real difference in their day-to-day lives.
Your employee cost is the total cost associated with employing an individual. Depending on industry and profession, it can exceed twice their salary. The costs include recruiting, HR, salary, taxes, benefits, incentives, paid leave, training & development, office space, consumables, insurance, and equipment.
According to Monster, the average staff turnover rate in the UK is 15% – though the figure varies between industries.
According to Oxford Economics and Unum research, the average cost of turnover per employee (earning £25,000 a year or more) is £30,614. This figure comprises hiring costs, onboarding, training, and lost productivity, amongst other things.
An average staff turnover rate of 15% costs organisations with 500 employees around £2.3 million every year.
Salary is the top major cause of employee turnover, the given reason in 85% of cases.
What’s more valuable:
- Providing a 1% pay increase over the competition, or
- Teaching the person how to make the most out of their salary every month for 0.2% of pay?
The employee financial planning app.
A financial literacy programme may include providing employees with personal confidential financial planning app integrated with their bank accounts.
Your employees may all have different bank accounts, and you might need an end-user financial planning app with an open banking app.
Let me introduce HapNav, the Happiness Navigator! This is the world’s first end-user financial planning app with an open banking app.
The app helps navigate the cash flow valley from one paycheque to the next or plan toward a more secure financial future.
The cost per employee? Just £6.99 per month.
If you provide apps to 500 workers at £6.99 pm each, the total cost is £41,940 per annum.
The cost of providing HapNav @ work as an employee benefit is less than the average employee cost (earning £25,000 a year or more). The cost of 1 FTE. That’s a total of 0.2% of employee costs.
You could offer it as part of a flexible benefits package, or as a voluntary benefits scheme.
If a financial planning app could reduce turnover from 15% to 14.7%, it would be a no-brainer.
In addition, you increase productivity and reduce absenteeism and presenteeism.
You meet your duty of care, increase motivation, and save money!
Please find out more by visiting our website.