Financial literacy was the key to improving the financial wellbeing of Australians with employers keen to see employees receive some form of work place advice or financial education according to Workplace Super Specialists Australia (WSSA).
The group found that around 40% of Australian workers needed to improve their financial wellbeing with only a third of workers considering themselves as ‘financially well’.
The WSSA said 39% of employees were categorized as either ‘financially unwell’ (12%) or as having ‘room for improvement’ (27%) according to a survey conducted by CoreDate among 1400 people, on behalf of the group.
The survey, which was based on employee responses to objective and subjective questions that related to their day to day and long term financial preparations, found a further 29% of employees were considered in the mid zone and were rated as ‘on the way to wellness’, while another 26% were rated as having ‘financial wellness’ with a final 6% considered as ‘super stars’ and extremely financially fit.
WSSA President, Terry Rhodes said the data indicated there was a problem among Australians who lived with poor financial health as well as a flow on effect for employers.
He said employers reported the most common behavioural impact of poor financial wellness in the workplace was stressed employees followed by unengaged/distracted employees, low morale, unhealthy employees and absenteeism.
Rhodes said there was a strong link between financial literacy and financial wellness and that more than half of those considered ‘financially unwell’ in the survey had poor or very poor financial literacy, where as 93% of ‘superstars’ had strong or very strong financial literacy.
He also stated that employees were keen to take advantage of this connection creating an opportunity for advisers to add value as more than 60% of the surveyed employers regarded helping employees develop their financial literacy as extremely or very valuable, while 90% of employers considered one-one-one sessions with advisers as the most valuable way to communicate with employees.
“There is a huge opportunity for employers and financial advisers to have a positive impact on the financial wellbeing of their employees through engagement programs that build knowledge, help them to achieve their goals, are relevant and affordable,” Rhodes said.
