Why the corporate world should unlock financial wellness for its co-workers

Bangladesh's corporate arena is experiencing praiseworthy initiatives. Businesses are now solemnly eager to help their workforce in terms of mental and physical wellness. HR managers are trying to find newer avenues for keeping coworkers well and helping them reduce worry and stress.

We have seen the evolution of introducing many activities for employees and coworkers within the workplace. Initiatives such as indoor games, football and cricket tournaments, gymnasiums, yoga sessions, book clubs and runners' clubs can be excellent examples.

The businesses are also deeply engaged in many training sessions for developing various types of skills in their coworkers. We must not hesitate for a moment to commend such proactive initiatives. At the same time, we must also remember the need for the financial wellness of our colleagues.

How are our colleagues managing their finances? Do they know how to manage their income wisely? Are they overspending? Do they have any savings plans? Are they becoming frequent borrowers?

These are a few questions to ask ourselves as we recognise financial wellness as 'wellness.' Yes, first, we must recognise that we have a responsibility to turn our coworkers into great financial planners in their personal lives. If they have such knowledge, they would be able to relieve many sorts of stresses along the way. And that would help our companies have a stress-free workforce.

Now, what is financial wellness? It introduces the concepts of managing our finances well and how it impacts our overall well-being. Do we know the basics of budgeting? Yes, we do, but we do not know how to create and stick to a budget, understand fixed versus variable expenses, and use budgeting tools.

We all, individually, may have a sense of savings and emergency savings, but learning the strategies for managing and paying off debts, understanding interest rates, and the impact of debt on financial health would help us stay calm during difficult times.

No matter how young our coworkers are, in their 20s or 30s, it is always wise to create an atmosphere of providing them with in-depth knowledge about retirement planning, insurance needs, efficient tax planning, financial goal-setting, mindful spending, financial negotiation skills, home ownership, investment opportunities and the likes.

Retirement planning may educate our colleagues on the various retirement savings options and the importance of early and consistent savings to ensure a financially secure retirement. Establishing the habit of regular financial reviews and adjustments to stay on track with their financial goals would greatly benefit them.

The need for financial wellness education also reflects broader economic and societal trends. By empowering our colleagues with financial knowledge, we not only enhance their well-being but also contribute to the prosperity and sustainability of our businesses.

The benefits of implementing financial wellness programmes are many. For our coworkers, it would mean reduced stress regarding their income, improved mental health and a better sense of control over their futures. The benefits also include higher productivity and job satisfaction. Knowledge of financial wellness is the best skill that we could empower our coworkers with.

Let me cite some words of a world-renowned HR guru and author, Dave Ulrich – "Financial wellness is not just a skill, but a gift we give to ourselves and our employees. It is the foundation upon which we build our dreams and achieve our goals. By fostering financial literacy, we not only enhance individual well-being but also contribute to creating a more equitable, resilient, and prosperous world."

Ekram Kabir is a storyteller and a communications professional. He is just an email away: ekabir@gmail.com.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.