In their book “Wellbeing: The Five Essential Elements”, the Gallup organization discusses the role of managers and leaders in increasing wellbeing in organizations. Primarily, “if you lead or manage people, your actions have a direct impact on the wellbeing of others”. They posit that the world’s best managers see the growth of each employee as an end in itself, instead of a means to an end.
When managers and leaders invest in employees’ wellbeing, they are likely to influence the betterment of the organization. The Gallup organization’s studies have found that what’s best for the employee is not at odds with what’s best for the organization. In fact, employees that believed their manager cared about them as a person are more likely to be top performers, produce higher quality work, are less likely to be sick, are less likely to change jobs, and are less likely to get injured on the job.
Among the many things that can be done to show an employee you care is to get involved with their financial security. Many organizational leaders make the mistake of confusing monetary compensation with real financial security. Gallup’s studies have shown that financial security has nearly three times the impact of income alone on an employees’ overall wellbeing. Income, debt and net worth are some of the most common measuring sticks when determining the overall health of our finances. But instead of these absolute measures of wealth, people with thriving financial wellbeing talk about a general sense of financial security (and lack of worry).
This requires a set of positive financial defaults to create a system to avoid the worry and guilt that arise from poorly managed finances. The most progressive companies and leaders have installed financial wellness programs into their organizations and mandated their use by employees. For they know the emotional roller coaster that can be created for employees with a chaotic money situation. When employees, even those that make a lot of money, don’t feel financially secure, they worry about money regularly, which in turn drains their wellbeing. Conversely, there are lots of people with lower incomes who do feel financially secure and worry very little about money, which builds up their wellbeing.
If you would like to learn about financial wellness programs that can show your employees the path to financial security, increase their wellbeing, increase their productivity and increase your bottom line, see this document about Designing and Implementing Wellness Programs.