Recent research into the state of employee wellbeing revealed a number of factors that impact labour productivity. The research shows that financial wellness is a key factor influencing overall employee wellbeing and ultimately productivity.

Recent research into the state of employee wellbeing revealed specific gender nuances, the most notable of which is that more women than men attribute their financial stress to the pressures of caretaking responsibilities and the cost of maintaining a household.

This is unsurprising given that 42,1% of households in South Africa are headed by women, and highlight the need for gender-informed employee experience and wellbeing initiatives in the South African workplace.

This was among the conclusions drawn by the inaugural research report on employee wellbeing, conducted by on-demand earned wage access provider, Floatpays. The study aimed to provide insight into the factors driving the current state of employee wellbeing in South Africa, with the ultimate aim of helping businesses improve productivity levels through the optimisation of employee wellbeing programmes.

The gender dimension of financial stress

Homing in on the aspect of financial stress as a contributing factor to employee wellness, the study segmented its audience according to several demographics including ethnicity, age, income bracket and gender. One of the most compelling findings highlighted the plight of women.

Andisa Liba, chief people officer at Floatpays, comments: “According to the study, 57% of women attribute their financial stress to household expenses as opposed to 49% of men. Furthermore, the cost of food affects 52% of women when compared to 42% of men. These findings are indicative of gender-specific challenges which need to be addressed at the level of the workplace because this stress ultimately impacts the bottom line.”

The impact of financial stress on labour productivity

In terms of gender, across the board, employees who experience financial stress report sleeping problems, difficulties with concentrating and negative impact on their mood. However, the proportion of females who experience low emotional states is almost 10% higher than their male counterparts.

Liba says: “Financial stress is a key trigger of a negative continuum that results in challenges such as absenteeism, low presenteeism and workplace errors, which has an impact on productivity. Financial stress is the opposite of financial wellbeing, and because such a large component of employee wellness relates to the financial state of employees, this should be a major concern for South African employers.”

Towards an inclusive employee experience

Working towards a better employee experience, however, is a multi-dimensional endeavour, which includes, but is not limited to aspects such as fair compensation. For women in particular; as the study revealed, access to learning and development opportunities were valued more highly when compared to men.

These learning opportunities extend to professional development but also include education on aspects of financial management which include learning how to be better financially prepared for an emergency, maintaining a healthy level of debt and managing cash flow between paychecks. 89% of female respondents expressed a need to be educated on how to manage their money better.

There is a business case to be made for employers to offer this kind of training at work, since financial wellness impacts productivity.

However, as Liba concludes: “Solutions to better employee wellness such as financial management skills development needs to take the prevailing gender nuances into account. Women, who carry most of the domestic caretaking load, can benefit immensely from education on how to handle their money more efficiently, and practical tools to assist them with managing their cash flow between paychecks better and saving in the context of limited financial resources.”