Financial wellness (or simply financial well-being) refers to an individual or overall financial well being and the absence of financial stress. It is the result of effective expense control. Financial wellness is also an important component of overall employee well-being that includes emotional, physical, and organizational wellness. A healthy business is one in which employees are financially healthy and the profitability of that business is directly proportional to the health of its employees. You can learn more at more info here
One of the chief causes of financial stress in an organization is excessive and inefficient spending habits. In fact, “spending” has even become synonymous with “budgeting”. Unfortunately, a budget is rarely followed and organizations frequently find themselves in the frustrating situation of running out of resources to fund their operations. This is where financial wellness programs come into play.
These programs are designed to reduce the amount of financial stress in an organization by providing information about current trends in spending and consumer borrowing, as well as providing guidance about ways to reduce expenses. Employees are usually required to participate in these programs voluntarily. Those who choose not to participate can face discipline from higher management regarding their budgeting practices. In the past, most organizations had a single policy regarding budgets and reimbursements. Today, however, budgets and reimbursements often change, with some companies adopting a “pay for performance” policy, in which performance is the driving factor behind spending decisions. This means that those who choose not to participate may find themselves facing discipline from upper management regarding their budgets and reimbursements.