The Crucial Role of Financial Wellness on Employee Satisfaction

Organizations possess various resources, which can be categorized as physical and human resources. The utilization of non-human resources relies solely on the efforts of human resources. Therefore, human resources serve as the essential asset that enables organizations to leverage benefits from other sources. ​​In the landscape of business, employees are one of the most important pillars on which the building of an organization stands. They are the driving force behind every initiative, the catalysts for innovation, and the face of customer service. In this business environment, the concept of employee satisfaction emerges as not just a buzzword but a cornerstone of organizational success.

Employee satisfaction serves as the bedrock upon which productivity, efficiency, and overall company performance are established. In addition to contentment at work, employee satisfaction encompasses a holistic measure of how fulfilled and engaged employees feel in their roles. Studies consistently demonstrate a strong correlation between high levels of employee satisfaction and positive outcomes such as increased productivity, lower absenteeism, higher customer satisfaction, and improved retention rates.

A significant factor contributing to employee dissatisfaction is work stress, which can impact various facets of life including family dynamics and mental health. More than 50% of the employees report that financial concerns rank as the foremost source of stress in their lives. In fact, 56% of the employees distracted by financial stress spend over three hours per week preoccupied with their personal finances. Financial wellness, akin to financial security, takes center stage as it plays a vital role in overall well-being. Empowering employees with financial autonomy fosters reduced stress levels and improved health, translating into heightened focus, productivity, and satisfaction, both personally and professionally.

In the face of challenging economic times, employers are increasingly turning to Earned Wage Access (EWA) as an added benefit for their workforce. Earned Wage Access, a financial product offered through third-party providers, enables employees to access a portion of their earned salary anytime before their payday. With an average salary of 76,900 PKR per month for half of the employed population in Pakistan, EWA is promoting employee wellness by providing them the financial autonomy. ABHI, Pakistan’s pioneering embedded finance platform is benefiting 550+ companies and 250,000+ employees in Pakistan. With AbhiSalary – an Earned Wage Access employees get the flexibility to withdraw their hard-earned salary, making every day a payday.

According to a survey, 73% of employees express a preference for employers who prioritize their financial well-being. Moreover, integrating EWA into employee benefits enhances employer branding, positioning the company as progressive and financially inclusive. Research conducted by EY reveals that 71% of respondents perceive employers providing EWA as an added benefit positively.

In conclusion, as organizations navigate the landscape of business, the significance of prioritizing employee satisfaction and well-being becomes increasingly evident. Recognizing employees as the cornerstone of success, companies need to address factors contributing to dissatisfaction, such as work stress and financial concerns.

1- PwC. (2023). PwC’s 2023 Employee Financial Wellness Survey. [online] Available at: https://www.pwc.com/us/en/services/consulting/business-transformation/library/employee-financial-wellness-survey.html 

2- PwC. (2023). PwC’s 2023 Employee Financial Wellness Survey. [online] Available at: https://www.pwc.com/us/en/services/consulting/business-transformation/library/employee-financial-wellness-survey.html 

3- EY.(2022). Earned Wage Access Market in Pakistan 2022.

 4- PwC. (2023). PwC’s 2023 Employee Financial Wellness Survey. [online] Available at: https://www.pwc.com/us/en/services/consulting/business-transformation/library/employee-financial-wellness-survey.html