07. The Role of Human Resources in Enhancing Employee Financial Wellness: Evidence from Sri Lankan Companies
1 Introduction
In order to boost efficiency, the human resources management
is responsible for more than just finding the best candidates. The ability of a
person to meet all of their present and future financial obligations, feel
confident about their financial future, and be able to make decisions that
allow them to live life positively is one part of employee wellbeing that is
becoming increasingly important. This is known as financial wellness
2 The Importance of Financial Wellness for Employees
Stress associated with finance has an impact on workers'
general well-being and productivity at work. Studies reveal that workers
experiencing significant financial strain are more susceptible to unscheduled
absences and to postponing retirement
3 Role of HR in Financial Wellness Enhancement
HR departments play a key role in encouraging financial
wellness by creating sensible benefit and wage structures that appropriately
acknowledge and compensate workers for their contributions. This provides a
sense of security and guarantees the financial stability of all employees
4 Evidence from Sri Lankan Companies
Several Sri Lankan companies, recognizing the importance of
employee financial wellness, have initiated programs focusing on financial
education. For example, Dialog Axiata PLC launched a program providing
financial literacy training to employees
5 Conclusion
6 References
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Goswami, P., 2024. Financial Wellness. [Online]
Available at: https://www.vantagefit.io/blog/financial-wellness-goals/
[Accessed 10 04 2024].
John Keells Holdings PLC, 2022. Annual Report, Colombo:
John Keells Holdings PLC.
Kim, J. & Garman, E., 2016. Financial Stress and
Absenteeism: An Empirically Derived Model. Financial Counseling and
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Kim, J., Garman, E. & Sorhaindo, B., 2003.
Relationship Among Credit Counseling Clients' Financial Wellbeing, Financial
Behaviors, Financial Stressor Events, and Health. Financial Counseling and
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MAS Holdings, 2021. Life Matters. [Online]
Available at: https://www.masholdings.com/sustainability/empowerment-life-matters.html
[Accessed 11 04 2024].
Money and Pension service, 2022. Why is financial
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Perera, G. & Ajward, R., 2016. Financial
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44-52.
Pierce, K., 2022. 3 Things To Know About Employee
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Available at: https://www.fylehq.com/blog/3-things-to-know-about-employee-financial-wellness
[Accessed 10 04 2024].
Puncheva-Michelotti, P., Michelotti, M., Gahan, P.
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Financially established employees wil defineatley contribute in a more productive manner to the organisation.Stratergically monitery investing on employees is fostering to drive the organisation towards accuring the organisation goals.Great work.
ReplyDeleteEmployee financial wellness plays a role in employee retention , productivity, performance in a company. Hence HRM need to encounter the matter seriously.
ReplyDeleteHR can take the lead in improving employee financial wellness by implementing financial literacy and offering security through reliable pay and benefit plans.
ReplyDeleteMost o us agrees finances are the top cause of stress in our life. There are things organizations can do as leaders elevate the importance of financial wellness to support to overcome this problem.
ReplyDeleteTopic selection is good. well explained.
Interesting one. HR can boost employee financial wellness by promoting financial literacy and offering strong compensation and benefits.
ReplyDeletewhen individuals struggle with their current finances or feel insecure about their financial future. As well as being caused by not having enough income to cover expenses, all of the above elements can underpin financial distress.
ReplyDeleteI appreciate the practical and effective strategies provided in the post for promoting employee financial wellness, such as offering financial education and counseling, providing competitive compensation and benefits packages, and promoting saving and investment programs.
ReplyDeleteYour Blog effectively underscores the pivotal role of HR departments in enhancing employee financial wellness within Sri Lankan companies. By highlighting the importance of financial wellness for overall employee well-being and productivity, you shed light on the significant impact that financial stress can have on workers' job performance. The evidence from leading Sri Lankan companies, underscores the proactive measures taken to address employee financial wellness through financial literacy programs, comprehensive compensation and benefit policies, and innovative initiatives like the 'Life Matters' program. Overall, your analysis provides valuable insights into how HR can drive positive change and foster financial well-being among employees in Sri Lanka.
ReplyDeleteIndeed, promoting financial wellness among staff members is a crucial component of their overall well-being, and it's wonderful to see HR stepping up to meet this demand. Employee financial security and peace of mind can be greatly improved by implementing financial literacy programs and providing competitive pay and benefits.
ReplyDeleteGood article with nice explanation
ReplyDeleteEmployee financial wellness is a crucial aspect of overall employee wellbeing. The evidence drawn from Sri Lanka suggests that there is significant scope for HR to play a leading role in promoting financial wellness. By incorporating financial literacy and providing security through strong compensation and benefit policies, HR can lead the way in enhancing employee financial wellness
ReplyDelete