Supporting your employees to take control of their finances can help improve their wellbeing and productivity and reduce absenteeism.

Australia’s debt struggle

Debt is a serious problem in Australia. We hold the world’s highest household debt relative to GDP at $2 trillion in unconsolidated debt, with a GDP of only $1.6 trillion.

Such a high level of debt is having a negative impact on our mental wellbeing. Close to 1 in 3 Australians suffer from significant financial stress1 which can lead to relationship conflict, isolation, sleep loss and symptoms of depression. If untreated, debt stress can increase absenteeism, where an employee is too stressed to work, and presenteeism, where an employee is at work but distracted. The combined cost of absenteeism and presenteeism to Australian workplaces each year is over $70 billion2.

How you can help

Financial planning

Encourage your employees to speak to a financial planner. A planner can help them take control of their finances, reducing stress and enabling them to be more motivated and focussed at work.

A financial planner can help your employees:

  • Prepare a budget that they and their family can live with
  • Develop a plan to manage their debts
  • Put a savings plan in place to buy a major asset such as a new car or house
  • Plan how to save for a major expense such as a holiday or their children’s education
  • Review their insurance arrangements
  • Maximise superannuation and develop tax strategies
  • Plan for a redundancy or career change
  • Invest a large sum of money such as a divorce settlement, inheritance or proceeds from the sale of a major asset
  • Plan for their retirement or transition to retirement
  • Plan how your super is distributed for estate planning purposes
  • Consider the care options available for ageing parents.
Sort out super

Another excellent way to help your employees reduce financial stress is to encourage them to sort out their super.

There are five simple things they can do right now to get them on track for a more secure retirement.

  1. Bring all their super together
  2. Check if they have any lost super  
  3. Make additional contributions
  4. Make sure they have enough insurance cover
  5. Nominate a beneficiary

EISS Super Customer Relationship Managers (CRM) can work with you to arrange workplace seminars or visits by Financial Planners that can help your employees get their finances on track.

1 Core Data/Financial Mindfulness, Financial Stress Survey 2017

2 Australian Industry Group, Absenteeism and Presenteeism Survey 2015