EMPLOYERS HAVE been focusing heavily on mental health and wellbeing over the past few years – but for many Australians, money remains a leading cause of stress. In 2021, 30% of Australians were reported living pay cheque to pay cheque. Approximately 50% didn’t have $500 for an emergency, and 60% didn’t believe they could ever achieve financial security. At a time when we’re all painfully aware of the cost of living crisis, these numbers paint a stark picture – but for employers, a tough economic environment means they can’t always solve this with pay rises across the board.
Still, employees are increasingly looking for more support across different areas of wellbeing. Whether it’s through financial mentorship, help with generating savings, or wage flexibility, supporting financial wellbeing can do wonders in enhancing employee satisfaction.
Changing employee expectations
According to Sandra Matz, associate professor of business at Columbia Business School, our expectations of employers have evolved significantly over the years. A job is no longer viewed just as a pay cheque but as something that plays a significant role in who we are day-to-day. “If you look at Maslow’s hierarchy of needs, we used to expect our jobs to fulfil the basic needs – putting food on the table and providing basic forms of security and safety,” Matz says. “But those days are long gone, and today we expect a lot more from our employers. We don’t only expect them to fulfil our psychological needs like belonging and esteem, we also expect them to go all the way up to the top of the hierarchy – to help us become the best versions of ourselves and achieve our full potential.” While expectations of employers have increased, Australia is also seeing its highest job vacancy rate since 1970. On top of that, the pandemic has exacerbated issues such as financial stress, leading to sick days and absenteeism, and if employers aren’t offering adequate levels of support, the figures show that employees have no trouble going elsewhere. The average turnover in some industries is currently 57.3%, and with rising recruitment costs, replacing employees is becoming a lengthy and costly process.