How can technology support financial wellbeing?

Employee wellbeing has increasingly been at the very top of the agenda for many HR leaders, even before the COVID-19 pandemic hit our shores over five years ago. 

However, traditional wellbeing strategies have focused on tackling the symptoms of financial stress, rather than the root causes. 

In this article, we'll uncover how digital tools, such as on-demand pay, can help tackle one of the biggest root causes of stress and support financial wellbeing. 

According to recent Australian data, a significant portion of our workforce is currently experiencing some form of financial stress, with statistics showing that approximately 28% of Australians are experiencing moderate to financial stress. Additionally, only 36% of Australian workers feel financially secure, and 8% are reporting severe financial stress, particularly those in regional areas. 

These statistics can also have an impact on the wider workforce who find themselves with a heavier workload due to increased absence of colleagues. 

A sense of financial health is not just about having money; it's about having a sense of control and security over your own finances. This has profound positive effects on individuals, businesses, and the Australian economy. 

According to a survey by NGS Super, 1 in 5 people are not able to access $2,000 in an emergency. It goes without saying that a large cause of financial stress for Australians is being unprepared for unexpected expenses. Typically, employees facing an unexpected cost part way through the month, would have to reach for high-cost credit which may have a long-term impact on their finances. 

New technology such as on-demand pay apps, allows employees increased pay flexibility to deal with these unexpected expenses with access to their earned pay as and when they need it. 

Providing this kind of safety net removes some of the stress which contributes to poor financial wellbeing at no cost to the employer. It goes without saying that, as financial stress is a leading cause of anxiety and depression, when workers feel more secure in their financial lives, their mental health significantly improves. 

From an employer perspective, those offering on-demand pay via Access EarlyPay are likely to see an increase in staff productivity and a decrease in staff turnover, showing that when we harness technology, it can have a clear impact on financial wellbeing to the benefit of both the employee and employer. 

In conclusion, using technology, such as on-demand pay, will have the potential to be a valuable tool for improving financial wellness of Australian workers, particularly by addressing cash flow challenges and reducing reliance on lending. 

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