Financial wellbeing and inclusion: it’s an obvious link when you dive into the detail and evidence. Investing in financial wellbeing improves inclusion in several areas, including by tackling vulnerabilities in specific groups.
Researcher Annamaria Lusardi found patterns of vulnerability among various sub-groups in the population when it came to financial wellbeing: for example she found a gender gap in financial literacy that played out across the countries she analysed. And research from the Institute of Employment Studies (PDF) found that those with poor financial wellbeing were more likely to be younger, single, living in rented accommodation and on lower incomes.
By investing in financial wellbeing and tackling these vulnerabilities, organisations can promote inclusion by creating an environment where everyone can contribute to the fullest extent. As discussed in our article on financial stress in the workplace, people with higher levels of financial stress generally report poorer social relationships. So tackling vulnerabilities in sub-groups may help these groups develop better and more fruitful relationships at work.
Aside from vulnerabilities in specific groups, financial wellbeing also unites everyone at work – we are all financial animals who make financial decisions every day of our lives. Investing in financial wellbeing therefore reduces financial stress across the organisation and puts people in a better position to collaborate, bring their full selves to work and get the most from workplace relationships.
Our report, Why financial wellbeing belongs at work, goes into more detail how investing in financial wellbeing improves inclusion and equality of environment in the workplace. Download it below.