The ongoing boom in the country's economy continues to expose deep-rooted problems among corporate employees. Some critical areas underlined by the Finsafe report on State of Financial Wellbeing at the Workplace, FY 2023-24—which surveyed 4,289 individuals—are a loud call for urgent reforming practices at all levels.
Financial Wellbeing Of Indian Employees: Job Loss Among Worries, Says Report
Finsafe's report on the State of Financial well-being at the Workspace for FY 2023-24 showcased an alarming picture of the corporate world, from around 14 per cent of employees not being able to save at all to almost 28 per cent of employees not being prepared for emergencies.
Advertisement
Top Financial Challenges
The inferences of the report state that the most relevant issue of 67.34% of the people surveyed belonged to long-term financial goals like retirement and education. Closely ranked was the fear of losing jobs with no adequate emergency fund at 52.67%. The worries of the people regarding debt settlement are 28.42%. The support of elderly parents concerns 26.11%, with 21.32% being engaged in the fear of medical expenses.
.png?w=480&auto=format%2Ccompress&fit=max)
Finsafe State of Financial Wellbeing at the Workplace Report, FY 2023-24
Saving Habits
The survey of saving habits put up a mixed picture. While 34 per cent of the respondents save between 20-40 per cent of their income, nearly one-third save less than 20 per cent, and 13 per cent are not able to save at all because of loans taken earlier. These data point to a stable rate of moderate savings and a marginal decline in high savings.
.png?w=480&auto=format%2Ccompress&fit=max)
Finsafe State of Financial Wellbeing at the Workplace Report, FY 2023-24
Emergency Preparedness
Another cause for concern is emergency preparedness, as only 23.48% claim to have adequate emergency funds and insurance coverage in place. A whopping 48.94% have covers provided by the company and are not quite sure about their adequacy, while another 27.58% are unprepared for emergencies.
Advertisement
.png?w=480&auto=format%2Ccompress&fit=max)
Finsafe State of Financial Wellbeing at the Workplace Report, FY 2023-24
Investment Preferences
This preference in investment reflects a fast-growing interest in the equity markets, with 46.14% invested in mutual funds or stocks. A lesser number of 35.84% of employees prefer traditional investments, fixed deposits, and insurance policies. However, 16.13% have invested in diversified portfolios, while the rest, 35.04%, are unsure where to invest, indicating a great need for financial education.
.png?w=480&auto=format%2Ccompress&fit=max)
Finsafe State of Financial Wellbeing at the Workplace Report, FY 2023-24
Learning Needs
72.44% of the employees expressed needs relating to detailed financial planning. Budgeting and saving knowledge was required by 64.68%. Also, 53.44% expressed a wish to learn more about mutual funds and taxes. Only moderate interest in insurance and loans was expressed. This goes again to prove the requirement of total financial education on a wide range of issues.
.png?w=480&auto=format%2Ccompress&fit=max)
Finsafe State of Financial Wellbeing at the Workplace Report, FY 2023-24
Recommendations
It advocates availability, rather than ad hoc sessions, for unbiased and structured financial education programs. It also proposes that leadership at the top has to consider financial wellness and invest imperative budgets toward the employee's financial well-being. Personal financial management is thus encouraged through gamification, learning resources, and counselling services.
It's a strategic advantage for companies to invest in the financial literacy of their employees. The provision of financial education and wellness programs translates to the business supporting not just individuals but also enhanced productivity, innovation, and loyalty. This investment strengthens general company resilience and sets up both employees and the organization for future success.
Show comments