Traditionally, the role of a corporate treasurer has been centred around managing financial risks, ensuring liquidity, and optimizing investment strategies. However, the scope of this role is expanding to encompass elements like employee wellbeing – a critical factor that, if overlooked, can impact the financial health of the organization.
Employee wellbeing encompasses the notion that staff members are valued beyond their immediate output. It recognizes the importance of their physical and mental health, and work-life balance, which in turn plays a critical role in the overall productivity and efficiency of the organization.
Investing in employee wellbeing, though initially a cost, is an investment in the organization’s human capital. Elements like childcare support, flexible working arrangements, and work-from-home options are not just perks but strategic investments that can enhance employee productivity, reduce absenteeism, and improve retention rates.
Here are key points backed up by industry experts that highlight why allocating resources for employee wellbeing is imperative for corporate treasurers in the UK.
Legal and regulatory compliance
In recent years, the UK government has demonstrated an increased focus on the welfare of employees through a series of legislative measures. Laws such as the Health and Safety at Work Act, Equality Act, and regulations related to mental health and wellbeing set legal standards that companies are required to meet.
Justine Gray of Trending Impact says senior financial professionals “must ensure compliance with these regulations, which often necessitates budgetary allocations.”
“Failure to meet these legal obligations can result in penalties, lawsuits, and reputational damage.”
Gray notes that by budgeting for employee wellbeing initiatives, such as mental health support programs, ergonomic workspace improvements, and adherence to health and safety standards, corporate treasurers can safeguard the company from legal ramifications while simultaneously fostering a positive work environment.
Improved productivity and employee engagement
Enhancing employee wellbeing significantly contributes to increased productivity and engagement within the workforce.
Studies have consistently shown that employees who feel supported and valued by their employers are more engaged and motivated.
“A report by the Mental Health Foundation revealed that 12.7% of all sickness absence days in the UK can be attributed to mental health conditions, which may be chemical or as a result of significant life changes, including bereavement and separation,” explains Richard Allan from Divorce Bob.
“Absenteeism not only impacts productivity for that individual and their surrounding team but also incurs substantial financial costs for the company.”
Allan says senior financial leaders need to recognize the direct correlation between employee wellbeing and productivity.
“Budgeting for wellbeing initiatives, like flexible working arrangements, wellness programs and mental health support services, can lead to reduced absenteeism and increased employee engagement,” he says.
“This, in turn, fosters a more productive workforce and minimizes the financial impact of absenteeism, subsequently benefiting the company’s bottom line.”
Talent attraction and retention in a competitive market
“In the UK’s competitive job market, attracting and retaining top talent is a challenge for companies across various industries,” explains Dean Benzaken, co-founder of TechNational.com.
“Employees increasingly seek workplaces that prioritize tBenzaken saysheir wellbeing and offer a supportive environment,” he says.
Benzaken goes on to note that financial leader should acknowledge that high turnover rates come with substantial costs. The recruitment, onboarding, and training of new employees have financial implications for the company.
“By investing in employee wellbeing, such as offering comprehensive healthcare benefits, mental health support, and work-life balance programs, companies can differentiate themselves as employers of choice,” he says.
“This investment not only aids in retaining top talent but also attracts potential candidates, thereby reducing turnover costs and maintaining a competitive edge.”
Find ways to incorporate wellbeing and sustainability goals
In today’s business climate, the role of employee wellbeing, as well as sustainability, ESG and CSR, are boxes that need to be ticked for CFOs and senior executives.
Dan Kettle of energy startup, Warmable, explains “What might start at CFOs and organisations allocating funds for employee wellbeing, there are also opportunities to fulfil other economic and sustainability requirements.”
“Not only can working from home provide support to working parents and employees that live far away, it also helps to reduce carbon footprint.”
Kettle notes there are employee benefit schemes in the market that reward customers and employees who look after their health and exercise.
“One example might involve offering free bikes and parking for employees to encourage them to cycle to work, or creating a clean, green and energy-efficient workplace that makes employees comfortable in their surroundings,” he says.
