Productivity through financial wellness

Over the years, companies have been giving more attention to physical wellness, team building and leadership training programs to increase workforce productivity. I, for one, used to avail of these perks in my former job at a multi-national company through seminars like “The 7 Habits of Highly Effective People,” team building outings, reimbursable medical expenses and paid annual membership to a gym near the office. Today, these programs are also being used as a tool to attract potential applicants or partners in businesses. Ultimately, these are made available to motivate people, generate more income and attain production targets. As a proof, a 2009/2010 Tower Watson Staying@Work Report reveals that “companies with the most effective wellness programs have an 11% higher work force productivity and 28% higher shareholder returns over a period of five years.” But if overall staff well-being and a highly engaged workforce are directly proportional to their productivity, what about the people’s financial condition?


Today, we live in a fast-paced world. We are exposed to more stress factors at work. More and more jobs require multi-tasking and flexibility to undertake shift work on short notices. Mergers and acquisitions continue to develop and change the ways of our working habits. This largely explains the amount of money currently being invested in people’s health. According to NSCB, the Philippines’ total health expenditure reached P181 billion in 2005. Yet only 35% of all health expenditures are being provided for by the government. Additionally, even worries over finances lead to job stress, which then results to reduced productivity. A lot of employers are not aware of this but this is an often neglected fact.

My financial mentor, one of the humblest and dedicated financial planners I know in the Philippines, was invited to speak in Cagayan de Oro by a local leading company in the packaged foods industry. He shared this theory:

Financial stress = job stress = reduced productivity

He narrated, “Financial stress is equal to physical and mental stress. When people do not know how to manage their money (are in debt, for example), there is a huge problem. I know people whose ATM cards are being kept by their lenders. They report loss of card to their employers and so request to have their salary given to them directly. When lenders withdraw from their ATM accounts, they are no longer able to receive payment because of their debtors’ empty funds. The lenders are often forced to wait outside the workplace to collect payment, and the debtors, afraid of not being able to pay, would make an excuse to absent themselves from work! – This is a classic tale of unproductiveness translating to company loss.”

Another consequence of financial stress at work is dishonesty. “When people have money problems, they are led to using company equipment or properties for personal consumption. Often, a staff undergoing personal financial crisis would get resources from his company rather than pay out of his own pocket.”

According to a survey conducted by Citibank in 2008, the average Filipino has a financial IQ of only 47.8%. The Wealth Academy, therefore, aims to increase financial literacy among Filipinos. It created strategies that intend to increase the productivity and competitiveness in the country’s labor force. With the belief that there is a need to educate people on how to manage their hard-earned money the right way, the Wealth Academy came up with a series of trainings in the areas of financial literacy, discipline, and a winning mindset, among others.

Are you managing your own people? Why not celebrate Labor Day and recognize the work of your business partners and office personnel for their growing contributions to your workplace by hosting a FREE financial management seminar? You may have included physical and personal development wellness in your programs, but without training your people regarding proper financial management, it will still be a great challenge for you to increase productivity and motivate them! Managing a company is like managing a country. If your people are still suffering from money problems, it will cost you. If each family in your country is still experiencing financial difficulties, it will cost you. It is true that, “Healthy people cost you less and make you more.” Likewise, financially distressed people will cost you more and will make you less!

Request for a FREE seminar for your company at mdvidaure@yahoo.com. Increase your people’s financial wellness, increase your productivity!