The ‘’S” centering ESG strategy
Organisations have traditionally viewed employee well-being as nice-to-have rather than a necessity. It wasn’t regarded as the responsibility of the employer but something that an employee needs to manage themselves. However, expectations has started shifting, organisational leaders are made accountable to take proactive steps in promoting workplace wellness and interventions. They had to, as it directly correlates to their key performance indicators. This workplace phenomenon has only become more pronounced with the lingering devastating impact of covid-19 pandemic.
The market for corporate wellness- the business of protecting employees from conditions such as depression, anxiety and high blood pressure was estimated to be worth $57 billion in 2020, growing at an annual rate of 7% as companies commit to fighting the pressures associated with the pandemic and accord their workforce with the appropriate care and support.
This emergence hasn’t only come about with the pandemic, even before, this social aspect of sustainability has gradually crept to the center stage as organisations raced to improve their credibility scorecards in the workplace ecosystem- gender, racial, diversity, inclusion and labor practices.
With the wrap-up of UN Climate Conference known as COP27 in November 2022 in Egypt, a new report by PWC found that Investors globally are embracing Environment, Social and Governance investing on a massive scale – estimated to soar 84% to $33.9 trillion by 2026 which means that ESG is finally having a profound effect across the economy, incentivizing the transition to clean energy, social equity and better governance such as cultivating a more diverse board of directors and improved executive accountability.
The “S” that covers the well-being in the workforce has since evolved to include psychosocial standards by the United States‘ Occupational Safety and as defined by the International Labour Organisation- the ability to thrive in every aspect of the working life. There is growing evidence that an organisation’s environment, social, and governance policies directly impact employee well-being and are based on the Principles for Responsible Investment (A UN-backed group of investors), indicating mental health and healthcare access as amongst the top 4 priorities emerging from the pandemic as jobs were lost, income shrunk and purchasing power diminished. A large portion of these health issues have essentially stamped from financial wellness imbalances experienced at the workplace and if left unchecked could pose huge consequences and what ultimately suffers? The company’s bottom line.
Hand in hand with passive solutions such as financial wellness talks, FriYAY earned wage access could be a fuss-free, low-cost yet result oriented financial instrument that an employer could arm itself in restoring financial equity and inclusion within the workplace for an all-round strategy. Whilst continuously being educated on how to manage their finances and plan for their future life goals, FriYAY could be a more hands-on practical daily tool, that they could safely rely on whenever their cash flows run into hiccups dynamically in between paychecks- for an instant relief in their money woes without having to look at other financing options- wihich often land them in debts,
In today’s job market, where employees have more options and seek workplaces that prioritize their well-being, providing financial flexibility through on-demand pay can be a compelling factor. Companies that prioritize employee financial stability are seen as socially responsible and compassionate, which can enhance their reputation and make them more desirable to job seekers. That way everyone wins as the beneficial effects of the “S” of ESG investment proliferate and the healthy cycle repeats and each time it just gets better!
References
https://www.eco-business.com/news/the-next-big-esg-issue-employee-well-being/ October 8, 2021
https://www.asuresoftware.com/blog/the-power-of-earned-wage-access-reducing-cash-till-theft-and-alleviating-financial-stress June 18, 2023
https://www.forbes.com/sites/joanmichelson2/2022/11/18/esg-investing-is-soaring-what-does-it-mean/?sh=724abd7051bcNovember18, 2022