It’s no question that the topic of financial well-being is continuing to gain popularity among employers. In fact, according to Prudential, the percentage of employers offering financial wellness programs increased a significant 63% in the last two years. Despite a clear spike in adoption rates, there are still a lot of misconceptions surrounding the true value of financial well-being programs, specifically value to the employer.
So, how exactly can the financial well-being of employees positively benefit an employer? Here are a few ways:
1. Impacts Employee Stress and Productivity
In a recent “Stress in America” survey conducted by the APA, money tops the list of most common stressors with 64% of adults reporting the issue as a significant source of stress in their lives. Anyone who has experienced financial stress, knows how easy it is to become consumed by it, especially when the necessary solutions and resources are not readily available, and unfortunately, it doesn’t just dissipate when an employee walks into the office. That lingering distraction can lead to a loss of productivity during the workday and can even lead to missing days altogether. A comprehensive financial well-being program can provide employees with a means to address the issues their facing, enabling them to redistribute their time and energy back to work.
2. Contributes to a Positive Workplace Culture
Fostering a healthy workplace culture is widely believed to have a positive impact on the success of an organization. Providing a financial well-being program can be a great step in this process. As mentioned, employees are stressed about their finances and that can take a toll on both their personal and professional lives. This presents employers with the opportunity to show employees that they are appreciated and cared for as more than just employees, but as people with needs and lives outside of their roles at work. Additionally, alleviating some of that stress can help boost morale and positive feelings within the workplace, strengthening the overall culture and how the company functions.
3. Helps to Retain Top Talent (and Recruit More!)
Even if an employee is not under extreme financial stress, that doesn’t mean that they have all the financial knowledge they need, especially when looking forward to the future. Here are just a few less than promising stats:
- 39% (of Americans) have $1,000 in savings to cover an emergency expense
- 33% maintain a personal spending plan / budget
- 30% have a long-term financial life plan, including savings and investment goals
So, how does this relate to retaining talent? If you, as an employer, are going above and beyond to, not only give your employees a paycheck, but teach them to stretch that paycheck to it’s fullest potential and prepare them to live happily and comfortably for the rest of their life, the likelihood of them seeking other opportunities will become significantly less. Utilizing the security that financial well-being brings to combat a slight pay increase, or a trendy set of perks offered by a competitor will help keep your talent pool loyal to you because they feel valued and taken care of. Additionally, for the same reasons current talent will want to stay, potential new candidates will see your organization as a desirable workplace.
The value of a comprehensive financial well-being program will continue to prove itself throughout the life of an employee, even after they’ve left your company, and you will reap the benefits of happy, productive and financially stable workforce for years to come.