Human resources departments and CFOs everywhere are focusing on employee wellness efforts and customizing benefit programs to meet changing needs. Having a well-rounded benefit program is not only good for recruitment and retention, it can also improve productivity and profits.
The four main pillars of a holistic wellness program include emotional, physical, social and financial wellness. Each of these pillars make up a comprehensive, 360-degree benefit program that will drive behavioral change. In this blog post, we tackle the importance of workplace financial wellness and what you need to know to effectively promote financial wellness at work.
Most Employees are Living Paycheck-to-Paycheck
Studies show that nearly 76% of employees are living paycheck-to-paycheck and most don’t have the savings to handle an unexpected car repair or medical bill. Add to that growing credit card debt, student loans and a lack of retirement savings; it’s no wonder why more employees are feeling financially stressed. These problems are affecting more than just the stressed employees. A 2017 survey by Mercer indicates that 16% of employees spend an average of 13 hours of work per month worrying about money. This translates to $250 billion in lost wages. That’s not the end of it either.
A financially stressed employee is at risk for making mistakes on the job and having high rates of absenteeism, both of which impact productivity, product or service quality, and customer satisfaction. A distracted employee is also likely to be injured on the job, leading to more time off and medical bills to make matters even worse. Financial burdens are also a strong influencer, leading employees to look for another job that might offer a higher wage to pay the bills. Turnover and retraining fees, as you know, also put a burden on productivity and profits.
What Can Employers Do to Improve Financial Wellness of Employees?
Employees under mounting financial pressures aren’t exactly going to line up to discuss it with you. It’s difficult to admit financial troubles and even more difficult to ask for help. This is why more employers have chosen to start promoting financial wellness in the workplace through programs and tools employees can use at their discretion.
Employers can get ahead of these challenging issues by offering employees a way to gain control over financial issues, while protecting privacy. By taking a proactive role to improve financial wellness of employees, those employers can expect to see:
- Increase in productivity
- Reduced absenteeism
- A boost in employee engagement
- Reduced employee stress
- Cost containment and savings
- Increase in profitability
We’ve found there are financial stressors that are more prominent than others and have carefully chosen the four affordable, easy-to-use financial wellness tools below. These applications each have their own level of security, employee privacy and each appeal to the diverse demographic. Cloud-based and mobile offerings make it easy for employees to use and understand. Real-time feedback and metrics, as well as award-winning content, offer employees the specific guidance they need to take control over financial problems and learn how to improve their situation.
Here are four tools to add to your financial wellness program:
- GotZoom: This program offers relief to employees that are still paying off student loan debt. GotZoom leverages federal repayment programs offering relief for student loan debt with little to no cost to the employer. The big return on investment is a significant savings in reducing student loan dept and fewer years paying it off.
- PayActiv: Unexpected bills put a wrench in the ability to pay bills on time. Late fees and other pressures make a bad situation worse. With PayActiv, employees can access earned wages early so they can pay bills on time. There is no cost to the employer and only a nominal transaction fee for the employee.
- HooPayz: There is nothing more frustrating than looking for a healthcare provider or fighting mistakes on medical bills. HooPayz is a concierge service that enables employees to keep focused on their health while HooPayz handles the financial aspects. This service includes tools to identify cost-effective providers and personal advisors that help with getting mistakes corrected on resulting medical bills.
- Best Money Moves: This is a comprehensive solution that guides employees by first identifying the source of their financial stressors, then connecting them with resources for improving their situation. Best Money Moves is family and employer-friendly, gamified for millennials and comes with vetted money coaches. Dashboards, pay-down calculators and other tools give employees the insight and control they need to control and improve financial stressors.
Ready to Promote Financial Wellness at Work?
When you begin promoting financial wellness in the workplace, you are showing employees that you care about their financial needs and well-being. A strong financial wellness program will support recruitment and retainment efforts, while also improving productivity and your bottom line.
These particular financial wellness tools are affordable and offer a strong return on investment for both the employer and the employees that use them. To get started with creating your own customized workplace financial wellness program, contact the team of experts at Integrity Data. We’ll offer more information about these programs that you can then share with your employees. You might also conduct a survey to see which programs your employees may be most interested in, then roll out the programs that will be the best fit.