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.
Benefits to Offering Financial Wellness in the Workplace
When promoting employee financial wellness of employees and encouraging engagement in your organization, you can expect to see:
- Reduced absenteeism: As employees become more confident in their use of money and handling of debt, they recognize the importance of working their shifts and volunteering to work additional shifts. Reduced absenteeism eliminates last minute scrambling to cover shifts and the costs associated.
- Increase in company-wide productivity: Overall debt relief reduces employees’ stress allowing them to be more productive on and off the job.
- Savings in reduced turnover: When employees stay with a company, the employer sees reduced hiring costs and less training expenses.
- A boost in retention, engagement and loyalty by your trained staff: Happy employees stay with their organization. A great benefits package tells employees that you care about them and have thought of them as more than a resource, creating loyalty on both sides. Staff can potentially go on to higher-level positions within your organization rather than taking those trained skills to a competitor or another position outside your company.
- Increased client engagement and profitability: Seasoned employees are beneficial to the client experience. With familiarity to your staff, the customer will be more apt to use your products and services, invest financially with your company and repeat business.
All of these benefits lead to increased profitability that falls to the bottom line. If there are increased profits that can turn into additional bonuses, employees may positively see the direct impact in their paycheck.
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.
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. 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.
Many financial wellness programs can begin “off-cycle” from typical open enrollment timelines; therefore, the programs get additional attention that they deserve, allowing employees’ full attention when it comes to open enrollment decisions. For example, if your open enrollment is in the late fall or early winter, spring and summer may be perfect times to roll out an employee financial wellness program in the workplace.
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.