When referring to well-being, the focus is typically on emotional and physical health; however, employee financial wellness at work is a key piece of the puzzle. It is essential to take into account your employee’s well-being. HR Professionals need to pay attention to financial well-being in the workplace. According to a PWC survey, financial matters remain the top cause of stress and are a major distraction for employees at work. Finances are one of the most significant stressors in your employees’ lives, and you can help support your employees by providing them with a financial well-being service to help relieve that stress. Less stressed employees lead to more productive and engaged employees.
Why, as an employer, you should focus on financial wellness for employees:
As an employer, you can assure your employees feel good about their financial lives by including financial well-being in the workplace. Financial wellness programs for employees are crucial to your overall wellbeing strategy. Here's why:
Finances cause your employees a lot of stress
50% of stressed employees have found their finances to be a distraction at work, according to a 2020 PWC survey. Money is a huge source of anxiety for many employees, especially those who don’t know if they are retirement-ready, are living paycheck to paycheck, have student loans, and/or have unexpected medical costs.
Managing finances is time-consuming
BenefitsPro states that 65% of employees are stressed out about their finances from the pandemic, which costs employers across the country an average of $4.7 billion per week in lost productivity. When your employees are stressed about their finances, you, the employer, ultimately suffer.
Employees want support
The burden of financial stress is real, and your employees want their employer’s help. They need someone who will listen to them with empathy and provide expert advice. However, most of the time, there is a cost barrier to getting financial help, and this is where your workplace can benefit from a financial wellness solution.
Financial well-being leads to more engaged and productive employees
By providing financial well-being in the workplace, you will benefit from happier employees who are more effective and engaged. The more productive and engaged your employees are also mean that you will have overall better retention rates.
3 financial wellness program ideas:
You’re probably wondering how to address financial well-being in the workplace. As an employer, it can be tricky to know what to implement. Here are some ideas companies with financial wellness programs have implemented.
1. Workplace Saving and Contribution Options
It’s vital to provide your employees with a 401k or other retirement plans, especially to attract and retain employees. Matching benefits and contribution options help motivate employees to participate in the company retirement plan, and now more than ever, employees are seeking that benefit from employers. Providing a retirement savings option with a match helps employees feel better about retirement and stress less.
2. Identify At-Risk Employees
To support your employees' financial well-being, you need to be able to identify at-risk employees. Use the data available to identify those at risk. Pay attention to who isn’t enrolling in retirement plan options, employees pushing for raises, or requesting payday loans. Some other indicators can be wage garnishments and employees withdrawing from 401k plans via 401k loans. If you have young employees, they may be dealing with student loans, and your older employees might feel unprepared for retirement. Women also make less money than men, so pay attention to your female population because they are also more likely to be family caregivers and need more financial support. When you can recognize who’s struggling financially, you can put a plan in place to help address and solve the problem.
3. Include Financial Health in Your Total Rewards Package
Every employee is different and has different needs. You are providing healthcare, both physical and mental, as well as retirement planning – don’t forget to include financial guidance. Some employees may be doing well with their finances and looking for ways to do even better, while others may be struggling daily with making ends meet. Either way, it’s the employer’s responsibility to pay attention to these needs and provide a solution for everyone. No matter where someone is financially, employees are faced with the burden of financial decisions every day. By incorporating a financial wellness software like Your Money Line, you are expressing to your employees that you care about their well-being as a whole.
How to boost the number of employees participating in financial wellness programs
Undoubtedly, it can be hard to gain traction with employees on new benefits. To boost your participation numbers and increase engagement, consider implementing the benefit into your onboarding process with new hires. Also, lead by example. Your employees aren’t the only ones who can benefit from financial wellness. If they see leadership teams participating, they are more likely to. At the end of the day, you need to keep your employees engaged and excited about bettering their financial life. Partnering with a financial wellness company that prioritizes engagement is the key to success.
Providing financial wellness benefits for employees shows them that the organization or company they are a part of cares about them as individuals. The best financial wellness programs will offer financial guides, coaching, financial literacy, resources, and software to help your employees conquer their financial goals, consider partnering with financial wellness companies, like YML, today.