In today’s world, work isn’t just about the paycheck. Companies are getting creative and offering cool perks like flexible hours, help with tech costs, and gym memberships. These things matter because they make life better for the team, and a happy team is good for business.
But there’s one thing that’s really on everyone’s mind: money stress. It’s a big deal for most of us. That’s where a financial wellness program like Your Money Line is handy. As an employee benefit, we help employees get money, confidence and stability, so they are no longer up at night filled with stress and are able to be the great employees you hired. In fact, financial wellness is a top-wanted benefit among the younger workforce. Check out our 2023 Gen Z report for the scoop.
What is employee financial wellness?
Employee financial wellness is a general term to describe programming aimed at alleviating financial stress for employees. Employees face many financial challenges like saving for retirement, planning for large purchases, managing debt, and childcare expenses – just to name a few. Financial wellness programs help educate and guide employees to financial success. Financial wellness is a holistic approach to financial well-being. It evolved from financial literacy, took that style, and made it more personalized and customizable to the individual’s journey. Today, your employees expect guidance tailored to their needs instead of a general pamphlet on financial health.
Why promote financial wellness in the workplace?
Today, many employees are facing financial problems, which has led to an increase in financial stress. Although your company may provide many useful benefits, you're leaving your employees struggling if you aren’t offering financial wellness benefits. Many are living paycheck-to-paycheck, don’t have enough money in their emergency funds, and are worried about retirement. These problems cause your employees to lack engagement and productivity at work. It also makes them pursue other job opportunities.
When you incorporate a financial wellness program into your benefits, you must promote it. The more employees that use it, the happier your employees will be, which leads to increased engagement and productivity. Employees will also be less likely to look elsewhere, and your retention rates will increase.
There are many benefits of financial wellness for employees and employers. Employees will be more productive, engaged, and happier at work because they will face less stress. Employers will see an increase in retention and less turnover, to name a couple of benefits of financial wellness.
7 Tips for promoting financial wellness in the workplace
Finances are the #1 cause of stress for the American workforce, impacting their job daily. PwC says 76% of employees reported that their financial stress had negatively impacted their productivity. Further, 55% of employees who are financially stressed have said it has distracted them for three more hours at work dealing with finances. Benefits Pro states financial stress costs businesses an average of $4.7 billion a week.
Many HR professionals recognize financial wellness's value, making it one of the most sought-after benefits for employees today. Below are our financial wellness tips to engage and participate in the workplace financial wellness solution you’ve implemented.
1. Ask your employees about their needs and interests
You need to ask employees about their needs and interests. Many times, employers make assumptions instead of engaging with their employees. Propose the idea of incorporating a financial wellness program and see what your employees want. Whether you send a survey out, have individual meetings, or discuss it in an open forum, understanding your employees' unique needs will help you pick the best solution.
Do your employees need help with retirement? Are they struggling with student debt? Are they trying to buy a home for the first time? Answering these questions will help you engage with your employees effectively.
2. Improve employees' financial literacy
Americans need help with their finances. The majority of adults don’t understand finances either. Studies have found that only ⅓ adults could answer at least 4 of 5 financial literacy questions on basic concepts such as mortgages, interest rates, inflation, and risk. However, US workers want to make more informed decisions regarding their finances, they just don’t know how.
A financial wellness program can increase your employees' financial literacy by providing them with tools, resources, and experts to talk to.
3. Provide access to educational resources
Company leaders should provide access to educational resources and to financial wellness tips for employees. To best assist your employees, you need to deliver tangible training and resources for them to make the correct financial decisions. Sending out educational materials and resources often will help them.
4. Get your team engaged early
You should engage your team early on to promote financial wellness in the workplace. Consider including it in the new hire onboarding process to familiarize employees with their financial wellness benefits. The more HR professionals can educate employees on their benefits, the more likely they will see high engagement and participation numbers. Consistently reminding your employees of your benefits will also help promote the resources you have available for them. The best companies with financial wellness programs incentivize employees and properly engage them with this offering.
5. Offer benefits that empower financial wellness
The best financial wellness examples are companies that offer optional benefits alongside standard benefits, like health insurance and retirement plans, consider optional benefits like long-term insurance, disability insurance, or even student loan repayment benefits. Benefits help employees support themselves and their families. They will also help employees see the value in a financial wellness program if you offer multiple financial benefits.
6. Work on reducing stress in the workplace
For more engaged and productive employees, you need to reduce stress in the workplace. Financial wellness and mental health go hand-in-hand. Offering a financial wellness program is one way to decrease anxiety and stress. Still, you must set realistic goals, meet with your employees regularly, track engagement and maintain metrics, and create a good work environment. Less stressed employees are more productive and do better work. Read more on how to reduce stress in the workplace here.
7. Ensure all the employees are fully aware of the available benefits
You need to ensure your employees know what benefits are available. While presenting on your retirement or health insurance benefits, discuss your financial wellness program because they go hand-in-hand. Employers can hold in-depth training on their company offerings to encourage employees to utilize them.
Choosing the right financial wellness program is a step in the right direction for supporting your employees’ lives. Financial wellness in the workplace is essential to the overall wellbeing of your employees, and these 7 tips should help you choose one and engage them with it, so they can live a good financial life.