Companies are rapidly on-boarding financial wellness programs as a benefit to their staff. More and more employees are feeling the stress of their personal finances, and employers are stepping in to offer help.
2017 was a record year for companies adopting financial wellness programs, and 2018 is on track to beat that record.
Why are so many companies stepping in? Aren’t personal finances… personal? Now, more than ever, company culture plays a huge part in attracting and retaining quality staff. Financial Wellness programs are improving culture in a big way.
1. Staff Feel Valued
No one wants to feel like a small cog in a big machine. Recognizing that employees are people, not just workers, goes a long way.
71% of employees cite personal finances as the #1 source of stress. Since topics like credit card debt and debt collectors can be taboo, most people try to bury it before walking into the office.
Through financial wellness programs, employers are showing employees that they don’t just care about the numbers they produce, but they also care about the things that happen outside of the office.
2. Higher Pay Satisfaction
When times are tough at home financially, we tend to stress not only about our expenses, but also our income.
Quality wellness programs teach employees how to use the income they have to cover all of their expenses. They also promote debt elimination strategies which frees up more cash flow in a monthly budget. More cash flow = less financial stress.
Imagine a staff member has student loans, credit card debt, and a car payment with minimum payments totaling $1,200 per month (on top of the monthly bills). That means every month they’re immediately losing $1,200 of their paycheck to cover their debt payments and are stuck allocating the rest to cover their basic needs.
When stuck in the paycheck-to-paycheck cycle, we tend to tell ourselves, “Things would be better if I made more money.” When an employee learns to effectively manage their paychecks, they can see that their income is enough to cover both needs and wants.
3. Higher Attendance and Lower Turnover
I think it’s safe to say that it can be challenging to nurture a feeling of comradery when a company becomes a revolving door of staff members. Whether it’s a coworker regularly missing work, or an adjacent desk being filled with new hire after new hire, this is a problem most companies are trying to solve.
Companies that have adopted financial wellness programs have seen a huge decrease in turnover rates. This is largely due to two things, which I highlighted above; staff feel valued by their company and they aren’t worried about paying their mortgage.
Even the staff that stay on board can become detached due to financial struggles. Studies have found that roughly one in five employees admitted to skipping work in the past year due to financial struggles. Even when present in the workplace, 81% of employees interviewed said their finances has negatively affected their productivity.
Adding a program that both educates and empowers staff can drastically improve a company’s culture. Financial wellness programs show employees you care about them while also helping your bottom line.
If you’re thinking about adding a financial wellness program to your suite of employee benefits, email me at email@example.com to learn how we can get you a 3:1 return on your investment.