Implementing a financial wellness program demonstrates that you and your organization care. Financial wellness helps employees recognize that their employers care about them on an individual basis, and this fact alone can provide a more desirable and interactive culture for your organization. 68% of employees feel employers have a responsibility for the health and well-being of their employees. After all, we do spend 30% of our lives working; that equates to 25-30 years! Work is a major contributor to adult life, and many employees spend as much time with co-workers as they do with family and friends (maybe more!). With that kind of commitment, employees want to know that their employer appreciates their effort and contributions.
Let’s look at how financial wellness programs can add value for both employers and employees.
#1: Better financial services and credit alternatives
Financial wellness programs that provide real-world solutions to financial challenges drastically reduce the time employers spend administering employee loan requests and processing 401(k) advances. Nearly 60% of investors ages 18 to 34 say they already have taken money from their retirement account because they didn’t have any other alternative. Many employees experience financial challenges on a regular basis and without reasonable, accessible solutions, they are often forced down paths that lead them further into debt.
#2: Overall employee well-being means less turnover
69% of employees are stressed over their finances. 72% admit to focusing on personal financial challenges at work. Employers that support employees through tough financial challenges see much less turnover. If you provide services and solutions employees know they can count on, they’re more likely to stick with your company. If they find what they’re looking for elsewhere, the amount of time, energy and expense around constantly having to find, recruit, onboard, and train new employees will become that much more painful.
#3: Return on investment for employers
Financial wellness programs are proven to reduce stress and absenteeism which ultimately creates positive ROI for organizations. That 72% of employees focusing on personal finances at work? They cost the average employer $2,000 per employee. Organizations that implement a holistic financial wellness program see a 3:1 return on their investment.
#4: Employee development
Educational tools and resources create behavioral change within each employee, motivating them to improve their knowledge and progress down the path to financial stability. This includes helping employees define their retirement goals and providing recommendations to ensure they’re able to retire comfortably. 82% of employees want their company to offer free financial education courses focusing on retirement planning, emergency savings, budgeting, student loan payoffs, and identity protection.
Employees want to feel valued and appreciated. They also want access to resources that will help them improve their financial situation and overall quality of life. Financial wellness programs have tangible, real-world applications whereby employees will see immediate return on their investment. Ultimately, they’ll have their employer to thank for making the benefit available and allowing them to find greater financial stability.