This probably won’t surprise you:
Four in 10 US consumers reported trouble paying at least one bill or expense in the past year.
18% of those with a household income above $100k said they had trouble affording an expense.
Financial stress affects all employees, regardless of income level. Although a company may compensate its employees well, the rising costs of living and tuition place a seemingly endless burden on families trying to juggle financial responsibilities. The financial impacts of COVID-19 are and will be long-lasting for many employees, and they’re looking to their employers for continued support.
Employer-sponsored financial education is often the motivation your employees need to take a harder look at their finances. If they know you are invested in their personal well-being and can trust the resources you share, it is significantly more valuable than information they could Google (but likely won’t).
Financially literate employees also have a much better understanding of their total benefits package. They understand the value of contributing to their 401(k) plans, the importance of their health and disability benefits, and they are motivated to participate in programs sponsored by their employer. They are more likely to engage in voluntary benefits, like financial wellness services. They understand how their personal financial situation can impact not only their life outside of work, but their daily job responsibilities.
Financial literacy carries through to employees’ roles within their organizations, in terms of increased business acumen. If they are familiar with managing their personal budget, they’ll be more equipped to manage expenses for their employer. If they understand how to maximize their time and effectively utilize online tools, they will more readily pick up on technology solutions in the workplace.
A survey of over 10,000 employees revealed that financial stress negatively impacts an employee’s productivity. The lost productivity represents between 11 and 14 percent of payroll expenses per employee, per year.
By offering FinFit’s financial wellness program to your employees, you can save:
$1,855 annually in turnover costs per employee
Nearly $2 million saved annually for every 1,000 employees