Financial stress is rampant among employees. due to factors like rising living costs, student loan debt, and inadequate savings. This stress can lead to decreased focus at work, increased absenteeism, and higher turnover rates. Looking at the data, it’s not hard to understand why:

• As many as 80% of Americans are living paycheck-to-paycheck
• 59% of Americans are unhappy with their level of emergency savings
• The personal savings rate is at the lowest levels since 2005
• Credit card debt is at an all-time high. And that doesn’t include the amount consumers owe to buy now pay later firms like Affirm and Klarna.
• Students are graduating with nearly $40,000 in debt.

But it doesn’t have to be that way. Workforce financial wellbeing is a critical aspect of employee satisfaction and overall organizational health. It encompasses the financial stability, security, and literacy of employees, impacting their productivity, engagement, health, and long-term commitment to their employers.

Employers who invest in their workers' financial wellbeing often see returns in the form of improved employee morale, increased productivity, and enhanced loyalty. Moreover, financially secure employees are better positioned to focus on their work and career development, leading to a more skilled and stable workforce.

If your workforce is financially stressed, it’s likely that your turnover is higher. And, that costs real money.

The cost of attracting and hiring new talent can be approximately 150% higher than the cost of retaining current staff, not to mention the time it takes for your team to sort through thousands of resumes that come in for each opening.

If you reduce financial stress, you’ll reduce turnover. And, that saves employers real dollars. Implementing a financial wellness program like Best Money Moves offers true economic value when it comes to creating an effective employee retention strategy. And, can help reduce costs with employee turnover.

In 2022, the average wealth of a White family was 1.36 million compared to $211,596 for a Black family and $227,544 for a Hispanic family, according to the Federal Reserve Bank’s Survey of Consumer Finances. According to the Census Bureau’s survey of Income and Program Participation), households with a White, non-Hispanic homeowner have 10 times more wealth than those with a Black homeowner. Black families are far less likely to be homeowners, own a retirement account or a stake in a business.

Promoting financial literacy and overall financial wellbeing can help close the racial wealth gap and teach your employees how to build generational wealth. It should be a vital part of your diversity, equity and inclusion efforts.

Financial wellness significantly impacts employee experience and engagement by reducing stress and improving focus. Employees who have less financial stress are more productive, engaged, and loyal to their employers. They can better concentrate on their work, leading to increased productivity and job satisfaction.

Financial stability also allows for improved work-life balance and enables employees to focus on long-term career development. Companies offering financial wellness programs demonstrate care for their employees, fostering trust and strengthening relationships. This investment often results in higher engagement, with employees more likely to participate in company activities and contribute ideas.

Finally, financially secure workers tend to have better mental and physical health, creating a more positive workplace atmosphere. Implementing a broad-based financial wellness program can lead to a more engaged, productive, healthy and stable workforce, benefiting both employees and employers.