Irene Chang, Author at Best Money Moves

What is Employee Financial Wellness?

by Irene Chang | Feb 28, 2022 | Blog

What is employee financial wellness? With financial stress on the rise among employees, what can employers offer to help? Here’s what to know about employee financial wellness benefits.

Sixty-three percent of employees feel their financial stress has increased since the start of the COVID-19 pandemic, according to PwC’s 2021 Employee Financial Wellness Survey. Now they want their employers to step in: The same survey found that 87 percent of participants want help with their personal finances.

As reducing financial stress becomes a top priority for employees, financial wellness benefits may be the key to retaining top talent.

What is employee financial wellness?

An employee’s financial situation impacts more than their wallet. Employee financial wellness refers to the way personal finances tie in to overall physical, emotional and mental health. Financial stability is an important component of overall employee wellness.

How does financial stress impact employees?

Long-term financial stress can impact a person’s overall wellbeing. Employees with elevated levels of financial stress are four times as likely to experience a decrease in overall household income, and struggle with meeting monthly household expenses.

These stressors can carry over into the workplace. Concerns about being able to manage finances and pay bills have naturally impacted employee performance, leaving many stressed and distracted. Other research studies echo the same sentiment of financial stress impacting employee lives and productivity. In a survey conducted by the Society of Human Resource Professionals (SHRM), 37% of employed adults agreed or strongly agreed that they had to miss work because of a financial emergency in the past 12 months.

Without employer support, financial stress can also become a retention issue. Of those surveyed in PwC’s Employee Financial Wellness Survey, 72% said they would be attracted to a different organization that cared more about their financial wellbeing. o keep the most productive and talented employees and show that the organization cares about their staff, employers will need to strengthen their financial wellness programs.

How can employee financial wellness programs reduce employee stress?

Employee financial wellness programs are any benefits that can help employees more successfully manage their personal finances. Retirement savings and safety net insurance are the most common benefits offered by employers. However, employees are also voicing their need for additional wellness programs, such as consulting for wealth management, estate planning and investments; financial literacy training on the basics of budgeting, debt and credit management, and other personal finance topics; and emergency funds preparedness.

Fewer companies provide financial well-being programs such as coaching services about everything from the basics of budgeting to credit score monitoring. However, according to the surveyed HR professionals who come from organizations that do, these programs are now more crucial for employee financial well-being. Emergency funds, financial planning and financial coaching services have all been used more by employees since the start of the pandemic.

Offering financial wellness programs for your workers can result in reduced mental stress, which can potentially improve productivity and retention rates. Since employees find financial wellness support as a top priority from their employer, they may be less likely to seek work elsewhere if they already feel that their financial needs are being met.

Looking for an all-inclusive employee financial wellness plan? Try Best Money Moves.

If you’re looking for a first-in-class financial wellness solution, Best Money Moves could be the answer you need. Best Money Moves is a financial wellness program that provides all the guidance and support employees need to help them reduce their financial stress. It has tools and features that help employees measure their financial stress, budget for monthly expenses, pay down debt and plan for emergencies.

Employees can talk to trained professional financial counselors and educate themselves about everything from investing to co-signing loans and buying their first homes with access to a library of over 700 articles, videos and calculators.

Best Money Moves is also gamified, featuring a point-based rewards system where users earn points every time they log in, enter their information into their profile, work with their budgets, read articles and measure their stress. Each point translates into a chance to win a monthly contest.

Employers want a financial wellness program that is expansive, engaging and suited to meet each of their employee’s unique needs and they’ve found it in Best Money Moves.

To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.

3 Reasons You Need Financial Wellness in the Workplace

by Irene Chang | Feb 2, 2022 | Blog

3 reasons you need financial wellness in the workplace. Morgan Stanley’s new study, The State of the Workplace finds employees in need of financial wellness support and looking to their employers for help.

COVID has caused huge changes for employers and employees alike. That’s why Morgan Stanley at Work conducted a first-of-its-kind financial benefits study, called The State of the Workplace. The study, which compiled responses from 1,000 employed U.S. adults and 600 HR executives, attempts to chart how COVID-19 has impacted workplace experience.

Among the many insights offered from the survey, one theme presented itself again and again: Employees’ financial stability took a hit during the pandemic and it’s time for employers to step in and help.

These are the top three reasons why your team needs financial wellness in the workplace.

1. The pandemic hurt employee financial security across all industries and positions.

Ninety-one percent of employees surveyed in Morgan Stanley’s report have faced personal finance challenges, such as household budgeting, debt reduction and emergency and short-term financial savings. This led to reduced financial contributions across 401(k) savings accounts, long-term and emergency short-term savings, and debt and loan payments.

Both employees and employers noticed a decrease in work productivity and performance due to this personal financial stress. Sixty-four percent of employees report that these stressors negatively impacted their work and personal life, while 82% of employers are concerned that personal financial issues affect work productivity.

Employers now have an increased responsibility to help their staff maximize their financial benefits; after all, if employees aren’t constantly worried about meeting their financial obligations, they can be more focused and productive at work.

2. When it comes to evaluating employer benefits, employees are focused on financial wellness.

With uncertainty fueled by the pandemic, employees are starting to reassess whether their current employer financial benefits meet their needs. Morgan Stanley noted that 61% of employees are paying more attention to what benefits they are offered. This percentage increases to 69% among Millennial employees, who are more focused on reviewing these benefits compared to the overall employee population.

Both employees and employers are looking for financial guidance. More than 4 in 5 employees believe that employers should be involved in helping employees understand how to maximize their financial benefits, while 95% of HR executives say that re-evaluating their companies’ 2022 benefits package is a moderate to high priority.

3. Employee financial wellness plays an important role in attrition and retention.

Meanwhile, employers acknowledge that re-evaluating the benefit plans offered is a top priority to stay competitive and retain talent

If your employees feel their financial needs are supported with a comprehensive benefits plan, they are also more likely to be productive on the job and stay at their company long-term. Ensuring that companies have the proper financial support for their employees will lead to retention of top talent. Ninety-one percent of employees say they would feel more invested in staying with their current employer if they have financial benefits that fulfill their needs.

Employee retention is especially important if employers want to remain competitive. The State of the Workplace report indicates that 79% of HR executives believe that lack of financial benefits will result in attrition.

Need a first-in-class financial wellness solution? Consider Best Money Moves.

Financial wellness programs, like Best Money Moves, can help employees regain control of their finances. Best Money Moves has tools and features that help employees measure their financial stress, budget for monthly expenses, pay down debt and plan for emergencies. Employees can talk to trained professional financial counselors and educate themselves about everything from investing to co-signing loans to buying their first homes with access to a library of over 700 articles, videos and calculators.

Employers want a financial wellness program that is expansive, engaging and suited to meet each of their employee’s unique needs and they’ve found it in Best Money Moves