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
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.