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.