Employers fail without financial wellness benefits
Financial wellness benefits are a must for employers dealing with workplace stress and productivity challenges during COVID-19.
According to a study by SmartDollar, a financial wellbeing program, 90 percent of employers say financial wellness benefits have had a positive impact on their employees. For employers who want to expand their range of employees, benefits that counteract financial burdens have top priority.
More than three quarters of employees struggle with their finances and live from paycheck to paycheck. These money worries can seep through in the workplace: stress, poor health, and employee turnover are high costs for employers.
Read more: Prudential Wellness Benefit combats COVID-related stress among employees
“These money problems follow people to work, which creates more problems,” said Brian Hamilton, senior vice president of SmartDollar, in a statement. “Employers are uniquely positioned to help. When done right, there is no doubt that financial wellbeing is good for employees and great for the bottom line. “
Eighty-one percent of employers have seen improvements in their teams since offering financial wellness programs, and 88% say their employees reported less stress, according to the survey. Over 90% of employers say the benefits make them more attractive to potential employees.
“Your employees spend a lot of time on personal finances because they’re stressed,” said Mike Nannini, head of client management, business development and industry engagement at UBS. “Anything you can do to calm their minds and help them take control of their situation will increase productivity and morale.”
The COVID crisis has been a stress test for workers and they are reaching out to their employers for help. According to Bank of America, 62 percent of employers feel “extremely” responsible for the financial well-being of their employees during the pandemic.
Employers like Prudential, FinFit, Gusto, and Voya have all expanded their financial wellness benefits to offer early wage access, financial education programs, and student loan repayment. By investing in these programs now, you can help employees – and businesses – achieve long-term success.
“You have to weigh up the costs. What’s more expensive for your business: the price of adding financial wellness to your package or the price of a team struggling with money? ”Says Hamilton. “When you offer a financial wellness benefit that actually works, your employees will stop bringing their baggage through your company’s front door.”
When employers consider post-COVID plans, benefits that increase work ethic, increase productivity, and improve engagement come first. 94 percent of employers said it would be beneficial for their company if their employees had healthy personal finances.
“Your employee benefit package is not complete without financial well-being,” says Hamilton. “It’s increasing profits through higher productivity, lower employee turnover, less absenteeism and lower health care costs. If you can achieve positive results for both the employees and the company, that’s a return on investment. “