How to Attract and Retain Talent by Focusing on Financial Wellness
This is clearly one of the most unusual job markets in a long time. The number of job vacancies remains at a historically high level. HR managers are witnessing a staggering turnover that has led some to refer to this period as The Great Resignation, or simply Big Quit. I hear many stories of employees going for a 50 cents an hour raise.
So it’s no surprise that HR experts say attractiveness and retention are top priorities right now. Some employers are turning to financial incentives, but the real differentiator might actually be in benefits rather than just a slightly higher paycheck.
When talking to companies about their benefits, I recommend doing a needs assessment to find out what could distract employees from focusing on their work. Yes, in some cases it may depend on the salary. However, deeper investigation can reveal concerns about buying a home, saving for retirement, paying for college, or building a household budget. We now have a workforce distracted from their desire to grow, feel good, and understand their full financial picture. These distractions add up. It is estimated that due to financial stress, employers lose nearly $ 2,000 in productivity per employee every year.
Employers can take more care of their teams by offering financial wellness benefits that help them relieve money-related stress. For example, First Financial Bank’s free First Worklife® program helps employers understand the reasons behind the turnover in detail and offer customizable modules to meet those needs. This could include opening doors to mortgage discounts, financial education, retirement planning, health savings, and other areas of support available from a number of options.
A multi-option approach is important because, for example, a franchise owner has different staffing needs than a law firm. Employees with different challenges and interests require different types of support to achieve financial well-being.
With these offers on the table, an employee has more to consider than just a 50 cents raise from employer # 2. When the # 1 employer also offers mortgage assistance and financial education, that employer is suddenly more attractive. It is becoming clear that employer # 1 is more concerned with the holistic financial needs of the employee.
This is the employer’s way of saying, “Work is important, but I also want to make sure that you are comfortable in your financial life outside of work, and I will take the steps to help you with that.”