The Hottest Perk of the Pandemic? Financial Wellness Tools
Amid the great resignation in which employers are looking for ways to hold onto experienced employees, financial wellness programs could be an attractive addition to the range of services.
That was a key finding from PwC’s annual Employee Financial Wellness Survey, conducted in January 2021 and published in April. Among respondents, 72 percent of workers who said they faced mounting financial setbacks during the pandemic said they would be more attracted to another company that cares more about their financial well-being than their current employer. About 57 percent of workers who have not been exposed to heightened financial stress said the same thing.
Financial stress doesn’t just affect employee retention; it also has an impact on productivity. PwC’s survey found that 45 percent of workers who have suffered financial setbacks have been distracted from their money problems at work.
The menu of financial wellness tools employers could choose from includes personal finance education tools, individual financial coaching, and even access to Rainy Day funds.
It’s also a growing business area. HoneyBee, a B2B financial wellness startup, recently closed a $ 5.7 million equity financing round, TechCrunch reported. The financial technology company grew 225 percent during the pandemic and saw the use of its on-demand financial therapy tools increase 175 percent. Origin also recently announced that it raised $ 56 million in its Series B funding round, which it will use for customer expansion as it saw increased demand for financial planning services during the pandemic, Business Wire notes.
While one in five workers waits until they experience financial setback before seeking advice, when continued support is offered, workers are more likely to be more proactive with their finances. According to the PwC survey, 88 percent of workers who receive financial wellness services from their employers use them.