Employee Financial Wellness: Why Employers Should Care
Financial wellness plays an important role in our lives, and it’s not just about having enough money in the bank.
Financial wellness is all about the effective management of expenses and impacts all aspects of our lives including mental and physical health, and work performance.
People work to earn money to afford food, clothing, housing, insurance, student loans, and more.
Why Americans Need Assistance Managing Financial Wellness
The issue is that most Americans have a difficult time managing their financial wellness.
In fact, a survey by PwC found nearly 60% of workers say they’re concerned about their financial matters and list money as their top cause of stress.
We all lead busy lives, and with so many things to think about, many find it hard to keep up with their financial needs.
Financial problems take a toll on every aspect of life, including work.
Healthassured.org notes that poor financial wellness can lead to a lack of motivation at work, causing employees to feel, “undervalued, distracted, and hopeless.”
To make matters worse, a report by Financial Finesse found that those employees are more likely to take sick days or be absent from work, or even delay retirement, putting a financial strain on the company too.
Benefits of Improved Financial Wellness
Prioritizing financial wellness makes employees feel cared for. When people feel that the organization cares about their well-being, they become more motivated to work.
And, you won’t just see a boost in morale when your company prioritizes financial wellness, you’ll save money as well.
One study found that increasing the financial wellness of your employees can save a large company over $440,000 a year.
An article in Corporate Wellness Magazine (CWM) noted that financial wellness helped with decreasing absenteeism, lowering health care costs, and even fewer Workers Compensation claims.
With all of these benefits, more and more companies are stepping up to make sure that their employees reach their financial goals and have a sense of financial security.
So how can you implement this at your company? Here are several ways to help employees improve their financial health:
-
Provide the necessary training and resources
Employees need to know and understand how to successfully manage their finances.
Employers can assist by teaching them how financial wellness impacts their performance at work.
Make sure financial tools and resources are easily accessible to them to help them achieve financial goals.
-
Set up programs to help employees with financial issues
Coordinate with human resources to create a plan to help employees who find it hard to cope with various financial concerns.
-
Take industry benchmarks
Managing small business expenses can be challenging, but it’s essential to pay a competitive salary. It will help you recruit and maintain top talent.
In addition to offering performance bonuses or cash incentives, you can also supplement their compensation by providing things like gym subsidies, free meals or coffee, and transportation credits.
-
Give employees the option to work from home
The demands of both work and family can be overwhelming. With a flexible work schedule, employees can work at home and take care of loved ones without worrying about the costs of finding child care.
Employees can also take an active role in maintaining their financial wellness.
Here are some tips you can share with them:
- Set a budget and stick to it. After setting aside expenses, create your budget for the month based on the remaining income.
- Live within your means.
- Prioritize saving and paying off debts.
- Pay off all bills on time and in full.
- If necessary, find another source of income like a side-hustle that won’t interfere with your regular day job.
Financial wellness is a crucial part of the health and well-being of employees.
It helps improve productivity and engagement at work.
Most people will face personal financial problems at some point.
But being worried about money all the time can affect not only their job but also their personal life.
Keep these tips in mind to help manage the financial wellness of your employees, and eventually, everyone will be sharing the wealth.
The post Employee Financial Wellness: Why Employers Should Care appeared first on GrowMap.
