Employee wellness programs are designed to educate employees on various topics that enhance their overall personal wellbeing. According to various studies, providing these programs increases employee satisfaction, retention, productivity, and overall company wellness. Including financial education into these programs has a long-lasting positive effect on the employee and the company.
Studies have shown that 76% of Americans live paycheck to paycheck and that 80% of Americans deal with their financial worries at work. Financial stress can affect employee performance, productivity, and quality of work. Absenteeism is also a result, including health issues related to the stress.
According to the Consumer Financial Protection Bureau, “In the wake of the recession, many employers have seen how financial distress reduces worker productivity, increases absenteeism, and undermines employees’ health.” An Employee Wellness Program that includes Financial Wellness is a great tool for employee retention and productivity by increasing their financial well-being through education on various financial topics.
Financial Wellness programs provide education for employees on various topics of finances, including
- Understanding credit and debt
- Saving for and qualifying for a house
- How emotions factor in financial decision making
- Communication around money
- The basics of investing
- Creating a real-time budget
- And many more
Based on PwC’s Annual Employee Financial Wellness Survey, “More employees than ever admitting to being stressed about their finances. Cash flow and debt challenges continue to plague employees, inhibiting their ability to save sufficiently. When asked what they feel causes them the most stress, more employees cite financial matters than any other life stressor combined.”
The key to a successful financial wellness program is to first determine the specific needs of your employees so that you can more accurately meet those needs. Whether an hourly wage employee or a key executive, financial stress can and does affect all ranges of employees, and offerings should be geared towards their needs. A survey of their concerns and stress levels on various financial topics should be conducted, and the program offerings based on the results.
Financial wellness is defined as freedom from financial stress, debt, and worry about unexpected expenses, and the freedom to make choices by finances that support them. Employees who feel positive about their financial situation are more productive, more engaged in the workplace and make better financial decisions overall. It enables employees to enhance their relationship with money, resulting in lifelong financial confidence.