Financial Wellness: Why It’s Not Just a Benefit, But a Necessity for Employers
Employees that feel supported by their employer are usually more productive, have better morale, and they also tend to stay with their employer longer. In order to recruit and retain good employees that you can count on, supporting your workforce is a necessity. If you are searching for ways to support your employees and reap some of these benefits, start by helping them achieve financial wellness.
What is Financial Wellness?
Financial wellness is a concept that encompasses more than just how much money an employee has. It also includes the security around how an employee feels about their finances, access to financial education and guidance, and financial assistance from an employer. For example, an employee who lives from paycheck to paycheck with no security net, no budget, and no financial plan is going to find financial wellness potentially impossible to achieve. However, an employee who enjoys financial support from their employer that goes beyond their paycheck is far more likely to experience financial wellness that allows them to cover financial emergencies and plan for the future.
Financial Wellness Examples in the Workplace
To help you create a robust financial wellness program for your employees, we’ve included a few examples of benefits you can offer to your team members.
A recent study found that offering a retirement plan is the most important financial wellness benefit to employees. This makes sense when you consider the peace of mind that comes with having a clear plan for a successful financial future.
Student Debt Assistance
Investing in the education of your workforce benefits both your employees and your business. The employees benefit by adding this education to their resume while also learning a new set of skills, and the employer benefits by having a more well-rounded employee. If you have workers with existing student loans, offering a program to help them pay off that debt can also help show your commitment to their overall financial wellness.
For employees who have to commute a considerable distance each day, filling up their vehicle can become a hefty expense that could cause them to look for employment closer to home. Offering commuting assistance could ease the burden of travel costs and encourage these good employees to stay with your company.
Earned Wage Access
The stress of paying for an unexpected expense can be overwhelming for some employees, especially when their only option to pay for this expense is by taking out a payday loan or maxing out a credit card. Earned wage access can lessen this stress by
allowing employees early access to the wages they have already earned.
Financial wellness benefits can help employers foster a positive relationship with their employees and create a work culture that attracts high-quality applicants. When your team members feel supported, they tend to be more productive and engaged, a combination that can boost employee morale and your bottom line.
Want to learn more about the benefits of employee financial wellness? Check out the links below: