Should You Consider Implementing A Financial Wellness Program?
American businesses have gradually realized the value that health wellness programs can deliver. A healthier workforce translates into numerous benefits: more productive employees, fewer absences, increased employee engagement and retention, even less stress on employer-sponsored health insurance programs.
When it comes to financial wellness however, employers have yet to fully understand the impact that an employee’s financial health has on the bottom line.
Beyond the stress that it noticeably causes for your employees, a lack of employee financial wellness can present additional challenges to your business:
- Higher Turnover – 1 in 3 employees hope to be working for a different employer this years
- Higher Healthcare Costs – 30% of medical workers have put off medical treatment, because of the cost in the last 12 months
- Higher Loans – 21% of eligible participants, borrow against their 401(k)
- Lower Productivity – Financial troubles can decrease productivity as much as 20 hours per month
- Lower Contributions – The average retirement plan participant contributes 5.5% of their income
- Lower Balances – 52% of Americans have less than $10,000 saved for retirement
In a recent study conducted by the Society of Human Resource Management, 83% of employers surveyed believed that employee productivity was hindered by their financial stress. Additionally, Jennifer Robison of the Gallup Business Journal reported that workers with low well-being can cost employers as much as $28,800 in lost productivity as a result of sick days in comparison to the $840 in lost productivity of those who reported high levels of well-being.
Furthermore, when employees are financially strapped, it makes it difficult for them to contribute and save for retirement. Of the employers surveyed in the aforementioned SHRM study, over 50% said that employees have dipped into retirement savings during the past 12 months in order to make ends meet. How does this add up? Take a quick look at the monetary costs associated with retirement unpreparedness HERE.
Helping employees get “fiscally fit” can do more than just boost productivity, reduce absenteeism and build employee engagement. It also has plenty of intangible benefits as well…
“When our employees are not happy with a salary action in a given year, some of that is legitimate, but some of it can be a disguised cry of desperation because they have balance-sheet problems at home,” says Doug Dean, SPHR, Chief Human Resource Officer of Children’s of Alabama, a health system in Birmingham.
“Employees with a strong financial plan who are living within their means will not be looking for the company’s compensation system to lift them out of financial difficulties.”
Now, more than ever, it is imperative for employers to educate their employees about their finances. A comprehensive financial wellness program that promotes financial literacy can not only benefit employees, but it can also help your business save money, recruit top talent, decrease employee turnaround, and gain a competitive advantage!
Why not invest in the people who power the engine that keeps your business moving forward?
Exude offers customized financial wellness solutions that can help you improve your employee’s financial behavior and outcomes while driving a business impact. Learn more about how we can help you!