Employee Financial Wellness In A Post-Covid World
BrightPlan Team
Workplaces around the country are gradually reopening as more than half of U.S. adults are fully vaccinated against COVID-19. Restaurants, travel and entertainment have also picked up and Americans are slowly returning to normal life. This new optimism is a much-needed boost after the economic challenges faced by millions of people, especially women and people of color.
Although we have much to be grateful for and cause to celebrate, many employees are still recovering financially from the pandemic. Earlier this week we released new survey findings that reveal that 65% of U.S.-based employees felt stressed about their finances, impacting productivity and engagement to the tune of nearly $5B per week* nationwide in lost productivity.
Employers and Financial Well-Being
Leading employers understand the link between financial well-being and company bottom line. Employees distracted by their financial worries are less productive. It's in a company’s best interest to foster a sense of financial security through employee financial wellness programs and drive productivity and engagement.
A Bank of America survey found that 83% of employers believe that employee financial wellness programs can increase productivity, ultimately driving business results. A majority (62%) go even further and feel directly responsible for their employees’ financial wellness.
Employee Financial Wellness Post-pandemic
Although many employees are still recovering financially from the pandemic, the labor market is tighter than at any point in the past year. As competition for top talent increases, employers need to ensure that they’re addressing the needs of employees strategically and holistically. Employers have had to constantly adapt their workplace due to the pandemic, from transitioning to remote work to encouraging employees to get vaccinated. Employers will need to continue to be agile as the country gradually reopens.
Our recent survey shows that 94% of HR leaders believe that their company needs to change its benefits offering significantly to attract and retain top talent post-pandemic. One of the top benefits employees are looking for is employee financial wellness. The same survey found that employees overwhelmingly trust their employers with money matters and want their help with financial education, investing, and gaining access to a financial professional.
Boosting Employee Financial Wellness
Whether your company already has a financial wellness strategy or you are just getting started, we believe all employers can benefit from investing in employee financial wellness.
Start by taking stock of your current financial wellness benefits and see if they adequately address the changing needs of your employees. If you have not evolved your benefits recently, now is a good time to start. Survey your employees and get a sense of what they need to feel supported as they gradually return to their pre-pandemic lives. Ask employees in which areas of their personal finance would employer support be especially helpful.
Some employers may also choose to go the extra step and quantify how financial stress impacts their bottom line through factors such as lower productivity, absenteeism or medical costs. Others may go further still and identify groups of employees who need the most help and double down their efforts on those employees. No matter the approach, employers can craft a strategy that effectively improves the financial well-being of their employees.
Employee financial wellness programs that address the needs of your employees and help manage their financial stress can result in improved productivity and engagement, ultimately driving better business outcomes. As we gradually reopen after an unprecedented year and a half, employer support on topics that matter most to employees’ lives―their finances―is necessary for them to recover and in the long-term―thrive.
