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How Financial Wellness Contributes To Company Success

BrightPlan Team

Sixty-five percent of employees are stressed about their finances, costing US employers $4.7 billion per week in lost productivity and engagement. Given the high cost of financial stress, many leading employers are placing a strategic priority on helping their employees alleviate financial stress. Happy and productive employees are critical to long-term company success. 

Here are three ways offering financial wellness benefits for your employees can contribute to the success of your organization. 

 

1. Attracting and Retaining Top Talent

A company’s success starts with the recruitment and retention of the right employees, and HR leaders understand the crucial role a compelling and differentiated Total Rewards package plays in attracting and retaining top talent. Both are key for business growth. In addition, turnover is expensive―costing 30% of salary for entry-level employees to 400% of salary for high-level or specialized employees.

Financial Wellness benefits consistently rank in the top three benefits that matter most to employees and are actively sought after by many employees. The BrightPlan 2021 Wellness Barometer Survey highlights that financial wellness is the third most important benefit post-pandemic after healthcare and remote work. Specifically, 82% of employees want financial education and tools for investing, while 78% want access to a financial professional. A financial wellness program that fulfills all the above can help differentiate your Total Rewards and benefits package in the market.  

 

2. Reducing Absenteeism and Increasing Employee Engagement

The view that employees’ finances are their personal problem is obsolete. Our survey shows that financially stressed employees lose on average 15.3 hours of productivity weekly. These losses―in the form of absenteeism, lack of focus and engagement, and more―have a direct impact on employers. Although the finances of employees are a private matter, the effects are felt in the workplace. Forward-thinking employers are now striking the balance of offering the right level of support to help reduce employee financial stress while respecting their privacy.

Employees who are free from financial stress are more likely to have high levels of well-being and thus can be more productive and engaged. 

 

3. Improving Overall Well-being and Job Performance

Employers who support and empower employees to improve their overall well-being may experience increased job performance. Employees who have high levels of overall wellness―defined as physical, mental, emotional and financial well-being―are more likely to be productive and engaged. 

Companies that offer a total rewards package that encourages physical, mental, and financial wellness see an increase in employee morale, health, and happiness―ultimately driving business success for the employer. A comprehensive benefits package that prioritizes well-being shows a culture of care and the appreciation an employer has for its employees. 

Investing in employee financial wellness is an investment in your people and your company. Empowering employees to make healthy choices physically, mentally, and financially leads to happier and more dedicated employees—a win-win for everyone.

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