What Is A Financial Wellness Program Worth To Your Company?
Rising inflation, increased economic uncertainty, and retirement planning concerns are weighing heavily on U.S. workers. BrightPlan’s 2022 Wellness Barometer Survey found that 72% of employees are stressed about their finances and 88% expect their employers to provide them with access to financial tools and advice. Financial wellness benefits are now the number one most desired employee benefit, followed by mental health benefits and flexible time off.
In addition to supporting employees’ overall well-being, financial wellness programs can deliver tangible benefits for your company, too. Here are a few of the benefits for the organization.
Health Insurance Savings
Financial stress affects not only mental health but also physical well-being, with 77% reporting an impact on their physical health. Financial stress may lead to anxiety or depression, as well as headaches, inflammation, heart and lung diseases, diabetes, and arthritis, among other ailments. A constant state of stress and anxiety could translate into more sick days and increased healthcare premiums for employers and employees. Financial concerns and the inability to pay medical bills can also cause employees to forgo preventative or routine healthcare.
Savings From Absenteeism
When employees are stressed, they’re more likely to call in sick or experience health problems that require them to miss work. When employees are absent, their responsibilities either go undone or other employees are left to shoulder the workload, potentially resulting in even more widespread stress. And if employees do show up to work, their financial problems can cause distractions, leading to lower productivity and engagement. By equipping employees with the knowledge and tools to make better financial decisions, they are more likely to be able to focus at work and perform to the best of their abilities.
One of the causes of high turnover rates is financial stress. Employees who experience financial strain may feel dissatisfied with their jobs and seek improved benefits or a higher salary to help assuage financial concerns. HR leaders and managers know how taxing it is to replace an employee, especially an experienced one. Losing a single employee often leads to lost productivity, overburdening of other staff, as well as tangible and intangible costs associated with finding and training new employees.
Businesses can face unintended challenges when employees delay retirement, including a lack of career progression for younger workers and increased labor costs. Career mobility is particularly important to today’s workforce and when an employee retires on-time, it paves the way for other employees to grow within the company, thereby supporting the organization’s employee retention goals. An older worker population can also come with higher labor costs (due to higher compensation and increased health and disability claims). For these reasons and more, it’s important for employers to guide their employees on the path to financial wellness and retirement readiness.
Providing your employees with a comprehensive financial wellness program can help fast-track their financial literacy, guide them to financial stability, and demonstrate that you care about their overall well-being. Further, investing in benefits that support holistic well-being shows a culture of care and appreciation.