How Employers Can Benefit from Financial Wellbeing Programs
During these times of economic uncertainty, financial wellness benefits are needed more than ever. Providing these benefits is not only the right thing to do, but it can also have key benefits for your company, such as decreasing turnover, reducing absenteeism, boosting productivity and increasing participation in other benefits like retirement plans.
According to research from SoFi at Work, 75% of U.S. workers face at least one source of major financial stress. For many of these employees, this stress has had a negative effect on their sleep, mental health, physical health and, ultimately, their performance at work.
Financial wellbeing is a critical driver of overall wellbeing, and when employers invest in the wellbeing of their employees, they can see tremendous value in return. Therefore, it would be wise for your organization to consider incorporating financial wellness initiatives into your overall wellbeing strategy or benefits package. Benefits your organization can achieve include:
1. Decreased Turnover
High turnover rates can be expensive and have negative effects on company culture. A survey from PwC shows that employees with severe financial stress are twice as likely to look for a new job compared to other employees.
Even if they aren’t actively looking for a new job, many employees say they’d be attracted to another company if that organization seemed to care more about their financial wellbeing. Eighty-four percent of employees believe their employer should be responsible for their financial wellbeing, but only 55% believe that their employer actually cares about it.
2. Improved Attendance
The same survey found that 15% of U.S. employees reported that their financial stress has had a severe or major impact on their attendance at work. Further, financially stressed employees are seven times more likely to say that financial stress has had a major impact on their attendance.
3. Enhanced Productivity
In addition to missing work, employees are distracted by their finances when at work. SoFi at Work found that employees are spending an average of 9.2 hours per week on their personal finances during work hours and 14 hours per week total.
As for the overall impact on employee productivity, 76% of stressed employees admit that their financial worries have had a negative impact on their productivity, and 25% of this group says this impact has been major.
4. Increased Use of Benefits
Many employees may not take advantage of their company’s retirement plan because they need the money for more pressing things, such as paying off credit card debt and dropping money on emergency expenses. Helping employees pay off debt and build emergency savings allows them to focus on other priorities, like saving for their retirement.
There are many methods and providers who can help you incorporate financial wellbeing into your overall strategy. Make sure you work with a trusted advisor to help you navigate the complexities of financial wellbeing benefits.
Investment advisory services provided through CBIZ Investment Advisory Services, LLC, a registered investment adviser and a wholly owned subsidiary of CBIZ, Inc.