The ROI of Financial Workplace Wellness Programs
Businesses constantly look for ways to attract talented staff and retain the valuable team members they have. Many employee benefit programs focus on physical and emotional health to reduce stress and sickness in the workplace. An alternative solution? Financial workplace wellness programs. Financial uncertainty is a large contributor to employee stress and can lead to a lack of focus. This makes the ROI of financial workplace wellness programs extremely compelling.
People are Reluctant to Talk About Financial Wellness
Personal financial difficulties can affect employees in the workplace, but many people hide their situation from their peers. The stigma associated with money issues often leads your valued team members to hide or disguise their financial problems. As a result, employees show a lack of productivity or increased absenteeism because of stress.
The reasons for financial struggles vary. Recently, the global pandemic caused many people to dip into their savings to support themselves. Some even did so to the extent that they are now delaying their retirement. Similarly, many face financial challenges such as medical bills or job loss.
Financial worries are distracting and can cause anxiety. Employees of all backgrounds feel the effects, whether they are planning for retirement or saving for a new home. However, a financial workplace wellness program offers a solution that can help your staff overcome these challenges.
The ROI of Financial Workplace Wellness Programs
Financial wellness programs offer a range of services to employees, from debt management to retirement planning. Because of this, many organizations are now implementing these programs as an employee benefit. The main question is, “What is the ROI of financial workplace wellness programs for my business?” The answer is threefold. Firstly, a financial wellness program attracts talented employees. Secondly, it improves productivity. And thirdly, it reduces sickness and absence.
Attracts Talented Employees
Every company wants to employ the most talented employees. When there’s a labor shortage, the best employees have their choice of places to work. In other words, the power is in their hands. Therefore, your main concern is to make job offers as attractive as possible.
Good company benefits attract the right candidates and help you retain the talent you already have. According to Corporate Wellness Magazine, 40% of employees say financial planning and education is an important benefit when they are considering a new employer. Additionally, these benefits will help you to retain the workers you already have. Hiring and training new workers costs your company money. Therefore, it pays to have a solid and talented team that is happy to stay right where they are.
Financial stress does not let employees fully focus on their jobs, and that affects productivity. Additionally, stress over money can also lead to a lack of sleep, arguments, and other issues that can affect an employee’s mental health and work performance.
Financial wellness programs educate employees and provide guidance in managing their money. In other words, they help employees take control of their financial lives. This helps to alleviate stress and allows employees to focus on their work. HR Magazine says, “We see a definite trend of linking general wellbeing and productivity with financial wellness.”
Similarly, a study by Warwick University suggests happy employees are up to 12% more productive. Consider the ROI of having an entire team that’s 12% more productive! As a result, your company would be more successful, and each of your team members would be on track to a healthier lifestyle.
Reduces Sickness and Absence
When employees are unhappy or stressed, sickness rates rise. Financial strain can also lead to mental illnesses such as depression. Research from HCMI shows that a financial wellness program can reduce sickness and absenteeism. Therefore, by hosting a financial workplace wellness program, you are actively preventing poor mental health and reducing the cost of lost productivity.
In addition to the main advantages of offering a financial wellness program, there are several smaller benefits to your company. These include:
- Decreased HR costs. Your HR team will spend less time discussing benefits and payroll advances.
- Decreased payroll taxes. Employees that use HSA or pre-tax health benefits affect Social Security payroll and contributions.
- More 401(k) participation. Employees will learn how to properly save for retirement and you both reap the tax benefits.
- Decreased healthcare premiums and accidents. Reducing employee stress and illness can also reduce the associated healthcare costs and accidents in the workplace.
- Increased on-time retirement. Businesses can better plan for gaps in their workforce and employees have more peace of mind knowing they are on track for retirement.
101 Financial Workplace Wellness
As an employer, you have a responsibility to care for your employees. Go beyond simply sponsoring a retirement plan or giving an annual bonus. Improving financial literacy among your team has far-reaching benefits for everyone involved.
Financial wellness programs are best delivered by a third party, in other words, someone outside the business. Likewise, the third party should have the expertise to deal with a range of issues confidentially. A neutral third party like 101 Financial gives employees the confidence to seek financial help. Moreover, they can do so without fear that it will negatively affect their employment or interactions with their peers.
The 101 Financial Workplace Wellness program is designed to provide confidential support and one on one instruction. Additionally, the program is meant to help your team become more productive and achieve their financial goals.
To learn more, download our free ebook, Determining the ROI of Financial Wellness Programs. Find out how 101 Financial’s Workplace Wellness program can help you attract new employees and improve productivity in the workplace.