Understanding Financial Wellness in the Workplace
Financial wellness is an important part of employee satisfaction. 101 Financial will show you how to improve the financial wellness of employees and strengthen the company as a whole.
What is Financial Wellness?
Financial wellness is the new buzzword in business today. It’s not surprising, given the increasing number of employees who suffer from financial stress and struggle to make ends meet each month.
Financial wellness is someone’s ability to meet their financial obligations, current and future.
Today, more than ever before, employees are concerned about their finances and how they can best manage their money to support themselves and their families – especially with recent economic changes that have made it harder for some to find work.
Financial Wellness Means Being Financially Literate
Financial literacy isn’t something that can or should be mandated by businesses, but instead, it needs to be driven by the employee’s interest in learning about their money. It’s important to remember, employees are volunteering for this education; they want to make sure their decisions with regards to money are in their best interest.
The components of financial wellness can be a difficult subject to talk about, however, employees need this knowledge to make smart financial decisions that will add real value to their lives. Employees should see financial wellness examples in their supervisors.
For many, understanding what they really need from an income perspective and being able to live within those means is not just a lifestyle goal, but the difference between being financially secure and feeling trapped.
How Financial Stress Affects Your Employees
Financial stress has long been known to have a tremendous impact on an individual’s physical and mental well-being. For many people, financial problems are what cause feelings of loneliness, isolation, anger, and sadness.
Many studies have shown that these emotional reactions can lead to increased health problems including weight gain, high blood pressure, and diabetes. Feeling financially stressed also has a direct impact on an employee’s productivity at work.
A number of studies show that increased financial stress leads to decreased quality work output as well as absenteeism due to illness. The bottom line is when employees are experiencing greater levels of financial stress, they become less productive employees for your company.
The Financial Challenges Facing Your Employees
With the economy still in a slump, it is likely that employees are worried about their financial situation. It’s important for companies to create a culture where employees can find help.
Top financial wellness programs help employees understand how their financial situation can affect their work-life and what they can do to improve it. Even companies without a lot of money for employee benefits have found ways to implement successful financial wellness programs.
In today’s world, people are challenged with a variety of financial decisions on a daily basis. No matter what stage of life they’re at, it can be difficult to navigate the new economic environment. For example, college graduates who have just entered the workforce are likely to face student debt and rising costs for healthcare and housing.
The Benefit of Financial Wellness Programs
In January 2022, inflation reached 7.5%, higher than it’s been in years. Your employees are bound to be worried about that too. Their paycheck isn’t going as far as it used to. Your budget as an employer may not be big enough to follow inflation. Offering financial wellness programs will allow your employees the opportunity to be smarter with their money so their paycheck can go further.
Employee financial wellness has become a top priority for many businesses. This has led employers to take action by helping employees gain financial knowledge on topics like budgeting, spending, saving, and investing.
The most common benefit, one that is offered by 42% of employers, is education about personal money management or employee financial help, which can help employees with their day-to-day spending habits and help them plan for the future. Health & welfare benefits are key components of compensation packages offered by employers to attract and retain employees.
Why Your Company Needs Financial Wellness Education
A majority of employees have expressed concern over their finances at one point or another in their lives. Everyone needs information on how to manage their money effectively so they can focus on work without worrying about whether they will be able to pay the bills next month.
Financial education teaches people how to spend, invest, and prepare.
Employer financial wellness programs have been a variety of topics spanning the nation in recent years. As economic situations become more dire, employees are looking for ways to increase their financial literacy and education.
Encouraging Financial Wellness Through Coaching
Financial wellbeing companies also aim to improve the financial literacy of employees. Part of financial wellness is financial coaching, which can help employees understand financial concepts such as credit, savings, investment opportunities, money management, and more.
With this information at their fingertips, employees will be empowered with the strength to make financially sound decisions for themselves and their families.
As an employer, recognizing the benefits of providing a financial wellness program to accommodate the needs of their employees is vital. The main focus of these programs is teaching individuals how to be financially responsible and providing the resources necessary for positive money management.
What 101 Financial Can do to Improve Financial Wellness
You’ve likely heard about financial wellness programs in today’s workplace. As a business owner, you might be wondering if your employees are benefiting from these types of initiatives. Or, as an employee, perhaps you are thinking about joining one of these programs or even spearheading the planning for such an initiative at your work!
Either way, it’s important to have a thorough understanding of what financial wellness is and how it can benefit organizations large and small.
What You’ll Learn
Download our Free eBook today to help your employees build their financial literacy!