The role of the CHRO is constantly evolving, and in order to stay ahead of the curve, they should be focusing on financial wellness in 2022. Employee financial wellness has become a top priority for businesses over the past few years, and it is only going to become more important in the future.
In this blog post, we will discuss five key areas that CHROs should focus on when it comes to employee financial wellness: building a healthy business culture, prioritizing retention, adapting and taking risks, and committing to diversity and employee wellness.
Healthy Business Culture
As a CHRO, you should be working to create a healthy business culture that promotes financial wellness. This means creating an environment where employees feel comfortable talking about money and their finances. It also means providing education and resources so employees can make wise financial decisions.
One way to promote financial wellness in your business is to offer Employee Financial Education (EFE) programs. EFE programs can teach employees about budgeting, saving, investing, and other financial topics. They can also help employees develop good money habits.
Another way to promote financial wellness is to create a workplace culture that emphasizes financial responsibility. This includes promoting responsible spending and saving habits, as well as discouraging risky investment decisions.
CHROs should also focus on retention in 2022. Employee turnover can be costly for businesses, so it is important to do everything you can to keep your employees happy and engaged. One way to do this is by promoting financial wellness.
When employees feel good about their finances, they are less likely to leave their job. In fact, a study by Fidelity found that 78% of employees who are financially healthy are also happy with their job.
Financial wellness can also help employees feel more engaged and committed to their work. When employees feel like they are a part of something bigger, they are less likely to leave their job.
Adapt and Take Risks
In order to stay competitive, businesses need to be willing to adapt and take risks. This includes adapting to new technologies and taking risks with new business ventures.
However, businesses cannot take these risks without a strong foundation. And that foundation is built on employee financial wellness.
When employees are financially secure, they are more likely to embrace change and risk. They are also more likely to be loyal to their company and be willing to work hard for its success.
Commit to Diversity
Committing to diversity is key in today’s rapidly moving business environment. In order to be successful, businesses need to be open to different perspectives and ideas. When employees feel like they are part of a diverse and inclusive workplace, they are more likely to be productive and engaged. They are also more likely to stay with their company for the long haul.
Support Your Company’s Bottom Line
According to the US Inflation Calculator, the US inflation rate is on the rise. Currently, the rate is 8.5% over the last 12 months. For every $50K in salary, this equates to an additional $4.25K in salary compensation increase just for your employees to stay even.
Savvy CHROs and HR teams know that their compensation packages can’t keep up. Add to this the burden of keeping top talent in-house and finding new talent, the stakes have never been higher for companies just trying to keep up with open positions.
With 50% of individuals not having a home budget, not knowing personal cash flow issues, and needing to save for retirement, HR is a critical proponent for personal financial wellness.
According to Trading Economics, the US wage inflation rate was at 9.16% in 2021. HR compensation committees need to look at all options when considering the ties to company price increases, salary and wage increases, and the effect on the company.
(Via: US Inflation Calculator)
Talk to 101 Financial
One final thing that CHROs should be considering as we move further into 2022, is up-and-coming financial wellness programs that can give aid to your employees. 101 Financial is committed to helping reduce employee financial stress, increasing productivity, and improving workplace wellness by helping employees to understand how to be debt-free and disciplined with spending.
If you are wanting to help grow your business inside and out, employee wellness programs are a great place to start. Reach out to 101 Financial today to learn more!