What CHROs Should Consider for 2022
The role of the CHRO is constantly evolving. In order to stay ahead of the curve, CHROs 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. These include building a healthy business culture, prioritizing retention, adapting and taking risks, committing to diversity, and focusing on 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. In other words, these programs help employees develop good money habits.
Another way to promote financial wellness is to create a workplace culture that emphasizes financial responsibility. This includes, for instance, 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 jobs.
Financial wellness can also help employees feel more engaged and committed to their work. Similarly, employees are more likely to stay with an employer who cares about their life outside of work.
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. If your employees are on the verge of leaving for higher pay, your business foundation might not be stable. In other words, a strong foundation is built on employee financial wellness.
When employees are financially secure, they are more likely to embrace change and risk. Additionally, they are more likely to be loyal to their company and therefore 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. Businesses have the ability to create a diverse and inclusive workplace. As a result, employees are more likely to be productive and engaged. Furthermore, employees are also more likely to stay with their company for the long haul when their perspectives are respected and included in decisions.
Focus on Employee Financial Wellness
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. Thus, for every $50K in salary, this equates to an additional $4.25K in salary compensation increase.
Savvy CHROs and HR teams know that their compensation packages can’t keep up. With the additional burden of keeping top talent in-house, the stakes are high for companies just trying to keep up with open positions.
Comparatively, financial wellness programs can be even more beneficial than salary increases. 50% of individuals do not maintain a personal budget, understand personal cash flow, or know how to properly save for retirement. But financial education can change that. Therefore, HR is a critical proponent for personal financial wellness.
Offer a Financial Wellness Program
Finally, CHROs should be considering financial wellness programs for their employees. 101 Financial is committed to reducing employee financial stress, increasing productivity, and improving workplace wellness. The program does this by helping employees understand how to be debt-free and disciplined with spending.
Find out how 101 Financial’s Workplace Wellness program can help grow your business inside and out.