What is Financial Workplace Wellness?
When employees are stressed about money and worried about their financial future, they often become distracted and unhappy at work. Now we’re in the beginning of the era of The Great Resignation. Stressed employees look for less pressure and more money in the form of pay raises. Hiring woes and strains on the supply chain make retaining employees a strategic move for the wellness of the company. There is a cure that significantly impacts employees for life—financial wellness. What is financial workplace wellness? Why does it have such a great impact on employees and companies? How do you implement it in your organization?
Unfortunately, 50% of Americans today don’t have a personal financial budget. When you can’t control the spend, you can’t control the debt. Education, car, credit card, and mortgage debt often add up to a request for a pay raise. Additionally, many people don’t know their personal cash flow or credit rating. These factors impact the thousands of dollars consumers pay toward debt.
But you can give your employees the gift of a lifetime. Financial wellness benefits help your employees learn how to manage their money using their cash flow and credit ratings. This will lead them to living their best financial lives.
Likewise, you can help your employees significantly reduce stress. How would that impact them at work? Gallup states year after year that the wellbeing of employees is continually more dismal. However, employees who offer financial education can put a stop to that trend.
Financial education is becoming a necessity rather than a perk in the workplace. Studies show 56% of employees are stressed about money, and that the stress interferes with work. As a result, 83% believe workplace financial benefits are necessary for financial security. Further results show financially educated employees are happier and more engaged because they are less preoccupied with money and better able to enjoy their work.
This helps your business’s bottom line, but more importantly decreases stress-related issues, absenteeism, and health problems among your valuable staff.
Causes of Financial Stress
One thing the pandemic has brought to light is the need for financial workplace wellness programs. The line between personal and professional lives has blurred, making it even more difficult for people to separate the two.
The Lincoln Financial Group reported 79% of full-time employees in the U.S. say the pandemic has affected their financial planning. Similarly, 93% say they’re trying to better their financial situation due to the pandemic.
Employees want to know how best to manage their money and are especially concerned about debt load. 24% of workers surveyed in the study reported their level of debt is ruining their quality of life. Additionally, 61% fear they have not planned well enough financially to retire when they want.
The top reported reasons for employee stress are finances, work, and personal or family health. Financial wellness programs teach employees how to manage their money, debt, emergency funds, and investments that will have lifelong benefits to the employees.
Multi-Generational Financial Concerns
Financial wellness focuses on the unique needs of each individual. This includes generational differences as financial stress manifests differently at various stages of life. The 60-to-74 crowd is worried about how to keep their nest egg intact with as little risk as possible, and the younger generations are very concerned that they won’t be able to retire when they want.
According to the Federal Reserve in 2020, 64% of Americans don’t think their savings are on track. Furthermore, about 40 million American households do not have any retirement savings. The median savings amount for the rest is about $60,000. This is much less than the recommended median of $228,900.
Too many Americans live paycheck to paycheck, which is a small step from financial disaster. 63% of Americans have been living like this since COVID-19 hit. There has been a vast increase in credit card use and eventually, there will be a repayment crisis.
It isn’t just the credit cards that are coming due. Many Americans are also concerned about missing a mortgage payment, paying taxes, and paying everyday bills. Medical debt is a major concern as well.
According to Forbes, “37% of survey respondents were concerned about their ability to pay for medical care in 2021; 53% of families with children feared they might not be able to pay their medical bills.”
These struggling employees desperately need a viable solution. This is where a financial workplace wellness program comes in.
A Holistic Approach
Many employers today offer health insurance, 401K, and life insurance benefits. Holistic financial wellness is an approach that delves into the whole financial picture and quality of life for your employees.
With the help of financial wellness programs, a well-thought-out plan replaces financial stress. Backed by the right financial education, employees will finally be able to manage their money instead of letting their debts manage them.
What Is Financial Workplace Wellness?
The workplace naturally lends itself to financial workplace wellness programs. Reducing financial stress has serious benefits for employees and employers. These include increased productivity and reduced long-term expenses for the employer.
101 Financial Workplace Wellness offers classes that set your employees on the path toward lifelong financial freedom. Our team works hard to empower your employees to take their finances into their own hands through one-on-one consultations, financial calculators, and other helpful tools. Help your employees increase cash flow, reduce debt, and build wealth. Consider financial wellness benefits for your employees today.
To learn more, download our free ebook, Understanding Financial Wellness in the Workplace.