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. Strains on supply chain, hiring woes, and more 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?
We Should Have Learned This in School
Do you know your personal cash flow and credit rating? Do you understand how this impacts the thousands of dollars that you pay toward your debt?
Unfortunately, 50% of people 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.
What if you could give your employees the gift of a lifetime? Helping them learn how to manage their money using their cash flow and credit ratings will lead them to living their best financial lives.
Imagine if you could eliminate or reduce their worries on the homefront, too. How would that impact them at work? Gallup states year after year that the wellbeing of employees is continually more dismal. Let’s look at your first step to reducing employee stress: a financial education.
Financial education is becoming a necessity rather than a perk in the workplace. Financially educated employees are happier and more engaged because they are less preoccupied with money and better able to enjoy their work. 56% of employees are stressed about money, 53% say stress interferes with work, and 83% believe workplace financial benefits are necessary for financial security.
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 have blurred, making it even more difficult for people to compartmentalize the two.
Research done by the Lincoln Financial Group reported that 79% of full-time employees in the U.S. say that the pandemic has affected the future of their financial planning, and 93% say that they’re trying to better their financial situation due to the pandemic.
Employees want to know how to best manage their money and are especially concerned about debt load. 24% of workers surveyed in the study report their level of debt is ruining the quality of their life, and 61% fear they have not planned well enough financially to retire when they want.
The reported top reasons for employee stress are finances, work, and personal or family health. Financial wellness programs teach employees how to manage their money, debt, emergency management and small investments that will have lifelong benefits to the employees.
Spending Habit Changes
COVID-19 brought another change in financial habits. Employees are taking a closer look at how they are spending and saving their money. Lockdowns have caused employees to reconsider luxury and entertainment costs carefully. Even with tempting stimulus checks, the primary sources of spending included basics such as food, housing, utilities and, sometimes, savings.
Multi-Generational Financial Concerns
Interestingly enough, each generation has its own sets of financial stress. 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.
64% of Americans either don’t think their savings are on track or aren’t sure, according to the Federal Reserve’s “Report on the Economic Well-Being of U.S. Households” in 2020.
About 40 million households, equal to about a quarter of Americans, do not have any retirement savings. The median savings amount for the rest is about $60,000. Much less than the median of $228,900 recommended.
Too many Americans live paycheck to paycheck, a small step from financial disaster. 63% of Americans have been living like this since COVID-19 hit. There’s 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% percent 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.”
A viable solution is desperately needed for these struggling employees. Enter a financial workplace wellness program.
A Holistic Approach
Many employers today offer healthcare insurance, 401K and life insurance. Employers are frustrated that up to 31% of their employees do not participate in their plans.
How do we educate our employees on the benefits of managing their incoming paychecks with their outgoing expenses to take advantage of these programs/
Holistic financial wellness is an approach that delves into the whole financial picture and quality of life of your employees. It uses well-rounded, modern methods based on known lifestyle and behavior patterns that are augmented by your employees’ personal situations.
Financial stress is replaced by a well-thought-out plan, supported by actions that ultimately help your employees reach their financial goals. The employee will finally, backed by the right financial education, 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 including increased productivity and reducing long-term expenses for the employer. Savvy employers have the enthusiasm to make these valuable programs available to their employees.
101 Financial Workplace Wellness offers classes that sets your employees on the path towards lifelong financial freedom.
Not just another online class, 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. Learn more about what financial workplace wellness is!