As a business owner, you probably have a healthcare system in place for when your employees get sick. It is mutually beneficial; by providing basic healthcare, you can ensure that your employees can get back to work sooner. This investment in your employees is commendable, but you may be missing out on a key benefit that prospective employees are increasingly looking for in a career: financial wellness.
What is Financial Wellness?
Financial wellness is comprised of both programs and courses designed to increase employees’ financial literacy as well as encourage them to make smart, long-term investment decisions. Topics and resources from an employer’s financial wellness program might include emergency loans, a debt management webinar, in-class budgeting training, and partial early paycheck release.
As you can see, not all of the employer-run financial wellness programs are considered educative in nature. Some simply seek to help employees during times of financial need and ensure that they have the tools they need to be successful in their positions. While there may be some concern for the risk involved with assisting in an employee’s bills, businesses have found a high return on investment with the quality of work that the employee is able to achieve following this type of program.
Why Financial Wellness?
Your employees have likely already demonstrated some level of concern about their finances, especially with a recession looming on the horizon. This concern can seep into not only their personal lives but their work lives as well, affecting their work productivity and mindset. It is even harder for those employees to take proactive approaches toward stabilizing their financial future when they lack the education and resources to do so. By closing this gap of access, you demonstrate that you care about your employees and want them to succeed both at work and outside of work, incentivizing higher retainment.
It is worth noting as well that if your employees’ salaries do not cover their debt and loans or ensure their future stability, you are more likely to experience a high turnover rate. These employees will seek out other companies that will either offer them a pay increase or financial wellness programs that will allow them to grow. According to the NFIB Small Business Economic Trends, this turnover rate can be hard on employers as over 80% of business owners reported difficulty in the hiring process. If you lose an employee, that employee will be harder to replace, which further affects your company’s productivity and capabilities. In this case, a financial wellness program would save you money long-term, despite initial costs.
A financial wellness program could also reduce your employee expenditures by negotiating this benefit as part of the employees’ compensation, especially if your program includes temporary loans and early paycheck releases. Employees who take advantage of your financial wellness program could also see more money saved in their bank, which could serve as a negotiation point during the hiring process.
Overall, financial wellness is becoming more common as an offered employee benefit upon hire. Your business should consider taking advantage of this trend in order to be seen as a competitive and compassionate employer while raising your employees’ productivity and happiness.
Want to learn more about getting started with a Financial Wellness program for your organization? We’d love to chat with you!