Stats show 23% of employees handle their personal finance problems while at work. So would an employer financial wellness program help employees who are financially stressed? Here are three reasons why workplace financial wellness programs are beneficial.
Ever been stress out about a relationship or a health issue or a financial problem? Did you get a whole lot accomplished at work that day? Of course not! We all know that it is hard to have a good day at work when you are stressed out about something at home. A recent study by Northwestern Mutual suggests that money is the number one cause of stress in most American’s lives. 44% of survey respondents indicated they were stressed about money which far surpassed relationships and work stress. Stress is the biggest obstacle to a productive work day. Smart businesses are increasingly providing financial wellness programs to their employees and this trend will likely continue to grow over the next several years. Employers know that employees who avoid financial stress are more productive, healthy and will cost the employer less.
2. Lower Employment Costs
The Center for Disease Control estimates that small business employee absenteeism will cost the employer about $16-$81 per day and large businesses $17-$286 per day. In addition, health problems exacerbated by financial stress may cost an employer in health insurance premiums that can escalate quickly. As a result, employers are looking to reducing absenteeism through financial wellness.
Unemployment is at a record low. Employers need to compete to land the most talented and qualified workers. Just as important as landing the best workers businesses need to retain their staff. Financial wellness will help keep employees happy and less likely to move on to a new job with another company. Financial wellness programs could be the difference in an employee’s job satisfaction.
So we all agree financial wellness is important! Let me give you two rules that effective financial wellness programs follow:
- Engage your employees. Incentives need to be offered to employees to participate in financial wellness. In “More Buzz Than Action With Financial Wellness?” – Rich Unser argues that employees need to be engaged in financial wellness programs if they are to be successful. Workplace financial wellness programs are not a one off. They are a process to improve the employees’ relationship with money. These improvements will accrue over time and adjust with that employee. This is the key understanding to developing a successful financial wellness program and just giving it lip service.
- Money and finances are emotional. Employers need to be careful about presenting financial wellness programs from on high. Financially secure individuals giving advice to those who haven’t always had it can be a real turnoff. Don’t preach to employees! See stop 1 and engage them instead.
Need help with workplace financial wellness programs or just want to start your own process? Financial wellness is just one click away!