An employee financial wellness program has increasingly become a popular workplace benefit. Regardless of how well-compensated your staff may be, a financial wellness program can help them feel more financially confident and prepared for the future.
Given that a recent Paychex survey revealed that 42 percent of employees have little to no savings, there’s a strong possibility that your staff could positively embrace such a program. Here are four reasons small business owners should consider offering a financial wellness program for employees.
Help employees reduce stress
You may offer benefits that encourage healthy habits, but financial challenges can be a significant source of stress for employees. In fact, another Paychex survey found that more than half of respondents admitted to feeling stressed about work three or more days a week. An employee financial wellness program can help employees gain control of their financial lives, and in turn, reduce financial stress.
A study by The Centers for Disease Control and Prevention (CDC) estimates that one employee’s failure to report to work can cost a small business anywhere from $16 to $81 an hour, based on the employee's pay rate, lost productivity, and the impact the absence has on team members. The CDC also reports that many employers have adopted workplace wellness programs in an effort to reduce absenteeism.
Employees who have significant financial stress may feel distracted by their financial burdens, which can make them unable to focus at work. Whether an employee is forced to deal with financial issues like contact from debt collectors during the workday, or is mentally distracted by an inability to pay for a child's college education, financial woes can have direct impact on employee engagement and productivity.
Form a stronger personal bond with staff
An employee financial wellness program can be customized to address specific financial issues your employees may face at any given time. This may include educational resources for reducing student loan debt, contributing money from each paycheck into a savings account, or preparing for retirement. Survey your staff anonymously and ask what topics an employee financial wellness program could address to boost their financial confidence.
When you receive feedback about the topics employees want to learn about it, structure the timing of programming to align with your team's personal financial goals and realities. For example, given that spring is a popular season for home buying and selling, a winter session that educates employees on how to prepare their finances to apply for a mortgage may be personally relevant — and highly appreciated. The more relevant your employees’ financial wellness initiatives are to your staff, the more value your business can benefit from it.