Many people are still recovering from The Great Recession back in 2008, and while it has been a decade since then, the adult workforce is still suffering from financially fragile employees. This includes workers that are struggling with living from paycheck to paycheck with little to no savings or credit in their account. Some employers may think that their employees’ financial wellness is out of their bounds, but their financial health is just as important as it can leave a large impact on their productivity and performance at work.
According to the American Society of Pension Professionals and Actuaries, an employer with 10,000 workers can lose up to $3.3 million a year due to poor performance incurred by your employees’ financial stress. This can be done in the form of absenteeism, payroll taxes, and delayed retirement, as stated by the Financial Finesse. In that regard, your company has the power to establish financial programs that can help ease financial anxieties and provide peace of mind to your employees, all of which will benefit your company’s bottom line. To that end, here are the reasons why your company will benefit from implementing a financial wellness strategy for your employees:
Benefit #1: Improve Productivity and Engagement
Financial stress can have a negative impact on your employee’s productivity and engagement. Not having enough financial stability to support injuries or illnesses can not only physically drain you, but it affects one’s mental state too. This will lead to an increase in absenteeism and lowered performance, which will cost your company to shell out time and money. By providing financial wellness programs and helping employees stay on track with their worries, you can help them proactively address issues that directly interfere with their productivity.
Benefit #2: Morale and Employee Retention
Financial stress can be mentally draining, and no matter how admirable your company’s culture is, more and more employees are choosing to switch jobs in exchange for a higher increase in their pay, no matter how minimal. However, with a financial program, you can improve employee morale and prevent an increase in turnover, which can encourage productivity and better employee retention for your company.
Benefit #3: Improve Your Reputation
How an employee is treated can now be transparent to the public, especially now with sites like Glassdoor allowing employees to shed some light on how employers act behind the scenes. By helping them ease their financial troubles, you will establish loyalty within your employees and build a positive reputation for your company. The benefits, of course, goes beyond fame by name alone. Word of mouth is a powerful tool that can make or break your company, and having a notable reputation can help you find more employees who would love to line up by your door and work for you in the long run.
Benefit #4: Lowered Health Care Premiums
Illnesses and injuries can’t be avoided, but adding financial stress on top of it all can worsen your employee’s mental health, which causes significant effects to their physical state. It can increase heart rate, blood pressure, and even suppress concentration, which can lead to weight gain, heart disease, stroke, and more. These can put a strain for employers as their healthcare costs will increase with more and more employees getting sick.
This is why financial wellness is crucial to the success of your business & employees, get in touch today to see how we can help.