Financial well-being is a hot topic these days and for good reason. Employees who are struggling financially are less productive, more stressed, and more likely to take time off work. As an employer, it’s in your best interest to ensure your employees are financially healthy. In this complete guide, we’ll cover everything you need to know about employees’ financial well-being.
By the end of this post, you will have learned what is employees’ financial well-being and why it matters, to practical tips for promoting economic well-being in your workplace.
In this Article:
What is financial wellness?
Financial wellness is a state of financial health. It encompasses all aspects of an individual’s economic life, from saving and spending to investing and retirement planning. Financial well-being is more than just money; it’s also about employees’ ability to manage their finances effectively and make informed decisions about their financial future.
Why is Financial Wellbeing Important for Employees?
Financial well-being is vital for employees because it can directly impact their physical and mental health, as well as their work performance. Financial stress can lead to mental health problems, employees taking time off work, being less productive at work, and making mistakes that might jeopardize their job.
What is an Employee Financial Wellness Program?
An employee financial wellness program is a workplace initiative that helps employees improve their economic well-being. Financial wellness programs can offer employees resources and support on various financial topics, from budgeting and saving to investing and retirement planning.
Many financial wellness programs also offer employees access to financial counseling or coaching, which can help them identify and overcome economic challenges.
What are the Benefits of Promoting Financial Wellbeing in the Workplace?
Promoting financial well-being in the workplace can provide numerous benefits for both employees and employers. Below, we describe four advantages of promoting financial well-being at work:
Improved employee productivity
Employees who feel financially secure are more likely to be engaged with their work and have a positive attitude toward their job.
Encouraged financial well-being programs
Employees who feel supported by their employer in managing their finances are more likely to take up financial well-being programs.
Reduced absenteeism
Employees struggling with their finances are more likely to take time off work, which can lead to reduced productivity and higher absenteeism rates.
Lower staff turnover
Employees who feel supported by their employer in managing their finances are less likely to leave their job.
How can Employers Promote Employees’ Financial Well-being?
There are many ways in which employers can support employees’ financial well-being including:
Offer perks that help employees with everyday money worries
Creating a compensation package can help reduce sanity costs for employees and improve workplace health and productivity. Employees face everyday financial stressors: childcare costs, transportation, and student loans.
Offering financial education and guidance
Employers can provide employees with financial education and guidance through financial well-being programs to help them understand their finances and make informed decisions about their money.
Providing access to affordable financial products and services
Employers can provide employees with access to affordable financial products and services, which can help them manage their finances more effectively.
Partnering with financial institutions that offer affordable financial products and services
One way employers can overcome the challenge of ensuring employees have access to affordable financial products and services is by partnering with financial institutions that offer such products and services.
Offering employees discounts on financial products and services
Employers can offer employees discounts on financial products and services, which can help to reduce the cost of managing their finances.
Providing employees with access to financial planning resources
Employers can provide employees with financial planning resources, such as budgeting tools and advice from financial experts, to help them make informed financial decisions.
Encouraging employees to save for retirement
Employers can encourage employees to save for retirement by offering matching contributions or other incentives for employees who contribute to a retirement savings plan.
Provide professional financial education resources
Employees can take advantage of financial wellness when they are allowed to learn about it. Many businesses offer educational resources on their websites or intranets. You can also distribute e-books, brochures, and articles on various financial topics.
Understand the financial issues your employees face
When employees feel their employer is interested in understanding their financial concerns, it can help to build trust and respect. Employees are more likely to share their financial difficulties with an empathetic boss. If you understand what your employees are going through, you can better support them.
Encourage employees to take advantage of employee assistance programs
If your employees have poor financial well-being, encourage them to take advantage of employee help programs. Employers design these programs to help employees manage their finances and improve their financial well-being. Many businesses offer employee financial well-being programs as part of their benefits package.
Offer flexible working arrangements
Flexible working arrangements can help employees to better manage their finances. Employees can take advantage of flextime, telecommuting, and other flexible working arrangements. These arrangements can help employees save on transportation, childcare, and other expenses.
How to develop and implement an employee financial wellness program
When developing an employee financial wellness program, employers should consider the following:
Assess employees’ needs
Do a survey or hold focus groups to determine what employees want and need from a financial well-being program. This will help you tailor the program to meet employees’ specific needs.
Set goals for the program
Set specific, measurable, attainable, relevant, and time-bound (SMART) goals for the program. This will help you track progress and ensure employees get the most out of the program.
Choose a provider
Select a financial well-being provider that offers a comprehensive suite of services and products. This will ensure employees have access to the resources they need to improve their financial well-being.
Promote the program
Make sure employees are aware of the program and know how to access it. Use email, posters, and other marketing materials to promote the program. You can also hold informational meetings to answer employees’ questions about the program.
Evaluate the program
Evaluate the program regularly to ensure it is meeting employees’ needs. Use surveys, focus groups, and other data-gathering methods to get employee feedback.
A word from SublimePeople
As an employer, you are responsible for your employees’ financial well-being. You can do this by providing education and resources on financial topics, matching contributions to retirement plans, and offering wellness programs that include financial components. These steps will help employees feel secure about their finances and improve their overall well-being. What measures are you taking in your workplace to promote employee financial well-being? Tell us in a comment below!
