Help Employees Achieve Financial Wellness

According to a recent Morgan Stanley report, some 75% of employees believe that financial wellness should be part of their company's programs. With such high expectations, it may be difficult for small businesses to rationalize how they can take on the additional expense of implementing such a program. Small businesses are already paying for benefits such as health insurance, workers' comp, and Social Security as required by law.

Clean desktop with Financial Wellness sign

Yet maintaining a strong compensation program is essential for small businesses. When you consider that more than 40% of employees leave their job due to poor benefits packages, you begin to see that competitive compensation is a key ingredient in retaining employees.

There is also a mental health component to financial wellness. A Bankrate survey recently found a disturbing statistic that more than half of U.S. adults say financial issues harmed their mental health. Unfortunately, employees don't just leave their problems at home. Financial issues follow them to work, causing greater on-the-job stress.

In fact, the same study found that those with severe financial issues lost between 29 and 39 workdays each year, leading to lower productivity. Businesses that help improve employee financial wellness are rewarded with a more loyal and productive workforce in addition to enhancing their brand among the competition.

Looking forward

What are some of the ways small businesses are building financial wellness into their compensation portfolios? The short answer is that they are offering tools and resources to assist employees with managing their financial concerns. Some of the programs require zero or small budgets to implement.

Here are some examples of how businesses are addressing their employees' needs:

  • Ask questions — Small businesses have the advantage of being able to communicate directly with their team to find out what benefits would work best for them. Small companies can fine-tune their financial wellness benefits to deliver what their employees need most.

  • Communicate — Make employees aware of the features of the program so they can select the options that apply directly to achieving their financial goals. Basic financial literacy courses, budgeting classes, retirement planning tools, personalized financial counseling, or debt management programs are some of the ways companies can support employees.

  • Incentivize participation — If you want to boost employee engagement, consider offering an incentive in the form of gift cards, extra paid time off or even cash bonuses. Employees can appreciate that their employers are willing to invest in their financial well-being, which has the added benefit of relieving stress.

  • Get feedback — Once the program is up and running, you will want to gather employee feedback on how well it is meeting their needs. Decide on a channel for employees to give feedback, either through online surveys or in-person focus groups. Successful financial wellness programs are subject to change to improve the services to the workforce.

Investment in financial wellness programs creates a win-win situation for employees and employers. By making financial health a priority, employees are better equipped to manage their finances and the stress that comes with it. The sooner they find financial solutions, the sooner they can focus on doing their best work possible. 

Interested in learning more? Chat with a Connectify HR expert today.

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