Contrary to what you might think, the more options we are given, the more stress we encounter.
This happens because with more options we can second-guess ourselves, we might believe we made the wrong choice, and we can easily get overwhelmed. The easiest example of this is when you go to a restaurant (think a Cheesecake Factory or Red Robin) and there are more pages filled with more options than you think there should be. It’s overwhelming.
While choosing your dinner at a restaurant may seem insignificant, this experience is all too common in other areas of our lives.
A highly common one is around financial stress. When you’re feeling like you are stuck due to finances, who do you turn to?
- Family and friends
- Payday lenders down the street
- Bank or credit union for a loan
- One of the million finance apps online that guarantee they’ll get you out of debt…
There are so many options out there that it is truly overwhelming.
Organizations everywhere offer health insurance and do the research to find the best options to provide, so why wouldn’t we do that with financial wellness benefits too?
Let’s explore what financial wellness benefits are, what they are not, and why every employer should offer these benefits to their employees.
What are financial wellness benefits?
Financial wellness benefits are company-sponsored perks and programs that aim to improve the financial well-being and stability of employees.
These benefits go beyond traditional compensation and can include services such as financial education, budgeting assistance, debt management, retirement planning, access to financial advisors, and safe and secure loan options. These benefits are aimed at helping employees gain control of their finances and make informed, financial decisions.
What financial wellness benefits are not
Plainly stated, financial wellness benefits are not a substitute for a competitive salary or fair compensation. And, they are not necessarily financial assistance programs–however, they could be if you wanted to structure yours that way.
Financial wellness benefits should complement a comprehensive benefits package and serve as an additional tool to support employees’ financial well-being. It is important to differentiate between financial wellness benefits and financial assistance programs, as the former aims to empower and educate employees, while the latter provides direct financial aid.
I’d argue that the former is much more appealing to help an employee actually eradicate their financial stress. Here are some reasons why…
6 reasons to offer financial wellness benefits
- Improved Employee Productivity
According to a study conducted by PwC, financial stress costs employers an average of $5,000 per employee each year in lost productivity. By offering financial wellness benefits, employees’ financial stress can be reduced, allowing them to focus better on their work and be more productive.
- Attraction and Retention of Top Talent
A survey by Prudential found that 80% of employees consider financial security benefits to be a crucial factor when deciding where to work. Offering financial wellness benefits can help attract and retain top talent, giving employers a competitive edge in the job market.
- Increased Employee Engagement and Loyalty
When employees feel supported in their financial well-being, they become more engaged and loyal to their employers. It all ties back to trust. According to SHRM, employees who have access to financial wellness benefits are more likely to stay with their current employers. By providing these benefits, employers can foster a loyal and committed workforce.
- Enhanced Employee Health and Well-being
Financial stress can have a significant negative impact on employees’ physical and mental health. Studies have shown a strong correlation between financial stress and a decline in overall well-being. Have you ever felt directly impacted by your financial stress and had it impact your ability to focus while working? It’s more common than you think… By offering financial wellness benefits, employers can help alleviate financial stress and improve overall employee health.
- Increased Retirement Preparedness
Many employees face challenges when it comes to retirement planning and saving. A survey by the Employee Benefit Research Institute indicated that nearly half of American workers have minimal to no retirement savings. And this number isn’t increasing with the current state of our economy. Financial wellness benefits that offer retirement planning resources and guidance can significantly improve employees’ retirement preparedness.
- Positive Impact on Company Culture To end it all off, by prioritizing employees’ financial wellness, employers send a powerful message about their values and commitment to their workforce. This focus on employee well-being can foster a positive company culture, where employees feel valued, supported, and motivated to perform their best; the company culture we all strive to achieve.
Win-win for employees and employers
Financial wellness benefits have been around for years, however more recently they have emerged as a crucial aspect of a comprehensive employee benefits package. B
When offering these benefits, employers not only support their employees’ financial well-being but also reap numerous business benefits for the organization, including increased productivity, improved employee retention, and enhanced company culture. Addressing the financial concerns of employees is not just the right thing to do; it is also a smart decision that can lead to a more engaged, motivated, and ultimately successful workforce.
When you take the time to identify the solutions that you would use yourself and the vendors that you trust, employees can remove the stress around even finding a solution. While you can’t remove the stress around choosing what to order for dinner, you can help remove some stress around which programs employees can put their trust in for their financial future.
To learn more about TrueConnect’s Financial Wellness Platform, a no-cost voluntary employee benefit with access to financial advisors, emergency savings plans and loan options for your employees, click here.
