Work is not the only stress for employees, money is also a significant stress factor. Employees stress a lot over their financial matters. To support the employees and ease their stress over financial matters, most employers are providing financial wellness benefits.
Financial wellness can be explained as an employee’s overall financial health. The financial wellness benefits offered by the companies educate employees in taking a strategic approach towards their finances and hence better savings for the future. Effective expense management can help eliminate money-related stress and improve financial wellness. According to a recent survey, around 51% of employees are quite comfortable and rate their financial wellness as excellent/good. The excellent financial wellness, in turn, has increased employee productivity.
Financial wellness is a relatively new concept. It includes 4 main components: control, security, freedom, and planning. Feeling secure and in control of their finances adds to the sense of personal financial wellness that can provide peace of mind to the employees.
Why employee financial wellness is a top priority for employers?
Increased employee productivity: Most employees carry their financial concerns to the workplace and waste time worrying about their financial woes. Lost focus and wastage of time affect employee productivity and engagement negatively. Financial wellness programs aid employees in managing their finances better and increase employee productivity.
Improved engagement: Financial benefits provided by the employer show the organization’s care and concern towards its employees. It increases employee engagement and motivates employees to perform better.
Best talent retention: Financial benefits offered by the employer provide a sense of stability to employees and help retain the talent in the era of job-hopping.
Financial wellness activities to boost employee financial well-being
Some recommendations to get an effective financial wellness program:
- Take time to understand employees’ financial needs and design the program by keeping those requirements in perspective.
- Ensure that employees are educated about the financial offers. Run education campaigns to make employees understand how to access and use the benefits offered.
- Design the program to cater to the needs of a diversified workforce.
- Make financial wellness programs an ongoing process, and not an on-off process. If required, deliver targeted messaging on timely events like birthdays and work anniversaries.
- Try putting financial wellness on the center stage so that employees and employers can focus on financial well-being as much as on physical and mental wellness.
A financial wellness program for the employees is the right thing to do. It gives the employees and increases the employer’s productivity and engagement. We at Zaggle, believe that our employees are our biggest asset, and financial wellness program is our way of creating a happier and more productive workplace.