October 3, 2023
Financial wellness is not only important for employees’ overall satisfaction but also plays a significant role in retaining top talent. A recent study shows that a staggering 62% of employees are stressed about their finances. Another survey reveals that 73% of Americans rank their financial situation as their biggest stressor in life.
Fortunately, employers can empower their employees' financial security with the help of financial wellness employee benefits. In this article, you’ll learn how to build employee financial wellness in your workplace and we'll explore how both employers and employees can foster a workplace environment that prioritizes financial wellness.
What is Employee Financial Wellness?
Employee financial wellness refers to the overall financial health and well-being of individuals within the workplace. It goes beyond simply earning a salary and encompasses various factors such as managing debt, budgeting effectively, saving for the future, and having access to financial resources and support. Prioritizing employee financial wellness can relieve financial stress and can positively impact productivity, job satisfaction, and overall mental and physical well-being.
In today's economic climate, the rising costs of living and goods have left many workers grappling to manage their finances effectively. This financial strain often spills over into the workplace, increasing financial stress among employees. By putting employee financial wellness first, employers can create an environment that supports and empowers workers to make informed financial decisions, reduce financial stress, and achieve their financial goals.
At Clair, we believe that offering financial wellness employee benefits is crucial for both individuals and organizations to thrive, and we use our suite of financial wellness tools and resources to help employers and employees foster financial empowerment and create a brighter financial future.
What are the Benefits of Investing in Employee Financial Wellness?
Investing in employee financial wellness has a multitude of benefits for both employers and employees alike. Promoting financial well-being among your workforce leads to a more focused and engaged team. And when employees feel financially secure, their productivity increases as they are less distracted by their financial problems.
Improves employee satisfaction
One significant benefit of investing in employee financial wellness is its positive impact on employee satisfaction. When employees feel supported and empowered to manage their finances effectively, it brings a sense of financial security and peace of mind. This, in turn, translates into higher job satisfaction and increased engagement within the workplace.
Reduces employee attrition
Financial stress can be a major contributing factor to high employee turnover. Imagine the cost of consistently hiring and training new employees, it takes money out of your organization’s budget and it takes away a huge chunk of time that your HR team would have poured over more initiatives towards your organization’s growth.
By investing in employee financial wellness, you alleviate their stress and create a workplace where they feel valued and supported. When your employees have greater financial stability and the flexibility to meet their financial obligations, they are more likely to stay longer. This reduces turnover costs and helps maintain a more experienced and knowledgeable workforce.
Attracts high-quality employees
In today's competitive job market, candidates are seeking employers who provide not just a competitive salary, but also holistic support for their financial well-being. By offering comprehensive financial wellness employee benefits, you differentiate yourself as an employer who cares. Offering financial wellness benefits, helps employers attract top talent who understand the value of working for an organization that prioritizes their financial growth and overall well-being.
How to Build Employee Financial Wellness in Your Workplace
Offer financial wellness employee benefits
Financial wellness employee benefits refer to a range of offerings and programs designed to support the financial well-being of employees. It goes beyond just providing a competitive salary and encompasses initiatives that promote financial knowledge and resources to help employees manage their money better and achieve their financial goals.
Implementing financial wellness employee benefits into a business model means integrating these initiatives into the overall framework of the organization. It involves recognizing the importance of employee financial well-being and taking deliberate steps to support it. This can be done through various means, such as offering financial education programs, providing access to tools for budgeting and financial planning, and offering flexible financial benefits like On-Demand Pay.
Implementing financial wellness employee benefits shows a commitment to the well-being of employees. It aligns with the employer's goal of attracting and retaining top talent by providing a comprehensive benefits package that goes beyond traditional healthcare and retirement plans.
For instance, employees want access to a finance professional who can provide advice on:
- Banking and investment fees
- How to keep their account from shrinking due to inflation
- The benefits of different bank account types
- Tips on how to build a life plan
- Understanding credit scores
Employers can also partner with financial advisory firms to offer their employees discounted or subsidized access to financial planning services. By giving employees the opportunity to consult with experienced financial advisors, employers demonstrate their commitment to their financial well-being and provide them with the tools necessary to make informed financial decisions.
Invest in employee financial wellness tools
Financial wellness tools are a range of resources and services that employers can offer to their employees to support their overall financial well-being. These tools can include budgeting apps, financial education programs, credit score tracking, debt repayment calculators, retirement planning tools, and more.
The most useful employee financial wellness tools allow users to track their finances, visualize financial goals as part of their overall life, and have a step-by-step roadmap to accomplish their goals.
For example, utilizing an on-demand pay app is a competitive benefit for retaining employees. On-demand pay is a powerful financial tool that allows employees to access their earned wages whenever they need them, rather than having to wait for the traditional pay cycle. It provides employees with greater flexibility and control over their finances, enabling them to meet unexpected expenses, cover emergencies, or simply gain a stronger sense of financial security.
A study found that 84% of employers claim that offering financial wellness tools helps increase employee retention.
The above survey underscores the effectiveness of on-demand pay in empowering employees to have greater control over their finances, reducing employees’ financial stress, and helping them achieve a higher level of overall financial well-being.
Promote Work-Life Balance
Promoting work-life balance is crucial for both employers and employees. By encouraging a healthy balance between work and personal life, employers can create a work environment that prioritizes the physical and mental well-being of their employees. This approach not only contributes to a higher level of job satisfaction but also has a positive impact on employees' financial wellness.
When employers offer flexible work arrangements, they allow their employees to better manage their time and responsibilities, enabling them to fulfill personal obligations without sacrificing their professional commitments. Whether it's flexible working hours, a remote work setup, or compressed workweeks, these arrangements can empower employees to find the balance that works best for them. When employees have the flexibility to handle personal matters, such as attending family events or taking care of their health, they can more easily focus on their financial goals.
In addition, a harmonious work-life balance leads to increased productivity, higher levels of engagement, and reduced burnout. Employees who feel supported in achieving work-life balance are more likely to bring their best selves to work, which positively impacts overall workplace performance.
Employee Financial Wellness Made Easy with Clair
Employers can influence employee financial security in the workplace by offering financial wellness benefits like on-demand pay and providing employees with financial education programs that will not only improve employee satisfaction, increase retention, and attract higher-quality employees, but also empower employees' well-being.