If you had a choice, what’s better: Free snacks and massages, or a financial wellness program that can address the No. 1 concern of your employees — financial stress?
The Aha Moment In Waiting
The transformative nature of employee financial wellness is still not widely appreciated in corporate America. There hasn’t been a fundamental shift in thinking about the importance of helping employees achieve financial wellness. The aha moment has yet to happen regarding the potential of financial wellness to redefine the contract between employer and employee for the greater good.
As a result, comprehensive financial wellness is often viewed as a nice-to-have benefit, not a must-have. This is partly due to low adoption of first-generation financial wellness programs, which generally focused on education without much help in the areas of coaching or implementation.
For employees, though, financial wellness is a must-have. The desire for long-term financial wellness is one of the key reasons people show up for work each day. Financial wellness programs are also an antidote to the financial stress employees feel each day. A 2019 PwC study found that 59% of employees are more stressed out about their financial situation than any other single issue. Thirty-five percent of employees say financial stress impacts their ability to do their job.
For employers, it’s also a must-have, whether they recognize it or not. An employer-sponsored financial wellness program can improve both the top and bottom lines. When financial wellness is delivered and measured through an enterprisewide program, the metrics speak for themselves. I believe a company with several thousand employees could save more than $1 million annually by having an effective financial wellness program in place.