February 14, 2023 7 min read
In light of the current financial climate, implementing an employee financial wellness program could make a big difference in the lives and productivity of your employees. Regardless of your employees’ compensation, such a program could enhance their financial confidence and teach them how to handle themselves for the future. As many people have spectacularly demonstrated, the amount of money you make doesn’t matter if you don’t manage it correctly.
The financial well-being of your employees is important, not just for their well-being but for your business as well. With the sharp rise in inflation living costs continuing, many employees are feeling more financially stressed than ever, and that stress isn’t limited to their personal lives.
As a generalization, anxious employees are not as productive as confident, financially fit people are. You can provide your team with the resources they need to handle their finances with confidence through afinancial wellness program. A financial wellness program can help employees be and feel more financially secure, resulting in many positive impacts on their interactions and productivity in the workplace.
Financial wellness refers to an individual's overall financial health. The US Financial Consumer Protection Bureau defines it as:
Financial well-being describes a condition wherein a person can fully meet current and ongoing financial obligations, can feel secure in their financial future, and is able to make choices that allow them to enjoy life. It’s determined by the extent to which people feel that they:
Financial wellness is crucial as many employees may be facing unexpected bills, insufficient savings, and the need for additional jobs, all of which contribute to financial stress.
You can see why a financially fit employee will be more productive than someone who is financially unwell. Financially stressed people are distracted by the constant reminders of their situation, and can’t simply turn off that anxiety and distraction to focus on work.
The better an employee can manage their finances, the more confident and productive they'll be at work, which is a win-win for your business and your employees. Workers who have financial stability, including the ability to pay bills on time and be prepared to meet emergencies, are typically better equipped to focus on work, remain engaged, and be consistently productive. On the other hand, employees experiencing financial difficulties may struggle to concentrate on work or contribute negatively to their coworkers through their anxious, stress-filled attitude.
Employers may consider introducing a financial wellness program for their employees to alleviate financial-related stresses and guide their employees to financial fitness. Our programs aim to educate employees on money management and reduce financial burdens. Financial wellness programs may provide financial coaching on specific topics, online education, budgeting tools, and credit resources.
Think of business as a team sport (because it is). Your employees are your players, and it's the job of the employer to provide the resources, training, and support needed for the team to succeed and accomplish the goals you set. But just as in sports, there are ‘injuries’ or attitudes that keep an employee from working effectively, staying focused, or from coming to work at all. Financial stressors like debt or living paycheck to paycheck can keep employees from being happy and productive.
These studies and many more show that financial stress can have a significant negative impact on employee productivity, job performance, and overall well-being. However, providing financial education and resources to employees can improve their financial literacy and help reduce financial stress, leading to increased productivity and a more engaged workforce.
Financial wellness programs can help employees reduce stress, increase productivity, and form a stronger bond with the company. They can also reduce absenteeism and help employees feel more confident and prepared for the future.
Employee financial wellness programs can benefit workers in several ways. For instance, employees may need assistance in saving for significant life events such as weddings, homes, education, or retirement. They may also require support in managing everyday expenses, such as bills and debt payments. Employees also may not understand the significance of saving and may only grasp its importance when faced with an emergency.
Managing your finances requires focus, discipline, and a solid game plan. Lacking even one is a problem, but there are plenty of people without any of the three. Fortunately anyone can learn to manage their finances and reach financial wellness with the right teacher. Comprehensive financial wellness programs likeFinancial Footwork’s help employees tackle the following financial challenges:
The key to a winning budget is setting goals, tracking expenses, and adjusting as needed. Your employees will learn how to hit the target and stay within their budget.
It's crucial to have a solid defense against debt and credit problems. Your employees will learn how to tackle their debts head-on and stay ahead of the game.
Saving is like playing defense, it's all about protecting your hard-earned money. Your employees will learn how to save like a pro and secure their financial future.
Taxes can be a real game changer, but with the right moves, you can minimize your liability and maximize your returns. Your employees will learn how to make the right moves and keep their finances in check.
Insurance is like having a safety net, it provides peace of mind and protects you from unexpected events. Your employees will learn how to choose the right insurance and protect their assets.
A well-rounded financial wellness program can have a positive impact on employees in multiple ways, improving their well-being, and morale while reducing your costs:
Anxiety and financial stress can be a significant distraction in the workplace, leading to decreased productivity levels. But with a comprehensive financial plan, employees can feel more in control of their finances and focus their energy on their work, increasing their productivity and benefiting the company as a whole.
Money stress can be a real game changer, causing anxiety and worry. However, with the support of a robust financial plan, employees can reduce their stress levels and approach their work with greater confidence and peace of mind.
Financial wellness is a collaborative effort, and working together towards shared goals can help foster closer connections between team members. By offering financial resources and encouraging dialogue around financial well-being, employers can strengthen team relationships and build a more united and supportive workforce.
Financial worries can take a toll on employees, leading to increased absenteeism rates that can ultimately cost your company. But with access to the right resources and financial tools, employees can adopt a more positive mindset and remain focused and present at work.
The cost of a financial wellness program will depend on factors such as company size, customization, and access to advisors or personalized help. Employers may be able to find a financial wellness program offered by a third-party provider they already use.
Providing financial wellness resources is a smart move for businesses looking to support their employees and attract top talent. Consider offering a financial wellness program to help your team handle their finances with confidence and peace of mind.
Financial Footwork LLC is dedicated to helping companies and their employees achieve financial wellness. We offer arange of options to meet the unique needs of each organization, from keynote speaking engagements and events, to custom financial wellness solutions and online financial dashboards. Whether you're looking for a one-time engagement or a full-scale customized program, our team is here to help.
Instead of spending time and effort just to treat the symptoms and manage your financially struggling employees, tackle the real problem that’s often underlying their anxiety: improperly managed finances. A well-designed financial wellness program will help employees understand their financial health, manage their money, reduce financial stress, and improve their attitude, attendance, and productivity at work.
Here's what a financial wellness program can look like:
The cost of a financial wellness program will vary based on the size of the company, customization, and the level of support and services requested. The goal is always to provide the right resources to meet the financial needs of your employees.
Be proactive about fixing the issues keeping your employees from being the best they can be. Provide them with the resources they need to succeed in their financial lives. Offer a financial wellness program today and watch as your team grows stronger and more financially confident.
Every corporation has different needs. That’s why we work with you to customize your financial wellness program to your employees’ needs. Whether you want to support mid-level managers to secure their retention or help new employees manage money better-we can help. Learn more about how we customize bygetting in touch. A member of our team will walk you through the process, answer your questions, and you can see how we do the hard work to make money easy and your employees more productive.
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