Financial Wellness in the Workplace: A Must Have.
Rising cost of living, inflation at a high globally, mass layoffs becoming the new normal for workplaces... it is no secret why the average person in North America is stressed out financially.
Financial stress is a concern for employees at all income levels: According to PwC's 2023 Employee Financial Wellness Survey, even among employees earning more than $100,000 or more, 47% report feeling stressed by finances.
It's time to starting considering finanical wellness and the impact it has in the workplace.
Understanding Financial Wellness
Financial wellness is more than just having a good salary. It encompasses a person's entire financial situation, including their ability to manage expenses, save for the future, and handle unexpected costs. In the workplace, financial wellness programs aim to equip employees with the knowledge and tools they need to achieve financial stability.
When employees feel financially secure, they are more focused and productive at work. They are less likely to be distracted by financial worries and more likely to engage fully in their roles.
The Benefits of Financial Wellness Programs
Implementing financial wellness programs in the workplace can lead to several positive outcomes. These programs often include workshops on different financial management topics, stress management techniques and they may also offer one-on-one financial counseling.
Employees who participate in these programs often report lower stress levels. They feel more confident in their financial decisions and are better prepared for the future.
Increased Productivity
One of the most significant benefits of financial wellness programs is increased productivity. When employees are not distracted and preoccupied with financial concerns, they can concentrate better on their work. This leads to higher quality output and improved job performance.
Enhanced Employee Retention
When employees are burdended by money matters or suffering from financial stress, they are more likely to be searching for other jobs with higher pay or greater benefits- and you can't blame them.
More money though is not always the solution to financial stress and does not make our money problems go away. Often with education, mindfulness and better money management habits people can reduce their financial stress and achieve financial wellness.
For employers, it is important to proactively help employees achieve financial wellness to avoid high turnover rates and losing good talent.
Introducing Financial Wellness in the workplace
Financial wellness in your workplace does not have to be complicated. Here are some steps to get started:
- Assess the financial needs of your employees through surveys, focus groups or 1:1's.
- Partner with financial experts to provide interactive workshops, lunch & learns or counseling.
- Encourage a culture of financial literacy by promoting ongoing education.
- Offer a retirement matching contribution program to help employees save for their future.
By following these steps, you can create a program that meets the specific needs of your employees. This tailored approach will make the program more effective and beneficial for everyone involved.
Conclusion
Financial wellness in the workplace is essential for both employees and employers. It leads to increased productivity, enhanced employee retention, and overall better job satisfaction. By implementing financial wellness programs, companies can support their employees in achieving financial stability and success.
Investing in your employees' financial health is not just a benefit for them; it is a strategic move that can lead to a more engaged and productive workforce. Start exploring financial wellness options today and see the positive impact it can have on your organization.
Because when your employees thrive, your business thrives.