Almost 80% of Americans work somewhere that offers a retirement plan. Unfortunately, only half use it. Financial wellness programs can be a better alternative.
Financial stress can lead to changes in physical and mental health. Consequently, it can impact health and productivity costs at a company for years to come.
Companies that address employee stress see positive changes in many areas of their business.
Lower Financial Stress
Financial wellness programs reduce employee stress. On average, stressed employees lose up to 5 hours of productivity every week. That adds up to millions of dollars per year.
Programs that better address employees’ financial needs can help reduce stress and make them feel more confident with their decisions.
For some employees, half the time they spend at work is spent feeling stressed. Often, it’s stress about debt and paying their bills.
Addressing these financial needs can help improve employee satisfaction all around.
Having better financial benefits can also make it easier to attract stronger talent.
For some employees, like millennials, better benefits lead to higher retention rates.
Employees who feel like their employer empowers them say they would be more likely to stay at an organization longer.
Engaged At Work
One of the best success metrics of a financial wellness program is employee engagement.
When employees feel like their finances are under control, they’re more engaged at work.
While retirement benefits are still important, financial wellness platforms may be better able to help employees with their day to day financial problems. They can both lower financial stress for employees and make it easier to hire strong talent.
For more information about the benefits of a financial wellness program is available in our guide, Creating a Budget for Your Financial Wellness Program.