Employee Financial Wellness & its Relation to Satisfaction and Productivity

Imagine the following: it’s a Wednesday afternoon and you are up to your neck in work. You get a phone call from your significant other that your refrigerator has just quit working. You both work hard to provide for your family, but you feel stuck in a cycle living paycheck-to-paycheck. This is the worst time for something like this to happen. After all, you have basketball shoes to buy for Emma, and Ayden has been begging for a new PlayStation 5 that you once promised him.

At this point, you are no longer focused on your work and your only concern is scouring the web for a refrigerator that you can afford with what little bit of credit is left on that one emergency credit card. Honorable mention in the reasons you’re not focused on work: the ‘ole race against the clock on your food spoiling at home.

How could a robust financial wellness program improve employee satisfaction?

Unfortunately, for many of today’s workers, the above scenario sounds all too familiar in one way or another. Employee cash needs often extend beyond what their paychecks cover. In the situation above, a purchasing assistance program like the one offered by BenefitsMe could have offered financial relief and a sense of stability to combat the distracting stress that comes with unexpected emergencies. With BenefitsMe, employees can shop for quality items like electronics, appliances, furniture, baby and kid necessities, and even travel packages without the unnecessary financial stress of an unexpected purchase.

Employee financial wellness programs are becoming more and more in demand. Not just viewed as perks, they’re considered requirements within today’s benefits packages. Companies who offer financial wellness programs are being rewarded with happier and more fulfilled employees and their bottom lines are also seeing a bump that is reflecting the increased employee productivity gained by eliminating distractions and the mental burden created by financial uncertainty.

But, what exactly is ‘financial wellness’? While there are different elements to financial wellness, the goal is having control over your day-to-day & month-to-month finances. To some, that includes being able to absorb a surprise bill, setting financial goals and being on track to meet them, or simply obtaining some financial freedom to enjoy things beyond everyday needs.

As new generations enter the workforce, introducing a fresh take on benefits packages with options such as those that include employee financial wellness programs is the best way to show your long term investment into prospective job candidates and current employees.

Employee finances are causing stress in the workplace

We hear often that money (or lack thereof) is the biggest stressor. Even the most zen staff member would have a hard time focusing on work entirely if they had financial stress on their mind.

A Prudential survey found that those who used financial wellness programs reported better/increased mental health, lower stress levels, and better physical health than those who did not. Additionally, the same survey reported that 44% of employees who had access to financial wellness benefits reported being more optimistic about their financial future vs. 32% of those without those same benefits (Prudential, 2019).

A 2023 Employee Financial Wellness study conducted by Price Waterhouse Cooper (PwC) also provided insight into employee stress and their level of satisfaction in the workplace.

Here are some of the findings:
● 57% of respondents named finances as the top cause of stress in their lives.
● 60% of full-time employees are stressed about their finances
● 74% want financial guidance/benefits to be offered through their employer
● 54% of financially stressed employees feel there was a promising future for them at
their employer and they were twice as likely to be looking for a new job

Financial wellness relief beyond salary increases

Employees are looking for support from their employers, providing C-suite executives with an opportunity to think “what are some ways we can alleviate some of these concerns?” Some executives might believe that simply increasing compensation would be the sole answer to these concerns, but that would only be one (albeit important) part of the solution.

Paying an honest and fair wage would be a fantastic start, but time-and-time again employees have shown they want more from their employers. A TIAA Financial Wellness Survey published in January 2022 showed that 65% of Gen Z’ers and 61% of Millennials believe it is an employer’s responsibility to provide, improve, and maintain their employees’ financial wellness. As these are the two generations of workforce members who will be directly replacing the Boomer generation, they are telling employers that financial wellness offerings are an important differentiator when deciding on an employer.

Impactful Results of Financial Wellness Programs

What are some other areas within the company that may benefit from these types of programs? Beyond an overall increase in employee satisfaction ratings, employers who offered financial wellness benefits saw employee unplanned absences fall by 24%. Not only were unplanned absences reduced because there were less financial emergencies, but seven in ten employees feel employee financial wellness programs aided in stress reduction and increased loyalty to their employer (John Hancock, 2019).

With numbers like that, one thing becomes clear: offering financial wellness benefits, whether it’s matching 401k contributions or a purchasing assistance program like BenefitsMe, is a key to building and sustaining a more productive, satisfied, and engaged workforce.

Ready to boost your employee satisfaction and productivity? Connect with us today!

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