Manage HR Magazine | Monday, January 31, 2022
Financial coaches, benefit funds, and employer-paid student loans can all help to assuage current employees' concerns. When employers can eliminate these types of distractions, their productivity rises, and their organization thrives.
Fremont, CA: Companies are always looking for ways to gain a competitive advantage in attracting and retaining qualified employees. People want jobs that provide more than just paid time off and health insurance. Employees want advantages such as student loan assistance and assistance with personal financial planning.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
As a result, many companies have shifted their focus to employee financial wellness programs in order to add value to their compensation packages. Employers place such a premium on employee financial wellness that flexible earned wage access (FEWA) is expected to grow by 20 percent over the next two years.
Companies must consider employee financial wellness programs in order to remain competitive in the labor market. This article will explain what employee financial wellness is, why it is important, and how to determine which programs would be most beneficial to employers. It will also highlight the various financial wellness programs that are available to employees.
How Financial Wellness Programs Advantage Employers:
Decreasing Absenteeism
Organizations save on labor costs when employees do not miss work due to financial stress. Harvard researchers investigated the return on investment of wellness programs related to absenteeism. They showed that for every dollar spent on wellness programs, businesses could save $2.73 and reduce absenteeism.
Fortunately, financial wellness programs can provide employees with alternatives to worrying about money. Financial coaches, benefit funds, and employer-paid student loans can all help to assuage current employees' concerns. When employers can eliminate these types of distractions, their productivity rises, and their organization thrives.
Workforce Productivity Improvement
Many challenges awaited employees in 2022, including financial stress and decreased workforce productivity. Employees who experienced increased financial stress as a result of the pandemic were four times more likely to admit that their finances were a distraction at work.
Fortunately, financial wellness programs can provide employees with alternatives to worrying about money. Financial coaches, benefit funds, and employer-paid student loans can all help to assuage current employees' concerns. When employers can eliminate these types of distractions, their productivity rises, and their organization thrives.
More in News