Manage HR Magazine | Tuesday, October 03, 2023
Financial well-being is a priority for employees of companies who invest in their careers. Health, stability, and security are directly impacted by economic well-being, which is more than just employees' pockets.
Fremont, CA: Employee financial wellness has become the new norm for organizations - and with good reason. The effects of financial stress extend far beyond an employee's wallet. They influence everything from productivity to mental health to retention.
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.
The following are reasons why financial well-being should be a part of your employee benefits package.
Stress Lowers Productivity
According to a PwC survey, more than 60 percent of employees report increased financial stress since the COVID-19 pandemic began. Financial distress can easily affect an employee's performance at work and interfere with their ability to complete their duties.
PwC found that employees whose financial stress increased due to the pandemic were four times more likely to admit that finances are distracting at work. Stress can cause health issues, burnout, and resignation over time.
Financial Wellness Can Help Retain Talent
There has been a spike in resignations due to financial stress, burnout, and other COVID-19-related factors, also known as the "Great Resignation." When times are uncertain, offering economic wellness benefits is a way to support employees — and employees understand this as well.
Financial well-being is a priority for employees of companies who invest in their careers. Health, stability, and security are directly impacted by economic well-being, which is more than just employees' pockets. Both current and future employees may find it highly motivating to incorporate financial wellness into their overall wellness program.
Mental Health and Financial Well-Being
Both employees and employers have had to reconsider their approach to mental health in the wake of COVID-19. As employers address employee wellbeing and provide support, they must also consider the financial well-being of their employees.
Money impacts all aspects of life, including family, home, work, and stress, and its effects do not function in a silo.
Retirement and Student Loan Benefits
The concept of financial wellness applies to all employees in some way. Different generations have different financial goals, especially in a multigenerational workplace. As part of a financial wellness program, employees can address their financial goals and stress, which are most important to them.
Some older employees may not be attracted to student loan benefits, while some millennials may need to know about retirement plans.
More in News