A healthier workforce is a blessing to an organization. Employers run various programs to ensure their employees are physically fit and maintain a good work life balance. In their efforts to promote healthy habits at workplace organizations provide facilities like gym, yoga sessions, health & hygiene workshops, award them for being physically fit, etc. and the list goes on. Most organizations feel that offering a well curated health and wellness programs can help their employees perform optimally. However, a latent and big piece in the employee wellness is missed by most of the organizations which is financial wellness. Employees’ financial wellness and its impact on their productivity, performance, and overall well-being incidentally has a direct impact on an organization.
Various studies have shown financial stress as one of the biggest workplace distractions for employees, particularly millennials. Moreover, personal monetary challenges, including high debt and living paycheck to paycheck makes it all the more important for organizations to include a comprehensive financial wellness program to its employee benefit menu.
Following are the reasons for organizations to offer financial wellness program to its employees:
Improve Employees’ Physical and Mental Health
As per the Global Benefits Attitudes Survey(2016) by Willis Towers Watson, 75% of Indian employees admit to above average or high level of stress due to concerns over finance. A rise in employees’ stress has resulted in stress-related symptoms and poor health management. Offering a support they need in form of a need based financial wellness program will not only help your employees reduce their stress levels, but also lead a healthy life, thereby focusing more on their work and life.
Increase Employee Productivity by reducing distractions at Work
According to a recent survey by PricewaterhouseCoopers (PwC), stress related to finances is one of the primary reasons for employee stress and distraction at work. 28% of the total employees surveyed, have reported that concerns over money have been distraction at work and they end up spending up to 3 hours or more tackling with issues related to Personal Finance while at work. A need based and customized program would help in addressing employees’ financial concerns and thus reduce distraction. An employee with less monetaryl concerns will focus more on his/her job which in turn will increase their productivity.
Increase Employee Engagement
Concerns over disengaged employees has always troubled HR professionals. Most of the time the reason for disengagement has been overlooked. A program that helps the HR professionals identify the real reason behind an employee being disengaged is a must for the organization. A tailor made program suiting the needs of these critical set of employees and rewarding them for a change in their behavior towards their own finances increases the chance of making the employee more engaged.
Identify Critical Employee Segments
Personal Finance and discussion around the same in public forum is presumed to be intruding by many. However, neglecting this aspect can be dangerous as the repercussions are long lasting. As mentioned in the previous paragraph, a Financial Wellness Program that helps an employer identify the employees who are affected more by financial concerns, often tagged as critical employees; makes more sense than any other employee need assessment initiative. The employer can offer customized solutions to address the financial concerns for these segment of employees.
Helps build Employee Loyalty
An employer who shows concern over its employees’ financial worries and takes action to address them becomes an Employer of Choice thereby reinforcing the employee faith in the organization. Employees who feel valued and taken care of depict more loyalty than others. According to the PwC study, 54% of all millennials have stated that loyalty to their company is greatly influenced how much their organization cares about their financial health.
Helps gain competitive edge
Insights from 2016 survey by Aon Hewitt showing that 55% of employers already provide guidance to their employees on personal finance is a pre-cursor to making financial wellness a priority. In order for an organization to be competitive in terms of recruiting the right talent and retaining them promoting a financial wellness program becomes the need of the hour.
By implementing a financial wellness program, an organization paves the path to financial greatness of its employees. Making Financial Wellness a priority in the organization helps it position itself as a business that cares about employee wellness in the workplace and stay competitive.