Profit from Peace of Mind: How Employee Financial Wellness Programs Drive Business Success

Looking to improve bottom line business results?

Improve your employee productivity and retention through financial wellness programs, which can serve as a foundational component of a competitive benefits package. Employers are increasingly recognizing the value of offering comprehensive financial wellness programs, which have proven benefits for both employees and employers.

The Growing Importance of Financial Wellness Programs

A 2022 study by Morgan Stanley at Work highlighted how employees, feeling the pressure of financial stress, are cutting back on retirement contributions and facing challenges in their work lives due to money-related anxiety. In fact, 85% of HR leaders surveyed emphasized that financial wellness benefits are now more critical than they were just a year ago.

Financial stress can seep into every aspect of an employee’s life, affecting their physical and mental well-being. By addressing this through financial wellness programs, employers can significantly improve employee retention, productivity, and loyalty. As Jesse Mecham, founder of YNAB (You Need a Budget), put it, “A financially content, non-stressed employee stays at their employer longer. We want them to be productive, happy, and creative, without money stress getting in the way.”

Benefits for Employers: Productivity and Enhanced Retention

A financially stressed employee is often an unproductive one, which can have a direct impact on a company’s bottom line. Employees can spend a significant amount of time during work hours managing financial stress, which detracts from their productivity.

An employee who is not worried about his/her financial situation can be more focused while on company time.  More focus not only leads to more productivity, but more job satisfaction, and satisfied employees are less likely to leave their employer.

Additionally, knowing that one's employer cares about his/her personal financial success and peace of mind can increase an employee's loyalty to that company.  Offering financial wellness programs can make a significant difference in retaining top talent.

Benefits for Employees: Addressing Financial Stress at Its Source

One challenge employers may face is recognizing the need for financial wellness programs. Low attendance at seminars about 401(k) plans, for example, might indicate that employees are preoccupied with more immediate financial concerns, such as paying off debt or covering medical expenses.

Employers can gauge the need for financial wellness programs by conducting anonymous surveys, allowing them to tailor the programs to meet specific employee needs. Employers will often find that if the more pressing financial concerns are addressed first, then employees can broaden their scope to focus on their 401(k) plan and other retirement planning benefits.

I recommend programs in which employees learn to manage their money effectively, leading to tangible results like debt reduction and increased retirement savings. By addressing root financial issues, these programs ensure that employees can fully benefit from the financial resources offered by their employers.

Tailoring Programs to Life Stages

Financial wellness programs should cater to employees at various life stages, from recent graduates to those nearing retirement. More important than age is the program's ability to address significant life events, such as getting a raise, buying a home, or having a baby.

Engaging HR departments to promote these benefits, especially during key life events, can ensure that employees are aware of and utilize these resources. Continuous engagement and reminders about available benefits are essential to the success of financial wellness programs.

Changing Financial Behavior for Lasting Results

Providing employees with tools to manage financial stress can have a profound impact, both personally and professionally. Reducing financial stress can lead to fewer lost workdays and improved productivity, benefiting both the employee and the employer.

As Mecham, from YNAB agreed, “If businesses implement financial wellness programs for their employees, it’s a win-win. You’ll have happier, less stressed employees, which ultimately benefits the entire organization.”

Take the Next Step

As a Financial Planner, Investment Advisor and an experienced speaker, I am devoted to empowering women to take charge of their financial futures. In my corporate speaking engagements, I provide valuable insights that not only enhance personal financial security but also contribute to professional success for both men and women.

As an aside… It’s a common misconception that financial presentations are boring or unappealing to women, often feeling intimidating or overwhelming. This is not due to a lack of understanding; rather, it’s likely because these presentations are traditionally designed by and for men, failing to resonate with women. This disconnect can lead to lower participation and inaction among female employees.

By inviting me to speak at your next corporate meeting or Employee Resource Group (ERG) gathering, you invest in a future where your employees feel valued, motivated, and prepared to embrace new challenges. Together, we can foster a resilient organization that excels in today’s competitive landscape.

Discover how my speaking engagements can propel your organization forward. Let’s collaborate to empower your workforce and drive your business to new heights. Contact me today: lisa@clearspringswealth.com