Financial Wellness Benefits

Financial wellness has long been a focal employee benefit for employers across all industries. In recent surveys, nearly half of employers stated they are either actively developing a financial well-being plan or expanding their current financial well-being initiatives. Their reasons: 1) A financial wellness program can help their companies recruit and retain employees, boost productivity, and reduce absenteeism, and 2) “It’s the right thing to do.”

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What are financial wellness benefits?

At its core, the concept of financial wellness is one of financial security. However, while employer-based financial wellness programs are an addition to standard employee benefits, we should see them not only as companies looking after their employees when they are sick, but also as measures to prevent sickness in the first place.

Financial wellness benefits are a crucial part of any company’s strategy to help their employees cope with workplace stress and productivity difficulties. They can encompass everything from budgeting education and debt reduction to crisis management, providing employees with holistic support and counsel so they may address short-term needs while working toward long-term objectives.

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Why are financial wellness benefits on the rise?

Short answer: stress. It’s on the rise among employees. According to a recent survey by John Hancock, the prevalence of stress has increased since the pandemic began last year. Two-thirds of Americans are currently experiencing financial hardship, with 27 percent experiencing “high levels” of financial stress. Simply put, workers are becoming increasingly unsure about how to manage their financial concerns and this was magnified by the COVID-19 pandemic.

Workplace distractions, absenteeism, and high turnover can all be caused by financial stress. These difficulties might have a significant impact on a company’s bottom line. How much of an impact? According to MetLife’s 17th annual U.S. Employee Benefit Trends Study 2019, 1 in 3 employees admit to being less productive due to stress. This could mean that for a company of 10,000 employees, there could be about 1,922 hours and $28,830 in lost productivity every week. Additionally, overall, employers report a loss of $250 billion a year due to stress at work.

Based on the results from the 2021 PwC Employee Financial Wellness Survey, employees who have encountered significant financial stress due to the pandemic are four times more likely to have seen a fall in overall household income and find it difficult to meet monthly household expenses on time.

The data also showed that the surveyed employees are twice as likely to:

63% of employees say that their financial stress has increased since the start of 2020

PwC’s 10th annual Employee Financial Wellness Survey, PwC US, 2021

Financial wellness benefits are a must

Many employers provide various medical and retirement-related benefits to assist employees while protecting their staff and planning for their goals, both short-term and long-term. However, employees are still under financial strain. And companies are beginning to realize that they need to help their staff improve their financial well-being; this is where financial wellness programs come into play.

And the good news is that it’s not only the employees who will benefit from these types of programs. Employers who commit to their employees’ financial health can see long-term benefits like attracting new personnel and retaining employees, increasing overall productivity, lowering absenteeism, and improving their bottom line.

Top 3 most popular types of financial benefits

Employees are reviewing and reevaluating their priorities, and they’re looking at how their company supports their well-being and ability to achieve a sense of balance in their lives. Some of the top benefits a vast majority of American employees are considering a priority include:

Financial wellness programs. These are initiatives designed to assist its employees in taking control of their money by providing tools to help them spend more wisely, decrease debt, and save more.

Student loan repayment assistance. Student loan debt can not only be financially crippling, but it can also severely deteriorate an employee’s mental health, which is why an employer-provided loan aid program could be critical for a workforce.

Mental/emotional health benefits. As explained before, stress can affect productivity. Year after year, the number of employees that struggle with anxiety and depression grows, resulting in high rates of burnout at work.

Creating a financial wellness program at your company

When it comes to determining which financial wellness programs are ideal for their workforce, employers have many alternatives. What is great for one organization may not be suitable for another, so it’s critical to take a comprehensive and employee-centric approach when evaluating prospective solutions.

To develop a sound financial wellness plan, employers must:

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Around 80% of employees want financial wellness benefits or tools at their workplace. But only 20% percent of employers offer them. Source:
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We can help you!

As work and life become more entwined, companies must assist workers in reducing stress so that they may flourish both at work and home. Financial wellness programs can substantially aid these goals. It’s a win-win situation for individuals and businesses alike. Many employees want their companies to help them with their financial well-being, and many companies, particularly younger ones, recognize that they have a role to play in their staff’s long-term future.

With holistic financial wellness programs built around benefits and guidance, companies can set their employees up for sustained economic success while also advancing their own goals as an organization.

And if you are unsure where to start, allow us to demonstrate our capabilities. Please feel free to contact us, and we can go over your and your employees’ needs.

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