As more employees are feeling the stress of an unpredictable economy, employers are leaning into the idea of a comprehensive financial wellness strategy. Offering customized courses to help employees think differently about finances is a win for workplace culture while offering multiple benefits for organizations.
Employees are feeling anxious about finances
Financial anxiety is probably one of the biggest secrets employees are trying hard to keep private. Unfortunately, the stress shows up on the job and impacts productivity. A 2020 stress survey by John Hancock cited 39 percent of those surveyed before the pandemic were feeling financially stressed. That increased to 63 percent during the pandemic with those feeling extreme financial stress – a triple increase from 8 to 26 percent.
Financial wellness programs offer employees an opportunity to acknowledge their challenges with money management and build customized solutions. With an adequate financial wellness program, employees gain more confidence in long-term financial planning and avoid common pitfalls that lead to large debt.
There is a demand for financial wellness education
According to the 2020 survey conducted by the National Foundation for Credit Counseling (NFCC), “78 percent of U.S. adults agree that considering what they already know about personal finance, they could still benefit from financial advice and answers to everyday financial questions from a professional.”
The survey also revealed 1 in 4 U.S. adults would reach out to a professional non-profit credit counseling agency for assistance.
A more productive workplace
Managing mounting financial debt impacts the workplace in multiple ways, including reduced productivity. The John Hancock Stress Survey shows 43% of workers spend at least some time on their personal finances while at work. Also noted in the survey, “Among those who worry about finances at work, close to half say their productivity would increase if they didn’t spend time at work worrying about personal finances.”
A broader financial wellness program is a key element to reducing some of the work-related issues due to an employee’s financial anxiety. Other benefits could include a higher employee retention rate and an expanded pool of top talent.
Among the many things revealed by the recent pandemic is that nothing is certain – and that includes financial security. Employers would benefit in the long-term with the addition of a financial wellness program to empower employees with the tools and knowledge to manage money today and into the future.
Foundation for Financial Wellness is an educational nonprofit that provides financial wellness courses and counseling to empower individuals to achieve their financial goals. Learn more about our employee programs.
Contact us to learn more about this and other financial wellness topics.